R&D expenses were 26% lower and SG&A expenses were 16% lower, all compared against 2011. These numbers reflect the actions we undertook last year to reduce our cash burn rate including a reduction in force and the relocation of our corporate headquarters. Overall, then our loss from operations declined 25% to $5.3 million in the quarter compared to $7.1 million in Q2 of last year.
This quarter we reported $6.2 million in other income. This is almost entirely due to a decrease in the fair value of our warrant liability. And under warrant liability accounting, deceases in the liability are passed through the statement of operations as income. So, you’ll recall that $5.3 million Series B Warrants expired unexercised on May 2 and the elimination of the Series B Warrants accounted for about $4.7 million of the $6.2 million decrease in the warrant liability. So as a result, we reported net income of $0.03 per share for the quarter or $834,000. This compares with a net loss of $0.29 per share or $4 million in the second quarter of 2011.
On a cash flow basis, cash used in operating activities was $5.1 million in Q2 and for the first six months was $10.7 million. We continue to anticipate our cash burn, will be $18 million to $20 million this year, and we remain on target for that. With respect to our cash balance, we considerably strengthened our position. Our cash balance at June 30, 2012, was $18.2 million on a pro forma basis. As I said this includes $9.2 million in net proceeds received subsequent to the end of the quarter from the exercise of warrants and from the sale of shares.
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