28 we believe that our existing cash balances , which were approximately $ 3.9 million as of june 30 , 2011 , together with the proceeds of approximately $ 1,270,000 from july and august 2011 warrant exercises , and the proceeds from the sale of $ 2 million of common stock to novogen pursuant to the securities subscription agreement dated september 27 , 2011 , and the expected proceeds of $ 2 million from future purchases of our common stock that novogen has committed to make , will be sufficient to fund our operations until late calendar year 2012. changes in our research and development plans or other changes affecting our operating expenses may affect actual future use of existing cash resources . in any event , however , we will need additional financing to fund our operations in the future , including the continued development of our two lead drug candidates . to date , our operations have been funded primarily through the sale of equity securities . we have not generated any revenues from operations since inception other than interest and dividends from cash and investments . we have incurred losses since inception and expect to incur operating losses and generate negative cash flows from operations for the foreseeable future . as of june 30 , 2011 , we had accumulated losses of $ 77.6 million since our inception in december 2000. expenses to date have consisted primarily of costs associated with conducting the clinical trials of phenoxodiol , and costs incurred under various product license and services agreements with novogen . the services agreements were terminated in december 2010. in connection with the consummation of the isoflavone transaction , the license agreements , and other key agreements with novogen , were terminated . as of september 26 , 2011 , novogen owned approximately 51.5 % of the outstanding shares of our common stock . pursuant to the securities subscription agreement dated september 27 , 2011 , novogen has agreed to purchase an additional 1,333,333 shares of our common stock , which will increase novogen 's ownership percentage to approximately 57.1 % . the isoflavone transaction in may 2011 , we purchased a portfolio of isoflavone-related assets from novogen and novogen research pty limited , a wholly-owned subsidiary of novogen , in exchange for 1,000 shares of our series a convertible preferred stock and the assumption of specified potential liabilities related to these assets . flavonoids are a family of naturally occurring plant compounds . isoflavones are a sub-group of the flavonoid family . prior to the consummation of the isoflavone transaction , we had license agreements with novogen for the use of some of the isoflavone-related assets in the development and commercialization of drugs for the treatment of cancer . these agreements , which were terminated upon consummation of the isoflavone transaction as described below , covered only applications of such assets for use in the treatment of cancer , excluding dermatological applications , and not all possible therapeutic indications . the isoflavone-related assets also include patent families which we had not previously licensed , and which may provide additional product candidate development opportunities . upon the consummation of the isoflavone transaction , each of the following agreements , along with any other agreements relating thereto , with respect to the isoflavone-related assets , was terminated : september 2003 license agreement between our wholly-owned subsidiary marshall edwards pty limited ( mepl ) and novogen 's wholly-owned subsidiary , novogen research pty limited , pursuant to which novogen research pty limited granted mepl a world-wide , non-transferable license under its patents and patent applications and in its licensed know-how to conduct clinical trials and commercialize and distribute certain phenoxodiol products ; may 2006 license agreement between mepl and novogen research pty limited pursuant to which novogen research pty limited granted mepl a world-wide , non-transferable license under its patents and patent applications and in its licensed know-how to conduct clinical trials and commercialize and distribute certain products based on two oncology compounds known as triphendiol and nv-143 ; and august 2009 license agreement between mepl and novogen research pty limited pursuant to which novogen research pty limited granted mepl an exclusive , worldwide , non-transferable license under its patents and patent applications and in the intellectual property rights related to its know how to conduct clinical trials , commercialize and distribute a compound known as nv-128 . 29 additionally , novogen , marshall edwards and mepl agreed to terminate the services agreement , under which novogen had previously provided services to us relating to research and development services as well as administrative and accounting services , effective as of december 31 , 2010. clinical developments in june 2011 , we announced the publication of results from pre-clinical studies of triphendiol , the prodrug of me-143 , demonstrating its anti-proliferative activity in pancreatic cancer as both a monotherapy and as a chemosensitizer . we have completed drug manufacturing and the required pre-clinical studies of me-143 necessary to submit an investigational new drug ( ind ) application , which was approved by the u.s. food and drug administration ( fda ) in august 2011. in september 2011 , we initiated a phase i open label , multi-center , dose escalation study of me-143 in patients with refractory solid tumors . we expect final safety and pharmacokinetic data from this study during the second quarter of calendar year 2012. in july 2011 , we announced the publication of results from a pre-clinical study of nv-128 , the prodrug of our lead mitochondrial inhibitor drug candidate , me-344 , showing activity in chemotherapy-resistant ovarian cancer stem cells . we are currently completing drug manufacturing of me-344 . story_separator_special_tag for stock options , we estimate the grant date fair value using a binomial valuation model , which requires the use of multiple subjective inputs including estimated future volatility , expected forfeitures and the expected term of the awards . we estimate our expected future volatility based on our stock 's historical price volatility . our stock 's future volatility may differ from our estimated volatility at the grant date . share-based compensation recorded in our statement of operations is based on awards expected to ultimately vest and has been reduced for estimated forfeitures . our estimated forfeiture rates may differ from actual forfeiture rates which would affect the amount of expense recognized during the period . we recognize the value of the awards on a straight-line basis over the awards ' requisite service periods . the requisite service period is generally the time over which our share-based awards vest . 32 results of operations we are providing the following summary of our research and development expenses and general and administrative expenses to supplement the more detailed discussions below . the dollar values in the following tables are in thousands . replace_table_token_3_th comparisons of years ended june 30 , 2011 , 2010 and 2009 research and development : research and development expenses consist primarily of clinical trial costs ( including payments to contract research organizations or cros ) , pre-clinical study costs , cost to manufacture our drug candidates for pre-clinical and clinical studies , related party service charges paid to novogen and salaries and other personnel costs . research and development expenses decreased $ 1,916,000 to $ 2,115,000 for the year ended june 30 , 2011 compared to $ 4,031,000 for the year ended june 30 , 2010. this decrease was primarily due to lower spending for contract services related to the ovature phase iii trial , which terminated enrollment of patients in fiscal year 2009 and completed the final analysis of clinical results in fiscal year 2010. also , the lower costs in fiscal year 2011 resulted from the termination of the services agreement with novogen effective december 31 , 2010. research and development expenses incurred during the year ended june 30 , 2011 primarily relate to pre-clinical work associated with the development of me-143 and me-344 . costs incurred during the year ended june 30 , 2011 also include salaries and benefit costs associated with employees hired during the year , including $ 23,000 in share-based compensation expenses . in previous years , the company utilized personnel employed by novogen , and did not employ research and development personnel . research and development expenses decreased $ 3,746,000 to $ 4,031,000 for the year ended june 30 , 2010 , compared to $ 7,777,000 for the year ended june 30 , 2009. the decrease in research and development expenses was primarily due to lower spending following the termination of enrollment in the ovature phase iii clinical trial , partially offset by costs incurred to terminate the ovature phase iii clinical trial , and increased costs associated with the development of triphendiol , nv-143 and nv-128 . license fees : we paid license fees to novogen pursuant to several license agreements that were in effect prior to their termination in conjunction with the consummation of the isoflavone transaction in may 2011. milestone license fees of $ 1,500,000 were expensed during the year ended june 30 , 2010 , under the terms of the license 33 agreement for nv-128 . milestone license fees of $ 2,000,000 were expensed in the year ended june 30 , 2009 , under the terms of the license agreement for triphendiol and nv-143 . during the year ended june 30 , 2011 , no license fees were due under any of the license agreements with novogen . general and administrative : general and administrative expenses increased by $ 1,888,000 to $ 4,336,000 for the year ended june 30 , 2011 , compared to $ 2,448,000 for the year ended june 30 , 2010. the increase primarily relates to costs associated with the transfer of our operations from australia to the united states , including hiring of u.s.-based management and staff . historically , novogen provided us with executive and administrative staff under service agreements , which were terminated effective december 31 , 2010. salaries and benefit costs include $ 461,000 of share-based compensation expense during the year ended june 30 , 2011 , compared with $ 64,000 during the year ended june 30 , 2010. also , during the year ended june 30 , 2011 , we incurred additional costs for legal and professional fees , primarily related to the acquisition of novogen 's isoflavone-based intellectual property portfolio . general and administrative expenses increased by $ 818,000 to $ 2,448,000 for the year ended june 30 , 2010 compared to $ 1,630,000 for the year ended june 30 , 2009. the increase relates to a number of factors including costs associated with the reverse share split and costs incurred in the recruitment and hiring of u.s.-based executive management . general and administrative expenses for the year ended june 30 , 2009 reflected cash conservation measures , which resulted in decreased public relations expenses , travel expense , and reduced administration service fees paid to novogen , compared with previous periods . foreign exchange gains and losses occur when revaluing cash denominated in foreign currencies and upon consolidation of our wholly owned subsidiary mepl . mepl uses u.s. dollars as its functional currency and also engages in transactions in foreign currencies . further , mepl 's accounts and financial statements are denominated in australian dollars . translation of mepl 's financial statements into u.s. dollars did not have a material impact on our financial position . however , exchange rates are volatile in the current market resulting from the global events and there is a possibility that foreign exchange gains/losses may have a material impact in future periods . at june 30 , 2011 , we

liquidity and capital resources our sources of liquidity include our cash and cash equivalents . we believe that our existing cash balances , which were approximately $ 3.9 million as of june 30 , 2011 , together with the proceeds of approximately $ 1,270,000 from july and august warrant exercises , and the proceeds from the sale of $ 2 million of common stock to novogen pursuant to the securities subscription agreement dated september 27 , 2011 , and the expected proceeds of $ 2 million from future purchases of our common stock that novogen has committed to make , will be sufficient to fund our operations until late calendar year 2012. our current business operations are focused on continuing the development of our two lead isoflavone based drug candidates . specifically we intend to commence the clinical development of the drug candidate me-143 and continue the pre-clinical development of me-344 , a next-generation analogue of nv-128 , necessary to file an ind with the fda . changes to our research and development plans or other changes affecting our operating expenses may affect actual future use of existing cash resources . to date , we have obtained cash and funded our operations primarily through the sale of equity securities . we have accumulated losses of $ 77,588,000 since inception and expect to incur operating losses and generate negative cash flows from operations for the foreseeable future . we will need additional financing to fund our operations in the future , including the continued development of our drug candidates .


 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 our sources of liquidity include our cash and cash equivalents . we believe that our existing cash balances , which were approximately $ 3.9 million as of june 30 , 2011 , together with the proceeds of approximately $ 1,270,000 from july and august warrant exercises , and the proceeds from the sale of $ 2 million of common stock to novogen pursuant to the securities subscription agreement dated september 27 , 2011 , and the expected proceeds of $ 2 million from future purchases of our common stock that novogen has committed to make , will be sufficient to fund our operations until late calendar year 2012. our current business operations are focused on continuing the development of our two lead isoflavone based drug candidates . specifically we intend to commence the clinical development of the drug candidate me-143 and continue the pre-clinical development of me-344 , a next-generation analogue of nv-128 , necessary to file an ind with the fda . changes to our research and development plans or other changes affecting our operating expenses may affect actual future use of existing cash resources . to date , we have obtained cash and funded our operations primarily through the sale of equity securities . we have accumulated losses of $ 77,588,000 since inception and expect to incur operating losses and generate negative cash flows from operations for the foreseeable future . we will need additional financing to fund our operations in the future , including the continued development of our drug candidates .
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 Suspicious Activity Report : 28 we believe that our existing cash balances , which were approximately $ 3.9 million as of june 30 , 2011 , together with the proceeds of approximately $ 1,270,000 from july and august 2011 warrant exercises , and the proceeds from the sale of $ 2 million of common stock to novogen pursuant to the securities subscription agreement dated september 27 , 2011 , and the expected proceeds of $ 2 million from future purchases of our common stock that novogen has committed to make , will be sufficient to fund our operations until late calendar year 2012. changes in our research and development plans or other changes affecting our operating expenses may affect actual future use of existing cash resources . in any event , however , we will need additional financing to fund our operations in the future , including the continued development of our two lead drug candidates . to date , our operations have been funded primarily through the sale of equity securities . we have not generated any revenues from operations since inception other than interest and dividends from cash and investments . we have incurred losses since inception and expect to incur operating losses and generate negative cash flows from operations for the foreseeable future . as of june 30 , 2011 , we had accumulated losses of $ 77.6 million since our inception in december 2000. expenses to date have consisted primarily of costs associated with conducting the clinical trials of phenoxodiol , and costs incurred under various product license and services agreements with novogen . the services agreements were terminated in december 2010. in connection with the consummation of the isoflavone transaction , the license agreements , and other key agreements with novogen , were terminated . as of september 26 , 2011 , novogen owned approximately 51.5 % of the outstanding shares of our common stock . pursuant to the securities subscription agreement dated september 27 , 2011 , novogen has agreed to purchase an additional 1,333,333 shares of our common stock , which will increase novogen 's ownership percentage to approximately 57.1 % . the isoflavone transaction in may 2011 , we purchased a portfolio of isoflavone-related assets from novogen and novogen research pty limited , a wholly-owned subsidiary of novogen , in exchange for 1,000 shares of our series a convertible preferred stock and the assumption of specified potential liabilities related to these assets . flavonoids are a family of naturally occurring plant compounds . isoflavones are a sub-group of the flavonoid family . prior to the consummation of the isoflavone transaction , we had license agreements with novogen for the use of some of the isoflavone-related assets in the development and commercialization of drugs for the treatment of cancer . these agreements , which were terminated upon consummation of the isoflavone transaction as described below , covered only applications of such assets for use in the treatment of cancer , excluding dermatological applications , and not all possible therapeutic indications . the isoflavone-related assets also include patent families which we had not previously licensed , and which may provide additional product candidate development opportunities . upon the consummation of the isoflavone transaction , each of the following agreements , along with any other agreements relating thereto , with respect to the isoflavone-related assets , was terminated : september 2003 license agreement between our wholly-owned subsidiary marshall edwards pty limited ( mepl ) and novogen 's wholly-owned subsidiary , novogen research pty limited , pursuant to which novogen research pty limited granted mepl a world-wide , non-transferable license under its patents and patent applications and in its licensed know-how to conduct clinical trials and commercialize and distribute certain phenoxodiol products ; may 2006 license agreement between mepl and novogen research pty limited pursuant to which novogen research pty limited granted mepl a world-wide , non-transferable license under its patents and patent applications and in its licensed know-how to conduct clinical trials and commercialize and distribute certain products based on two oncology compounds known as triphendiol and nv-143 ; and august 2009 license agreement between mepl and novogen research pty limited pursuant to which novogen research pty limited granted mepl an exclusive , worldwide , non-transferable license under its patents and patent applications and in the intellectual property rights related to its know how to conduct clinical trials , commercialize and distribute a compound known as nv-128 . 29 additionally , novogen , marshall edwards and mepl agreed to terminate the services agreement , under which novogen had previously provided services to us relating to research and development services as well as administrative and accounting services , effective as of december 31 , 2010. clinical developments in june 2011 , we announced the publication of results from pre-clinical studies of triphendiol , the prodrug of me-143 , demonstrating its anti-proliferative activity in pancreatic cancer as both a monotherapy and as a chemosensitizer . we have completed drug manufacturing and the required pre-clinical studies of me-143 necessary to submit an investigational new drug ( ind ) application , which was approved by the u.s. food and drug administration ( fda ) in august 2011. in september 2011 , we initiated a phase i open label , multi-center , dose escalation study of me-143 in patients with refractory solid tumors . we expect final safety and pharmacokinetic data from this study during the second quarter of calendar year 2012. in july 2011 , we announced the publication of results from a pre-clinical study of nv-128 , the prodrug of our lead mitochondrial inhibitor drug candidate , me-344 , showing activity in chemotherapy-resistant ovarian cancer stem cells . we are currently completing drug manufacturing of me-344 . story_separator_special_tag for stock options , we estimate the grant date fair value using a binomial valuation model , which requires the use of multiple subjective inputs including estimated future volatility , expected forfeitures and the expected term of the awards . we estimate our expected future volatility based on our stock 's historical price volatility . our stock 's future volatility may differ from our estimated volatility at the grant date . share-based compensation recorded in our statement of operations is based on awards expected to ultimately vest and has been reduced for estimated forfeitures . our estimated forfeiture rates may differ from actual forfeiture rates which would affect the amount of expense recognized during the period . we recognize the value of the awards on a straight-line basis over the awards ' requisite service periods . the requisite service period is generally the time over which our share-based awards vest . 32 results of operations we are providing the following summary of our research and development expenses and general and administrative expenses to supplement the more detailed discussions below . the dollar values in the following tables are in thousands . replace_table_token_3_th comparisons of years ended june 30 , 2011 , 2010 and 2009 research and development : research and development expenses consist primarily of clinical trial costs ( including payments to contract research organizations or cros ) , pre-clinical study costs , cost to manufacture our drug candidates for pre-clinical and clinical studies , related party service charges paid to novogen and salaries and other personnel costs . research and development expenses decreased $ 1,916,000 to $ 2,115,000 for the year ended june 30 , 2011 compared to $ 4,031,000 for the year ended june 30 , 2010. this decrease was primarily due to lower spending for contract services related to the ovature phase iii trial , which terminated enrollment of patients in fiscal year 2009 and completed the final analysis of clinical results in fiscal year 2010. also , the lower costs in fiscal year 2011 resulted from the termination of the services agreement with novogen effective december 31 , 2010. research and development expenses incurred during the year ended june 30 , 2011 primarily relate to pre-clinical work associated with the development of me-143 and me-344 . costs incurred during the year ended june 30 , 2011 also include salaries and benefit costs associated with employees hired during the year , including $ 23,000 in share-based compensation expenses . in previous years , the company utilized personnel employed by novogen , and did not employ research and development personnel . research and development expenses decreased $ 3,746,000 to $ 4,031,000 for the year ended june 30 , 2010 , compared to $ 7,777,000 for the year ended june 30 , 2009. the decrease in research and development expenses was primarily due to lower spending following the termination of enrollment in the ovature phase iii clinical trial , partially offset by costs incurred to terminate the ovature phase iii clinical trial , and increased costs associated with the development of triphendiol , nv-143 and nv-128 . license fees : we paid license fees to novogen pursuant to several license agreements that were in effect prior to their termination in conjunction with the consummation of the isoflavone transaction in may 2011. milestone license fees of $ 1,500,000 were expensed during the year ended june 30 , 2010 , under the terms of the license 33 agreement for nv-128 . milestone license fees of $ 2,000,000 were expensed in the year ended june 30 , 2009 , under the terms of the license agreement for triphendiol and nv-143 . during the year ended june 30 , 2011 , no license fees were due under any of the license agreements with novogen . general and administrative : general and administrative expenses increased by $ 1,888,000 to $ 4,336,000 for the year ended june 30 , 2011 , compared to $ 2,448,000 for the year ended june 30 , 2010. the increase primarily relates to costs associated with the transfer of our operations from australia to the united states , including hiring of u.s.-based management and staff . historically , novogen provided us with executive and administrative staff under service agreements , which were terminated effective december 31 , 2010. salaries and benefit costs include $ 461,000 of share-based compensation expense during the year ended june 30 , 2011 , compared with $ 64,000 during the year ended june 30 , 2010. also , during the year ended june 30 , 2011 , we incurred additional costs for legal and professional fees , primarily related to the acquisition of novogen 's isoflavone-based intellectual property portfolio . general and administrative expenses increased by $ 818,000 to $ 2,448,000 for the year ended june 30 , 2010 compared to $ 1,630,000 for the year ended june 30 , 2009. the increase relates to a number of factors including costs associated with the reverse share split and costs incurred in the recruitment and hiring of u.s.-based executive management . general and administrative expenses for the year ended june 30 , 2009 reflected cash conservation measures , which resulted in decreased public relations expenses , travel expense , and reduced administration service fees paid to novogen , compared with previous periods . foreign exchange gains and losses occur when revaluing cash denominated in foreign currencies and upon consolidation of our wholly owned subsidiary mepl . mepl uses u.s. dollars as its functional currency and also engages in transactions in foreign currencies . further , mepl 's accounts and financial statements are denominated in australian dollars . translation of mepl 's financial statements into u.s. dollars did not have a material impact on our financial position . however , exchange rates are volatile in the current market resulting from the global events and there is a possibility that foreign exchange gains/losses may have a material impact in future periods . at june 30 , 2011 , we

