completion of enrollment is anticipated by june 2014 with topline data expected in december 2014. the primary endpoint of the study is complete remission ( cr ) . secondary endpoints include overall response rate ( cr+cri+pr ) , hematologic improvement , duration of response , progression-free survival , rate of leukemic transformation , overall survival and safety . in addition , we are preparing for two open label phase ii trials of pracinostat : one in combination with vidaza in elderly patients with aml who are not 26 suited for induction therapy , expected to initiate in the fall of 2013 , and the other in combination with vidaza or dacogen ® ( decitabine ) in patients with hypomethylating agent refractory mds soon thereafter . in april 2012 we initiated a first-in-human , dose-escalation study of intravenous me-344 in patients with solid refractory tumors . the dose-escalation trial is evaluating the safety and tolerability of me-344 . in addition , the single-agent trial is designed to characterize the pharmacokinetic profile of intravenous me-344 and describe any preliminary clinical anti-tumor activity observed . as of september 2013 , a number of patients are still being followed in the trial , with disease control ranging from five months to one year . results from the trial are expected during the fourth quarter of calendar year 2013. equity transactions april 2013 common stock offering on april 10 , 2013 , we completed an underwritten registered offering of 2,030,000 shares of our common stock at a price per share of $ 7.50 pursuant to a shelf registration statement previously filed and declared effective by the securities and exchange commission for gross proceeds of $ 15,225,000 , before underwriters ' discount and expenses . we plan to use the net proceeds of the offering , together with other available funds , to primarily progress the clinical development program for our lead drug candidate , pracinostat , and for other general corporate purposes . december 2012 private placement on december 18 , 2012 , we completed the sale ( the december 2012 private placement ) of 9,166,665 shares ( the initial shares ) of common stock and warrants ( the warrants ) to purchase an additional 6,416,665 shares ( the warrant shares and , together with the initial shares , the shares ) of common stock for an aggregate offering price of $ 27.5 million , pursuant to the terms a securities purchase agreement , dated november 4 , 2012 , between us and certain accredited investors identified therein . as of the date of the closing of the december 2012 private placement , two of the investors , vivo ventures fund vii , l.p. ( vivo ) and new leaf ventures ii , l.p. ( new leaf ) each owned in excess of 20 % of our outstanding common stock . reverse stock split on december 18 , 2012 , we filed a certificate of amendment to our restated certificate of incorporation in order to effect a 1-for-6 reverse stock split ( the 2012 reverse stock split ) of our common stock effective on december 18 , 2012. as a result of the 2012 reverse stock split , every six shares of our issued and outstanding common stock were combined into one share of common stock . the 2012 reverse stock split did not change the number of authorized shares of common stock . all financial data and share information in this annual report on form 10-k has been presented on an as-adjusted basis to give effect to the 2012 reverse stock split . s * bio asset purchase on august 7 , 2012 , we entered into a definitive asset purchase agreement with s * bio , pursuant to which we agreed to acquire certain assets comprised of intellectual property and technology including rights to pracinostat , in exchange for $ 500,000 of common stock . on august 22 , 2012 , we completed the asset purchase and issued 195,756 shares of common stock to s * bio . we also agreed to make certain milestone payments to s * bio based on the achievement of certain clinical , regulatory and net sales-based milestones , as well as to make certain contingent earnout payments to s * bio . milestone payments will be made to s * bio up to an aggregate amount of $ 75.2 million if certain u.s. , e.u . and japanese regulatory approvals are obtained and if certain net sales thresholds are met in north america , the e.u . and japan . we will pay $ 500,000 of the first milestone payment in shares of common stock . s * bio will be entitled to receive certain contingent earnout payments based on certain worldwide net sales thresholds on a product-by-product and country-by-country basis . 27 rights offering in may 2012 , we completed a rights offering ( rights offering ) pursuant to which we distributed , at no charge , to holders of record as of march 30 , 2012 , subscription rights ( the rights ) to purchase up to 17,129,361 units for an aggregate purchase price of up to $ 7.6 million . the subscription period for the rights offering expired on may 11 , 2012. each unit consisted of 0.0833 shares of common stock and a warrant representing the right to purchase 0.04167 shares of our common stock at an exercise price of $ 7.14 per share . the exercise of one right entitled holders to purchase one unit at a subscription price of $ 0.445 per unit , which represented the subscription price of $ 5.34 per whole share . story_separator_special_tag the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , expenses and related disclosures . actual results could differ from those estimates . we believe the following accounting policies to be critical to the judgments and estimates used in the preparation of our financial statements . clinical trials expenses estimates have been used in determining the expenses under certain clinical trial contracts where services have been performed but not yet invoiced . generally , the costs associated with clinical trial contracts are based on the number of patients in each trial , the service contracts associated with clinical sites , service providers and drug development contracts . the length of time before actual amounts can be determined will vary , and are therefore estimated , depending on length of the drug administration cycles and the timing of the invoices by the clinical trial partners and contractors . share-based compensation share-based compensation expense for employees and directors is recognized in the statement of operations based on estimated amounts , including the grant date fair value and the expected service period . for 30 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 . for restricted stock units ( rsu ) equity awards , we estimate the grant date fair value using the company 's closing stock price on the date of grant . 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 . unrecognized compensation expense as of june 30 , 2013 related to non-vested stock options and rsus totalled $ 1,948,000 and $ 3,039,000 , respectively . such compensation expense is expected to be recognized over weighted-average periods of 3.3 years and 3.2 years , respectively . derivative liabilities in conjunction with our may 2011 private placement , we issued common stock on terms that included certain embedded derivative features , as well as warrants that were accounted for as derivative liabilities . the series a and series b warrants , prior to their subsequent amendment in september 2011 , and adjustment shares features related to the common stock issued in the private placement , were determined to be ineligible for equity classification due to certain price protection and anti-dilution provisions . the resulting derivative liabilities were initially recorded at their estimated fair value on the date of issuance of the common stock and warrants , and were subsequently adjusted to reflect the estimated fair value at each period end , with any decrease or increase in the estimated fair value being recorded as other income or expense . the fair value of these liabilities was estimated using option pricing models that are based on the individual characteristics of the common stock , the derivative liabilities on the valuation date , probabilities related to future financings , as well as assumptions for volatility , remaining expected life , and risk-free interest rate . the option pricing models of our derivative liabilities are sensitive to changes to inputs and assumptions used in the option pricing models . as of june 30 , 2013 and june 30 , 2012 we had no remaining derivative liabilities . 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_2_th 31 comparison of years ended june 30 , 2013 and 2012 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 non-clinical and clinical studies , and salaries and other personnel costs . research and development expenses increased $ 1,169,000 to $ 6,084,000 for the year ended june 30 , 2013 compared to $ 4,915,000 for the year ended june 30 , 2012. the increase was primarily due to costs associated with drug manufacturing and preparations for phase ii clinical trials for pracinostat and costs associated with a phase i clinical trial for me-344 . additionally , salaries and benefits costs , including share-based compensation , increased due to hiring of additional employees and issuance of additional stock options to research and development personnel . we expect research and development expenses to increase during the fiscal year ending june 30 , 2014 related primarily to our planned phase ii clinical trials for pracinostat . general and administrative : general and administrative expenses increased by $ 1,659,000 to $ 5,138,000 for the year ended june 30 , 2013 compared to $ 3,479,000 for the year ended june 30 , 2012. the increase primarily relates to higher levels of salaries and benefits , including share-based compensation of $ 1,292,000 for the year ended june 30 , 2013 compared with $ 446,000 for the year ended june 30 , 2012. in addition , we incurred legal fees and other costs associated with the issuance of common stock to s * bio in conjunction with the purchase of pracinostat , and professional and consulting expenses related to corporate matters including the company 's reverse stock split . other income or

liquidity and capital resources we have accumulated losses of $ 96.3 million since inception and expect to incur operating losses and generate negative cash flows from operations for the foreseeable future . as of june 30 , 2013 , we had $ 35.6 million in cash and cash equivalents . we believe our cash and cash equivalents will be sufficient to fund our operations for at least the next 12 months . our current business operations are focused on continuing the clinical development of our lead drug candidate , pracinostat . our clinical development pipeline also includes me-344 and me-143 . changes to our research and development plans or other changes affecting our operating 32 expenses may affect actual future use of existing cash resources . to date , we have obtained cash and funded our operations primarily through equity financings . in order to continue the development of our drug candidates , at some point in the future we expect to pursue one or more capital transactions , whether through the sale of equity securities or entry into strategic partnerships . sources and uses of our cash net cash used in operations for the year ended june 30 , 2013 was $ 10,044,000 compared to $ 7,081,000 in the year ended june 30 , 2012 due to an increase in expenses incurred for research and development and general and administrative costs as described above .


 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 have accumulated losses of $ 96.3 million since inception and expect to incur operating losses and generate negative cash flows from operations for the foreseeable future . as of june 30 , 2013 , we had $ 35.6 million in cash and cash equivalents . we believe our cash and cash equivalents will be sufficient to fund our operations for at least the next 12 months . our current business operations are focused on continuing the clinical development of our lead drug candidate , pracinostat . our clinical development pipeline also includes me-344 and me-143 . changes to our research and development plans or other changes affecting our operating 32 expenses may affect actual future use of existing cash resources . to date , we have obtained cash and funded our operations primarily through equity financings . in order to continue the development of our drug candidates , at some point in the future we expect to pursue one or more capital transactions , whether through the sale of equity securities or entry into strategic partnerships . sources and uses of our cash net cash used in operations for the year ended june 30 , 2013 was $ 10,044,000 compared to $ 7,081,000 in the year ended june 30 , 2012 due to an increase in expenses incurred for research and development and general and administrative costs as described above .
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 Suspicious Activity Report : completion of enrollment is anticipated by june 2014 with topline data expected in december 2014. the primary endpoint of the study is complete remission ( cr ) . secondary endpoints include overall response rate ( cr+cri+pr ) , hematologic improvement , duration of response , progression-free survival , rate of leukemic transformation , overall survival and safety . in addition , we are preparing for two open label phase ii trials of pracinostat : one in combination with vidaza in elderly patients with aml who are not 26 suited for induction therapy , expected to initiate in the fall of 2013 , and the other in combination with vidaza or dacogen ® ( decitabine ) in patients with hypomethylating agent refractory mds soon thereafter . in april 2012 we initiated a first-in-human , dose-escalation study of intravenous me-344 in patients with solid refractory tumors . the dose-escalation trial is evaluating the safety and tolerability of me-344 . in addition , the single-agent trial is designed to characterize the pharmacokinetic profile of intravenous me-344 and describe any preliminary clinical anti-tumor activity observed . as of september 2013 , a number of patients are still being followed in the trial , with disease control ranging from five months to one year . results from the trial are expected during the fourth quarter of calendar year 2013. equity transactions april 2013 common stock offering on april 10 , 2013 , we completed an underwritten registered offering of 2,030,000 shares of our common stock at a price per share of $ 7.50 pursuant to a shelf registration statement previously filed and declared effective by the securities and exchange commission for gross proceeds of $ 15,225,000 , before underwriters ' discount and expenses . we plan to use the net proceeds of the offering , together with other available funds , to primarily progress the clinical development program for our lead drug candidate , pracinostat , and for other general corporate purposes . december 2012 private placement on december 18 , 2012 , we completed the sale ( the december 2012 private placement ) of 9,166,665 shares ( the initial shares ) of common stock and warrants ( the warrants ) to purchase an additional 6,416,665 shares ( the warrant shares and , together with the initial shares , the shares ) of common stock for an aggregate offering price of $ 27.5 million , pursuant to the terms a securities purchase agreement , dated november 4 , 2012 , between us and certain accredited investors identified therein . as of the date of the closing of the december 2012 private placement , two of the investors , vivo ventures fund vii , l.p. ( vivo ) and new leaf ventures ii , l.p. ( new leaf ) each owned in excess of 20 % of our outstanding common stock . reverse stock split on december 18 , 2012 , we filed a certificate of amendment to our restated certificate of incorporation in order to effect a 1-for-6 reverse stock split ( the 2012 reverse stock split ) of our common stock effective on december 18 , 2012. as a result of the 2012 reverse stock split , every six shares of our issued and outstanding common stock were combined into one share of common stock . the 2012 reverse stock split did not change the number of authorized shares of common stock . all financial data and share information in this annual report on form 10-k has been presented on an as-adjusted basis to give effect to the 2012 reverse stock split . s * bio asset purchase on august 7 , 2012 , we entered into a definitive asset purchase agreement with s * bio , pursuant to which we agreed to acquire certain assets comprised of intellectual property and technology including rights to pracinostat , in exchange for $ 500,000 of common stock . on august 22 , 2012 , we completed the asset purchase and issued 195,756 shares of common stock to s * bio . we also agreed to make certain milestone payments to s * bio based on the achievement of certain clinical , regulatory and net sales-based milestones , as well as to make certain contingent earnout payments to s * bio . milestone payments will be made to s * bio up to an aggregate amount of $ 75.2 million if certain u.s. , e.u . and japanese regulatory approvals are obtained and if certain net sales thresholds are met in north america , the e.u . and japan . we will pay $ 500,000 of the first milestone payment in shares of common stock . s * bio will be entitled to receive certain contingent earnout payments based on certain worldwide net sales thresholds on a product-by-product and country-by-country basis . 27 rights offering in may 2012 , we completed a rights offering ( rights offering ) pursuant to which we distributed , at no charge , to holders of record as of march 30 , 2012 , subscription rights ( the rights ) to purchase up to 17,129,361 units for an aggregate purchase price of up to $ 7.6 million . the subscription period for the rights offering expired on may 11 , 2012. each unit consisted of 0.0833 shares of common stock and a warrant representing the right to purchase 0.04167 shares of our common stock at an exercise price of $ 7.14 per share . the exercise of one right entitled holders to purchase one unit at a subscription price of $ 0.445 per unit , which represented the subscription price of $ 5.34 per whole share . story_separator_special_tag the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , expenses and related disclosures . actual results could differ from those estimates . we believe the following accounting policies to be critical to the judgments and estimates used in the preparation of our financial statements . clinical trials expenses estimates have been used in determining the expenses under certain clinical trial contracts where services have been performed but not yet invoiced . generally , the costs associated with clinical trial contracts are based on the number of patients in each trial , the service contracts associated with clinical sites , service providers and drug development contracts . the length of time before actual amounts can be determined will vary , and are therefore estimated , depending on length of the drug administration cycles and the timing of the invoices by the clinical trial partners and contractors . share-based compensation share-based compensation expense for employees and directors is recognized in the statement of operations based on estimated amounts , including the grant date fair value and the expected service period . for 30 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 . for restricted stock units ( rsu ) equity awards , we estimate the grant date fair value using the company 's closing stock price on the date of grant . 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 . unrecognized compensation expense as of june 30 , 2013 related to non-vested stock options and rsus totalled $ 1,948,000 and $ 3,039,000 , respectively . such compensation expense is expected to be recognized over weighted-average periods of 3.3 years and 3.2 years , respectively . derivative liabilities in conjunction with our may 2011 private placement , we issued common stock on terms that included certain embedded derivative features , as well as warrants that were accounted for as derivative liabilities . the series a and series b warrants , prior to their subsequent amendment in september 2011 , and adjustment shares features related to the common stock issued in the private placement , were determined to be ineligible for equity classification due to certain price protection and anti-dilution provisions . the resulting derivative liabilities were initially recorded at their estimated fair value on the date of issuance of the common stock and warrants , and were subsequently adjusted to reflect the estimated fair value at each period end , with any decrease or increase in the estimated fair value being recorded as other income or expense . the fair value of these liabilities was estimated using option pricing models that are based on the individual characteristics of the common stock , the derivative liabilities on the valuation date , probabilities related to future financings , as well as assumptions for volatility , remaining expected life , and risk-free interest rate . the option pricing models of our derivative liabilities are sensitive to changes to inputs and assumptions used in the option pricing models . as of june 30 , 2013 and june 30 , 2012 we had no remaining derivative liabilities . 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_2_th 31 comparison of years ended june 30 , 2013 and 2012 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 non-clinical and clinical studies , and salaries and other personnel costs . research and development expenses increased $ 1,169,000 to $ 6,084,000 for the year ended june 30 , 2013 compared to $ 4,915,000 for the year ended june 30 , 2012. the increase was primarily due to costs associated with drug manufacturing and preparations for phase ii clinical trials for pracinostat and costs associated with a phase i clinical trial for me-344 . additionally , salaries and benefits costs , including share-based compensation , increased due to hiring of additional employees and issuance of additional stock options to research and development personnel . we expect research and development expenses to increase during the fiscal year ending june 30 , 2014 related primarily to our planned phase ii clinical trials for pracinostat . general and administrative : general and administrative expenses increased by $ 1,659,000 to $ 5,138,000 for the year ended june 30 , 2013 compared to $ 3,479,000 for the year ended june 30 , 2012. the increase primarily relates to higher levels of salaries and benefits , including share-based compensation of $ 1,292,000 for the year ended june 30 , 2013 compared with $ 446,000 for the year ended june 30 , 2012. in addition , we incurred legal fees and other costs associated with the issuance of common stock to s * bio in conjunction with the purchase of pracinostat , and professional and consulting expenses related to corporate matters including the company 's reverse stock split . other income or

