the two primary cannabinoids contained in cannabis are cbd and thc . clinical and preclinical data suggest that cbd has positive effects on treating behavioral symptoms of fxs , asd , 22q and seizures in patients with epilepsy . zygel is the first and only pharmaceutically-produced cbd formulated as a permeation‑enhanced gel for transdermal delivery , and the formulation is patent protected through 2030. an additional patent , directed to methods of treating fxs with synthetic or purified cbd , will expire in 2038. cbd is the primary non‑euphoric component of cannabis . in preclinical animal studies , zygel 's permeation enhancer increased delivery of cbd through the layers of the skin and into the circulatory system . these preclinical studies suggest increased bioavailability , consistent plasma levels and the avoidance of first‑pass liver metabolism of cbd when delivered transdermally . in addition , an in vitro study published in cannabis and cannabinoid research in april 2016 demonstrated that cbd is degraded to thc ( the major psychoactive cannabinoid in cannabis ) in an acidic environment such as the stomach . as a result , we believe such degradation may lead to increased psychoactive effects if cbd is delivered orally and may be avoided with the transdermal delivery of zygel , which maintains cbd in a neutral ph . zygel , which is being developed as a clear gel with once- or twice-daily dosing , is targeting treatment of behavioral symptoms of fxs , asd and 22q and reduction in seizures in patients with dee . we have been granted orphan drug designation from the fda for the use of cbd for the treatment of fxs . in our phase 1 program , zygel was demonstrated to be safe and well tolerated , provided a favorable cbd pharmacokinetic profile , and no thc was detected in plasma or urine . as of june 2018 , the zygel safety database across all clinical studies conducted by us includes data from 570 volunteers and patients . across these clinical studies , zygel has been well tolerated and consistent with previously reported data . 78 in april 2018 , we initiated the phase 2 believe 1 ( open label study to assess the safety and efficacy of zygel administered as a transdermal gel to children and adolescents with developmental and epileptic encephalopathy ) clinical trial , a six-month open label multi-dose clinical trial designed to evaluate the efficacy and safety of zygel in children and adolescents ( three to 17 years ) with dee as classified by the international league against epilepsy ( ilae ) ( scheffer et al . 2017 ) . enrollment in this study was complete in december 2018 and 48 patients with confirmed dee are being dosed in the clinical trial , 27 % of whom have either dravet or lennox-gastaut syndrome . enrolled patients will receive weight-based initial doses of 250 mg daily or 500 mg daily and during the maintenance phase patients may receive up to 1000 mg daily of zygel . the primary endpoint is change in seizure frequency from baseline . we expect to report top line results from the believe 1 trial in the third quarter of 2019. in july 2018 , we initiated the pivotal connect-fx ( clinical study of cannabidiol ( cbd ) in children and adolescents with fragile x ) clinical trial , a multi-national randomized , double-blind , placebo-controlled , 14-week study that will assess the efficacy and safety of zygel in children and adolescents ages three through 17 years who have full mutation of the fmr1 gene . approximately 200 male and female patients with fxs will be enrolled at approximately 20 clinical sites in the united states , australia , and new zealand . the study is being conducted in the united states under an investigational new drug ( ind ) application opened with the fda . patients will be randomized 1:1 to either trial drug or placebo . randomization will be stratified by gender , weight , and investigator geographic region . enrolled patients will receive weight-based doses of 250 mg or 500 mg daily . the primary endpoint is the change from baseline to the end of the treatment period in the aberrant behavior checklist-community fxs specific ( abc-c fxs ) social avoidance subscale . key secondary endpoints are the change from baseline to the end of the treatment period in the abc-c fxs irritability subscale score , the abc-c fxs socially unresponsive/lethargic subscale score , and improvement in clinical global impression - improvement ( cgi-i ) at the end of the treatment period . based on discussions with the fda , we will anchor the cgi-i scale to behavioral symptoms of fxs . consistent with recent guidance from the fda on capturing the voice of the patient in drug development , additional qualitative data on the clinical relevance of various fxs behaviors to caregivers and patients will be collected . if we obtain positive results from this trial , we plan to request a meeting with the fda to determine the acceptability of these data as the basis for an nda filing . we expect to report top line results from the connect-fx trial in the second half of 2019. in march 2019 , we initiated the phase 2 bright ( an open-label tolerability and efficacy study of zyn002 administered as a transdermal gel to children and adolescents with autism spectrum disorder ) trial . the study will assess the safety , tolerability and efficacy of zygel for the treatment of child and adolescent patients with asd . the company expects to present top line data from this study in the first half of 2020 . story_separator_special_tag substantial additional financings will be needed to fund our operations and to complete clinical development of and to commercially develop our product candidates . there is no assurance that such financing will be available when needed or on acceptable terms . equity financings during the year ended december 31 , 2016 , we entered into an open market sales agreement , or the 2016 sales agreement , with jefferies , pursuant to which we sold and issued 794,906 shares of our common stock in the open market at a weighted average selling price of $ 13.39 per share , for gross proceeds of $ 10.6 million . net proceeds received after deducting commissions and offering expenses were $ 10.0 million . in the first quarter of 2017 , we completed a follow-on public offering , selling 3,220,000 shares of our common stock at an offering price of $ 18.00 per share , resulting in gross proceeds of $ 58.0 million . net proceeds received after deducting underwriting and commissions and offering expenses were $ 54.2 million . in june 2017 , we terminated the 2016 sales agreement and entered into a new open market sales agreement , or sales agreement , with jefferies , pursuant to which we may sell , from time to time , up to $ 50.0 million of our common stock . during 2017 , we sold and issued 296,594 shares of common stock in the open market at a weighted average selling price of $ 10.74 per share , for gross proceeds of $ 3.2 million . net proceeds after deducting underwriting and commissions and offering expenses were $ 3.0 million . in july 2018 , we completed a follow-on public offering , selling 4,062,500 shares of our common stock at an offering price of $ 8.00 per share , resulting in gross proceeds of $ 32.5 million . net proceeds received after deducting underwriting discounts and commissions and offering expenses were $ 29.9 million . from january 29 , 2019 through march 6 , 2019 , we sold and issued 3,439,523 shares of common stock under the sales agreement with jefferies in the open market at a weighted average selling price of $ 5.44 per share , resulting in gross proceeds of $ 18.7 million . net proceeds after deducting commissions and offering expenses were $ 18.1 million . debt we had no debt outstanding as of december 31 , 2018 or 2017 . 85 future capital requirements during the year ended december 31 , 2018 , net cash used in operating activities was $ 32.4 million , and our accumulated deficit as of december 31 , 2018 was $ 117.9 million . our expectations regarding future cash requirements do not reflect the potential impact of any future acquisitions , mergers , dispositions , joint ventures or investments that we may make in the future . to the extent that we enter into any of those types of transactions , we may need to raise substantial additional capital . we expect to continue to incur substantial additional operating losses for at least the next several years as we continue to develop our product candidates and seek marketing approval and , subject to obtaining such approval , the eventual commercialization of our product candidates . if we obtain marketing approval for either of our product candidates , we will incur significant sales , marketing and manufacturing expenses . in addition , we expect to incur additional expenses to add operational , financial and information systems and personnel , including personnel to support our planned product commercialization efforts . we also expect to incur significant costs to comply with corporate governance , internal controls and similar requirements associated with operating as a public reporting company . our future use of operating cash and capital requirements will depend on many forward‑looking factors , including the following : · the initiation , progress , timing , costs and results of preclinical studies and clinical trials for our product candidates ; · the clinical development plans we establish for these product candidates ; · the number and characteristics of product candidates that we develop or may in‑license ; · the terms of any collaboration agreements we may choose to execute ; · the outcome , timing and cost of meeting regulatory requirements established by the dea , the fda , the ema or other comparable foreign regulatory authorities ; · the cost of filing , prosecuting , defending and enforcing our patent claims and other intellectual property rights ; · the cost of defending intellectual property disputes , including patent infringement actions brought by third parties against us ; · costs and timing of the implementation of commercial scale manufacturing activities ; and · the cost of establishing , or outsourcing , sales , marketing and distribution capabilities for any product candidates for which we may receive regulatory approval in regions where we choose to commercialize our products on our own . to the extent that our capital resources are insufficient to meet our future operating and capital requirements , we will need to finance our cash needs through public or private equity offerings , debt financings , collaboration and licensing arrangements or other financing alternatives . we have no committed external sources of funds . additional equity or debt financing or collaboration and licensing arrangements may not be available on acceptable terms , if at all . if we raise additional funds by issuing equity securities , our stockholders will experience dilution . 86 story_separator_special_tag ; border-right:1pt none # d9d9d9 ; background-color : # cceeff ; padding:0pt ; `` valign= `` bottom `` > $ - recent accounting pronouncements in february 2016 , the financial accounting standards board , or fasb , issued accounting standards update , or asu , no . 2016-02 , leases , which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and a liability . the pronouncement

cash flows years ended december 31 , 2018 and december 31 , 2017 — the following table summarizes our cash flows from operating , investing and financing activities for the years ended december 31 , 2018 and december 31 , 2017. replace_table_token_5_th operating activities for the year ended december 31 , 2018 , cash used in operating activities was $ 32.4 million , compared to $ 25.8 million for the year ended december 31 , 2017. the increase from the comparable 2017 period was primarily the result of increased research and development activities related to the clinical trials of our product candidates , and an increase in personnel costs . we expect cash used in operating activities to continue to increase in 2019 as compared to 2018 , due to an expected increase in our operating losses associated with ongoing development of our product candidates . investing activities for the years ended december 31 , 2018 and 2017 , cash used in investing activities consisted of expenditures made for manufacturing equipment and leasehold improvement and furniture and fixtures associated with our corporate headquarters . financing activities cash provided by financing activities for the year ended december 31 , 2018 consisted of $ 29.9 million in net proceeds from sales of our shares of common stock under a follow-on public offering .


 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.
     ```cash flows years ended december 31 , 2018 and december 31 , 2017 — the following table summarizes our cash flows from operating , investing and financing activities for the years ended december 31 , 2018 and december 31 , 2017. replace_table_token_5_th operating activities for the year ended december 31 , 2018 , cash used in operating activities was $ 32.4 million , compared to $ 25.8 million for the year ended december 31 , 2017. the increase from the comparable 2017 period was primarily the result of increased research and development activities related to the clinical trials of our product candidates , and an increase in personnel costs . we expect cash used in operating activities to continue to increase in 2019 as compared to 2018 , due to an expected increase in our operating losses associated with ongoing development of our product candidates . investing activities for the years ended december 31 , 2018 and 2017 , cash used in investing activities consisted of expenditures made for manufacturing equipment and leasehold improvement and furniture and fixtures associated with our corporate headquarters . financing activities cash provided by financing activities for the year ended december 31 , 2018 consisted of $ 29.9 million in net proceeds from sales of our shares of common stock under a follow-on public offering .
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 Suspicious Activity Report : the two primary cannabinoids contained in cannabis are cbd and thc . clinical and preclinical data suggest that cbd has positive effects on treating behavioral symptoms of fxs , asd , 22q and seizures in patients with epilepsy . zygel is the first and only pharmaceutically-produced cbd formulated as a permeation‑enhanced gel for transdermal delivery , and the formulation is patent protected through 2030. an additional patent , directed to methods of treating fxs with synthetic or purified cbd , will expire in 2038. cbd is the primary non‑euphoric component of cannabis . in preclinical animal studies , zygel 's permeation enhancer increased delivery of cbd through the layers of the skin and into the circulatory system . these preclinical studies suggest increased bioavailability , consistent plasma levels and the avoidance of first‑pass liver metabolism of cbd when delivered transdermally . in addition , an in vitro study published in cannabis and cannabinoid research in april 2016 demonstrated that cbd is degraded to thc ( the major psychoactive cannabinoid in cannabis ) in an acidic environment such as the stomach . as a result , we believe such degradation may lead to increased psychoactive effects if cbd is delivered orally and may be avoided with the transdermal delivery of zygel , which maintains cbd in a neutral ph . zygel , which is being developed as a clear gel with once- or twice-daily dosing , is targeting treatment of behavioral symptoms of fxs , asd and 22q and reduction in seizures in patients with dee . we have been granted orphan drug designation from the fda for the use of cbd for the treatment of fxs . in our phase 1 program , zygel was demonstrated to be safe and well tolerated , provided a favorable cbd pharmacokinetic profile , and no thc was detected in plasma or urine . as of june 2018 , the zygel safety database across all clinical studies conducted by us includes data from 570 volunteers and patients . across these clinical studies , zygel has been well tolerated and consistent with previously reported data . 78 in april 2018 , we initiated the phase 2 believe 1 ( open label study to assess the safety and efficacy of zygel administered as a transdermal gel to children and adolescents with developmental and epileptic encephalopathy ) clinical trial , a six-month open label multi-dose clinical trial designed to evaluate the efficacy and safety of zygel in children and adolescents ( three to 17 years ) with dee as classified by the international league against epilepsy ( ilae ) ( scheffer et al . 2017 ) . enrollment in this study was complete in december 2018 and 48 patients with confirmed dee are being dosed in the clinical trial , 27 % of whom have either dravet or lennox-gastaut syndrome . enrolled patients will receive weight-based initial doses of 250 mg daily or 500 mg daily and during the maintenance phase patients may receive up to 1000 mg daily of zygel . the primary endpoint is change in seizure frequency from baseline . we expect to report top line results from the believe 1 trial in the third quarter of 2019. in july 2018 , we initiated the pivotal connect-fx ( clinical study of cannabidiol ( cbd ) in children and adolescents with fragile x ) clinical trial , a multi-national randomized , double-blind , placebo-controlled , 14-week study that will assess the efficacy and safety of zygel in children and adolescents ages three through 17 years who have full mutation of the fmr1 gene . approximately 200 male and female patients with fxs will be enrolled at approximately 20 clinical sites in the united states , australia , and new zealand . the study is being conducted in the united states under an investigational new drug ( ind ) application opened with the fda . patients will be randomized 1:1 to either trial drug or placebo . randomization will be stratified by gender , weight , and investigator geographic region . enrolled patients will receive weight-based doses of 250 mg or 500 mg daily . the primary endpoint is the change from baseline to the end of the treatment period in the aberrant behavior checklist-community fxs specific ( abc-c fxs ) social avoidance subscale . key secondary endpoints are the change from baseline to the end of the treatment period in the abc-c fxs irritability subscale score , the abc-c fxs socially unresponsive/lethargic subscale score , and improvement in clinical global impression - improvement ( cgi-i ) at the end of the treatment period . based on discussions with the fda , we will anchor the cgi-i scale to behavioral symptoms of fxs . consistent with recent guidance from the fda on capturing the voice of the patient in drug development , additional qualitative data on the clinical relevance of various fxs behaviors to caregivers and patients will be collected . if we obtain positive results from this trial , we plan to request a meeting with the fda to determine the acceptability of these data as the basis for an nda filing . we expect to report top line results from the connect-fx trial in the second half of 2019. in march 2019 , we initiated the phase 2 bright ( an open-label tolerability and efficacy study of zyn002 administered as a transdermal gel to children and adolescents with autism spectrum disorder ) trial . the study will assess the safety , tolerability and efficacy of zygel for the treatment of child and adolescent patients with asd . the company expects to present top line data from this study in the first half of 2020 . story_separator_special_tag substantial additional financings will be needed to fund our operations and to complete clinical development of and to commercially develop our product candidates . there is no assurance that such financing will be available when needed or on acceptable terms . equity financings during the year ended december 31 , 2016 , we entered into an open market sales agreement , or the 2016 sales agreement , with jefferies , pursuant to which we sold and issued 794,906 shares of our common stock in the open market at a weighted average selling price of $ 13.39 per share , for gross proceeds of $ 10.6 million . net proceeds received after deducting commissions and offering expenses were $ 10.0 million . in the first quarter of 2017 , we completed a follow-on public offering , selling 3,220,000 shares of our common stock at an offering price of $ 18.00 per share , resulting in gross proceeds of $ 58.0 million . net proceeds received after deducting underwriting and commissions and offering expenses were $ 54.2 million . in june 2017 , we terminated the 2016 sales agreement and entered into a new open market sales agreement , or sales agreement , with jefferies , pursuant to which we may sell , from time to time , up to $ 50.0 million of our common stock . during 2017 , we sold and issued 296,594 shares of common stock in the open market at a weighted average selling price of $ 10.74 per share , for gross proceeds of $ 3.2 million . net proceeds after deducting underwriting and commissions and offering expenses were $ 3.0 million . in july 2018 , we completed a follow-on public offering , selling 4,062,500 shares of our common stock at an offering price of $ 8.00 per share , resulting in gross proceeds of $ 32.5 million . net proceeds received after deducting underwriting discounts and commissions and offering expenses were $ 29.9 million . from january 29 , 2019 through march 6 , 2019 , we sold and issued 3,439,523 shares of common stock under the sales agreement with jefferies in the open market at a weighted average selling price of $ 5.44 per share , resulting in gross proceeds of $ 18.7 million . net proceeds after deducting commissions and offering expenses were $ 18.1 million . debt we had no debt outstanding as of december 31 , 2018 or 2017 . 85 future capital requirements during the year ended december 31 , 2018 , net cash used in operating activities was $ 32.4 million , and our accumulated deficit as of december 31 , 2018 was $ 117.9 million . our expectations regarding future cash requirements do not reflect the potential impact of any future acquisitions , mergers , dispositions , joint ventures or investments that we may make in the future . to the extent that we enter into any of those types of transactions , we may need to raise substantial additional capital . we expect to continue to incur substantial additional operating losses for at least the next several years as we continue to develop our product candidates and seek marketing approval and , subject to obtaining such approval , the eventual commercialization of our product candidates . if we obtain marketing approval for either of our product candidates , we will incur significant sales , marketing and manufacturing expenses . in addition , we expect to incur additional expenses to add operational , financial and information systems and personnel , including personnel to support our planned product commercialization efforts . we also expect to incur significant costs to comply with corporate governance , internal controls and similar requirements associated with operating as a public reporting company . our future use of operating cash and capital requirements will depend on many forward‑looking factors , including the following : · the initiation , progress , timing , costs and results of preclinical studies and clinical trials for our product candidates ; · the clinical development plans we establish for these product candidates ; · the number and characteristics of product candidates that we develop or may in‑license ; · the terms of any collaboration agreements we may choose to execute ; · the outcome , timing and cost of meeting regulatory requirements established by the dea , the fda , the ema or other comparable foreign regulatory authorities ; · the cost of filing , prosecuting , defending and enforcing our patent claims and other intellectual property rights ; · the cost of defending intellectual property disputes , including patent infringement actions brought by third parties against us ; · costs and timing of the implementation of commercial scale manufacturing activities ; and · the cost of establishing , or outsourcing , sales , marketing and distribution capabilities for any product candidates for which we may receive regulatory approval in regions where we choose to commercialize our products on our own . to the extent that our capital resources are insufficient to meet our future operating and capital requirements , we will need to finance our cash needs through public or private equity offerings , debt financings , collaboration and licensing arrangements or other financing alternatives . we have no committed external sources of funds . additional equity or debt financing or collaboration and licensing arrangements may not be available on acceptable terms , if at all . if we raise additional funds by issuing equity securities , our stockholders will experience dilution . 86 story_separator_special_tag ; border-right:1pt none # d9d9d9 ; background-color : # cceeff ; padding:0pt ; `` valign= `` bottom `` > $ - recent accounting pronouncements in february 2016 , the financial accounting standards board , or fasb , issued accounting standards update , or asu , no . 2016-02 , leases , which requires that lease arrangements longer than 12 months result in an entity recognizing an asset and a liability . the pronouncement

