the phase 2 trial achieved its primary endpoint of safety and tolerability and showed an improvement in the once-daily and combined ov101 dosing groups on the prespecified physician-rated clinical global impressions-improvement ( “ cgi-i ” ) endpoint as well as improvements in relevant symptoms such as sleep and motor function . based upon feedback from our end of phase 2 meeting with the fda in november 2018 , we intend to initiate a single pivotal phase 3 trial of ov101 in pediatric patients with angelman syndrome ( neptune ) . pending fda concurrence on the study protocol and supporting framework and materials , neptune is expected to be a single 12-week , two-arm , randomized , double-blind , placebocontrolled trial with a once daily dose with an enrollment of 50-60 patients aged 4 to 12 years . it is expected that the primary endpoint will be the change in the overall cgi-i score between ov101 versus placebo groups with enrollment initiation expected in the second half of 2019. based on the stars trial data , we also initiated an open-label extension study ( elara ) which enrolled its first patient in february of 2019. along with our collaborator , takeda pharmaceutical company limited , ( “ takeda ” ) , we initiated patient recruitment in our phase 1b/2a trial of ov935 in adults with dee in june 2017. as announced on december 17 , 2018 , the phase 1b/2a trial of ov935 achieved its primary endpoint of safety and tolerability and showed ov935 was generally well tolerated and met its secondary exploratory endpoints including a satisfactory pharmacokinetic profile and signals of efficacy . exploratory analyses also showed the potential applicability of using plasma 24-hydroxy cholesterol ( 24hc ) as a serum biomarker . in july 2018 , we initiated our phase 2 rocket clinical trial , a randomized , double-blind , parallel-group trial evaluating ov101 for the treatment of adolescent and young male adults with fragile x syndrome . the trial is currently enrolling and is expected to enroll up to 30 males ages 13 to 22 with a confirmed diagnosis of fragile x syndrome . the primary endpoint is safety and tolerability of ov101 over 12 weeks of treatment in three different cohorts of either 5mg qd , 5mg bid , or 5mg three times daily . a secondary efficacy endpoint will evaluate changes in behavior during 12 weeks of treatment with ov101 using the activities-specific balance confidence scale ( abc ) that has been used in previous trials for fragile x syndrome . we anticipate data from this trial in the second half of 2019. in december 2018 , we initiated the sky rocket study , a 12-week , non-drug study to assess the suitability of several behavioral scales in individuals with fragile x syndrome . the trial is an observational study designed to provide additional data on the key endpoints that are being explored in the trial as well as provide contextual data on the benefit offered by the standard of care . the study will enroll 10-30 males ages 5 to 30 with fragile x syndrome . ovid and takeda continue to enroll patients in three clinical trials : a phase 2 clinical trial in pediatric patients with dravet syndrome or lennox-gastaut syndrome ( elektra ) ; a phase 2 clinical trial in pediatric patients with cdkl5 deficiency disorder or duplication 15q syndrome ( arcade ) ; and an open-label extension trial for patients with dee who participated in a previous ov935 clinical trial ( endymion ) . since our inception in april 2014 , we have devoted substantially all of our efforts to organizing and planning our business , building our management and technical team , acquiring operating assets and raising capital . 69 we have not generated any revenue and have funded our business primarily through the sale of our capital stock . through december 31 , 2018 , we have raised net p roceeds of $ 142.3 million from the sale of our convertible preferred stock and our common stock . as of december 31 , 2018 , we had $ 41.5 million in cash , cash equivalents and short-term investments . we recorded net losses of $ 52.0 million and $ 64.8 million for the year s ended december 31 , 201 8 and 201 7 , respectively . the net loss for the year ended december 2017 included a non-cash charge of $ 25.9 million related to our takeda collaboration ( as defined below ) . as of december 31 , 2018 , we had an accumulated d eficit of approximately $ 152.7 million . we expect to continue to incur significant expenses and increasing operating losses for at least the next several years . our net losses may fluctuate significantly from period to period , depending on the timing of our planned clinical trials and expenditures on our other research and development and commercial development activities . we expect our expenses will increase substantially over time as we : continue the ongoing and planned preclinical and clinical development of our drug candidates ; build a portfolio of drug candidates through the acquisition or in-license of drugs , drug candidates or technologies ; initiate preclinical studies and clinical trials for any additional drug candidates that we may pursue in the future ; seek marketing approvals for our current and future drug candidates that successfully complete clinical trials ; establish a sales , marketing and distribution infrastructure to commercialize any drug candidate for which we may obtain marketing approval ; develop , maintain , expand and protect our intellectual property portfolio ; implement operational , financial and management systems ; and attract , hire and retain additional administrative , clinical , regulatory and scientific personnel . story_separator_special_tag emerging growth company status we are an “ emerging growth company , ” as defined in the jumpstart our business startups act of 2012 , or the jobs act , and may remain an emerging growth company for up to five years . for so long as we remain an emerging growth company , we are permitted and intend to rely on exemptions from certain disclosure requirements that are applicable to other public companies that are not emerging growth companies . these exemptions include : reduced disclosure about our executive compensation arrangements ; no non-binding stockholder advisory votes on executive compensation or golden parachute arrangements ; and exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting . we have taken advantage of reduced reporting requirements in this annual report on form 10-k. in particular , in this annual report on form 10-k , we have not included all of the executive compensation related information that would be required if we were not an emerging growth company . we may take advantage of these exemptions for up to five years or such earlier time that we are no longer an emerging growth company . we would cease to be an emerging growth company if we have more than $ 1.07 billion in annual revenues as of the end of any fiscal year , if we are deemed to be a large accelerated filer under the rules of the sec or if we issue more than $ 1.0 billion of non- convertible debt over a three-year period . section 107 of the jobs act provides that an emerging growth company can take advantage of the extended transition period for complying with new or revised accounting standards . thus , an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies . we have irrevocably elected not to avail ourselves of this extended transition period and , as a result , we will adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies . critical accounting policies and estimates our management 's discussion and analysis of financial condition and results of operations is based on our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the revenue and expenses incurred 74 during the reported periods . on an ongoing basis , we evaluate our estimates and judgments , including those related to accrued expenses and stock-based compensation . we base our estimates on historical experience and on various other factors that we believe are reasonable under the c ircumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not apparent from other sources . changes in estimates are reflected in reported results for the period in which they become k nown . actual results may differ from these estimates under different assumptions or conditions . our significant accounting policies are described in more detail in note 2 to our audited financial statements appearing elsewhere in this form 10-k. we believe the following critical accounting policies are most important to understanding and evaluating our reported financial results . accrued clinical expenses when preparing our consolidated financial statements , we are required to estimate our accrued clinical expenses . this process involves reviewing open contracts and communicating with our personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual cost . payments under some of the contracts we have with third parties depend on factors , such as successful enrollment of certain numbers of patients , site initiation and the completion of clinical trial milestones . when accruing clinical expenses , we estimate the time period over which services will be performed and the level of effort to be expended in each period . if possible , we obtain information regarding unbilled services directly from our service providers . however , we may be required to estimate the cost of these services based only on information available to us . if we underestimate or overestimate the cost associated with a trial or service at a given point in time , adjustments to research and development expenses may be necessary in future periods . historically , our estimated accrued clinical expenses have approximated actual expense incurred . stock-based compensation we account for stock-based compensation awards in accordance with the financial accounting standards board accounting standards codification , or asc , topic 718 , compensation—stock compensation , or asc 718. asc 718 requires all stock-based compensation awards to employees to be recognized as expense based on their grant date fair values . we recognized expenses over the requisite service period , which is generally the vesting period of the award under the straight-line method . we account for forfeitures as they occur . we record the expense for stock-based compensation awards subject to performance-based milestone vesting over the remaining service period when management determines that achievement of the milestone is probable . management evaluates when the achievement of a performance-based milestone is probable based on the expected satisfaction of the performance conditions at each reporting date . we measure the grant-date fair value based on the black-scholes option-pricing model , which uses highly subjective assumptions . these assumptions include : expected volatility . due to the lack of sufficient volatility data , the expected volatility is estimated using weighted average measures of the historical volatility of a

liquidity and capital resources overview as of december 31 , 2018 , we had total cash , cash equivalents and short-term investments of $ 41.5 million as compared to $ 87.1 million as of december 31 , 2017. in february 2019 we completed the february offering of our capital stock generating approximately $ 31.0 million of net proceeds after deducting underwriting discounts and commissions and other offering expenses payable by us . we have incurred losses and experienced negative operating cash flows since our inception and anticipate that we will continue to incur losses for at least the next several years . we incurred net losses of approximately $ 52.0 million and $ 64.8 million for the years ended december 31 , 2018 and 2017 , respectively . as of december 31 , 2018 , we had an accumulated deficit of approximately $ 152.7 million and working capital of $ 35.4 million . we believe that our existing cash and cash equivalents as of december 31 , 2018 combined with the proceeds from the february offering , will be sufficient to fund our current operating plans through at least the next 12 months from the filing of this annual report on form 10-k. until such time , if ever , as we can generate revenue from drug sales , we expect to finance our cash needs through a combination of equity offerings , debt financings and potential collaborations and license and development agreements .


 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 overview as of december 31 , 2018 , we had total cash , cash equivalents and short-term investments of $ 41.5 million as compared to $ 87.1 million as of december 31 , 2017. in february 2019 we completed the february offering of our capital stock generating approximately $ 31.0 million of net proceeds after deducting underwriting discounts and commissions and other offering expenses payable by us . we have incurred losses and experienced negative operating cash flows since our inception and anticipate that we will continue to incur losses for at least the next several years . we incurred net losses of approximately $ 52.0 million and $ 64.8 million for the years ended december 31 , 2018 and 2017 , respectively . as of december 31 , 2018 , we had an accumulated deficit of approximately $ 152.7 million and working capital of $ 35.4 million . we believe that our existing cash and cash equivalents as of december 31 , 2018 combined with the proceeds from the february offering , will be sufficient to fund our current operating plans through at least the next 12 months from the filing of this annual report on form 10-k. until such time , if ever , as we can generate revenue from drug sales , we expect to finance our cash needs through a combination of equity offerings , debt financings and potential collaborations and license and development agreements .
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 Suspicious Activity Report : the phase 2 trial achieved its primary endpoint of safety and tolerability and showed an improvement in the once-daily and combined ov101 dosing groups on the prespecified physician-rated clinical global impressions-improvement ( “ cgi-i ” ) endpoint as well as improvements in relevant symptoms such as sleep and motor function . based upon feedback from our end of phase 2 meeting with the fda in november 2018 , we intend to initiate a single pivotal phase 3 trial of ov101 in pediatric patients with angelman syndrome ( neptune ) . pending fda concurrence on the study protocol and supporting framework and materials , neptune is expected to be a single 12-week , two-arm , randomized , double-blind , placebocontrolled trial with a once daily dose with an enrollment of 50-60 patients aged 4 to 12 years . it is expected that the primary endpoint will be the change in the overall cgi-i score between ov101 versus placebo groups with enrollment initiation expected in the second half of 2019. based on the stars trial data , we also initiated an open-label extension study ( elara ) which enrolled its first patient in february of 2019. along with our collaborator , takeda pharmaceutical company limited , ( “ takeda ” ) , we initiated patient recruitment in our phase 1b/2a trial of ov935 in adults with dee in june 2017. as announced on december 17 , 2018 , the phase 1b/2a trial of ov935 achieved its primary endpoint of safety and tolerability and showed ov935 was generally well tolerated and met its secondary exploratory endpoints including a satisfactory pharmacokinetic profile and signals of efficacy . exploratory analyses also showed the potential applicability of using plasma 24-hydroxy cholesterol ( 24hc ) as a serum biomarker . in july 2018 , we initiated our phase 2 rocket clinical trial , a randomized , double-blind , parallel-group trial evaluating ov101 for the treatment of adolescent and young male adults with fragile x syndrome . the trial is currently enrolling and is expected to enroll up to 30 males ages 13 to 22 with a confirmed diagnosis of fragile x syndrome . the primary endpoint is safety and tolerability of ov101 over 12 weeks of treatment in three different cohorts of either 5mg qd , 5mg bid , or 5mg three times daily . a secondary efficacy endpoint will evaluate changes in behavior during 12 weeks of treatment with ov101 using the activities-specific balance confidence scale ( abc ) that has been used in previous trials for fragile x syndrome . we anticipate data from this trial in the second half of 2019. in december 2018 , we initiated the sky rocket study , a 12-week , non-drug study to assess the suitability of several behavioral scales in individuals with fragile x syndrome . the trial is an observational study designed to provide additional data on the key endpoints that are being explored in the trial as well as provide contextual data on the benefit offered by the standard of care . the study will enroll 10-30 males ages 5 to 30 with fragile x syndrome . ovid and takeda continue to enroll patients in three clinical trials : a phase 2 clinical trial in pediatric patients with dravet syndrome or lennox-gastaut syndrome ( elektra ) ; a phase 2 clinical trial in pediatric patients with cdkl5 deficiency disorder or duplication 15q syndrome ( arcade ) ; and an open-label extension trial for patients with dee who participated in a previous ov935 clinical trial ( endymion ) . since our inception in april 2014 , we have devoted substantially all of our efforts to organizing and planning our business , building our management and technical team , acquiring operating assets and raising capital . 69 we have not generated any revenue and have funded our business primarily through the sale of our capital stock . through december 31 , 2018 , we have raised net p roceeds of $ 142.3 million from the sale of our convertible preferred stock and our common stock . as of december 31 , 2018 , we had $ 41.5 million in cash , cash equivalents and short-term investments . we recorded net losses of $ 52.0 million and $ 64.8 million for the year s ended december 31 , 201 8 and 201 7 , respectively . the net loss for the year ended december 2017 included a non-cash charge of $ 25.9 million related to our takeda collaboration ( as defined below ) . as of december 31 , 2018 , we had an accumulated d eficit of approximately $ 152.7 million . we expect to continue to incur significant expenses and increasing operating losses for at least the next several years . our net losses may fluctuate significantly from period to period , depending on the timing of our planned clinical trials and expenditures on our other research and development and commercial development activities . we expect our expenses will increase substantially over time as we : continue the ongoing and planned preclinical and clinical development of our drug candidates ; build a portfolio of drug candidates through the acquisition or in-license of drugs , drug candidates or technologies ; initiate preclinical studies and clinical trials for any additional drug candidates that we may pursue in the future ; seek marketing approvals for our current and future drug candidates that successfully complete clinical trials ; establish a sales , marketing and distribution infrastructure to commercialize any drug candidate for which we may obtain marketing approval ; develop , maintain , expand and protect our intellectual property portfolio ; implement operational , financial and management systems ; and attract , hire and retain additional administrative , clinical , regulatory and scientific personnel . story_separator_special_tag emerging growth company status we are an “ emerging growth company , ” as defined in the jumpstart our business startups act of 2012 , or the jobs act , and may remain an emerging growth company for up to five years . for so long as we remain an emerging growth company , we are permitted and intend to rely on exemptions from certain disclosure requirements that are applicable to other public companies that are not emerging growth companies . these exemptions include : reduced disclosure about our executive compensation arrangements ; no non-binding stockholder advisory votes on executive compensation or golden parachute arrangements ; and exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting . we have taken advantage of reduced reporting requirements in this annual report on form 10-k. in particular , in this annual report on form 10-k , we have not included all of the executive compensation related information that would be required if we were not an emerging growth company . we may take advantage of these exemptions for up to five years or such earlier time that we are no longer an emerging growth company . we would cease to be an emerging growth company if we have more than $ 1.07 billion in annual revenues as of the end of any fiscal year , if we are deemed to be a large accelerated filer under the rules of the sec or if we issue more than $ 1.0 billion of non- convertible debt over a three-year period . section 107 of the jobs act provides that an emerging growth company can take advantage of the extended transition period for complying with new or revised accounting standards . thus , an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies . we have irrevocably elected not to avail ourselves of this extended transition period and , as a result , we will adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies . critical accounting policies and estimates our management 's discussion and analysis of financial condition and results of operations is based on our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the revenue and expenses incurred 74 during the reported periods . on an ongoing basis , we evaluate our estimates and judgments , including those related to accrued expenses and stock-based compensation . we base our estimates on historical experience and on various other factors that we believe are reasonable under the c ircumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not apparent from other sources . changes in estimates are reflected in reported results for the period in which they become k nown . actual results may differ from these estimates under different assumptions or conditions . our significant accounting policies are described in more detail in note 2 to our audited financial statements appearing elsewhere in this form 10-k. we believe the following critical accounting policies are most important to understanding and evaluating our reported financial results . accrued clinical expenses when preparing our consolidated financial statements , we are required to estimate our accrued clinical expenses . this process involves reviewing open contracts and communicating with our personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual cost . payments under some of the contracts we have with third parties depend on factors , such as successful enrollment of certain numbers of patients , site initiation and the completion of clinical trial milestones . when accruing clinical expenses , we estimate the time period over which services will be performed and the level of effort to be expended in each period . if possible , we obtain information regarding unbilled services directly from our service providers . however , we may be required to estimate the cost of these services based only on information available to us . if we underestimate or overestimate the cost associated with a trial or service at a given point in time , adjustments to research and development expenses may be necessary in future periods . historically , our estimated accrued clinical expenses have approximated actual expense incurred . stock-based compensation we account for stock-based compensation awards in accordance with the financial accounting standards board accounting standards codification , or asc , topic 718 , compensation—stock compensation , or asc 718. asc 718 requires all stock-based compensation awards to employees to be recognized as expense based on their grant date fair values . we recognized expenses over the requisite service period , which is generally the vesting period of the award under the straight-line method . we account for forfeitures as they occur . we record the expense for stock-based compensation awards subject to performance-based milestone vesting over the remaining service period when management determines that achievement of the milestone is probable . management evaluates when the achievement of a performance-based milestone is probable based on the expected satisfaction of the performance conditions at each reporting date . we measure the grant-date fair value based on the black-scholes option-pricing model , which uses highly subjective assumptions . these assumptions include : expected volatility . due to the lack of sufficient volatility data , the expected volatility is estimated using weighted average measures of the historical volatility of a

