we expect to continue to incur losses from operations for the near-term and these losses could be significant as we incur product development , contract consulting and other product development related expenses . we believe that our current working capital position will not be sufficient to meet our estimated cash needs for the remainder of 2012. these factors raise substantial doubt about the company 's ability to continue as a going concern . if the company does not obtain additional capital or financing , then the company would potentially be required to reduce the scope of its research and development and general and administrative expenses and may not be able to continue in business . the accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that might result in the possible inability of the company to continue as a going concern . the company is actively looking to obtain additional financing ; however , there can be no assurance that the company will be able to obtain sufficient additional financing on terms acceptable to the company , if at all , or that they will not have significantly dilutive effect on the company 's existing shareholders . we are closely monitoring our cash balances , cash needs and expense levels . the company 's ability to continue as a going concern depends on the success of management 's plans to bridge cash shortfalls in 2012 , which includes the following : ▪ aggressively pursuing additional capital raising activities in 2012 ; ▪ continuing to advance development of the company 's products , particularly appyscore ; ▪ continuing to advance the strategic process to monetize the company 's animal health business and related intellectual property ; ▪ continuing to explore prospective partnering or licensing opportunities with complementary opportunities and technologies ; and ▪ continuing to monitor and implement cost control initiatives to conserve cash . revenues year 2011 compared to year 2010 sales of the company 's antigen products for the year ended december 31 , 2011 totaled $ 219,000 , which is a $ 151,000 or 41 % decrease from the 2010 period . this decrease in sales is primarily attributable to the company 's strategic decision in 2010 to suspend antigen production and focus available scientific resources on the acute appendicitis project and single-chain animal product development . two customers accounted for $ 93,000 of the total 2011 sales and individually represented 28 % and 14 % of such sales . antigen sales in 2012 are expected to decline significantly from the 2011 totals . in april 2008 , the company entered into a long term exclusive license and commercialization agreement with novartis to develop and launch the company 's novel recombinant single-chain products for bovine species . the total payments received under this agreement were recorded as deferred revenue and was being recognized over future periods through 2020. in november 2011 , the company entered into a termination agreement with novartis animal health which terminated future revenue related to the license agreement . the company recognized $ 62,000 and $ 68,000 of such license payments in each of years ended december 31 , 2011 and 2010 , respectively . 26 cost of sales for the year ended december 31 , 2011 totaled $ 16,000 , which is a $ 342,000 or 95 % decrease as compared to the 2010 period . as a percentage of sales , 2011 gross profit was 93 % as compared to 3 % in 2010. the improvement in the gross profit percentage resulted from $ 153,000 in inventory write downs recorded in 2010 compared to $ 1,000 in write downs in 2011 , combined with no fixed production cost incurred in the 2011 period . year 2010 compared to year 2009 sales of the company 's antigen products for the year ended december 31 , 2010 totaled $ 370,000 , which is a $ 79,000 or 27 % increase from the 2009 period . four customers accounted for $ 215,000 of the total 2010 sales and individually represented 10 % , 11 % , 18 % and 19 % of such sales . this increase in sales is primarily attributable to the timing of customer orders as they purchased on-hand stock of inventory . in late 2009 , the company made a strategic decision to suspend antigen production and focus available scientific resources on the acute appendicitis project and single-chain animal product development . in april 2008 , the company entered into a long term exclusive license and commercialization agreement with novartis to develop and launch the company 's novel recombinant single-chain products for bovine species . the total payments received under this agreement were recorded as deferred revenue and was being recognized over future periods through 2020 , with $ 68,000 and $ 64,000 of such license fee recognized in each of years ended december 31 , 2010 and 2009 , respectively . in december 2009 , the company entered into a termination agreement for a prior distribution agreement covering a bovine diagnostic blood test . upon execution of the original agreement , the company received $ 200,000 , which had been recorded as deferred revenue . under the termination agreement a refund of 25 % ( $ 50,000 ) of the development payment previously received was paid and the remaining $ 150,000 , which was no longer subject to any conditions was recorded as license fee income in 2009. cost of sales for the year ended december 31 , 2010 totaled $ 358,000 , which is a $ 352,000 or 50 % decrease as compared to the 2009 period . story_separator_special_tag cash was used for additions to intangibles of $ 310,000 for costs incurred from patent filings and equipment additions totaling $ 192,000. net cash inflows from investing activities generated $ 4,533,000 during the year ended december 31 , 2009. marketable securities investments acquired totaled approximately $ 2.3 million and sales of marketable securities totaled approximately $ 7.4 million . cash totaling $ 596,000 was used in additions to intangibles of $ 352,000 for costs incurred from patent filings and equipment additions totaling $ 244,000 for additions and expansion of lab equipment and facilities . financing activities net cash inflows from financing activities generated $ 782,000 during the year ended december 31 , 2011. the company received net proceeds of $ 1,456,000 from the sale of common stock in a december 2011 registered direct offering and repaid $ 674,000 , in scheduled payments under its debt agreements . net cash inflows from financing activities generated $ 9,171,000 during the year ended december 31 , 2010. the company received net proceeds of $ 9,117,000 from the sale of common stock and $ 291,000 in proceeds from the exercise of stock options . the company repaid $ 236,000 , in scheduled payments under its debt agreements . net cash inflows from financing activities generated $ 8,378,000 during the year ended december 31 , 2009. the company received net proceeds of $ 8,260,000 from an offering of common stock and $ 469,000 in proceeds from the exercise of stock warrants and options . the company repaid $ 351,000 in scheduled payments under its debt agreements . critical accounting policies the preparation of financial statements in conformity with accounting principles generally accepted in the united states of america ( gaap ) requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes . future events and their effects can not be determined with absolute certainty . therefore , the determination of estimates requires the exercise of judgment . actual results inevitably will differ from those estimates , and such differences may be material to the financial statements . the most significant accounting estimates inherent in the preparation of our financial statements include estimates associated with revenue recognition , impairment analysis of intangibles and stock-based compensation . the company 's financial position , results of operations and cash flows are impacted by the accounting policies the company has adopted . in order to get a full understanding of the company 's financial statements , one must have a clear understanding of the accounting policies employed . a summary of the company 's critical accounting policies follows : investments : the company invests excess cash from time to time in highly liquid debt and equity securities of highly rated entities which are classified as trading securities . such amounts are recorded at market and are classified as current , as the company does not intend to hold the investments beyond twelve months . such excess funds are invested under the company 's investment policy but an unexpected decline or loss could have an adverse and material effect on the carrying value , recoverability or investment returns of such investments . our board has approved an investment policy covering the investment parameters to be followed with the primary goals being the safety of principal amounts and maintaining liquidity of the fund . the policy provides for minimum investment rating requirements as well as limitations on investment duration and concentrations . 32 intangible assets : intangible assets primarily represent legal costs and filings associated with obtaining patents on the company 's new discoveries . the company amortizes these costs over the shorter of the legal life of the patent or its estimated economic life using the straight-line method . the company tests intangible assets with finite lives upon significant changes in the company 's business environment . the testing resulted in approximately $ 275,000 , $ 107,000 and $ 565,000 of impairment charges during the years ended december 31 , 2011 , 2010 and 2009 , respectively . long-lived assets : the company records property and equipment at cost . depreciation of the assets is recorded on the straight-line basis over the estimated useful lives of the assets . dispositions of property and equipment are recorded in the period of disposition and any resulting gains or losses are charged to income or expense when the disposal occurs . the company reviews for impairment whenever there is an indication of impairment . the required annual testing resulted in no impairment charges being recorded to date . revenue recognition : the company 's revenues are recognized when products are shipped or delivered to unaffiliated customers . the securities and exchange commission 's staff accounting bulletin ( sab ) no . 104 , provides guidance on the application of generally accepted accounting principles to select revenue recognition issues . the company has concluded that its revenue recognition policy is appropriate and in accordance with sab no . 104. revenue is recognized under development and distribution agreements only after the following criteria are met : ( i ) there exists adequate evidence of the transactions ; ( ii ) delivery of goods has occurred or services have been rendered ; and ( iii ) the price is not contingent on future activity and ( iv ) collectability is reasonably assured . stock-based compensation : asc 718 ( formerly - sfas no . 123 ( r ) ) , share-based payment , defines the fair-value-based method of accounting for stock-based employee compensation plans and transactions used by the company to account for its issuances of equity instruments to record compensation cost for stock-based employee compensation plans at fair value as well as to acquire goods or services from non-employees . transactions in which the company issues stock-based compensation to employees , directors and consultants and for goods or services received from non-employees are accounted for based on the fair value of the equity

liquidity and capital resources at december 31 , 2011 , we had working capital of $ 2,249,000 , which included cash , cash equivalents and short term investments of $ 3,971,000. we reported a net loss of $ 10,214,000 during the year ended december 31 , 2011 , which included $ 1,093,000 in net non-cash expenses including , stock-based compensation totaling $ 1,336,000 , depreciation and amortization totaling $ 491,000 , impairment and related charges totaling $ 275,000 , and a $ 939,000 non-cash gain related to the novartis termination agreement . currently , our primary focus is to continue the development activities on our acute appendicitis diagnostic test , including advancement of such test with the fda , and to advance the strategic process to monetize our animal health business and related intellectual property . we expect to continue to incur losses from operations for the near-term and these losses could be significant as we incur product development , contract consulting and other product development related expenses . we believe that our current working capital position will not be sufficient to meet our estimated cash needs for the remainder of 2012. these factors raise substantial doubt about the company 's ability to continue as a going concern . if the company does not obtain additional capital , then the company would potentially be required to reduce the scope of its research and development and general and administrative expenses and may not be able to continue in business . the company is actively looking to obtain additional financing ; however , there can be no assurance that the company will be able to obtain sufficient additional financing . we are closely monitoring our cash balances , cash needs and expense levels . the accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that might result in the possible inability of the company to continue as a going concern .


 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 at december 31 , 2011 , we had working capital of $ 2,249,000 , which included cash , cash equivalents and short term investments of $ 3,971,000. we reported a net loss of $ 10,214,000 during the year ended december 31 , 2011 , which included $ 1,093,000 in net non-cash expenses including , stock-based compensation totaling $ 1,336,000 , depreciation and amortization totaling $ 491,000 , impairment and related charges totaling $ 275,000 , and a $ 939,000 non-cash gain related to the novartis termination agreement . currently , our primary focus is to continue the development activities on our acute appendicitis diagnostic test , including advancement of such test with the fda , and to advance the strategic process to monetize our animal health business and related intellectual property . we expect to continue to incur losses from operations for the near-term and these losses could be significant as we incur product development , contract consulting and other product development related expenses . we believe that our current working capital position will not be sufficient to meet our estimated cash needs for the remainder of 2012. these factors raise substantial doubt about the company 's ability to continue as a going concern . if the company does not obtain additional capital , then the company would potentially be required to reduce the scope of its research and development and general and administrative expenses and may not be able to continue in business . the company is actively looking to obtain additional financing ; however , there can be no assurance that the company will be able to obtain sufficient additional financing . we are closely monitoring our cash balances , cash needs and expense levels . the accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that might result in the possible inability of the company to continue as a going concern .
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 Suspicious Activity Report : we expect to continue to incur losses from operations for the near-term and these losses could be significant as we incur product development , contract consulting and other product development related expenses . we believe that our current working capital position will not be sufficient to meet our estimated cash needs for the remainder of 2012. these factors raise substantial doubt about the company 's ability to continue as a going concern . if the company does not obtain additional capital or financing , then the company would potentially be required to reduce the scope of its research and development and general and administrative expenses and may not be able to continue in business . the accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that might result in the possible inability of the company to continue as a going concern . the company is actively looking to obtain additional financing ; however , there can be no assurance that the company will be able to obtain sufficient additional financing on terms acceptable to the company , if at all , or that they will not have significantly dilutive effect on the company 's existing shareholders . we are closely monitoring our cash balances , cash needs and expense levels . the company 's ability to continue as a going concern depends on the success of management 's plans to bridge cash shortfalls in 2012 , which includes the following : ▪ aggressively pursuing additional capital raising activities in 2012 ; ▪ continuing to advance development of the company 's products , particularly appyscore ; ▪ continuing to advance the strategic process to monetize the company 's animal health business and related intellectual property ; ▪ continuing to explore prospective partnering or licensing opportunities with complementary opportunities and technologies ; and ▪ continuing to monitor and implement cost control initiatives to conserve cash . revenues year 2011 compared to year 2010 sales of the company 's antigen products for the year ended december 31 , 2011 totaled $ 219,000 , which is a $ 151,000 or 41 % decrease from the 2010 period . this decrease in sales is primarily attributable to the company 's strategic decision in 2010 to suspend antigen production and focus available scientific resources on the acute appendicitis project and single-chain animal product development . two customers accounted for $ 93,000 of the total 2011 sales and individually represented 28 % and 14 % of such sales . antigen sales in 2012 are expected to decline significantly from the 2011 totals . in april 2008 , the company entered into a long term exclusive license and commercialization agreement with novartis to develop and launch the company 's novel recombinant single-chain products for bovine species . the total payments received under this agreement were recorded as deferred revenue and was being recognized over future periods through 2020. in november 2011 , the company entered into a termination agreement with novartis animal health which terminated future revenue related to the license agreement . the company recognized $ 62,000 and $ 68,000 of such license payments in each of years ended december 31 , 2011 and 2010 , respectively . 26 cost of sales for the year ended december 31 , 2011 totaled $ 16,000 , which is a $ 342,000 or 95 % decrease as compared to the 2010 period . as a percentage of sales , 2011 gross profit was 93 % as compared to 3 % in 2010. the improvement in the gross profit percentage resulted from $ 153,000 in inventory write downs recorded in 2010 compared to $ 1,000 in write downs in 2011 , combined with no fixed production cost incurred in the 2011 period . year 2010 compared to year 2009 sales of the company 's antigen products for the year ended december 31 , 2010 totaled $ 370,000 , which is a $ 79,000 or 27 % increase from the 2009 period . four customers accounted for $ 215,000 of the total 2010 sales and individually represented 10 % , 11 % , 18 % and 19 % of such sales . this increase in sales is primarily attributable to the timing of customer orders as they purchased on-hand stock of inventory . in late 2009 , the company made a strategic decision to suspend antigen production and focus available scientific resources on the acute appendicitis project and single-chain animal product development . in april 2008 , the company entered into a long term exclusive license and commercialization agreement with novartis to develop and launch the company 's novel recombinant single-chain products for bovine species . the total payments received under this agreement were recorded as deferred revenue and was being recognized over future periods through 2020 , with $ 68,000 and $ 64,000 of such license fee recognized in each of years ended december 31 , 2010 and 2009 , respectively . in december 2009 , the company entered into a termination agreement for a prior distribution agreement covering a bovine diagnostic blood test . upon execution of the original agreement , the company received $ 200,000 , which had been recorded as deferred revenue . under the termination agreement a refund of 25 % ( $ 50,000 ) of the development payment previously received was paid and the remaining $ 150,000 , which was no longer subject to any conditions was recorded as license fee income in 2009. cost of sales for the year ended december 31 , 2010 totaled $ 358,000 , which is a $ 352,000 or 50 % decrease as compared to the 2009 period . story_separator_special_tag cash was used for additions to intangibles of $ 310,000 for costs incurred from patent filings and equipment additions totaling $ 192,000. net cash inflows from investing activities generated $ 4,533,000 during the year ended december 31 , 2009. marketable securities investments acquired totaled approximately $ 2.3 million and sales of marketable securities totaled approximately $ 7.4 million . cash totaling $ 596,000 was used in additions to intangibles of $ 352,000 for costs incurred from patent filings and equipment additions totaling $ 244,000 for additions and expansion of lab equipment and facilities . financing activities net cash inflows from financing activities generated $ 782,000 during the year ended december 31 , 2011. the company received net proceeds of $ 1,456,000 from the sale of common stock in a december 2011 registered direct offering and repaid $ 674,000 , in scheduled payments under its debt agreements . net cash inflows from financing activities generated $ 9,171,000 during the year ended december 31 , 2010. the company received net proceeds of $ 9,117,000 from the sale of common stock and $ 291,000 in proceeds from the exercise of stock options . the company repaid $ 236,000 , in scheduled payments under its debt agreements . net cash inflows from financing activities generated $ 8,378,000 during the year ended december 31 , 2009. the company received net proceeds of $ 8,260,000 from an offering of common stock and $ 469,000 in proceeds from the exercise of stock warrants and options . the company repaid $ 351,000 in scheduled payments under its debt agreements . critical accounting policies the preparation of financial statements in conformity with accounting principles generally accepted in the united states of america ( gaap ) requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes . future events and their effects can not be determined with absolute certainty . therefore , the determination of estimates requires the exercise of judgment . actual results inevitably will differ from those estimates , and such differences may be material to the financial statements . the most significant accounting estimates inherent in the preparation of our financial statements include estimates associated with revenue recognition , impairment analysis of intangibles and stock-based compensation . the company 's financial position , results of operations and cash flows are impacted by the accounting policies the company has adopted . in order to get a full understanding of the company 's financial statements , one must have a clear understanding of the accounting policies employed . a summary of the company 's critical accounting policies follows : investments : the company invests excess cash from time to time in highly liquid debt and equity securities of highly rated entities which are classified as trading securities . such amounts are recorded at market and are classified as current , as the company does not intend to hold the investments beyond twelve months . such excess funds are invested under the company 's investment policy but an unexpected decline or loss could have an adverse and material effect on the carrying value , recoverability or investment returns of such investments . our board has approved an investment policy covering the investment parameters to be followed with the primary goals being the safety of principal amounts and maintaining liquidity of the fund . the policy provides for minimum investment rating requirements as well as limitations on investment duration and concentrations . 32 intangible assets : intangible assets primarily represent legal costs and filings associated with obtaining patents on the company 's new discoveries . the company amortizes these costs over the shorter of the legal life of the patent or its estimated economic life using the straight-line method . the company tests intangible assets with finite lives upon significant changes in the company 's business environment . the testing resulted in approximately $ 275,000 , $ 107,000 and $ 565,000 of impairment charges during the years ended december 31 , 2011 , 2010 and 2009 , respectively . long-lived assets : the company records property and equipment at cost . depreciation of the assets is recorded on the straight-line basis over the estimated useful lives of the assets . dispositions of property and equipment are recorded in the period of disposition and any resulting gains or losses are charged to income or expense when the disposal occurs . the company reviews for impairment whenever there is an indication of impairment . the required annual testing resulted in no impairment charges being recorded to date . revenue recognition : the company 's revenues are recognized when products are shipped or delivered to unaffiliated customers . the securities and exchange commission 's staff accounting bulletin ( sab ) no . 104 , provides guidance on the application of generally accepted accounting principles to select revenue recognition issues . the company has concluded that its revenue recognition policy is appropriate and in accordance with sab no . 104. revenue is recognized under development and distribution agreements only after the following criteria are met : ( i ) there exists adequate evidence of the transactions ; ( ii ) delivery of goods has occurred or services have been rendered ; and ( iii ) the price is not contingent on future activity and ( iv ) collectability is reasonably assured . stock-based compensation : asc 718 ( formerly - sfas no . 123 ( r ) ) , share-based payment , defines the fair-value-based method of accounting for stock-based employee compensation plans and transactions used by the company to account for its issuances of equity instruments to record compensation cost for stock-based employee compensation plans at fair value as well as to acquire goods or services from non-employees . transactions in which the company issues stock-based compensation to employees , directors and consultants and for goods or services received from non-employees are accounted for based on the fair value of the equity

