Research and development expenses increased quarter over quarter. The main driver of this increase is activity in our VMAT2 program which continues to move forward in Phase II studies as well as drug product manufacturing, drug packaging for future clinical studies and a battery of pre-clinical work to support longer-term dosing in the ultimate NDA filings.
Additionally utilization of external experts and external (inaudible) studies for some of our early research programs also contributed to the increase in R&D expense. Personnel expense from both the R&D and G&A expense lines increased from 2011 to 2012. The main driver of this increase was higher non-cash stock based compensation costs related to options created during 2011 and 2012.
Stock based compensation expense increased approximately $700,000 companywide quarter-over-quarter. $300,000 of this increase was in research and development expense and $400,000 was reflected in general administrative expense. The company continues to believe that options are an extremely effective mechanism to align employee and shareholder interests. Overall for the quarter, expenses were in line with our expectations and budget.
We expect research and development expenses to increase as the year progresses and general and administrative expenses to remain relatively flat through the year. We began 2012 with approximately $132 million in cash investments or receivables. In January, we replaced 10.9 million shares of stock with high quality investors and yielded $83 million in net proceeds to the company.The funds raised from the offering were offset by cash burned from operations of approximately $11 million in the first quarter yielding approximately $203 million in cash investments or receivables at March 31, 2012. That concludes our prepared remarks and the financials. For those looking for more information, our 10-Q is on file with the SEC and with that I will turn it back over to Kevin and Chris.
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