our net losses were $ 88.3 million , $ 117.2 million and $ 74.8 million for the years ended december 31 , 2020 , 2019 and 2018 , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 404.6 million . we expect to incur significant expenses and operating losses for the foreseeable future . in january 2020 , we announced a reduction in workforce by approximately one third as part of a strategic plan designed to create a leaner company focused on advancing sgt-001 . as we seek to develop and commercialize sgt-001 or any other product candidates , we anticipate that our expenses will increase significantly and that we will need substantial additional funding to support our continuing operations . until such time as we can generate significant revenue from product sales , if ever , we expect to finance our operations through a combination of public or private equity financings , debt financings or other sources , which may include licensing agreements or strategic collaborations . we may be unable to raise additional funds or enter into such agreements or arrangements when needed on favorable terms , if at all . if we fail to raise capital or enter into such agreements as and when needed , we may have to significantly delay , scale back or discontinue the development or commercialization of sgt-001 or our other product candidates . 86 because of the numerous risks and uncertainties associated with product development , we are unable to predict the timing or amount of increased expenses or determine when or if we will be able to achieve or maintain profitability . even if we are able to generate revenue from product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , then we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . on january 30 , 2018 , we completed our initial public offering in which we sold 8,984,375 shares of our common stock , including shares of our common stock issued upon the exercise in full of the underwriters ' over-allotment option , at a public offering price of $ 16.00 per share , resulting in net proceeds of $ 129.1 million , after deducting underwriting discounts and commissions and offering expenses . in july 2019 , we completed a private placement of shares of our common stock and pre-funded warrants to purchase shares of our common stock resulting in net proceeds to us of $ 57.9 million , after deducting offering costs . in october 2020 , we entered into a collaboration and license agreement , or the collaboration agreement , with ultragenyx pharmaceutical inc. , or ultragenyx , pursuant to which we granted ultragenyx an exclusive worldwide license under certain intellectual property rights controlled by us to make , have made , use , distribute , offer for sale , sell , import and export , including to research , develop , modify , enhance , improve , register , distribute , commercialize , or otherwise dispose of aav8 or other clade e aav variant pharmaceutical products that express our md5 nnos binding domain form of microdystrophin protein for the diagnosis , treatment , cure , mitigation or prevention of duchenne and other disease indications resulting from a lack of functional dystrophin , including becker muscular dystrophy . on a product by product basis , we have the option to fund 30 % of the development costs in the united states and european union and share 30 % of the net income and net losses on net sales of such licensed product in the united states and european union . in connection with the execution of the collaboration agreement , we also entered into a stock purchase agreement with ultragenyx , pursuant to which we issued and sold 7,825,797 shares of our common stock to ultragenyx for an aggregate purchase price of approximately $ 40 million . in december 2020 , we completed a private placement of shares of common stock resulting in net proceeds to us of $ 86.2 million , after deducting offering costs . during the year ended december 31 , 2020 , we sold 6,309,632 shares pursuant to a sales agreement , dated march 13 , 2019 , or the atm sales agreement , by and between us and jefferies llc , or jefferies , resulting in net proceeds of $ 23.2 million . as of december 31 , 2020 , we had cash and cash equivalents of $ 154.7 million . based upon our current and projected cash flow , we note there is substantial doubt about our ability to continue as a going concern within one year after the date that these financial statements are issued . as a result , in order to continue to operate our business beyond that time , we will need to raise additional funds . however , there can be no assurance that we will be able to generate funds on terms acceptable to us , on a timely basis , or at all . in addition , we have based this estimate on assumptions that may prove to be wrong , and we could use our available capital resources sooner than we currently anticipate . we believe that our cash and cash equivalents as of december 31 , 2020 will enable us to fund our operating expenses and capital expenditure requirements into the first quarter of 2022. we have based this estimate on assumptions that may prove to be wrong , and we could use our available capital resources sooner than we currently anticipate . story_separator_special_tag examples of estimated accrued research and development expenses include fees paid to : cros in connection with performing research activities on our behalf and conducting clinical trials and preclinical studies on our behalf ; vendors in connection with preclinical development activities ; vendors related to product manufacturing and development and distribution of clinical and preclinical supplies ; and third parties under our intellectual property licenses . 91 we base our expenses related to preclinical studies and clinical trials on our estimates of the services received and efforts expended pursuant to quotes and contracts with multiple cros that conduct and manage preclinical studies and clinical trials on our behalf . the financial terms of these agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . there may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the expense . in accruing fees , we estimate the time period over which services will be performed , and the level of effort to be expended in each period . if the actual timing of the performance of services or the level of effort varies from our estimate , we adjust the accrual or amount of prepaid expense accordingly . although we do not expect our estimates to be materially different from amounts actually incurred , our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in us reporting amounts that are too high or too low in any particular period . to date , we have not made any material adjustments to our prior estimates of accrued research and development expenses . equity-based compensation in connection with the completion of our initial public offering , we adopted the 2018 omnibus incentive plan , or the 2018 plan , which provides for the issuance of share-based awards , including options to purchase common stock . the 2018 plan provides for the awarding of up to 5,001,000 shares of common stock for equity awards . on june 16 , 2020 , our stockholders approved the 2020 equity incentive plan or the “ 2020 plan ” which consists of ( i ) 3,000,000 shares of common stock and ( ii ) additional shares of common stock ( up to 4,879,025 ) as is equal to ( i ) the number of shares reserved under the 2018 plan that remained available for grant under the 2018 plan as of immediately prior to the date the 2020 plan was approved by our stockholders and ( ii ) the number of shares subject to awards granted under the 2018 plan which awards expire , terminate or are otherwise surrendered , cancelled , forfeited or repurchased by us at their original issuance price pursuant to a contractual repurchase right . we measure all stock options and other stock-based awards granted to employees , directors and non-employees based on the fair value on the date of the grant and recognize compensation expense of those awards , over the requisite service period , which is generally the vesting period of the respective award . forfeitures are accounted for as they occur . we apply the straight-line method of expense recognition to all awards with only service-based vesting conditions . we have not issued any awards with performance-based vesting conditions . for stock-based awards granted to non-employees , compensation expense is recognized over the period during which services are rendered by such non-employees until completed . the fair value of each stock option grant is estimated on the date of grant using the black-scholes option-pricing model . we historically have been a private company and lack company-specific historical and implied volatility information . therefore , we estimate our expected stock volatility based on the historical volatility of a publicly traded set of peer companies and expect to continue to do so until such time as we have adequate historical data regarding the volatility of our own traded stock price . for options with service-based vesting conditions , the expected term of our stock options has been determined utilizing the “ simplified ” method for awards that qualify as “ plain-vanilla ” options . through december 31 , 2018 , the expected term of stock options granted to non-employees is equal to the contractual term of the option award and effective january 1 , 2019 , the “ simplified ” method is used . the risk-free interest rate is determined by reference to the u.s. treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award . expected dividend yield is based on the fact that we have never paid cash dividends and do not expect to pay any cash dividends in the foreseeable future , if ever . 92 results of operations 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 research and development expenses replace_table_token_3_th research and development expenses for the year ended december 31 , 2020 were $ 64.9 million , compared to $ 94.7 million for the year ended december 31 , 2019. the decrease of $ 29.9 million in research and development costs was due to a decrease in unallocated research and development costs of $ 12.3 million primarily due to a reduction in personnel and facility related expenses as a result of the restructuring that occurred in january 2020 , and a $ 15.8 million decrease in costs related to our lead product candidate sgt-001 driven by a reduction in manufacturing costs of $ 17.3 million partially offset by an increase in clinical costs of $ 1.5 million primarily driven by clinical consulting costs . the reduction in research and development was also driven by

sources of liquidity to date , we have financed our operations primarily through private placements of preferred units and our initial public offering as well as private placements of shares of our common stock and pre-funded warrants to purchase shares of our common stock . through december 31 , 2020 , we raised an aggregate of $ 144.6 million of gross proceeds from our sales of preferred units prior to the completion of our initial public offering , an aggregate of $ 129.1 million of net proceeds from the sale of our common stock after deducting underwriting discounts and commission and offering expenses in our initial public offering , an aggregate $ 144.1 million of net proceeds , after deducting offering costs , from our july 2019 and december 2020 private placements , and approximately $ 40 million from our sale of common stock to ultragenyx . we completed our initial public offering on january 30 , 2018 , in which we sold 8,984,375 shares of common stock , including the underwriters ' over-allotment option , at a public offering price of $ 16.00 per share , resulting in net proceeds of $ 129.1 million . on july 30 , 2019 , we issued and sold in a private placement ( i ) 10,607,525 shares of our common stock at a price per share of $ 4.65 and ( ii ) 2,295,699 pre-funded warrants to purchase shares of our common stock at a price per warrant of $ 4.64. each pre-funded warrant is exercisable for one share of common stock at an exercise price of $ 0.01 and the pre-funded warrants have no expiration date . we received $ 57.9 million of net proceeds from the private placement after deducting offering costs . in october 2020 , we entered into the collaboration agreement with ultragenyx . in connection with the execution of the collaboration agreement , we also entered into a stock purchase agreement with ultragenyx , pursuant to which we issued and sold 7,825,797 shares of our common stock to ultragenyx for an aggregate purchase price of approximately $ 40 million .


 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.
     ```sources of liquidity to date , we have financed our operations primarily through private placements of preferred units and our initial public offering as well as private placements of shares of our common stock and pre-funded warrants to purchase shares of our common stock . through december 31 , 2020 , we raised an aggregate of $ 144.6 million of gross proceeds from our sales of preferred units prior to the completion of our initial public offering , an aggregate of $ 129.1 million of net proceeds from the sale of our common stock after deducting underwriting discounts and commission and offering expenses in our initial public offering , an aggregate $ 144.1 million of net proceeds , after deducting offering costs , from our july 2019 and december 2020 private placements , and approximately $ 40 million from our sale of common stock to ultragenyx . we completed our initial public offering on january 30 , 2018 , in which we sold 8,984,375 shares of common stock , including the underwriters ' over-allotment option , at a public offering price of $ 16.00 per share , resulting in net proceeds of $ 129.1 million . on july 30 , 2019 , we issued and sold in a private placement ( i ) 10,607,525 shares of our common stock at a price per share of $ 4.65 and ( ii ) 2,295,699 pre-funded warrants to purchase shares of our common stock at a price per warrant of $ 4.64. each pre-funded warrant is exercisable for one share of common stock at an exercise price of $ 0.01 and the pre-funded warrants have no expiration date . we received $ 57.9 million of net proceeds from the private placement after deducting offering costs . in october 2020 , we entered into the collaboration agreement with ultragenyx . in connection with the execution of the collaboration agreement , we also entered into a stock purchase agreement with ultragenyx , pursuant to which we issued and sold 7,825,797 shares of our common stock to ultragenyx for an aggregate purchase price of approximately $ 40 million .
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 Suspicious Activity Report : our net losses were $ 88.3 million , $ 117.2 million and $ 74.8 million for the years ended december 31 , 2020 , 2019 and 2018 , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 404.6 million . we expect to incur significant expenses and operating losses for the foreseeable future . in january 2020 , we announced a reduction in workforce by approximately one third as part of a strategic plan designed to create a leaner company focused on advancing sgt-001 . as we seek to develop and commercialize sgt-001 or any other product candidates , we anticipate that our expenses will increase significantly and that we will need substantial additional funding to support our continuing operations . until such time as we can generate significant revenue from product sales , if ever , we expect to finance our operations through a combination of public or private equity financings , debt financings or other sources , which may include licensing agreements or strategic collaborations . we may be unable to raise additional funds or enter into such agreements or arrangements when needed on favorable terms , if at all . if we fail to raise capital or enter into such agreements as and when needed , we may have to significantly delay , scale back or discontinue the development or commercialization of sgt-001 or our other product candidates . 86 because of the numerous risks and uncertainties associated with product development , we are unable to predict the timing or amount of increased expenses or determine when or if we will be able to achieve or maintain profitability . even if we are able to generate revenue from product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , then we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . on january 30 , 2018 , we completed our initial public offering in which we sold 8,984,375 shares of our common stock , including shares of our common stock issued upon the exercise in full of the underwriters ' over-allotment option , at a public offering price of $ 16.00 per share , resulting in net proceeds of $ 129.1 million , after deducting underwriting discounts and commissions and offering expenses . in july 2019 , we completed a private placement of shares of our common stock and pre-funded warrants to purchase shares of our common stock resulting in net proceeds to us of $ 57.9 million , after deducting offering costs . in october 2020 , we entered into a collaboration and license agreement , or the collaboration agreement , with ultragenyx pharmaceutical inc. , or ultragenyx , pursuant to which we granted ultragenyx an exclusive worldwide license under certain intellectual property rights controlled by us to make , have made , use , distribute , offer for sale , sell , import and export , including to research , develop , modify , enhance , improve , register , distribute , commercialize , or otherwise dispose of aav8 or other clade e aav variant pharmaceutical products that express our md5 nnos binding domain form of microdystrophin protein for the diagnosis , treatment , cure , mitigation or prevention of duchenne and other disease indications resulting from a lack of functional dystrophin , including becker muscular dystrophy . on a product by product basis , we have the option to fund 30 % of the development costs in the united states and european union and share 30 % of the net income and net losses on net sales of such licensed product in the united states and european union . in connection with the execution of the collaboration agreement , we also entered into a stock purchase agreement with ultragenyx , pursuant to which we issued and sold 7,825,797 shares of our common stock to ultragenyx for an aggregate purchase price of approximately $ 40 million . in december 2020 , we completed a private placement of shares of common stock resulting in net proceeds to us of $ 86.2 million , after deducting offering costs . during the year ended december 31 , 2020 , we sold 6,309,632 shares pursuant to a sales agreement , dated march 13 , 2019 , or the atm sales agreement , by and between us and jefferies llc , or jefferies , resulting in net proceeds of $ 23.2 million . as of december 31 , 2020 , we had cash and cash equivalents of $ 154.7 million . based upon our current and projected cash flow , we note there is substantial doubt about our ability to continue as a going concern within one year after the date that these financial statements are issued . as a result , in order to continue to operate our business beyond that time , we will need to raise additional funds . however , there can be no assurance that we will be able to generate funds on terms acceptable to us , on a timely basis , or at all . in addition , we have based this estimate on assumptions that may prove to be wrong , and we could use our available capital resources sooner than we currently anticipate . we believe that our cash and cash equivalents as of december 31 , 2020 will enable us to fund our operating expenses and capital expenditure requirements into the first quarter of 2022. we have based this estimate on assumptions that may prove to be wrong , and we could use our available capital resources sooner than we currently anticipate . story_separator_special_tag examples of estimated accrued research and development expenses include fees paid to : cros in connection with performing research activities on our behalf and conducting clinical trials and preclinical studies on our behalf ; vendors in connection with preclinical development activities ; vendors related to product manufacturing and development and distribution of clinical and preclinical supplies ; and third parties under our intellectual property licenses . 91 we base our expenses related to preclinical studies and clinical trials on our estimates of the services received and efforts expended pursuant to quotes and contracts with multiple cros that conduct and manage preclinical studies and clinical trials on our behalf . the financial terms of these agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . there may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the expense . in accruing fees , we estimate the time period over which services will be performed , and the level of effort to be expended in each period . if the actual timing of the performance of services or the level of effort varies from our estimate , we adjust the accrual or amount of prepaid expense accordingly . although we do not expect our estimates to be materially different from amounts actually incurred , our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in us reporting amounts that are too high or too low in any particular period . to date , we have not made any material adjustments to our prior estimates of accrued research and development expenses . equity-based compensation in connection with the completion of our initial public offering , we adopted the 2018 omnibus incentive plan , or the 2018 plan , which provides for the issuance of share-based awards , including options to purchase common stock . the 2018 plan provides for the awarding of up to 5,001,000 shares of common stock for equity awards . on june 16 , 2020 , our stockholders approved the 2020 equity incentive plan or the “ 2020 plan ” which consists of ( i ) 3,000,000 shares of common stock and ( ii ) additional shares of common stock ( up to 4,879,025 ) as is equal to ( i ) the number of shares reserved under the 2018 plan that remained available for grant under the 2018 plan as of immediately prior to the date the 2020 plan was approved by our stockholders and ( ii ) the number of shares subject to awards granted under the 2018 plan which awards expire , terminate or are otherwise surrendered , cancelled , forfeited or repurchased by us at their original issuance price pursuant to a contractual repurchase right . we measure all stock options and other stock-based awards granted to employees , directors and non-employees based on the fair value on the date of the grant and recognize compensation expense of those awards , over the requisite service period , which is generally the vesting period of the respective award . forfeitures are accounted for as they occur . we apply the straight-line method of expense recognition to all awards with only service-based vesting conditions . we have not issued any awards with performance-based vesting conditions . for stock-based awards granted to non-employees , compensation expense is recognized over the period during which services are rendered by such non-employees until completed . the fair value of each stock option grant is estimated on the date of grant using the black-scholes option-pricing model . we historically have been a private company and lack company-specific historical and implied volatility information . therefore , we estimate our expected stock volatility based on the historical volatility of a publicly traded set of peer companies and expect to continue to do so until such time as we have adequate historical data regarding the volatility of our own traded stock price . for options with service-based vesting conditions , the expected term of our stock options has been determined utilizing the “ simplified ” method for awards that qualify as “ plain-vanilla ” options . through december 31 , 2018 , the expected term of stock options granted to non-employees is equal to the contractual term of the option award and effective january 1 , 2019 , the “ simplified ” method is used . the risk-free interest rate is determined by reference to the u.s. treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award . expected dividend yield is based on the fact that we have never paid cash dividends and do not expect to pay any cash dividends in the foreseeable future , if ever . 92 results of operations 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 research and development expenses replace_table_token_3_th research and development expenses for the year ended december 31 , 2020 were $ 64.9 million , compared to $ 94.7 million for the year ended december 31 , 2019. the decrease of $ 29.9 million in research and development costs was due to a decrease in unallocated research and development costs of $ 12.3 million primarily due to a reduction in personnel and facility related expenses as a result of the restructuring that occurred in january 2020 , and a $ 15.8 million decrease in costs related to our lead product candidate sgt-001 driven by a reduction in manufacturing costs of $ 17.3 million partially offset by an increase in clinical costs of $ 1.5 million primarily driven by clinical consulting costs . the reduction in research and development was also driven by

