in 2017 , we received fast track designation and orphan drug designation from the u.s. food and drug administration ( “ fda ” ) for tavo in metastatic melanoma , which could qualify tavo for expedited fda review , a rolling biologics license application review and certain other benefits . we have completed monotherapy and combination programs and our current focus is to pursue clinical development programs with tavo , in combination with anti-pd-1 checkpoint inhibitors , in metastatic melanoma , triple negative breast cancer ( “ tnbc ” ) and squamous cell carcinoma head and neck ( “ scchn ” ) . the company intends to continue to pursue other ongoing or potential new trials and studies related to tavo , in various tumor types . in addition to tavo , we have identified and are developing new dna-encoded therapeutic candidates and tumor indications for use with our new visceral lesion applicator ( “ vla ” ) , to target deep visceral lesions , such as liver , lung , bladder , pancreatic and other difficult to treat visceral lesions . performance outlook we expect to use our available working capital in the near term primarily for the advancement of our existing and planned clinical programs , including performance of the keynote-695 and keynote-890 studies and , to a lesser extent , the continuation of our other clinical trials and studies . we anticipate our spending on clinical programs and the development of our next-generation oms ep device will continue throughout our current fiscal year , primarily in support of the keynote-695 and keynote-890 studies , while our spending on research and development programs will be prioritized , based on our focus on the keynote-695 and keynote-890 studies . we expect our cash-based general and administrative expenses to remain relatively flat in the near term , as we seek to continue to leverage internal resources and automate processes to decrease our outside services expenses . see “ results of operations ” below for more information . 53 results of operations for the year ended july 31 , 2020 compared to the year ended july 31 , 2019 the financial data for the years ended july 31 , 2020 and july 31 , 2019 is presented in the following table and the results of these two periods are included in the discussion thereafter . replace_table_token_1_th revenue we have not generated any revenue since our inception , and we do not anticipate generating meaningful revenue in the near term . research and development expenses our research and development expenses increased by approximately $ 6.7 million , from $ 18.4 million during the year ended july 31 , 2019 to $ 25.1 million during the year ended july 31 , 2020. this increase was primarily due to the following approximate increases : ( i ) $ 5.7 million in clinical trial-related costs to support our various clinical studies and costs for discovery research and product development ( ii ) $ 0.5 million in higher rent expense as a result of the adoption of asc 842 for our operating leases on august 1 , 2019 and ( iii ) $ 0.6 million increase in payroll and related benefits expenses , primarily due to additional headcount and merit increases . these increases were partially offset by a $ 0.1 million reduction in stock-based compensation expense for employees and consultants . general and administrative our general and administrative expenses increased by approximately $ 6.3 million , from $ 12.0 million during the year ended july 31 , 2019 , to $ 18.3 million during the year ended july 31 , 2020. this increase was largely due to the following approximate increases : ( i ) $ 4.8 million in legal costs primarily related to the alpha holdings litigation and the contested proxy ; ( ii ) $ 0.9 million in consulting costs , primarily due to business development and public relations ( iii ) $ 0.8 million in proxy costs primarily related to the company 's special meeting held in february 2020 and ( iv ) $ 0.5 million increase in payroll and related benefits expenses primarily due to additional headcount and merit increases . these increases were partially offset by a $ 0.5 million reduction in stock-based compensation expense for employees and consultants , and $ 0.2 million in travel and travel related expenses due to covid-19 restrictions . the company believes a significant portion of its legal costs related to the alpha holdings litigation are recoverable and are likely to be recovered . at this point , no amount for insurance recoveries has been recorded . other income , net other income , net , decreased by approximately $ 0.2 million from $ 0.4 million for the year ended july 31 , 2019 to $ 0.2 million for the year ended july 31 , 2020. this decrease was primarily due to reduced interest income as a result of lower cash balances as well as a lower return on our investments for these respective periods . 54 foreign currency exchange gain/ ( loss ) , net foreign currency exchange gain/ ( loss ) , net , increased by approximately $ 0.4 million from a loss of $ ( 0.3 ) million for the year ended july 31 , 2019 to a gain of $ 0.1 million for the year ended july 31 , 2020. the increase was primarily due to unrealized foreign currency transaction gains and losses recognized in connection with the australian subsidiary 's intercompany loan . income tax expense ( benefit ) in may 2020 , the company received $ 0.9 million in net proceeds from the sale of its new jersey net operating losses under the state of new jersey nol transfer program . story_separator_special_tag 58 alpha holdings on august 31 , 2018 , the company entered into a stock purchase agreement with alpha holdings , inc. ( “ alpha holdings ” ) , pursuant to which the company agreed to issue and sell to alpha holdings shares of its common stock equal to an aggregate amount of up to $ 15.0 million at a market purchase price of $ 15.00 per share , which was the closing price of the company 's common stock the day immediately before the agreement was executed by the parties . on october 9 , 2018 , the company received total proceeds , before expenses , of $ 8.0 million in cash from the offering and issued alpha holdings 533,333 shares of common stock . there were no underwriting or placement agent fees associated with the offering . on december 6 , 2018 , the company received total proceeds , before expenses , of $ 7.0 million in cash from the offering and issued alpha holdings 466,667 shares of common stock . there were no underwriting or placement agent fees associated with the offering . critical accounting policies accounting for long-lived assets we assess the impairment of long-lived assets , consisting of property and equipment , periodically and whenever events or circumstances indicate that the carrying value may not be recoverable . examples of such circumstances may include : ( 1 ) the asset 's ability to continue to generate income from operations and positive cash flow in future periods ; ( 2 ) loss of legal ownership or title to an asset ; ( 3 ) significant changes in our strategic business objectives and utilization of the assets ; and ( 4 ) the impact of significant negative industry or economic trends . if a change were to occur in any of these or similar factors , the likelihood of a material change in our net loss would increase . recoverability of assets to be held and used in operations is measured by a comparison of the carrying amount of an asset to the future net cash flows expected to be generated by the assets . although we believe the factors used by management to evaluate future net cash flows are reasonable , this evaluation requires a high degree of judgment , and results could vary if the actual amounts are materially different than management 's estimates . in addition , we base estimates of useful lives and related amortization or depreciation expense on our subjective estimate of the period the assets will generate revenue or otherwise be used by us . if long-lived assets are considered impaired , the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets . assets to be disposed of are reported at the lower of the carrying amount or fair value , less selling costs . equity-based awards the company grants equity-based awards ( typically stock options or restricted stock units ) under our stock-based compensation plan and outside of our stock-based compensation plan , with terms generally similar to the terms under our stock-based compensation plan . the company estimates the fair value of stock option awards using the black-scholes option valuation model . for employees , directors and consultants , the fair value of the award is measured on the grant date . the fair value amount is then recognized over the period during which services are required to be provided in exchange for the award , usually the vesting period . the black-scholes option valuation model requires the input of subjective assumptions , including price volatility of the underlying stock , risk-free interest rate , dividend yield , and expected life of the option . the company estimates the fair value of restricted stock unit awards based on the closing price of the company 's common stock on the date of issuance . 59 employee stock purchase plan employees may elect to participate in our stockholder approved employee stock purchase plan . the stock purchase plan allows for the purchase of our common stock at not less than 85 % of the lesser of ( i ) the fair market value of a share of stock on the beginning date of the offering period or ( ii ) the fair market value of a share of stock on the purchase date of the offering period , subject to a share and dollar limit as defined in the plan and subject to the applicable legal requirements . there are two 6-month offering periods during each fiscal year , ending on january 31 and july 31. in accordance with applicable accounting guidance , the fair value of awards under the stock purchase plan is calculated at the beginning of each offering period . we estimate the fair value of the awards using the black-scholes option valuation model . the black-scholes option valuation model requires the input of subjective assumptions , including price volatility of the underlying stock , risk-free interest rate , dividend yield , and the offering period . this fair value is then amortized at the beginning of the offering period . stock-based compensation expense is based on awards expected to be purchased at the beginning of the offering period , and therefore is reduced when participants withdraw during the offering period . australia research and development tax credit our australian , wholly-owned , subsidiary incurs research and development expenses , primarily in the course of conducting clinical trials . the australian research and development activities qualify for the australian government 's tax credit program , which provides a 41 % credit for qualifying research and development expenses . the tax credit does not depend on our generation of future taxable income or ongoing tax status or position . accordingly , the credit is not considered an element of income tax accounting under asc 740 and is recorded against qualifying research and development expenses

liquidity and capital resources working capital the following table and subsequent discussion summarize our working capital as of each of the periods presented : replace_table_token_2_th current assets current assets as of july 31 , 2020 decreased by $ 5.7 million to $ 22.8 million , from $ 28.5 million as of july 31 , 2019. in february 2020 , the company received $ 28.0 million net proceeds from the china grand pharmaceutical and healthcare holdings limited ( “ cgp ” ) , and sirtex medical us holdings , inc. ( “ sirtex ” ) financing transaction . the proceeds from cgp and sirtex financing were offset by cash used to support our operations during the year ended july 31 , 2020. current liabilities current liabilities as of july 31 , 2020 increased by $ 4.7 million to $ 9.7 million , from $ 5.0 million as of july 31 , 2019. this increase was primarily due to an increase in accounts payable related to the alpha holdings litigation and contested proxy as well as the addition of operating lease liabilities to the balance sheet as a result of the adoption of asc 842. cash flow cash used in operating activities net cash used in operating activities for the year ended july 31 , 2020 was $ 33.1 million , as compared to $ 29.0 million for the year ended july 31 ,2019. the $ 4.1 million increase in cash used in operating activities was primarily attributable to an increase in cash used to support our operating activities , including but not limited to , our clinical trials , an increase in r & d activities , amounts for the alpha litigation and contested proxy and general working capital requirements .


 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 working capital the following table and subsequent discussion summarize our working capital as of each of the periods presented : replace_table_token_2_th current assets current assets as of july 31 , 2020 decreased by $ 5.7 million to $ 22.8 million , from $ 28.5 million as of july 31 , 2019. in february 2020 , the company received $ 28.0 million net proceeds from the china grand pharmaceutical and healthcare holdings limited ( “ cgp ” ) , and sirtex medical us holdings , inc. ( “ sirtex ” ) financing transaction . the proceeds from cgp and sirtex financing were offset by cash used to support our operations during the year ended july 31 , 2020. current liabilities current liabilities as of july 31 , 2020 increased by $ 4.7 million to $ 9.7 million , from $ 5.0 million as of july 31 , 2019. this increase was primarily due to an increase in accounts payable related to the alpha holdings litigation and contested proxy as well as the addition of operating lease liabilities to the balance sheet as a result of the adoption of asc 842. cash flow cash used in operating activities net cash used in operating activities for the year ended july 31 , 2020 was $ 33.1 million , as compared to $ 29.0 million for the year ended july 31 ,2019. the $ 4.1 million increase in cash used in operating activities was primarily attributable to an increase in cash used to support our operating activities , including but not limited to , our clinical trials , an increase in r & d activities , amounts for the alpha litigation and contested proxy and general working capital requirements .
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 Suspicious Activity Report : in 2017 , we received fast track designation and orphan drug designation from the u.s. food and drug administration ( “ fda ” ) for tavo in metastatic melanoma , which could qualify tavo for expedited fda review , a rolling biologics license application review and certain other benefits . we have completed monotherapy and combination programs and our current focus is to pursue clinical development programs with tavo , in combination with anti-pd-1 checkpoint inhibitors , in metastatic melanoma , triple negative breast cancer ( “ tnbc ” ) and squamous cell carcinoma head and neck ( “ scchn ” ) . the company intends to continue to pursue other ongoing or potential new trials and studies related to tavo , in various tumor types . in addition to tavo , we have identified and are developing new dna-encoded therapeutic candidates and tumor indications for use with our new visceral lesion applicator ( “ vla ” ) , to target deep visceral lesions , such as liver , lung , bladder , pancreatic and other difficult to treat visceral lesions . performance outlook we expect to use our available working capital in the near term primarily for the advancement of our existing and planned clinical programs , including performance of the keynote-695 and keynote-890 studies and , to a lesser extent , the continuation of our other clinical trials and studies . we anticipate our spending on clinical programs and the development of our next-generation oms ep device will continue throughout our current fiscal year , primarily in support of the keynote-695 and keynote-890 studies , while our spending on research and development programs will be prioritized , based on our focus on the keynote-695 and keynote-890 studies . we expect our cash-based general and administrative expenses to remain relatively flat in the near term , as we seek to continue to leverage internal resources and automate processes to decrease our outside services expenses . see “ results of operations ” below for more information . 53 results of operations for the year ended july 31 , 2020 compared to the year ended july 31 , 2019 the financial data for the years ended july 31 , 2020 and july 31 , 2019 is presented in the following table and the results of these two periods are included in the discussion thereafter . replace_table_token_1_th revenue we have not generated any revenue since our inception , and we do not anticipate generating meaningful revenue in the near term . research and development expenses our research and development expenses increased by approximately $ 6.7 million , from $ 18.4 million during the year ended july 31 , 2019 to $ 25.1 million during the year ended july 31 , 2020. this increase was primarily due to the following approximate increases : ( i ) $ 5.7 million in clinical trial-related costs to support our various clinical studies and costs for discovery research and product development ( ii ) $ 0.5 million in higher rent expense as a result of the adoption of asc 842 for our operating leases on august 1 , 2019 and ( iii ) $ 0.6 million increase in payroll and related benefits expenses , primarily due to additional headcount and merit increases . these increases were partially offset by a $ 0.1 million reduction in stock-based compensation expense for employees and consultants . general and administrative our general and administrative expenses increased by approximately $ 6.3 million , from $ 12.0 million during the year ended july 31 , 2019 , to $ 18.3 million during the year ended july 31 , 2020. this increase was largely due to the following approximate increases : ( i ) $ 4.8 million in legal costs primarily related to the alpha holdings litigation and the contested proxy ; ( ii ) $ 0.9 million in consulting costs , primarily due to business development and public relations ( iii ) $ 0.8 million in proxy costs primarily related to the company 's special meeting held in february 2020 and ( iv ) $ 0.5 million increase in payroll and related benefits expenses primarily due to additional headcount and merit increases . these increases were partially offset by a $ 0.5 million reduction in stock-based compensation expense for employees and consultants , and $ 0.2 million in travel and travel related expenses due to covid-19 restrictions . the company believes a significant portion of its legal costs related to the alpha holdings litigation are recoverable and are likely to be recovered . at this point , no amount for insurance recoveries has been recorded . other income , net other income , net , decreased by approximately $ 0.2 million from $ 0.4 million for the year ended july 31 , 2019 to $ 0.2 million for the year ended july 31 , 2020. this decrease was primarily due to reduced interest income as a result of lower cash balances as well as a lower return on our investments for these respective periods . 54 foreign currency exchange gain/ ( loss ) , net foreign currency exchange gain/ ( loss ) , net , increased by approximately $ 0.4 million from a loss of $ ( 0.3 ) million for the year ended july 31 , 2019 to a gain of $ 0.1 million for the year ended july 31 , 2020. the increase was primarily due to unrealized foreign currency transaction gains and losses recognized in connection with the australian subsidiary 's intercompany loan . income tax expense ( benefit ) in may 2020 , the company received $ 0.9 million in net proceeds from the sale of its new jersey net operating losses under the state of new jersey nol transfer program . story_separator_special_tag 58 alpha holdings on august 31 , 2018 , the company entered into a stock purchase agreement with alpha holdings , inc. ( “ alpha holdings ” ) , pursuant to which the company agreed to issue and sell to alpha holdings shares of its common stock equal to an aggregate amount of up to $ 15.0 million at a market purchase price of $ 15.00 per share , which was the closing price of the company 's common stock the day immediately before the agreement was executed by the parties . on october 9 , 2018 , the company received total proceeds , before expenses , of $ 8.0 million in cash from the offering and issued alpha holdings 533,333 shares of common stock . there were no underwriting or placement agent fees associated with the offering . on december 6 , 2018 , the company received total proceeds , before expenses , of $ 7.0 million in cash from the offering and issued alpha holdings 466,667 shares of common stock . there were no underwriting or placement agent fees associated with the offering . critical accounting policies accounting for long-lived assets we assess the impairment of long-lived assets , consisting of property and equipment , periodically and whenever events or circumstances indicate that the carrying value may not be recoverable . examples of such circumstances may include : ( 1 ) the asset 's ability to continue to generate income from operations and positive cash flow in future periods ; ( 2 ) loss of legal ownership or title to an asset ; ( 3 ) significant changes in our strategic business objectives and utilization of the assets ; and ( 4 ) the impact of significant negative industry or economic trends . if a change were to occur in any of these or similar factors , the likelihood of a material change in our net loss would increase . recoverability of assets to be held and used in operations is measured by a comparison of the carrying amount of an asset to the future net cash flows expected to be generated by the assets . although we believe the factors used by management to evaluate future net cash flows are reasonable , this evaluation requires a high degree of judgment , and results could vary if the actual amounts are materially different than management 's estimates . in addition , we base estimates of useful lives and related amortization or depreciation expense on our subjective estimate of the period the assets will generate revenue or otherwise be used by us . if long-lived assets are considered impaired , the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets . assets to be disposed of are reported at the lower of the carrying amount or fair value , less selling costs . equity-based awards the company grants equity-based awards ( typically stock options or restricted stock units ) under our stock-based compensation plan and outside of our stock-based compensation plan , with terms generally similar to the terms under our stock-based compensation plan . the company estimates the fair value of stock option awards using the black-scholes option valuation model . for employees , directors and consultants , the fair value of the award is measured on the grant date . the fair value amount is then recognized over the period during which services are required to be provided in exchange for the award , usually the vesting period . the black-scholes option valuation model requires the input of subjective assumptions , including price volatility of the underlying stock , risk-free interest rate , dividend yield , and expected life of the option . the company estimates the fair value of restricted stock unit awards based on the closing price of the company 's common stock on the date of issuance . 59 employee stock purchase plan employees may elect to participate in our stockholder approved employee stock purchase plan . the stock purchase plan allows for the purchase of our common stock at not less than 85 % of the lesser of ( i ) the fair market value of a share of stock on the beginning date of the offering period or ( ii ) the fair market value of a share of stock on the purchase date of the offering period , subject to a share and dollar limit as defined in the plan and subject to the applicable legal requirements . there are two 6-month offering periods during each fiscal year , ending on january 31 and july 31. in accordance with applicable accounting guidance , the fair value of awards under the stock purchase plan is calculated at the beginning of each offering period . we estimate the fair value of the awards using the black-scholes option valuation model . the black-scholes option valuation model requires the input of subjective assumptions , including price volatility of the underlying stock , risk-free interest rate , dividend yield , and the offering period . this fair value is then amortized at the beginning of the offering period . stock-based compensation expense is based on awards expected to be purchased at the beginning of the offering period , and therefore is reduced when participants withdraw during the offering period . australia research and development tax credit our australian , wholly-owned , subsidiary incurs research and development expenses , primarily in the course of conducting clinical trials . the australian research and development activities qualify for the australian government 's tax credit program , which provides a 41 % credit for qualifying research and development expenses . the tax credit does not depend on our generation of future taxable income or ongoing tax status or position . accordingly , the credit is not considered an element of income tax accounting under asc 740 and is recorded against qualifying research and development expenses

