should oxycyte successfully progress in clinical testing and it appears regulatory approval for one or more medical uses is likely , either in the united states or in another country , we will evaluate our options for commercializing the product . these options include licensing oxycyte to a third party for manufacture and distribution , manufacturing oxycyte ourselves for distribution through third party distributors , manufacturing and selling the product ourselves , or establishing some other form of strategic relationship for making and distributing oxycyte with a participant in the pharmaceutical industry . we are currently investigating and evaluating all options . 20 dermacyte the dermacyte line of topical cosmetic products employs our patented pfc technology and other known cosmetic ingredients to promote the appearance of skin health and other desirable cosmetic benefits . dermacyte is designed to provide a moist and oxygen-rich environment for the skin when it is applied topically , even in small amounts . dermacyte concentrate has been formulated as a cosmetic in our lab and dermacyte eye complex was created by a contract formulator , with the patent held by oxygen biotherapeutics . both formulas have passed all safety and toxicity tests , and we have filed a cpis with the fda . the market for oxygen-carrying cosmetics includes anti-aging , anti-wrinkle , skin abrasions and minor skin defects . in september 2009 , we started production of our first commercial product under our topical cosmetic line , dermacyte concentrate . we produced and sold a limited pre-production batch in november 2009 as a market acceptance test . the product was sold in packs of 8 doses of 0.4ml . based on the test market results we identified specific market opportunities for this product and reformulated dermacyte concentrate for better product stability . marketing and shipments of the new dermacyte concentrate formulation began in april 2010. we have also developed a 10ml pump package for dermacyte concentrate that should be available for market this summer . we worked with a contract formulator in california to develop the dermacyte eye complex which contains pfc technology as well as other ingredients beneficial to the healthy appearance of the skin around the eyes . we anticipate that both formulations should be ready for sale by the second quarter of fiscal 2011. we market and sell these products through www.buydermacyte.com and to dermatologists and medical spas with a combination of in-house sales and exclusive distributors . we have hired a sales manager based in new york , and we intend to add sales people in other major urban areas like los angeles and miami . we have entered into an agreement with a sales representative for the territories of arizona and michigan , and we intend to add more territories with agents or distributors . additional potential topical applications of our pfc technology that are under development include : dermacyte moisturizing lotion : an evolution of the dermacyte line that will contain spf to protect the skin from uv-rays while beautifying . rosacyte : incorporates perfluorocarbon technology to be used as a healing gel against rosacea . acnecyte : incorporates perfluorocarbon technology to be used as a healing gel against acne . wundecyte our wound product , wundecyte , is a novel gel developed under a contract agreement with a lab in virginia . wundecyte is designed to be used as a wound-healing gel . in july 2009 , we filed a 510k medical device application for wundecyte with the fda . several oxygen-producing and oxygen-carrying devices were cited as predicate devices . the fda response was that the application likely would be classified as a combination device . the drug component of the combination device will require extensive preclinical and clinical studies to be conducted prior to potential commercialization of the product . we have also developed an oxygen-generating bandage that can be combined with wundecyte gel . wundecyte gel and the oxygen-generating bandage both entered preclinical testing in our first quarter of fiscal 2011. the studies will look at factors such as time to wound closure and reduction in scar tissue formation as compared to a control group . preliminary results are expected later this year . our current product development plan is for wundecyte to emerge into more complex wound-healing indications , also in combination with oxygen-producing technologies based on hydrogen peroxide . additionally , we are developing preclinical research protocols for the treatment of burns and other topical indication based on our pfc . we intend to develop additional clinical research protocols for topical indications , including the treatment of acne and rosacea . however , we can provide no assurance that the topical indications we have under development will prove their claims and be successful commercial products . results of operations  comparison of years ended april 30 , 2010 and 2009 replace_table_token_2_th 21 research and development expenses research and development expenses include , but are not limited to , ( i ) expenses incurred under agreements with contract research organizations , or cros , and investigative sites , which conduct our clinical trials and a substantial portion of our pre-clinical studies ; ( ii ) the cost of manufacturing and supplying clinical trial materials ; ( iii ) payments to contract service organizations , as well as consultants ; ( iv ) employee-related expenses , which include salaries and benefits ; and ( v ) facilities , depreciation and other allocated expenses , which include direct and allocated expenses for rent and maintenance of facilities and equipment , depreciation of leasehold improvements and equipment and laboratory and other supplies . all research and development expenses are expensed as incurred . the increase in research and development expenses for the year ended april 30 , 2010 was driven primarily by costs incurred for the development of dermacyte formulations and the costs associated with the phase ii-b clinical trials for oxycyte . story_separator_special_tag depreciation and amortization are computed using the straight-line method over the following estimated useful lives : laboratory equipment 3-5 years office furniture and fixtures 7 years computer equipment and software 3 years leasehold improvements shorter of useful life or remaining lease term maintenance and repairs are charged to expense as incurred , improvements to leased facilities and equipment are capitalized . income taxes deferred tax assets and liabilities are recorded for differences between the financial statement and tax bases of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income . valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized . income tax expense is recorded for the amount of income tax payable or refundable for the period increased or decreased by the change in deferred tax assets and liabilities during the period . stock-based compensation effective may 1 , 2005 , we adopted asc 718 compensation  stock compensation , using the prospective transition method , which requires the measurement and recognition of compensation expense for all stock-based payment awards granted , modified and settled to our employees and directors after may 1 , 2005. our financial statements reflect the impact of asc 718. we chose the straight-line attribution method for allocating compensation costs and recognized the fair value of each stock option on a straight-line basis over the requisite service period . we account for equity instruments issued to non-employees in accordance with asc 505-50 accounting for equity instruments that are issued to other than employees for acquiring , or in conjunction with selling , goods or services . equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic adjustment as the underlying equity instruments vest . loss per share basic loss per share , which excludes antidilutive securities , is computed by dividing loss available to common shareholders by the weighted-average number of common shares outstanding for that particular period . in contrast , diluted loss per share considers the potential dilution that could occur from other equity instruments that would increase the total number of outstanding shares of common stock . such amounts include shares potentially issuable under outstanding options , warrants and convertible debentures . a reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share follows . replace_table_token_4_th 26 the following outstanding options , convertible note shares and warrants were excluded from the computation of basic and diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect . replace_table_token_5_th operating leases we maintain operating leases for our office and laboratory facilities . the lease agreements may include rent escalation clauses and tenant improvement allowances . we recognize scheduled rent increases on a straight-line basis over the lease term beginning with the date we take possession of the leased space . differences between rental expense and actual rental payments are recorded as deferred rent liabilities and are included in other liabilities on the consolidated balance sheets . fair value on may 1 , 2008 , we adopted asc 820 fair value measurements , as it relates to financial assets and financial liabilities . our balance sheet includes the following financial instruments : cash and cash equivalents , short-term notes payable and convertible debentures . we consider the carrying amount of our cash and cash equivalents and short-term notes payable to approximate fair value due to the short-term nature of these instruments . it is not practicable for us to estimate the fair value of its convertible debentures as such estimates can not be made without incurring excessive costs . the significant terms of our convertible debentures are described in note d. at april 30 , 2010 and 2009 the debentures had a gross carrying value of $ 15,903 and $ 351,867 , respectively , with unamortized discounts totaling $ 5,725 and $ 124,152 , respectively . in addition to the above financial instruments , we maintain an investment in a start-up technology company , glucometrics , inc. the investment is recorded in other assets , at cost . this investment totaled $ 0 and $ 114,193 at april 30 , 2010 and 2009 , respectively . we review this investment quarterly , including historical and projected financial performance , expected cash needs and recent funding events . we recognize other-than-temporary impairments if the market value of the investment is below its cost basis for an extended period of time or if the issuer has experienced significant financial declines or difficulties in raising capital to continue operations . we recorded an other-than-temporary impairment of $ 114,193 in the fourth quarter of 2010. see note d for additional details . recent accounting pronouncements in september 2009 , the financial accounting standards board , or fasb ratified revenue arrangements with multiple deliverables issued as accounting standards update , or asu , 2009-13. asu 2009-13 updates the existing multiple-element arrangements guidance currently included in asc 605-25 , revenue recognition  multiple-element arrangements . the revised guidance provides for two significant changes to the existing multiple-element arrangements guidance . the first relates to the determination of when the individual deliverables included in a multiple-element arrangement may be treated as separate units of accounting . this change is significant as it will likely result in the requirement to separate more deliverables within an arrangement , ultimately leading to less revenue deferral . the second change modifies the manner in which the transaction consideration is allocated across the separately identifiable deliverables . these changes are likely to result in earlier recognition of revenue for multiple-element arrangements than under previous guidance . asu 2009-13 also significantly expands the disclosures required for multiple-element revenue arrangements . the revised multiple-element arrangements guidance will be

liquidity oxygen biotherapeutics has financed its operations since september 1990 through the issuance of debt and equity securities and loans from stockholders . as of april 30 , 2010 , we had $ 2,184,826 of total current assets and working capital of $ 785,483. our practice is to invest excess cash , where available , in short-term money market investment instruments . 23 we are in the preclinical and clinical trial stages in the development of our products . for example , we are currently conducting phase ii-b clinical trials for the use of oxycyte in the treatment of severe traumatic brain injury . even if we are successful with our phase ii-b study , we must then conduct a phase iii clinical study and , if that is successful , file with the fda and obtain approval of a biologics license application to begin commercial distribution , all of which will take more time and funding to complete . our other products must undergo further development and testing prior to submission to the fda for approval to initiate clinical trials , which also requires additional funding . management is actively pursuing private and institutional financing , as well as strategic alliances and or joint venture agreements to obtain the necessary additional financing and reduce the cost burden related to the development and commercialization of our products though we can give no assurance that any such initiative will be successful . we expect our primary focus will be on funding the continued testing of oxycyte , since this product is the furthest along in the regulatory review process . our ability to continue to pursue testing and development of our products beyond 2010 depends on obtaining license income or outside financial resources . there is no assurance that we will obtain any license agreement or outside financing or that we will otherwise succeed in obtaining the necessary resources .


 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 oxygen biotherapeutics has financed its operations since september 1990 through the issuance of debt and equity securities and loans from stockholders . as of april 30 , 2010 , we had $ 2,184,826 of total current assets and working capital of $ 785,483. our practice is to invest excess cash , where available , in short-term money market investment instruments . 23 we are in the preclinical and clinical trial stages in the development of our products . for example , we are currently conducting phase ii-b clinical trials for the use of oxycyte in the treatment of severe traumatic brain injury . even if we are successful with our phase ii-b study , we must then conduct a phase iii clinical study and , if that is successful , file with the fda and obtain approval of a biologics license application to begin commercial distribution , all of which will take more time and funding to complete . our other products must undergo further development and testing prior to submission to the fda for approval to initiate clinical trials , which also requires additional funding . management is actively pursuing private and institutional financing , as well as strategic alliances and or joint venture agreements to obtain the necessary additional financing and reduce the cost burden related to the development and commercialization of our products though we can give no assurance that any such initiative will be successful . we expect our primary focus will be on funding the continued testing of oxycyte , since this product is the furthest along in the regulatory review process . our ability to continue to pursue testing and development of our products beyond 2010 depends on obtaining license income or outside financial resources . there is no assurance that we will obtain any license agreement or outside financing or that we will otherwise succeed in obtaining the necessary resources .
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 Suspicious Activity Report : should oxycyte successfully progress in clinical testing and it appears regulatory approval for one or more medical uses is likely , either in the united states or in another country , we will evaluate our options for commercializing the product . these options include licensing oxycyte to a third party for manufacture and distribution , manufacturing oxycyte ourselves for distribution through third party distributors , manufacturing and selling the product ourselves , or establishing some other form of strategic relationship for making and distributing oxycyte with a participant in the pharmaceutical industry . we are currently investigating and evaluating all options . 20 dermacyte the dermacyte line of topical cosmetic products employs our patented pfc technology and other known cosmetic ingredients to promote the appearance of skin health and other desirable cosmetic benefits . dermacyte is designed to provide a moist and oxygen-rich environment for the skin when it is applied topically , even in small amounts . dermacyte concentrate has been formulated as a cosmetic in our lab and dermacyte eye complex was created by a contract formulator , with the patent held by oxygen biotherapeutics . both formulas have passed all safety and toxicity tests , and we have filed a cpis with the fda . the market for oxygen-carrying cosmetics includes anti-aging , anti-wrinkle , skin abrasions and minor skin defects . in september 2009 , we started production of our first commercial product under our topical cosmetic line , dermacyte concentrate . we produced and sold a limited pre-production batch in november 2009 as a market acceptance test . the product was sold in packs of 8 doses of 0.4ml . based on the test market results we identified specific market opportunities for this product and reformulated dermacyte concentrate for better product stability . marketing and shipments of the new dermacyte concentrate formulation began in april 2010. we have also developed a 10ml pump package for dermacyte concentrate that should be available for market this summer . we worked with a contract formulator in california to develop the dermacyte eye complex which contains pfc technology as well as other ingredients beneficial to the healthy appearance of the skin around the eyes . we anticipate that both formulations should be ready for sale by the second quarter of fiscal 2011. we market and sell these products through www.buydermacyte.com and to dermatologists and medical spas with a combination of in-house sales and exclusive distributors . we have hired a sales manager based in new york , and we intend to add sales people in other major urban areas like los angeles and miami . we have entered into an agreement with a sales representative for the territories of arizona and michigan , and we intend to add more territories with agents or distributors . additional potential topical applications of our pfc technology that are under development include : dermacyte moisturizing lotion : an evolution of the dermacyte line that will contain spf to protect the skin from uv-rays while beautifying . rosacyte : incorporates perfluorocarbon technology to be used as a healing gel against rosacea . acnecyte : incorporates perfluorocarbon technology to be used as a healing gel against acne . wundecyte our wound product , wundecyte , is a novel gel developed under a contract agreement with a lab in virginia . wundecyte is designed to be used as a wound-healing gel . in july 2009 , we filed a 510k medical device application for wundecyte with the fda . several oxygen-producing and oxygen-carrying devices were cited as predicate devices . the fda response was that the application likely would be classified as a combination device . the drug component of the combination device will require extensive preclinical and clinical studies to be conducted prior to potential commercialization of the product . we have also developed an oxygen-generating bandage that can be combined with wundecyte gel . wundecyte gel and the oxygen-generating bandage both entered preclinical testing in our first quarter of fiscal 2011. the studies will look at factors such as time to wound closure and reduction in scar tissue formation as compared to a control group . preliminary results are expected later this year . our current product development plan is for wundecyte to emerge into more complex wound-healing indications , also in combination with oxygen-producing technologies based on hydrogen peroxide . additionally , we are developing preclinical research protocols for the treatment of burns and other topical indication based on our pfc . we intend to develop additional clinical research protocols for topical indications , including the treatment of acne and rosacea . however , we can provide no assurance that the topical indications we have under development will prove their claims and be successful commercial products . results of operations  comparison of years ended april 30 , 2010 and 2009 replace_table_token_2_th 21 research and development expenses research and development expenses include , but are not limited to , ( i ) expenses incurred under agreements with contract research organizations , or cros , and investigative sites , which conduct our clinical trials and a substantial portion of our pre-clinical studies ; ( ii ) the cost of manufacturing and supplying clinical trial materials ; ( iii ) payments to contract service organizations , as well as consultants ; ( iv ) employee-related expenses , which include salaries and benefits ; and ( v ) facilities , depreciation and other allocated expenses , which include direct and allocated expenses for rent and maintenance of facilities and equipment , depreciation of leasehold improvements and equipment and laboratory and other supplies . all research and development expenses are expensed as incurred . the increase in research and development expenses for the year ended april 30 , 2010 was driven primarily by costs incurred for the development of dermacyte formulations and the costs associated with the phase ii-b clinical trials for oxycyte . story_separator_special_tag depreciation and amortization are computed using the straight-line method over the following estimated useful lives : laboratory equipment 3-5 years office furniture and fixtures 7 years computer equipment and software 3 years leasehold improvements shorter of useful life or remaining lease term maintenance and repairs are charged to expense as incurred , improvements to leased facilities and equipment are capitalized . income taxes deferred tax assets and liabilities are recorded for differences between the financial statement and tax bases of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income . valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized . income tax expense is recorded for the amount of income tax payable or refundable for the period increased or decreased by the change in deferred tax assets and liabilities during the period . stock-based compensation effective may 1 , 2005 , we adopted asc 718 compensation  stock compensation , using the prospective transition method , which requires the measurement and recognition of compensation expense for all stock-based payment awards granted , modified and settled to our employees and directors after may 1 , 2005. our financial statements reflect the impact of asc 718. we chose the straight-line attribution method for allocating compensation costs and recognized the fair value of each stock option on a straight-line basis over the requisite service period . we account for equity instruments issued to non-employees in accordance with asc 505-50 accounting for equity instruments that are issued to other than employees for acquiring , or in conjunction with selling , goods or services . equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic adjustment as the underlying equity instruments vest . loss per share basic loss per share , which excludes antidilutive securities , is computed by dividing loss available to common shareholders by the weighted-average number of common shares outstanding for that particular period . in contrast , diluted loss per share considers the potential dilution that could occur from other equity instruments that would increase the total number of outstanding shares of common stock . such amounts include shares potentially issuable under outstanding options , warrants and convertible debentures . a reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share follows . replace_table_token_4_th 26 the following outstanding options , convertible note shares and warrants were excluded from the computation of basic and diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect . replace_table_token_5_th operating leases we maintain operating leases for our office and laboratory facilities . the lease agreements may include rent escalation clauses and tenant improvement allowances . we recognize scheduled rent increases on a straight-line basis over the lease term beginning with the date we take possession of the leased space . differences between rental expense and actual rental payments are recorded as deferred rent liabilities and are included in other liabilities on the consolidated balance sheets . fair value on may 1 , 2008 , we adopted asc 820 fair value measurements , as it relates to financial assets and financial liabilities . our balance sheet includes the following financial instruments : cash and cash equivalents , short-term notes payable and convertible debentures . we consider the carrying amount of our cash and cash equivalents and short-term notes payable to approximate fair value due to the short-term nature of these instruments . it is not practicable for us to estimate the fair value of its convertible debentures as such estimates can not be made without incurring excessive costs . the significant terms of our convertible debentures are described in note d. at april 30 , 2010 and 2009 the debentures had a gross carrying value of $ 15,903 and $ 351,867 , respectively , with unamortized discounts totaling $ 5,725 and $ 124,152 , respectively . in addition to the above financial instruments , we maintain an investment in a start-up technology company , glucometrics , inc. the investment is recorded in other assets , at cost . this investment totaled $ 0 and $ 114,193 at april 30 , 2010 and 2009 , respectively . we review this investment quarterly , including historical and projected financial performance , expected cash needs and recent funding events . we recognize other-than-temporary impairments if the market value of the investment is below its cost basis for an extended period of time or if the issuer has experienced significant financial declines or difficulties in raising capital to continue operations . we recorded an other-than-temporary impairment of $ 114,193 in the fourth quarter of 2010. see note d for additional details . recent accounting pronouncements in september 2009 , the financial accounting standards board , or fasb ratified revenue arrangements with multiple deliverables issued as accounting standards update , or asu , 2009-13. asu 2009-13 updates the existing multiple-element arrangements guidance currently included in asc 605-25 , revenue recognition  multiple-element arrangements . the revised guidance provides for two significant changes to the existing multiple-element arrangements guidance . the first relates to the determination of when the individual deliverables included in a multiple-element arrangement may be treated as separate units of accounting . this change is significant as it will likely result in the requirement to separate more deliverables within an arrangement , ultimately leading to less revenue deferral . the second change modifies the manner in which the transaction consideration is allocated across the separately identifiable deliverables . these changes are likely to result in earlier recognition of revenue for multiple-element arrangements than under previous guidance . asu 2009-13 also significantly expands the disclosures required for multiple-element revenue arrangements . the revised multiple-element arrangements guidance will be

