we expect our expenses and capital requirements will increase substantially in connection with our ongoing activities , as we : ● initiate and expand clinical trials for pulmazole for abpa , and other indications for immunocompromised at-risk patients ; ● expand clinical trials for pur1800 focused on copd and lung cancer prevention ; ● continue preclinical studies of pur3100 for treatment of acute migraine to enable a phase 2 study start in early 2022 ● seek regulatory approval for our product candidates ; ● hire personnel to support our product development , commercialization and administrative efforts ; and ● advance the research and development related activities for inhaled therapeutic products in our pipeline . we will not generate product sales unless and until we successfully complete clinical developments and obtain regulatory approvals for our product candidates . additionally , we currently utilize third-party contract research organizations ( “ cros ” ) to carry out our clinical development activities and third-party contract manufacturing organizations ( “ cmos ” ) to carry out our clinical manufacturing activities as we do not yet have a commercial organization . if we obtain regulatory approval for any of our product candidates , we expect to incur significant expenses related to developing our internal commercialization capability to support product sales , marketing and distribution . accordingly , we anticipate that we will seek to fund our operations through public or private equity or debt financings or other sources , potentially including collaborative commercial arrangements . likewise , we intend to seek to limit our commercialization costs by partnering with other companies with complementary capabilities or larger infrastructure including sales and marketing . because of the numerous risks and uncertainties associated with product development , we are unable to predict the timing or amount of increased expenses or when or if we will be able to achieve or maintain profitability . even if we are able to generate product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . recent developments license , development and commercialization agreement with jjei on december 26 , 2019 , we entered into a license , development and commercialization agreement ( the “ jjei license agreement ” ) with johnson & johnson enterprise innovation , inc. ( “ jjei ” ) . under the terms of the jjei license agreement , we have granted jjei an option to acquire ( 1 ) the company 's rights to an intellectual property portfolio of materials and technology related to narrow spectrum kinase inhibitor compounds ( the “ licensed product ” ) and ( 2 ) an exclusive , worldwide , royalty bearing license to pur1800 , our inhaled isperse drug delivery system as formulated with one of the kinase inhibitor compounds . we will conduct a clinical and chronic toxicology program in 2021 focused on copd and lung cancer interception . 30 as consideration for our entry into the jjei license agreement , jjei paid an upfront fee of $ 7.2 million to conduct the research on the phase 1b clinical study and will also fund $ 3.4 million for the toxicology study costs . we are also eligible to earn a $ 2.0 million milestone payment for the completion of the phase 1b study of the licensed product . if jjei exercises the license option under the jjei license agreement , pulmatrix is also eligible to receive a $ 14.0 million option exercise payment , up to an additional $ 32.0 million in development milestone payments , $ 45.0 million in commercial milestones , as well as royalty payments ranging from 1 % to 2 % of sales . under the terms of the jjei license agreement , jjei will have three months from the later of ( 1 ) the completion of a phase 1b clinical study for the licensed product and jjei 's receipt of audited final reports and ( 2 ) jjei 's receipt of audited draft reports for a toxicology study of the licensed product to exercise the option . if the option is not exercised , we may terminate the jjei license agreement by providing a 30-day written notice , and all licenses will revert back to pulmatrix . the agreement may otherwise be terminated by jjei for any reason upon 90 days advance notice , or upon notice of our entering into insolvency or bankruptcy proceedings . either party may terminate the agreement for material breach of contract that is not cured within 60 days . in february 2021 , the first patient was dosed in the phase 1b safety , tolerability and biomarker study that will enroll 15 patients with stable moderate-severe copd . the phase 1b study will be randomized and double-blind and will include 14 days of daily dosing with a 28 day follow up period . the covid-19 pandemic could delay enrollment to the extent patients remain or become subject to government “ stay at home ” mandates , patients feel like they can not safely visit trial sites or patients drop out due issues related to covid-19 . development and commercialization agreement with cipla on april 15 , 2019 , we entered into a development and commercialization agreement ( the “ cipla agreement ” ) with cipla technologies llc ( “ cipla ” ) for the co-development and commercialization , on a worldwide exclusive basis , of pulmazole , our inhaled isperse drug delivery system enabled formulation of the antifungal drug , itraconazole , for the treatment of all pulmonary indications , including abpa in patients with asthma . story_separator_special_tag however , certain adjustments to the right-of-use asset may be required for items , such as incentives received . the interest rate implicit in lease contracts is typically not readily determinable . as a result , we utilize our incremental borrowing rates , which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment . goodwill goodwill represents the difference between the consideration transferred and the fair value of the net assets acquired , and liabilities assumed under the acquisition method of accounting for push-down accounting . goodwill is not amortized but is evaluated for impairment within our single reporting unit on an annual basis during the fourth quarter , or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of our reporting unit below our carrying amount . when performing the impairment assessment , the accounting standard for testing goodwill for impairment permits a company to first assess the qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the goodwill is impaired . if we believe , as a result of the qualitative assessment , that it is more likely than not that the fair value of goodwill is impaired , we must perform a quantitative analysis to determine if the carrying value of the goodwill exceeds the fair value of the company . based on a quantitative analysis , goodwill was not deemed to be impaired as of december 31 , 2020. based on a qualitative and quantitative analysis performed at the end of 2019 , goodwill was deemed impaired and a charge of $ 7.3 million was recorded as of december 31 , 2019 . 34 basic and diluted net loss per share basic net loss per share is computed by dividing net loss by the weighted-average number of common stock outstanding during the period . diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period . in periods in which we report a net loss , diluted net loss per share is the same as basic net loss per share because common stock equivalents are excluded as their inclusion would be anti-dilutive . income taxes income taxes are recorded in accordance with financial accounting standards board , or fasb , accounting standards codification , or asc , topic 740 , income taxes ( “ asc 740 ” ) , which provides for deferred taxes using an asset and liability approach . we recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns . deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse . a valuation allowance is provided if , based upon the weight of available evidence , it is more likely than not that some or all of the net deferred tax assets will not be realized . we account for uncertain tax positions in accordance with the provisions of asc 740. when uncertain tax positions exist , we recognize the tax benefit of tax positions to the extent that the benefit will more likely than not be realized . the determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position , as well as consideration of the available facts and circumstances . as of december 31 , 2020 , and 2019 , we did not have any significant uncertain tax positions . we recognize interest and penalties related to uncertain tax positions in income tax expense . results of operations comparison of the years ended december 31 , 2020 and 2019 the following table sets forth our results of operations for each of the periods set forth below ( in thousands ) : replace_table_token_1_th revenue — revenue was $ 12.6 million for the year ended december 31 , 2020 as compared to $ 7.9 million for the year ended december 31 , 2019 , an increase of $ 4.7 million . the increase resulted from an increase in revenue recorded of $ 6.9 million as a result of the jjei license agreement which was executed in late 2019 and includes reimbursement of pass-through expenses , partially offset by a decrease in revenue recorded of $ 2.2 million as a result of the cipla agreement . research and development expenses — research and development expense was $ 15.6 million for the year ended december 31 , 2020 as compared to $ 12.8 million for the year ended december 31 , 2019 an increase of $ 2.8 million . the increase was primarily due to increased spending on manufacturing , clinical , and preclinical study costs of $ 4.4 million and $ 0.3 million , on the pur1800 and pur3100 programs , respectively , $ 1.1 million on employment costs in support of our programs , $ 0.6 million in allocated fixed expenses and lab services which were partially offset by a decrease of $ 3.6 million on the phase 2 pulmazole clinical trial costs . general and administrative expenses — general and administrative expense was $ 6.9 million for the year ended december 31 , 2020 , compared to $ 8.5 million for the year ended december 31 , 2019 , a decrease of $ 1.6 million the decrease was primarily due to decreased employment costs of $ 1.2 million because of lower share-based compensation expense and salary costs , $ 0.1 million in patent and legal expenses and $ 0.3 million of a milestone payment to the cfft made in 2019. impairment of goodwill — in 2020

cash flows from financing activities net cash provided by financing activities for the year ended december 31 , 2020 was $ 21.0 million and was due to the issuance of common stock in two capital raises , exercises of warrants , pre-funded warrants and stock options . net cash provided by financing activities for the year ended december 31 , 2019 was $ 17.7 million and was due to the issuance of common stock in multiple capital raises during the first half of 2019 and the exercise of pre-funded warrants . financings based on our planned use for our existing cash resources , we believe that our available funds will enable us to support administrative , preclinical , clinical , and chemistry manufacturing and control activities in support our programs for at least 12 months following the filing date of this annual report on form 10-k. we have based our projections of operating capital requirements on assumptions that may prove to be incorrect and we may use our available capital resources sooner than we expect . because of the numerous risks and uncertainties associated with research , development and commercialization of pharmaceutical products , we are unable to estimate the exact amount of our operating capital requirements .


 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 from financing activities net cash provided by financing activities for the year ended december 31 , 2020 was $ 21.0 million and was due to the issuance of common stock in two capital raises , exercises of warrants , pre-funded warrants and stock options . net cash provided by financing activities for the year ended december 31 , 2019 was $ 17.7 million and was due to the issuance of common stock in multiple capital raises during the first half of 2019 and the exercise of pre-funded warrants . financings based on our planned use for our existing cash resources , we believe that our available funds will enable us to support administrative , preclinical , clinical , and chemistry manufacturing and control activities in support our programs for at least 12 months following the filing date of this annual report on form 10-k. we have based our projections of operating capital requirements on assumptions that may prove to be incorrect and we may use our available capital resources sooner than we expect . because of the numerous risks and uncertainties associated with research , development and commercialization of pharmaceutical products , we are unable to estimate the exact amount of our operating capital requirements .
```    
 Suspicious Activity Report : we expect our expenses and capital requirements will increase substantially in connection with our ongoing activities , as we : ● initiate and expand clinical trials for pulmazole for abpa , and other indications for immunocompromised at-risk patients ; ● expand clinical trials for pur1800 focused on copd and lung cancer prevention ; ● continue preclinical studies of pur3100 for treatment of acute migraine to enable a phase 2 study start in early 2022 ● seek regulatory approval for our product candidates ; ● hire personnel to support our product development , commercialization and administrative efforts ; and ● advance the research and development related activities for inhaled therapeutic products in our pipeline . we will not generate product sales unless and until we successfully complete clinical developments and obtain regulatory approvals for our product candidates . additionally , we currently utilize third-party contract research organizations ( “ cros ” ) to carry out our clinical development activities and third-party contract manufacturing organizations ( “ cmos ” ) to carry out our clinical manufacturing activities as we do not yet have a commercial organization . if we obtain regulatory approval for any of our product candidates , we expect to incur significant expenses related to developing our internal commercialization capability to support product sales , marketing and distribution . accordingly , we anticipate that we will seek to fund our operations through public or private equity or debt financings or other sources , potentially including collaborative commercial arrangements . likewise , we intend to seek to limit our commercialization costs by partnering with other companies with complementary capabilities or larger infrastructure including sales and marketing . because of the numerous risks and uncertainties associated with product development , we are unable to predict the timing or amount of increased expenses or when or if we will be able to achieve or maintain profitability . even if we are able to generate product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . recent developments license , development and commercialization agreement with jjei on december 26 , 2019 , we entered into a license , development and commercialization agreement ( the “ jjei license agreement ” ) with johnson & johnson enterprise innovation , inc. ( “ jjei ” ) . under the terms of the jjei license agreement , we have granted jjei an option to acquire ( 1 ) the company 's rights to an intellectual property portfolio of materials and technology related to narrow spectrum kinase inhibitor compounds ( the “ licensed product ” ) and ( 2 ) an exclusive , worldwide , royalty bearing license to pur1800 , our inhaled isperse drug delivery system as formulated with one of the kinase inhibitor compounds . we will conduct a clinical and chronic toxicology program in 2021 focused on copd and lung cancer interception . 30 as consideration for our entry into the jjei license agreement , jjei paid an upfront fee of $ 7.2 million to conduct the research on the phase 1b clinical study and will also fund $ 3.4 million for the toxicology study costs . we are also eligible to earn a $ 2.0 million milestone payment for the completion of the phase 1b study of the licensed product . if jjei exercises the license option under the jjei license agreement , pulmatrix is also eligible to receive a $ 14.0 million option exercise payment , up to an additional $ 32.0 million in development milestone payments , $ 45.0 million in commercial milestones , as well as royalty payments ranging from 1 % to 2 % of sales . under the terms of the jjei license agreement , jjei will have three months from the later of ( 1 ) the completion of a phase 1b clinical study for the licensed product and jjei 's receipt of audited final reports and ( 2 ) jjei 's receipt of audited draft reports for a toxicology study of the licensed product to exercise the option . if the option is not exercised , we may terminate the jjei license agreement by providing a 30-day written notice , and all licenses will revert back to pulmatrix . the agreement may otherwise be terminated by jjei for any reason upon 90 days advance notice , or upon notice of our entering into insolvency or bankruptcy proceedings . either party may terminate the agreement for material breach of contract that is not cured within 60 days . in february 2021 , the first patient was dosed in the phase 1b safety , tolerability and biomarker study that will enroll 15 patients with stable moderate-severe copd . the phase 1b study will be randomized and double-blind and will include 14 days of daily dosing with a 28 day follow up period . the covid-19 pandemic could delay enrollment to the extent patients remain or become subject to government “ stay at home ” mandates , patients feel like they can not safely visit trial sites or patients drop out due issues related to covid-19 . development and commercialization agreement with cipla on april 15 , 2019 , we entered into a development and commercialization agreement ( the “ cipla agreement ” ) with cipla technologies llc ( “ cipla ” ) for the co-development and commercialization , on a worldwide exclusive basis , of pulmazole , our inhaled isperse drug delivery system enabled formulation of the antifungal drug , itraconazole , for the treatment of all pulmonary indications , including abpa in patients with asthma . story_separator_special_tag however , certain adjustments to the right-of-use asset may be required for items , such as incentives received . the interest rate implicit in lease contracts is typically not readily determinable . as a result , we utilize our incremental borrowing rates , which are the rates incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment . goodwill goodwill represents the difference between the consideration transferred and the fair value of the net assets acquired , and liabilities assumed under the acquisition method of accounting for push-down accounting . goodwill is not amortized but is evaluated for impairment within our single reporting unit on an annual basis during the fourth quarter , or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of our reporting unit below our carrying amount . when performing the impairment assessment , the accounting standard for testing goodwill for impairment permits a company to first assess the qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the goodwill is impaired . if we believe , as a result of the qualitative assessment , that it is more likely than not that the fair value of goodwill is impaired , we must perform a quantitative analysis to determine if the carrying value of the goodwill exceeds the fair value of the company . based on a quantitative analysis , goodwill was not deemed to be impaired as of december 31 , 2020. based on a qualitative and quantitative analysis performed at the end of 2019 , goodwill was deemed impaired and a charge of $ 7.3 million was recorded as of december 31 , 2019 . 34 basic and diluted net loss per share basic net loss per share is computed by dividing net loss by the weighted-average number of common stock outstanding during the period . diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period . in periods in which we report a net loss , diluted net loss per share is the same as basic net loss per share because common stock equivalents are excluded as their inclusion would be anti-dilutive . income taxes income taxes are recorded in accordance with financial accounting standards board , or fasb , accounting standards codification , or asc , topic 740 , income taxes ( “ asc 740 ” ) , which provides for deferred taxes using an asset and liability approach . we recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns . deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse . a valuation allowance is provided if , based upon the weight of available evidence , it is more likely than not that some or all of the net deferred tax assets will not be realized . we account for uncertain tax positions in accordance with the provisions of asc 740. when uncertain tax positions exist , we recognize the tax benefit of tax positions to the extent that the benefit will more likely than not be realized . the determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position , as well as consideration of the available facts and circumstances . as of december 31 , 2020 , and 2019 , we did not have any significant uncertain tax positions . we recognize interest and penalties related to uncertain tax positions in income tax expense . results of operations comparison of the years ended december 31 , 2020 and 2019 the following table sets forth our results of operations for each of the periods set forth below ( in thousands ) : replace_table_token_1_th revenue — revenue was $ 12.6 million for the year ended december 31 , 2020 as compared to $ 7.9 million for the year ended december 31 , 2019 , an increase of $ 4.7 million . the increase resulted from an increase in revenue recorded of $ 6.9 million as a result of the jjei license agreement which was executed in late 2019 and includes reimbursement of pass-through expenses , partially offset by a decrease in revenue recorded of $ 2.2 million as a result of the cipla agreement . research and development expenses — research and development expense was $ 15.6 million for the year ended december 31 , 2020 as compared to $ 12.8 million for the year ended december 31 , 2019 an increase of $ 2.8 million . the increase was primarily due to increased spending on manufacturing , clinical , and preclinical study costs of $ 4.4 million and $ 0.3 million , on the pur1800 and pur3100 programs , respectively , $ 1.1 million on employment costs in support of our programs , $ 0.6 million in allocated fixed expenses and lab services which were partially offset by a decrease of $ 3.6 million on the phase 2 pulmazole clinical trial costs . general and administrative expenses — general and administrative expense was $ 6.9 million for the year ended december 31 , 2020 , compared to $ 8.5 million for the year ended december 31 , 2019 , a decrease of $ 1.6 million the decrease was primarily due to decreased employment costs of $ 1.2 million because of lower share-based compensation expense and salary costs , $ 0.1 million in patent and legal expenses and $ 0.3 million of a milestone payment to the cfft made in 2019. impairment of goodwill — in 2020

