to the extent we proceed with the clinical development of cenderitide and if we further develop cu-np , our second product candidate , our research and development expenses will continue increasing . accordingly , our success depends not only on the safety and efficacy of our product candidates , but also on our ability to finance the development of the products . our major sources of working capital have been proceeds from public and private sales of our equity and debt securities . research and development , or r & d , expenses consist primarily of salaries and related personnel costs , fees paid to consultants and outside service providers for pre-clinical , clinical , and manufacturing development , legal expenses resulting from intellectual property prosecution , contractual review , and other expenses relating to the design , development , testing , and enhancement of our product candidates . we expense our r & d costs as they are incurred . general and administrative , or g & a , expenses consist primarily of salaries and related expenses for executive , finance and other administrative personnel , personnel recruiting fees , accounting , legal and other professional fees , business development expenses , rent , business insurance and other corporate expenses . our results include non-cash compensation expense as a result of the issuance of stock , stock options , and warrants . we expense the fair value of stock options and warrants over the vesting period . when more precise pricing data is unavailable , we determine the fair value of stock options using the black-scholes option-pricing model . the terms and vesting schedules for share-based awards vary by type of grant and the employment status of the grantee . generally , the awards vest based upon time-based or performance-based conditions . performance-based conditions generally include the attainment of goals related to our financial performance and product development . stock-based compensation expense is included in the respective categories of expense in the statements of operations . we expect to record additional non-cash compensation expense in the future , which may be significant . results of operations general and administrative expenses . g & a expenses for the years ended december 31 , 2012 and 2011 were approximately $ 1.6 million and $ 2.1 million , respectively . this decrease of approximately $ 0.5 million compared to the same period of 2011 is primarily attributable to a decrease of approximately $ 0.2 million in compensation costs , primarily from reduced stock compensation expense . additionally , there was a reduction in professional fees of approximately $ 0.2 compared to the same period of 2011 from requiring less services from outside consultants due to limited operations . additionally , there was an approximately $ 0.1 million savings compared to the same period in 2011 as a result of no longer being listed on the nasdaq as of may 2011. research and development expenses . r & d expenses for the years ended december 31 , 2012 and 2011 were approximately $ 1.0 million and $ 4.1 million , respectively . this decrease of approximately $ 3.1 million over the same period of 2011 is primarily due to the fact that during 2011 , the company was actively conducting clinical development activities of cenderitide and in 2012 , the company was winding down clinical activities and had almost no development activities for most of the year . this resulted in a decrease of approximately $ 2.4 million in development costs . additionally , we had a reduction of approximately $ 0.5 million in compensation costs , including stock compensation , compared to 2011 due to having no r & d employees for approximately half of 2012 , compared to one employee during all of 2011. there was also a reduction in r & d professional fees of approximately $ 0.2 million compared to 2011 as a result of the decrease in r & d activities . cenderitide ( formerly cd-np ) . all development of cenderitide is on hold pending the results of our efforts to pursue strategic alternatives for the company . 29 cu-np . since acquiring our rights to cu-np in june 2008 , we have incurred a total of approximately $ 0.6 million through december 31 , 2011. all development of cu-np is on hold pending the results of our efforts to pursue strategic alternatives for the company . our expenditures on current and future clinical development programs , particularly our cenderitide program , are expected to be substantial , particularly in relation to our available capital resources , and to increase . however , these planned expenditures are subject to many uncertainties , including the results of clinical trials and whether we develop any of our drug candidates with a partner or independently . as a result of such uncertainties , we can not predict with any significant degree of certainty the duration and completion costs of our research and development projects or whether , when and to what extent we will generate revenues from the commercialization and sale of any of our product candidates . the duration and cost of clinical trials may vary significantly over the life of a project as a result of unanticipated events arising during clinical development and a variety of factors , including : · the number of trials and studies in a clinical program ; · the number of patients who participate in the trials ; · the number of sites included in the trials ; · the rates of patient recruitment and enrollment ; · the duration of patient treatment and follow-up ; · the costs of manufacturing our drug candidates ; and · the costs , requirements , timing of , and the ability to secure regulatory approvals . collaboration income . story_separator_special_tag we may terminate the agreement without cause upon 90 days ' written notice . as of the end of 2012 , we were not in compliance with several terms of the cu-np license agreement , including , but not limited to , provisions requiring us to pay mayo an annual maintenance fee and actively pursue the development of cu-np . we are in discussions with the mayo foundation to amend and the agreement , but we can not guarantee that we will be able to reach an agreement with mayo that allows us to maintain our rights to cenderitide . see “ risk factors – risks relating to our business – we are not in compliance with various provisions of our license agreements with the mayo foundation . if we are unable to renegotiate these agreements , then we will lose our rights to cenderitide and cu-np . ” off -balance sheet arrangements there were no off-balance sheet arrangements as of december 31 , 2012. critical accounting policies and estimates our financial statements are prepared in accordance with generally accepted accounting principles . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , expenses and related disclosures . we evaluate our estimates and assumptions on an ongoing basis , including research and development and clinical trial accruals , and stock-based compensation estimates . our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances . our actual results could differ from these estimates . we believe the following critical accounting policies reflect the more significant judgments and estimates used in the preparation of our financial statements and accompanying notes . research and development expenses and accruals r & d expenses consist primarily of salaries and related personnel costs , fees paid to consultants and outside service providers for pre-clinical , clinical , and manufacturing development , legal expenses resulting from intellectual property prosecution , contractual review , and other expenses relating to the design , development , testing , and enhancement of our product candidates . except for capitalized patent expenses , r & d costs are expensed as incurred . amounts due under such arrangements may be either fixed fee or fee for service , and may include upfront payments , monthly payments , and payments upon the completion of milestones or receipt of deliverables . our cost accruals for clinical trials and other r & d activities are based on estimates of the services received and efforts expended pursuant to contracts with numerous clinical trial centers and cros , clinical study sites , laboratories , consultants , or other clinical trial vendors that perform the activities . related contracts vary significantly in length , and may be for a fixed amount , a variable amount based on actual costs incurred , capped at a certain limit , or for a combination of these elements . activity levels are monitored through close communication with the cro 's and other clinical trial vendors , including detailed invoice and task completion review , analysis of expenses against budgeted amounts , analysis of work performed against approved contract budgets and payment schedules , and recognition of any changes in scope of the services to be performed . certain cro and significant clinical trial vendors provide an estimate of costs incurred but not invoiced at the end of each quarter for each individual trial . the estimates are reviewed and discussed with the cro or vendor as necessary , and are included in r & d expenses for the related period . for clinical study sites , which are paid periodically on a per-subject basis to the institutions performing the clinical study , we accrue an estimated amount based on subject screening and enrollment in each quarter . all estimates may differ significantly from the actual amount subsequently invoiced , which may occur several months after the related services were performed . in the normal course of business we contract with third parties to perform various r & d activities in the on-going development of our product candidates . the financial terms of these agreements are subject to negotiation and vary from contract to contract and may result in uneven payment flows . payments under the contracts depend on factors such as the achievement of certain events , the successful enrollment of patients , and the completion of portions of the clinical trial or similar conditions . the objective of our accrual policy is to match the recording of expenses in our financial statements to the actual services received and efforts expended . as such , expense accruals related to clinical trials and other r & d activities are recognized based on our estimate of the degree of completion of the event or events specified in the specific contract . no adjustments for material changes in estimates have been recognized in any period presented . 34 stock-based compensation our results include non-cash compensation expense as a result of the issuance of stock , stock options and warrants . we have issued stock options to employees , directors , consultants and scientific advisory board members under our amended and restated 2005 stock option plan . we expense the fair value of stock-based compensation over the vesting period . when more precise pricing data is unavailable , we determine the fair value of stock options using the black-scholes option-pricing model . this valuation model requires us to make assumptions and judgments about the variables used in the calculation . these variables and assumptions include the weighted-average period of time that the options granted are expected to be outstanding , the volatility of our common stock , the risk-free interest rate and the estimated rate of forfeitures of unvested stock options . stock options or other equity instruments to non-employees ( including consultants and all members of the company 's scientific advisory

liquidity and capital resources the following table summarizes our liquidity and capital resources as of and for each of the last two fiscal years , and is intended to supplement the more detailed discussion that follows . the amounts stated are expressed in thousands . replace_table_token_2_th replace_table_token_3_th 30 our total cash resources as of december 31 , 2012 were $ 0.05 million , compared to $ 1.0 million as of december 31 , 2011. as of december 31 , 2012 , we had approximately $ 0.4 million in liabilities , of which , approximately $ 0.1 relates to the non-cash warrant liability , and $ 0.2 million in net working capital deficit . we incurred a net loss of $ 1.9 million and had negative cash flow from operating activities of $ 2.2 million for the year ended december 31 , 2012. since august 1 , 2005 ( inception ) through december 31 , 2012 , we have incurred an aggregate net loss of approximately $ 46.7 million , while negative cash flow from operating activities has amounted to $ 34.9 million . to the extent we obtain sufficient capital and are able to continue developing our product candidates , we expect to continue to incur substantial and increasing losses , which will continue to generate negative net cash flows from operating activities as we expand our technology portfolio and engage in further research and development activities , particularly the conducting of pre-clinical studies and clinical trials . we need substantial additional capital in order to continue the development of cenderitide , for which the next step is a phase 2 trial . we estimate that this phase 2 trial will cost approximately $ 15 million to $ 20 million and take approximately 30 months to complete .


 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 the following table summarizes our liquidity and capital resources as of and for each of the last two fiscal years , and is intended to supplement the more detailed discussion that follows . the amounts stated are expressed in thousands . replace_table_token_2_th replace_table_token_3_th 30 our total cash resources as of december 31 , 2012 were $ 0.05 million , compared to $ 1.0 million as of december 31 , 2011. as of december 31 , 2012 , we had approximately $ 0.4 million in liabilities , of which , approximately $ 0.1 relates to the non-cash warrant liability , and $ 0.2 million in net working capital deficit . we incurred a net loss of $ 1.9 million and had negative cash flow from operating activities of $ 2.2 million for the year ended december 31 , 2012. since august 1 , 2005 ( inception ) through december 31 , 2012 , we have incurred an aggregate net loss of approximately $ 46.7 million , while negative cash flow from operating activities has amounted to $ 34.9 million . to the extent we obtain sufficient capital and are able to continue developing our product candidates , we expect to continue to incur substantial and increasing losses , which will continue to generate negative net cash flows from operating activities as we expand our technology portfolio and engage in further research and development activities , particularly the conducting of pre-clinical studies and clinical trials . we need substantial additional capital in order to continue the development of cenderitide , for which the next step is a phase 2 trial . we estimate that this phase 2 trial will cost approximately $ 15 million to $ 20 million and take approximately 30 months to complete .
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 Suspicious Activity Report : to the extent we proceed with the clinical development of cenderitide and if we further develop cu-np , our second product candidate , our research and development expenses will continue increasing . accordingly , our success depends not only on the safety and efficacy of our product candidates , but also on our ability to finance the development of the products . our major sources of working capital have been proceeds from public and private sales of our equity and debt securities . research and development , or r & d , expenses consist primarily of salaries and related personnel costs , fees paid to consultants and outside service providers for pre-clinical , clinical , and manufacturing development , legal expenses resulting from intellectual property prosecution , contractual review , and other expenses relating to the design , development , testing , and enhancement of our product candidates . we expense our r & d costs as they are incurred . general and administrative , or g & a , expenses consist primarily of salaries and related expenses for executive , finance and other administrative personnel , personnel recruiting fees , accounting , legal and other professional fees , business development expenses , rent , business insurance and other corporate expenses . our results include non-cash compensation expense as a result of the issuance of stock , stock options , and warrants . we expense the fair value of stock options and warrants over the vesting period . when more precise pricing data is unavailable , we determine the fair value of stock options using the black-scholes option-pricing model . the terms and vesting schedules for share-based awards vary by type of grant and the employment status of the grantee . generally , the awards vest based upon time-based or performance-based conditions . performance-based conditions generally include the attainment of goals related to our financial performance and product development . stock-based compensation expense is included in the respective categories of expense in the statements of operations . we expect to record additional non-cash compensation expense in the future , which may be significant . results of operations general and administrative expenses . g & a expenses for the years ended december 31 , 2012 and 2011 were approximately $ 1.6 million and $ 2.1 million , respectively . this decrease of approximately $ 0.5 million compared to the same period of 2011 is primarily attributable to a decrease of approximately $ 0.2 million in compensation costs , primarily from reduced stock compensation expense . additionally , there was a reduction in professional fees of approximately $ 0.2 compared to the same period of 2011 from requiring less services from outside consultants due to limited operations . additionally , there was an approximately $ 0.1 million savings compared to the same period in 2011 as a result of no longer being listed on the nasdaq as of may 2011. research and development expenses . r & d expenses for the years ended december 31 , 2012 and 2011 were approximately $ 1.0 million and $ 4.1 million , respectively . this decrease of approximately $ 3.1 million over the same period of 2011 is primarily due to the fact that during 2011 , the company was actively conducting clinical development activities of cenderitide and in 2012 , the company was winding down clinical activities and had almost no development activities for most of the year . this resulted in a decrease of approximately $ 2.4 million in development costs . additionally , we had a reduction of approximately $ 0.5 million in compensation costs , including stock compensation , compared to 2011 due to having no r & d employees for approximately half of 2012 , compared to one employee during all of 2011. there was also a reduction in r & d professional fees of approximately $ 0.2 million compared to 2011 as a result of the decrease in r & d activities . cenderitide ( formerly cd-np ) . all development of cenderitide is on hold pending the results of our efforts to pursue strategic alternatives for the company . 29 cu-np . since acquiring our rights to cu-np in june 2008 , we have incurred a total of approximately $ 0.6 million through december 31 , 2011. all development of cu-np is on hold pending the results of our efforts to pursue strategic alternatives for the company . our expenditures on current and future clinical development programs , particularly our cenderitide program , are expected to be substantial , particularly in relation to our available capital resources , and to increase . however , these planned expenditures are subject to many uncertainties , including the results of clinical trials and whether we develop any of our drug candidates with a partner or independently . as a result of such uncertainties , we can not predict with any significant degree of certainty the duration and completion costs of our research and development projects or whether , when and to what extent we will generate revenues from the commercialization and sale of any of our product candidates . the duration and cost of clinical trials may vary significantly over the life of a project as a result of unanticipated events arising during clinical development and a variety of factors , including : · the number of trials and studies in a clinical program ; · the number of patients who participate in the trials ; · the number of sites included in the trials ; · the rates of patient recruitment and enrollment ; · the duration of patient treatment and follow-up ; · the costs of manufacturing our drug candidates ; and · the costs , requirements , timing of , and the ability to secure regulatory approvals . collaboration income . story_separator_special_tag we may terminate the agreement without cause upon 90 days ' written notice . as of the end of 2012 , we were not in compliance with several terms of the cu-np license agreement , including , but not limited to , provisions requiring us to pay mayo an annual maintenance fee and actively pursue the development of cu-np . we are in discussions with the mayo foundation to amend and the agreement , but we can not guarantee that we will be able to reach an agreement with mayo that allows us to maintain our rights to cenderitide . see “ risk factors – risks relating to our business – we are not in compliance with various provisions of our license agreements with the mayo foundation . if we are unable to renegotiate these agreements , then we will lose our rights to cenderitide and cu-np . ” off -balance sheet arrangements there were no off-balance sheet arrangements as of december 31 , 2012. critical accounting policies and estimates our financial statements are prepared in accordance with generally accepted accounting principles . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , expenses and related disclosures . we evaluate our estimates and assumptions on an ongoing basis , including research and development and clinical trial accruals , and stock-based compensation estimates . our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances . our actual results could differ from these estimates . we believe the following critical accounting policies reflect the more significant judgments and estimates used in the preparation of our financial statements and accompanying notes . research and development expenses and accruals r & d expenses consist primarily of salaries and related personnel costs , fees paid to consultants and outside service providers for pre-clinical , clinical , and manufacturing development , legal expenses resulting from intellectual property prosecution , contractual review , and other expenses relating to the design , development , testing , and enhancement of our product candidates . except for capitalized patent expenses , r & d costs are expensed as incurred . amounts due under such arrangements may be either fixed fee or fee for service , and may include upfront payments , monthly payments , and payments upon the completion of milestones or receipt of deliverables . our cost accruals for clinical trials and other r & d activities are based on estimates of the services received and efforts expended pursuant to contracts with numerous clinical trial centers and cros , clinical study sites , laboratories , consultants , or other clinical trial vendors that perform the activities . related contracts vary significantly in length , and may be for a fixed amount , a variable amount based on actual costs incurred , capped at a certain limit , or for a combination of these elements . activity levels are monitored through close communication with the cro 's and other clinical trial vendors , including detailed invoice and task completion review , analysis of expenses against budgeted amounts , analysis of work performed against approved contract budgets and payment schedules , and recognition of any changes in scope of the services to be performed . certain cro and significant clinical trial vendors provide an estimate of costs incurred but not invoiced at the end of each quarter for each individual trial . the estimates are reviewed and discussed with the cro or vendor as necessary , and are included in r & d expenses for the related period . for clinical study sites , which are paid periodically on a per-subject basis to the institutions performing the clinical study , we accrue an estimated amount based on subject screening and enrollment in each quarter . all estimates may differ significantly from the actual amount subsequently invoiced , which may occur several months after the related services were performed . in the normal course of business we contract with third parties to perform various r & d activities in the on-going development of our product candidates . the financial terms of these agreements are subject to negotiation and vary from contract to contract and may result in uneven payment flows . payments under the contracts depend on factors such as the achievement of certain events , the successful enrollment of patients , and the completion of portions of the clinical trial or similar conditions . the objective of our accrual policy is to match the recording of expenses in our financial statements to the actual services received and efforts expended . as such , expense accruals related to clinical trials and other r & d activities are recognized based on our estimate of the degree of completion of the event or events specified in the specific contract . no adjustments for material changes in estimates have been recognized in any period presented . 34 stock-based compensation our results include non-cash compensation expense as a result of the issuance of stock , stock options and warrants . we have issued stock options to employees , directors , consultants and scientific advisory board members under our amended and restated 2005 stock option plan . we expense the fair value of stock-based compensation over the vesting period . when more precise pricing data is unavailable , we determine the fair value of stock options using the black-scholes option-pricing model . this valuation model requires us to make assumptions and judgments about the variables used in the calculation . these variables and assumptions include the weighted-average period of time that the options granted are expected to be outstanding , the volatility of our common stock , the risk-free interest rate and the estimated rate of forfeitures of unvested stock options . stock options or other equity instruments to non-employees ( including consultants and all members of the company 's scientific advisory

