this five-day range is designed to cover the delayed phase of cinv . granisetron was selected for sustol because it is widely prescribed by physicians based on a well-established record of safety and efficacy . in may 2009 , we filed the original nda seeking approval for sustol with the u.s. food and drug administration ( fda ) . the fda issued a complete response letter for sustol in march 2010. we met with the fda in february and march 2011 to clarify the work needed to address the issues identified in the letter . in september 2012 , we resubmitted our nda for sustol and , 45 in march 2013 , we received a second complete response letter , which identified several remaining issues that need to be addressed prior to approval of the sustol nda . we are currently working on addressing these issues and expect to resubmit the sustol nda in the second quarter of 2014. we own the worldwide rights to sustol and are in the early stages of building the commercial infrastructure necessary to commercialize sustol in the u.s. on our own . additionally , we are exploring the potential use of our biochronomer polymer with other drugs and intend to pursue the clinical development on one or more other drug candidates based on our proprietary delivery platform . critical accounting policies and estimates our accounting policies are more fully described in note 2 of the financial statements included in item 8 of this annual report on form 10-k. the preparation of financial statements in conformity with u.s. generally accepted accounting principles requires our management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes . actual results could differ significantly from those estimates . we believe the following policies to be critical to understanding our financial condition , results of operations and expectations for 2014. these policies require management to make significant estimates , assumptions and judgments about matters that are inherently uncertain . revenue recognition our revenue arrangements with multiple deliverables are divided into separate units of accounting if certain criteria are met , including whether the delivered item has stand-alone value to the customer and whether there is objective and reliable evidence of the fair value of the undelivered items . the consideration we receive is allocated among the separate units based on their respective fair values , and the applicable revenue recognition criteria are considered separately for each of the separate units . management 's estimate of the selling price is considered when fair value is not determinable . advance payments received in excess of amounts earned are classified as deferred revenue until earned . contract revenue our licensing agreements generally provide for a non-refundable license fee . the license agreements provide for us to earn future revenue through royalty payments . these non-refundable license fees are generally initially reported as deferred revenue and recognized as revenue over an appropriate period , depending on the license . revenue recognized from deferred license fees is classified as contract revenue in our statements of operations . contract revenue also relates to research and development arrangements that generally provide for us to invoice research and development fees based on full-time equivalent hours for each project . revenue from these arrangements is recognized as the related development services are rendered . this revenue approximates the costs incurred . clinical trial accruals our expenses related to clinical trials are based on estimates of the services received and efforts expended pursuant to contracts with multiple research institutions and clinical research organizations that conduct and manage clinical trials on our 46 behalf . since the invoicing related to these services does not always coincide with our financial statement close process , we must estimate the level of services performed and fees incurred in determining the accrued clinical trial costs . the financial terms of these agreements are subject to negotiation and vary from contract to contract , which may result in uneven payment flows . payments under the contracts depend on factors such as the successful enrollment of patients or achievement of certain events or the completion of portions of the clinical trial or similar conditions . expenses related to clinical trials generally are accrued based on the level of patient enrollment and services performed by the clinical research organization or related service provider according to the protocol . we monitor patient enrollment levels and related activity to the extent possible and adjust our estimates accordingly . historically these estimates have been reasonably accurate and no material adjustments have had to be made . income taxes we make certain estimates and judgments in determining income tax expense for financial statement purposes . these estimates and judgments occur in the calculation of certain tax assets and liabilities , which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes . as part of the process of preparing our financial statements , we are required to estimate our income taxes in each of the jurisdictions in which we operate . this process involves us estimating our current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and financial statement purposes . we assess the likelihood that we will be able to recover our deferred tax assets . we consider all available evidence , both positive and negative , including our historical levels of income and losses , expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance . story_separator_special_tag if we do not consider it more likely than not that we will recover our deferred tax assets , we will record a valuation allowance against the deferred tax assets that we estimate will not ultimately be recoverable . at december 31 , 2013 , we believed that the amount of our deferred income taxes would not be ultimately recovered . accordingly , we recorded a full valuation allowance for deferred tax assets . additionally , we believe that our deferred tax assets may have been limited in accordance with a provision of the internal revenue code of 1986 , whereby net operating loss and tax credit carryforwards available for use in a given period are limited upon the occurrence of certain events , including a significant change in ownership interests . as a result , our deferred tax assets and related valuation allowance were reduced for the estimated impact of the net operating losses and credits that may expire unused ( see note 12 to the financial statements included in item 8 of this annual report on form 10-k ) . should there be a change in our ability to recover our deferred tax assets , we would recognize a benefit to our tax provision in the period in which we determine that it is more likely than not that we will recover our deferred tax assets . stock-based compensation we account for share-based payment arrangements in accordance with asc 718 , compensation  stock compensation and asc 505-50 , equity  equity based payments to non-employees , which requires the recognition of compensation expense , using a fair-value based method , for all costs related to share-based payments including stock options , restricted 47 stock awards and stock issued under the employee stock purchase plan . these standards require companies to estimate the fair value of share-based payment awards on the date of the grant using an option-pricing model ( see note 8 to the financial statements included in item 8 of this annual report on form 10-k ) . results of operations for the years ended december 31 , 2013 , 2012 and 2011 the following sets forth the statement of operations data and percentage changes as compared to the prior years ( dollar amounts are presented in thousands ) : replace_table_token_7_th revenue contract revenue decreased in 2012 by $ 0.6 million , or 100 % , compared to 2011 , as no revenue was earned in 2012. our contract revenue for 2011 was derived from an agreement with merial limited ( merial ) that we entered into in september 2009 for a long-acting pain management product for companion animals . in may 2011 , we received notice of termination from merial . research and development research and development expense in 2013 increased by $ 17.6 million , or 116 % , compared to 2012. compared to 2012 , headcount-related costs , including stock compensation expense , and project spending for sustol , including validating our manufacturing processes and increasing the scale of production , were higher in 2013 as we worked to address the issues raised by the fda in the 2013 complete response letter . research and development expense for the year 2014 is expected to be higher , as compared to 2013 , as we conduct clinical studies on sustol and continue work on new product development and manufacturing development . research and development expense in 2012 increased by $ 7.0 million , or 85 % , compared to 2011. compared to 2011 , headcount-related costs , including stock compensation expense , and project spending for sustol were higher in 2012 as we worked to address the issues raised by the fda in the complete response letter received in 2010. the scope and magnitude of future research and development expense is difficult to predict given the number of studies that will need to be conducted for any of our potential products . in general , biopharmaceutical development involves a series of steps , beginning with identification of a product candidate and includes proof-of-concept in animals and phase 1 , 2 and 3 48 clinical studies in humans . each step of this process is typically more expensive than the previous one , so success in development results in increasing expenditures . we are exploring the potential use of our biochronomer polymer with other drugs and intend to pursue the clinical development or one or more other drug candidates based on our proprietary delivery platform . the major components of research and development expenses were as follows ( in thousands ) : replace_table_token_8_th internal research and development costs consist of employee salaries and benefits , including stock compensation expense , laboratory supplies , depreciation and allocation of overhead . external development costs include expenditures on polymer development and manufacturing , which are performed on our behalf by third parties . general and administrative general and administrative expenses increased in 2013 by $ 13.0 million , or 150 % , compared to 2012. the increase in 2013 was primarily due to headcount-related costs , including stock compensation expense , consulting costs , professional fees , market research and pre-commercialization activities . general and administrative expense for the year 2014 is expected to be higher as compared to 2013 , due to increased costs to support anticipated commercialization activities . general and administrative expenses increased in 2012 by $ 5.2 million , or 147 % , compared to 2011. the increase in 2012 was primarily due to headcount-related costs , including stock compensation expense , consulting costs and professional fees related to the nda resubmission and pre-commercialization activities . general and administrative expenses consist primarily of salaries and related expenses , professional fees , directors ' fees , investor relations costs , pre-commercialization costs , insurance expense and related overhead cost allocation . interest expense , net interest expense , net of $ 0.8 million and $ 0.6 million for the years ended december 31 , 2013

liquidity and capital resources we had cash and cash equivalents of $ 72.3 million at december 31 , 2013. cash and cash equivalents increased by $ 18.8 million at december 31 , 2013 , as compared to december 31 , 2012 , primarily due to net cash proceeds received from the november 2013 common stock offering , which was partially offset by cash used in operations and equipment purchases . net cash used in operating activities for the year ended december 31 , 2013 was $ 40.8 million , compared to net cash used in operating activities of $ 17.0 million for the year ended december 31 , 2012. the $ 23.8 million increase in net cash used in operating activities was primarily due to increases in research and development expenses and increased general and administrative expenses to support sustol . net cash used in operating activities for the year ended december 31 , 2012 was $ 17.0 million , compared to net cash used in operating activities of $ 7.7 million for the year ended december 31 , 2011. the $ 9.3 million increase in net cash used was primarily due to increases in research and development expenses to support sustol and increased general and administrative expenses . net cash used in investing activities was $ 1.7 million , $ 1.0 million and $ 0.5 million for the years ended december 31 , 2013 , 2012 and 2011 , respectively . the increases in net cash used in investing activities were for purchases of equipment . our financing activities provided us with $ 61.2 million , $ 53.5 million and $ 24.1 million for the years ended december 31 , 2013 , 2012 and 2011 , respectively . the increase in cash provided by financing activities of $ 7.7 million in 2013 , as compared to 2012 , was primarily due to proceeds received from the november 2013 common stock offering and stock option exercises .


 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 had cash and cash equivalents of $ 72.3 million at december 31 , 2013. cash and cash equivalents increased by $ 18.8 million at december 31 , 2013 , as compared to december 31 , 2012 , primarily due to net cash proceeds received from the november 2013 common stock offering , which was partially offset by cash used in operations and equipment purchases . net cash used in operating activities for the year ended december 31 , 2013 was $ 40.8 million , compared to net cash used in operating activities of $ 17.0 million for the year ended december 31 , 2012. the $ 23.8 million increase in net cash used in operating activities was primarily due to increases in research and development expenses and increased general and administrative expenses to support sustol . net cash used in operating activities for the year ended december 31 , 2012 was $ 17.0 million , compared to net cash used in operating activities of $ 7.7 million for the year ended december 31 , 2011. the $ 9.3 million increase in net cash used was primarily due to increases in research and development expenses to support sustol and increased general and administrative expenses . net cash used in investing activities was $ 1.7 million , $ 1.0 million and $ 0.5 million for the years ended december 31 , 2013 , 2012 and 2011 , respectively . the increases in net cash used in investing activities were for purchases of equipment . our financing activities provided us with $ 61.2 million , $ 53.5 million and $ 24.1 million for the years ended december 31 , 2013 , 2012 and 2011 , respectively . the increase in cash provided by financing activities of $ 7.7 million in 2013 , as compared to 2012 , was primarily due to proceeds received from the november 2013 common stock offering and stock option exercises .
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 Suspicious Activity Report : this five-day range is designed to cover the delayed phase of cinv . granisetron was selected for sustol because it is widely prescribed by physicians based on a well-established record of safety and efficacy . in may 2009 , we filed the original nda seeking approval for sustol with the u.s. food and drug administration ( fda ) . the fda issued a complete response letter for sustol in march 2010. we met with the fda in february and march 2011 to clarify the work needed to address the issues identified in the letter . in september 2012 , we resubmitted our nda for sustol and , 45 in march 2013 , we received a second complete response letter , which identified several remaining issues that need to be addressed prior to approval of the sustol nda . we are currently working on addressing these issues and expect to resubmit the sustol nda in the second quarter of 2014. we own the worldwide rights to sustol and are in the early stages of building the commercial infrastructure necessary to commercialize sustol in the u.s. on our own . additionally , we are exploring the potential use of our biochronomer polymer with other drugs and intend to pursue the clinical development on one or more other drug candidates based on our proprietary delivery platform . critical accounting policies and estimates our accounting policies are more fully described in note 2 of the financial statements included in item 8 of this annual report on form 10-k. the preparation of financial statements in conformity with u.s. generally accepted accounting principles requires our management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes . actual results could differ significantly from those estimates . we believe the following policies to be critical to understanding our financial condition , results of operations and expectations for 2014. these policies require management to make significant estimates , assumptions and judgments about matters that are inherently uncertain . revenue recognition our revenue arrangements with multiple deliverables are divided into separate units of accounting if certain criteria are met , including whether the delivered item has stand-alone value to the customer and whether there is objective and reliable evidence of the fair value of the undelivered items . the consideration we receive is allocated among the separate units based on their respective fair values , and the applicable revenue recognition criteria are considered separately for each of the separate units . management 's estimate of the selling price is considered when fair value is not determinable . advance payments received in excess of amounts earned are classified as deferred revenue until earned . contract revenue our licensing agreements generally provide for a non-refundable license fee . the license agreements provide for us to earn future revenue through royalty payments . these non-refundable license fees are generally initially reported as deferred revenue and recognized as revenue over an appropriate period , depending on the license . revenue recognized from deferred license fees is classified as contract revenue in our statements of operations . contract revenue also relates to research and development arrangements that generally provide for us to invoice research and development fees based on full-time equivalent hours for each project . revenue from these arrangements is recognized as the related development services are rendered . this revenue approximates the costs incurred . clinical trial accruals our expenses related to clinical trials are based on estimates of the services received and efforts expended pursuant to contracts with multiple research institutions and clinical research organizations that conduct and manage clinical trials on our 46 behalf . since the invoicing related to these services does not always coincide with our financial statement close process , we must estimate the level of services performed and fees incurred in determining the accrued clinical trial costs . the financial terms of these agreements are subject to negotiation and vary from contract to contract , which may result in uneven payment flows . payments under the contracts depend on factors such as the successful enrollment of patients or achievement of certain events or the completion of portions of the clinical trial or similar conditions . expenses related to clinical trials generally are accrued based on the level of patient enrollment and services performed by the clinical research organization or related service provider according to the protocol . we monitor patient enrollment levels and related activity to the extent possible and adjust our estimates accordingly . historically these estimates have been reasonably accurate and no material adjustments have had to be made . income taxes we make certain estimates and judgments in determining income tax expense for financial statement purposes . these estimates and judgments occur in the calculation of certain tax assets and liabilities , which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes . as part of the process of preparing our financial statements , we are required to estimate our income taxes in each of the jurisdictions in which we operate . this process involves us estimating our current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and financial statement purposes . we assess the likelihood that we will be able to recover our deferred tax assets . we consider all available evidence , both positive and negative , including our historical levels of income and losses , expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance . story_separator_special_tag if we do not consider it more likely than not that we will recover our deferred tax assets , we will record a valuation allowance against the deferred tax assets that we estimate will not ultimately be recoverable . at december 31 , 2013 , we believed that the amount of our deferred income taxes would not be ultimately recovered . accordingly , we recorded a full valuation allowance for deferred tax assets . additionally , we believe that our deferred tax assets may have been limited in accordance with a provision of the internal revenue code of 1986 , whereby net operating loss and tax credit carryforwards available for use in a given period are limited upon the occurrence of certain events , including a significant change in ownership interests . as a result , our deferred tax assets and related valuation allowance were reduced for the estimated impact of the net operating losses and credits that may expire unused ( see note 12 to the financial statements included in item 8 of this annual report on form 10-k ) . should there be a change in our ability to recover our deferred tax assets , we would recognize a benefit to our tax provision in the period in which we determine that it is more likely than not that we will recover our deferred tax assets . stock-based compensation we account for share-based payment arrangements in accordance with asc 718 , compensation  stock compensation and asc 505-50 , equity  equity based payments to non-employees , which requires the recognition of compensation expense , using a fair-value based method , for all costs related to share-based payments including stock options , restricted 47 stock awards and stock issued under the employee stock purchase plan . these standards require companies to estimate the fair value of share-based payment awards on the date of the grant using an option-pricing model ( see note 8 to the financial statements included in item 8 of this annual report on form 10-k ) . results of operations for the years ended december 31 , 2013 , 2012 and 2011 the following sets forth the statement of operations data and percentage changes as compared to the prior years ( dollar amounts are presented in thousands ) : replace_table_token_7_th revenue contract revenue decreased in 2012 by $ 0.6 million , or 100 % , compared to 2011 , as no revenue was earned in 2012. our contract revenue for 2011 was derived from an agreement with merial limited ( merial ) that we entered into in september 2009 for a long-acting pain management product for companion animals . in may 2011 , we received notice of termination from merial . research and development research and development expense in 2013 increased by $ 17.6 million , or 116 % , compared to 2012. compared to 2012 , headcount-related costs , including stock compensation expense , and project spending for sustol , including validating our manufacturing processes and increasing the scale of production , were higher in 2013 as we worked to address the issues raised by the fda in the 2013 complete response letter . research and development expense for the year 2014 is expected to be higher , as compared to 2013 , as we conduct clinical studies on sustol and continue work on new product development and manufacturing development . research and development expense in 2012 increased by $ 7.0 million , or 85 % , compared to 2011. compared to 2011 , headcount-related costs , including stock compensation expense , and project spending for sustol were higher in 2012 as we worked to address the issues raised by the fda in the complete response letter received in 2010. the scope and magnitude of future research and development expense is difficult to predict given the number of studies that will need to be conducted for any of our potential products . in general , biopharmaceutical development involves a series of steps , beginning with identification of a product candidate and includes proof-of-concept in animals and phase 1 , 2 and 3 48 clinical studies in humans . each step of this process is typically more expensive than the previous one , so success in development results in increasing expenditures . we are exploring the potential use of our biochronomer polymer with other drugs and intend to pursue the clinical development or one or more other drug candidates based on our proprietary delivery platform . the major components of research and development expenses were as follows ( in thousands ) : replace_table_token_8_th internal research and development costs consist of employee salaries and benefits , including stock compensation expense , laboratory supplies , depreciation and allocation of overhead . external development costs include expenditures on polymer development and manufacturing , which are performed on our behalf by third parties . general and administrative general and administrative expenses increased in 2013 by $ 13.0 million , or 150 % , compared to 2012. the increase in 2013 was primarily due to headcount-related costs , including stock compensation expense , consulting costs , professional fees , market research and pre-commercialization activities . general and administrative expense for the year 2014 is expected to be higher as compared to 2013 , due to increased costs to support anticipated commercialization activities . general and administrative expenses increased in 2012 by $ 5.2 million , or 147 % , compared to 2011. the increase in 2012 was primarily due to headcount-related costs , including stock compensation expense , consulting costs and professional fees related to the nda resubmission and pre-commercialization activities . general and administrative expenses consist primarily of salaries and related expenses , professional fees , directors ' fees , investor relations costs , pre-commercialization costs , insurance expense and related overhead cost allocation . interest expense , net interest expense , net of $ 0.8 million and $ 0.6 million for the years ended december 31 , 2013

