prior to the reincorporation merger discussed below , tottenham was incorporated in the british virgin islands as a blank check company for the purpose of entering into a merger , share exchange , asset acquisition , stock purchase , recapitalization , reorganization or other similar business combination with one or more businesses or entities . the reverse recapitalization was effected in two steps : ( i ) tottenham was reincorporated to the state of delaware by merging with and into pubco ( the “ reincorporation merger ” ) ; ( ii ) promptly following the reincorporation merger , merger sub was merged with and into clene nanomedicine , resulting in clene nanomedicine being a wholly owned subsidiary of pubco ( the “ acquisition merger ” ) . on the closing date , pubco changed its name from chelsea worldwide inc. to clene inc. and listed its shares of common stock , par value $ 0.0001 per share ( “ common stock ” ) on nasdaq under the symbol “ clnn . ” as a result of the reverse recapitalization , clene nanomedicine became a wholly owned direct subsidiary of clene inc. for periods prior to the closing of the reverse recapitalization on december 30 , 2020 , the disclosure in management 's discussion and analysis of financial condition and results of operations has been updated to give effect to the reverse recapitalization . 78 on february 16 , 2021 , we filed a registration statement on form s-1 to register 4,541,481 shares of common stock underlying outstanding warrants that we had previously issued . the sec has not yet declared this registration statement to be effective . we will receive an aggregate gross proceed of $ 30.7 million if all of these warrants are exercised . in addition , the registration statement on form s-1 will register the sale by certain selling stockholders of 23,251,553 shares of our common stock . we will not receive any proceeds from the sales by the selling shareholders . in conjunction with the preparation of the registration statement on form s-1 , we incurred offering costs of $ 27,000 , which will be recognized as an expense within general and administrative expenses on consolidated statement of operations in the first quarter of 2021. we currently have no drugs approved by the us food and drug administration ( fda ) for commercial sale and have not generated any revenue from drug sales . we have never been profitable and have incurred operating losses in each year since inception . we began supplying low dose dietary supplements to 4life , llc , one of our shareholders , and had minimal direct sales of our rmetx znag immune boost dietary supplement product . our total operating losses were $ 20.2 million and $ 16.3 million for the years ended december 31 , 2020 and 2019 , respectively . substantially all of our operating losses resulted from research and development expenses and administrative expenses . as of december 31 , 2020 we had an accumulated deficit of $ 153.6 million . we expect to continue investing in product development , sales and marketing and customer support for our products and expect to incur additional losses in the future to fund our operations and conduct product research and development . we also recognize the need to raise additional capital to fully implement our business plan . the long-term continuation of our business plan is dependent upon the generation of sufficient revenues from our products to offset expenses and capital expenditures . in the event that we do not generate sufficient revenues and are unable to obtain funding , we will be forced to delay , reduce , or eliminate some or all of our research and development programs , product portfolio expansion , commercialization efforts or capital expenditures , which could adversely affect our business prospects , ability to meet long-term liquidity needs or we may be unable to continue operations . impact of the covid-19 coronavirus pandemic the covid-19 pandemic , which began in december 2019 and has spread worldwide , has caused many governments to implement measures to slow the spread of the outbreak . the outbreak and government measures taken in response have had a significant impact , both direct and indirect , on businesses and commerce , as worker shortages have occurred , supply chains have been disrupted , and facilities and production have been suspended . the future progression of the pandemic and its effects on our business and operations remain uncertain . the covid-19 pandemic may affect our ability to initiate and complete preclinical studies , delay the initiation of future clinical trials , disrupt regulatory activities , or have other adverse effects on our business and operations . in particular , we and our clinical research organizations ( “ cros ” ) may face disruptions that may affect our ability to initiate and complete preclinical studies , cause manufacturing disruptions , or create delays at clinical trial sites . the pandemic has already caused significant disruptions in the financial markets , and may continue to cause such disruptions , which could impact our ability to raise additional funds to support our operations . moreover , the pandemic has significantly impacted economies worldwide and could result in adverse effects on our business and operations . we are monitoring the potential impact of the covid-19 pandemic on our business and financial statements . while the covid-19 pandemic has led to various research restrictions and paused certain of our clinical trials , these impacts have been temporary and to date we have not experienced material business disruptions or incurred impairment losses in the carrying values of our assets as a result of the pandemic . we are not aware of any specific related event or circumstance that would require us to revise the estimates reflected in our financial statements . story_separator_special_tag drug candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development , primarily due to per patient clinical trial site fees for larger studies , the costs of opening and monitoring clinical sites , cro activity , and manufacturing expenses . we expect that our research and development expenses will increase in connection with our clinical development activities in the near term and in the future . clinical trial costs , including clinical trial supplies and fees for clinical trial services , are charged to research and development expense as incurred . our clinical trial accrual process seeks to account for expenses resulting from obligations under contracts with cros , consultants , and under clinical site agreements in connection with conducting clinical trials . the financial terms of these contracts are subject to negotiations , which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to us under such contracts . we reflect the appropriate trial expenses in the consolidated financial statements by matching the appropriate expenses with the period in which services and efforts are expended . in the event advance payments are made to a cro , the payments will be recorded as a prepaid asset , which will be expensed over the period of time the contracted services are performed . general and administrative expenses general and administrative expenses consist of employee salary and benefits , share-based compensation expenses , professional fees for legal , consulting and audit services and business development activities , facility , travel expenses , rental fees and other administrative expenses . we expect our general and administrative expenses to increase as we continue to grow and expand . other income ( expenses ) other income ( expenses ) consists of interest expenses , interest income , gains from the termination of a lease arrangement , changes in fair value of preferred stock warrant liability , changes in fair value of derivative liability , change in fair value of contingent earn-out , a research and development credit received from the australian government , foreign exchange gain , loss on disposal of assets , and loss on extinguishment of convertible notes . 83 comparison of the years ended december 31 , 2020 and 2019 the following table summarizes our results of operations for the years ended december 31 , 2020 and 2019 : replace_table_token_2_th revenue we generated revenue of $ 0.2 million for the year ended december 31 , 2020 while no revenue was generated for 2019 . $ 0.2 million of our revenue for the year ended december 31 , 2020 was product revenue from supply agreements with a related party for khc46 and a low dose zinc-silver solution , two dietary supplements that we began supplying during this period . we also generated minimal product revenue from sales of rmetx znag immune boost during this period . in addition , $ 30 thousand of our revenue during the same period was royalty revenue from a license agreement with the same related party . operating expenses cost of sales we incurred cost of sales of $ 0.1 million for the year ended december 31 , 2020 relating to production and distribution costs for the sales of our khc46 and low dose zinc-silver solution dietary supplement products through supply agreements we have entered into with a related party while no cost of sales was incurred for 2019 . 84 research and development expenses research and development expenses were $ 15.2 million for the year ended december 31 , 2020 compared to $ 9.6 million for 2019. during these periods , substantially all of our research and development expenses were related to the development and clinical trials of cnm-au8 . this increase of $ 5.6 million , or 59.0 % , was primarily due to the progression of our drug candidates through the clinical development process , including increased enrollment into the repair-pd and the repair-ms studies , and calendar payments due for our participation in the healey-als platform trial . these efforts resulted in greater associated costs and manufacturing expenses in support of these trials . general and administrative expenses general and administrative expenses were $ 5.2 million for the year ended december 31 , 2020 compared to $ 6.8 million for 2019. this decrease of $ 1.6 million , or 23.9 % was primarily due to decreased expenses relating to efforts to list our shares on an international public exchange during 2019 , which were subsequently abandoned . for the year ended december 31 , 2020 , we had a small increase in employee salary and benefits , shares based-compensation expenses due to the growth of our business and professional expenses related to fund raising activities . other income ( expenses ) other income ( expenses ) , net for the years ended december 31 , 2020 and 2019 included the following : ( i ) recognized interest expense of $ 1.0 million and $ 0.1 million , respectively , due to an increase in the fair value of the company 's notes payable . as of december 31 , 2020 , the fair value of the company 's notes payable is determined based on the closing price of clnn shares listed on the nasdaq . ( ii ) recognized expense of $ 14.6 million and $ 0.4 million relating to the changes in fair value of preferred stock warrant liability , respectively . the increase of $ 14.2 million in association with the changes in fair value of preferred stock warrant liability was primarily a result of the increase in the value of outstanding warrants as the estimated value of our company and the likelihood of a liquidation event increased due to consideration of the reverse recapitalization . upon the consummation of the reverse recapitalization , we determined that the warrants qualify for classification as permanent equity

debt obligations in february 2019 , we entered into a loan agreement with the department of housing and community development , a principal department of the state of maryland , pursuant to which maryland agreed to provide a $ 0.5 million term loan . amounts outstanding under the loan bear simple interest at an annual rate of 8.00 % . repayment of the full balance outstanding is due on february 22 , 2034. this loan establishes “ phantom shares , ” based on 119,906 shares of our common stock ( based on 863,110 series c preferred shares prior to the reverse recapitalization ) , determined at issuance . the loan agreement states the repayment amount is to be the greater of the balance of principal and accrued interest or the phantom shares value . we determined that the note should be accounted for at fair value . we record the fair value of the debt at the end of each reporting period . in order to value the note , we consider the amount of the simple interest expense that would be due and consider the value of phantom shares . upon the closing of the reverse recapitalization and as of december 31 , 2020 , the fair value of the maryland note payable is now determined based on the closing price of clnn shares listed on the nasdaq . expenses of $ 0.5 million and $ 34 thousand were recognized during the years ended december 31 , 2020 and 2019 , respectively . the fair value of $ 1.1 million and $ 0.5 million of principal and accrued interest is included in long-term notes payable as of december 31 , 2020 and december 31 , 2019 , respectively . in april 2019 , the company entered into a loan agreement ( the “ 2019 cecil loan ” ) with cecil county , maryland ( “ cecil ” ) . pursuant to the 2019 cecil loan , cecil agreed to provide a $ 0.1 million term loan . amounts outstanding under the 2019 cecil loan bear simple interest at an annual rate of 8.00 % .


 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.
     ```debt obligations in february 2019 , we entered into a loan agreement with the department of housing and community development , a principal department of the state of maryland , pursuant to which maryland agreed to provide a $ 0.5 million term loan . amounts outstanding under the loan bear simple interest at an annual rate of 8.00 % . repayment of the full balance outstanding is due on february 22 , 2034. this loan establishes “ phantom shares , ” based on 119,906 shares of our common stock ( based on 863,110 series c preferred shares prior to the reverse recapitalization ) , determined at issuance . the loan agreement states the repayment amount is to be the greater of the balance of principal and accrued interest or the phantom shares value . we determined that the note should be accounted for at fair value . we record the fair value of the debt at the end of each reporting period . in order to value the note , we consider the amount of the simple interest expense that would be due and consider the value of phantom shares . upon the closing of the reverse recapitalization and as of december 31 , 2020 , the fair value of the maryland note payable is now determined based on the closing price of clnn shares listed on the nasdaq . expenses of $ 0.5 million and $ 34 thousand were recognized during the years ended december 31 , 2020 and 2019 , respectively . the fair value of $ 1.1 million and $ 0.5 million of principal and accrued interest is included in long-term notes payable as of december 31 , 2020 and december 31 , 2019 , respectively . in april 2019 , the company entered into a loan agreement ( the “ 2019 cecil loan ” ) with cecil county , maryland ( “ cecil ” ) . pursuant to the 2019 cecil loan , cecil agreed to provide a $ 0.1 million term loan . amounts outstanding under the 2019 cecil loan bear simple interest at an annual rate of 8.00 % .
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 Suspicious Activity Report : prior to the reincorporation merger discussed below , tottenham was incorporated in the british virgin islands as a blank check company for the purpose of entering into a merger , share exchange , asset acquisition , stock purchase , recapitalization , reorganization or other similar business combination with one or more businesses or entities . the reverse recapitalization was effected in two steps : ( i ) tottenham was reincorporated to the state of delaware by merging with and into pubco ( the “ reincorporation merger ” ) ; ( ii ) promptly following the reincorporation merger , merger sub was merged with and into clene nanomedicine , resulting in clene nanomedicine being a wholly owned subsidiary of pubco ( the “ acquisition merger ” ) . on the closing date , pubco changed its name from chelsea worldwide inc. to clene inc. and listed its shares of common stock , par value $ 0.0001 per share ( “ common stock ” ) on nasdaq under the symbol “ clnn . ” as a result of the reverse recapitalization , clene nanomedicine became a wholly owned direct subsidiary of clene inc. for periods prior to the closing of the reverse recapitalization on december 30 , 2020 , the disclosure in management 's discussion and analysis of financial condition and results of operations has been updated to give effect to the reverse recapitalization . 78 on february 16 , 2021 , we filed a registration statement on form s-1 to register 4,541,481 shares of common stock underlying outstanding warrants that we had previously issued . the sec has not yet declared this registration statement to be effective . we will receive an aggregate gross proceed of $ 30.7 million if all of these warrants are exercised . in addition , the registration statement on form s-1 will register the sale by certain selling stockholders of 23,251,553 shares of our common stock . we will not receive any proceeds from the sales by the selling shareholders . in conjunction with the preparation of the registration statement on form s-1 , we incurred offering costs of $ 27,000 , which will be recognized as an expense within general and administrative expenses on consolidated statement of operations in the first quarter of 2021. we currently have no drugs approved by the us food and drug administration ( fda ) for commercial sale and have not generated any revenue from drug sales . we have never been profitable and have incurred operating losses in each year since inception . we began supplying low dose dietary supplements to 4life , llc , one of our shareholders , and had minimal direct sales of our rmetx znag immune boost dietary supplement product . our total operating losses were $ 20.2 million and $ 16.3 million for the years ended december 31 , 2020 and 2019 , respectively . substantially all of our operating losses resulted from research and development expenses and administrative expenses . as of december 31 , 2020 we had an accumulated deficit of $ 153.6 million . we expect to continue investing in product development , sales and marketing and customer support for our products and expect to incur additional losses in the future to fund our operations and conduct product research and development . we also recognize the need to raise additional capital to fully implement our business plan . the long-term continuation of our business plan is dependent upon the generation of sufficient revenues from our products to offset expenses and capital expenditures . in the event that we do not generate sufficient revenues and are unable to obtain funding , we will be forced to delay , reduce , or eliminate some or all of our research and development programs , product portfolio expansion , commercialization efforts or capital expenditures , which could adversely affect our business prospects , ability to meet long-term liquidity needs or we may be unable to continue operations . impact of the covid-19 coronavirus pandemic the covid-19 pandemic , which began in december 2019 and has spread worldwide , has caused many governments to implement measures to slow the spread of the outbreak . the outbreak and government measures taken in response have had a significant impact , both direct and indirect , on businesses and commerce , as worker shortages have occurred , supply chains have been disrupted , and facilities and production have been suspended . the future progression of the pandemic and its effects on our business and operations remain uncertain . the covid-19 pandemic may affect our ability to initiate and complete preclinical studies , delay the initiation of future clinical trials , disrupt regulatory activities , or have other adverse effects on our business and operations . in particular , we and our clinical research organizations ( “ cros ” ) may face disruptions that may affect our ability to initiate and complete preclinical studies , cause manufacturing disruptions , or create delays at clinical trial sites . the pandemic has already caused significant disruptions in the financial markets , and may continue to cause such disruptions , which could impact our ability to raise additional funds to support our operations . moreover , the pandemic has significantly impacted economies worldwide and could result in adverse effects on our business and operations . we are monitoring the potential impact of the covid-19 pandemic on our business and financial statements . while the covid-19 pandemic has led to various research restrictions and paused certain of our clinical trials , these impacts have been temporary and to date we have not experienced material business disruptions or incurred impairment losses in the carrying values of our assets as a result of the pandemic . we are not aware of any specific related event or circumstance that would require us to revise the estimates reflected in our financial statements . story_separator_special_tag drug candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development , primarily due to per patient clinical trial site fees for larger studies , the costs of opening and monitoring clinical sites , cro activity , and manufacturing expenses . we expect that our research and development expenses will increase in connection with our clinical development activities in the near term and in the future . clinical trial costs , including clinical trial supplies and fees for clinical trial services , are charged to research and development expense as incurred . our clinical trial accrual process seeks to account for expenses resulting from obligations under contracts with cros , consultants , and under clinical site agreements in connection with conducting clinical trials . the financial terms of these contracts are subject to negotiations , which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided to us under such contracts . we reflect the appropriate trial expenses in the consolidated financial statements by matching the appropriate expenses with the period in which services and efforts are expended . in the event advance payments are made to a cro , the payments will be recorded as a prepaid asset , which will be expensed over the period of time the contracted services are performed . general and administrative expenses general and administrative expenses consist of employee salary and benefits , share-based compensation expenses , professional fees for legal , consulting and audit services and business development activities , facility , travel expenses , rental fees and other administrative expenses . we expect our general and administrative expenses to increase as we continue to grow and expand . other income ( expenses ) other income ( expenses ) consists of interest expenses , interest income , gains from the termination of a lease arrangement , changes in fair value of preferred stock warrant liability , changes in fair value of derivative liability , change in fair value of contingent earn-out , a research and development credit received from the australian government , foreign exchange gain , loss on disposal of assets , and loss on extinguishment of convertible notes . 83 comparison of the years ended december 31 , 2020 and 2019 the following table summarizes our results of operations for the years ended december 31 , 2020 and 2019 : replace_table_token_2_th revenue we generated revenue of $ 0.2 million for the year ended december 31 , 2020 while no revenue was generated for 2019 . $ 0.2 million of our revenue for the year ended december 31 , 2020 was product revenue from supply agreements with a related party for khc46 and a low dose zinc-silver solution , two dietary supplements that we began supplying during this period . we also generated minimal product revenue from sales of rmetx znag immune boost during this period . in addition , $ 30 thousand of our revenue during the same period was royalty revenue from a license agreement with the same related party . operating expenses cost of sales we incurred cost of sales of $ 0.1 million for the year ended december 31 , 2020 relating to production and distribution costs for the sales of our khc46 and low dose zinc-silver solution dietary supplement products through supply agreements we have entered into with a related party while no cost of sales was incurred for 2019 . 84 research and development expenses research and development expenses were $ 15.2 million for the year ended december 31 , 2020 compared to $ 9.6 million for 2019. during these periods , substantially all of our research and development expenses were related to the development and clinical trials of cnm-au8 . this increase of $ 5.6 million , or 59.0 % , was primarily due to the progression of our drug candidates through the clinical development process , including increased enrollment into the repair-pd and the repair-ms studies , and calendar payments due for our participation in the healey-als platform trial . these efforts resulted in greater associated costs and manufacturing expenses in support of these trials . general and administrative expenses general and administrative expenses were $ 5.2 million for the year ended december 31 , 2020 compared to $ 6.8 million for 2019. this decrease of $ 1.6 million , or 23.9 % was primarily due to decreased expenses relating to efforts to list our shares on an international public exchange during 2019 , which were subsequently abandoned . for the year ended december 31 , 2020 , we had a small increase in employee salary and benefits , shares based-compensation expenses due to the growth of our business and professional expenses related to fund raising activities . other income ( expenses ) other income ( expenses ) , net for the years ended december 31 , 2020 and 2019 included the following : ( i ) recognized interest expense of $ 1.0 million and $ 0.1 million , respectively , due to an increase in the fair value of the company 's notes payable . as of december 31 , 2020 , the fair value of the company 's notes payable is determined based on the closing price of clnn shares listed on the nasdaq . ( ii ) recognized expense of $ 14.6 million and $ 0.4 million relating to the changes in fair value of preferred stock warrant liability , respectively . the increase of $ 14.2 million in association with the changes in fair value of preferred stock warrant liability was primarily a result of the increase in the value of outstanding warrants as the estimated value of our company and the likelihood of a liquidation event increased due to consideration of the reverse recapitalization . upon the consummation of the reverse recapitalization , we determined that the warrants qualify for classification as permanent equity

