on july 1 , 2013 , we completed the initial public offering , or ipo , of our common stock pursuant to a registration statement on form s-1 whereby we sold 5,000,000 shares of common stock at a price of $ 14.00 per share . on july 11 , 2013 , the underwriters exercised their over-allotment option in full and purchased an additional 750,000 shares of common stock at a price of $ 14.00 per share . net proceeds from the ipo were approximately $ 72.2 million , including proceeds from the exercise of the underwriters ' over-allotment option , net of underwriting discounts and commissions and offering expenses . upon the closing of the ipo , all outstanding shares of our preferred stock were converted into 9,210,999 shares of common stock . on october 21 , 2014 , we completed an underwritten public offering of 4,887,500 shares of common stock , including 637,500 shares sold pursuant to the full exercise of an over-allotment option granted to the underwriters . all of the shares were offered by us at a price to the public of $ 20.00 per share . the aggregate net proceeds received by us from the offering were $ 91.6 million , net of underwriting discounts and commissions and expenses payable by us . we have not commenced principal operations and do not have any products approved for sale . to date , we have not generated any revenue . we have never been profitable and our net losses were $ 36.4 million , $ 26.1 million and $ 11.7 million for the years ended december 31 , 2014 , 2013 and 2012 , respectively . substantially all of our net losses resulted from costs incurred in connection with research and development programs , general and administrative costs associated with our operations . we expect 63 to incur significant expenses and increasing operating losses for the foreseeable future . we expect our expenses to increase in connection with our ongoing activities , including , among others : conducting additional clinical studies of etc-1002 to complete its development ; seeking regulatory approval for etc-1002 ; commercializing etc-1002 ; and operating as a public company . accordingly , we will need additional funding to support our continuing operations . we will seek to fund our operations through public or private equity or debt financings or through other sources , which may include collaborations with third parties . adequate additional funding may not be available to us on acceptable terms , or at all . our failure to obtain additional funding as and when needed would have a material adverse effect on our financial condition and our ability to pursue our business strategy or continue operations . we will need to generate significant revenues to achieve profitability , and we may never do so . product overview etc-1002 , our lead product candidate , is a first-in-class , orally available , once-daily ldl-cholesterol lowering small molecule therapy designed to lower levels of ldl-cholesterol and to avoid many of the side effects associated with existing ldl-cholesterol lowering therapies . we acquired the rights to etc-1002 from pfizer in 2008. we own the exclusive worldwide rights to etc-1002 and we are not obligated to make any royalty or milestone payments to pfizer . during the year ended december 31 , 2012 , we incurred $ 5.8 million in expenses related to our phase 2a proof-of-concept clinical study in patients with hypercholesterolemia and type 2 diabetes ( etc-1002-005 ) and our phase 2a proof-of-concept clinical study in patients with hypercholesterolemia and a history of statin intolerance ( etc-1002-006 ) which reported top-line results in june 2013 , and our phase 2a clinical study in patients with hypercholesterolemia taking 10 mg of atorvastatin ( etc-1002-007 ) , which reported top-line results in september 2013. during the year ended december 31 , 2013 , we incurred $ 13.7 million in expenses related to our phase 2a proof-of-concept clinical study in patients with hypercholesterolemia and type 2 diabetes ( etc-1002-005 ) , our phase 2a proof-of-concept clinical study in patients with hypercholesterolemia and a history of statin intolerance ( etc-1002-006 ) , our phase 2a clinical study in patients with hypercholesterolemia taking 10 mg of atorvastatin ( etc-1002-007 ) and our phase 2b clinical study in patients with hypercholesterolemia and either with or without statin intolerance ( etc-1002-008 ) . during the year ended december 31 , 2014 , we incurred $ 14.5 million in expenses related to our phase 2b clinical study in patients with hypercholesterolemia with or without statin intolerance ( etc-1002-008 ) , our phase 2b clinical study in patients with hypercholesterolemia already receiving statin therapy ( etc-1002-009 ) , our phase 2 clinical study in patients with hypercholesterolemia and hypertension ( etc-1002-014 ) and other clinical pharmacology studies ( etc-1002-012 and etc-1002-013 ) . we also have two other early-stage programs . we licensed one of these candidates from the cleveland clinic foundation , or ccf , and are obligated to make certain royalty and milestone payments ( consisting of cash and common stock ) to ccf , including a minimum annual cash payment of $ 50,000 during years when a milestone payment is not met . no milestone or royalty payments are due to any third-party in connection with the development and or commercialization of our other preclinical product candidate , esp41091 . 64 financial operations overview revenue to date , we have not generated any revenue , other than grant income . in the future , we may never generate revenue from the sale of etc-1002 or our other product candidates . if we fail to complete the development of etc-1002 or our other product candidates and secure approval from regulatory authorities , our ability to generate future revenue , and our results of operations and financial position will be adversely affected . story_separator_special_tag comparison of the years ended december 31 , 2013 and 2012 the following table summarizes our results of operations for the years ended december 31 , 2013 and 2012 : replace_table_token_12_th research and development expenses research and development expenses for the year ended december 31 , 2013 were $ 16.0 million , compared to $ 8.0 million for the year ended december 31 , 2012 , an increase of $ 8.0 million . the increase in research and development expenses is primarily related to the further development of etc-1002 in our phase 2 clinical program , which includes the completion of two phase 2a clinical studies and the initiation of our phase 2b clinical study in patients with or without statin intolerance . general and administrative expenses general and administrative expenses for the year ended december 31 , 2013 were $ 6.7 million , compared to $ 2.2 million for the year ended december 31 , 2012 , an increase of $ 4.5 million . the increase in general and administrative expenses was primarily attributable to costs to support public company operations , increases in our headcount , which includes increased stock-based compensation expense , and other costs to support our growing organization . 70 interest expense non-cash interest expense for the year ended december 31 , 2013 was $ 0.9 million , compared to $ 1.5 million for the year ended december 31 , 2012 , a decrease of $ 0.6 million . the decrease in interest expense was primarily related to the conversion of our convertible promissory notes issued in january , september and november 2012 , into an aggregate of 16,623,092 shares of series a preferred stock in february 2013 as well as the a decrease in accrued interest on the 8.931 % convertible promissory note issued to pfizer , which was subsequently converted into 6,750,000 shares of series a-1 preferred stock on may 29 , 2013. change in fair value of warrant liability the outstanding warrants to purchase 277,690 shares of our common stock required liability classification and mark-to-market accounting at each reporting period in accordance with asc 480-10 prior to the completion of our ipo . the fair values of the warrants were determined using the monte carlo or the black scholes valuation models and resulted in the recognition of a loss of approximately $ 2.6 million related to the change in fair values for the year ended december 31 , 2013. subsequent to our ipo , the warrants were reclassified to equity as they no longer met the criteria for classification as liabilities . other income ( expense ) , net other income ( expense ) , net for the year ended december 31 , 2013 was income of approximately $ 0.2 million compared to expense of approximately $ 0.1 million for the year ended december 31 , 2012 , a $ 0.3 million increase in other income ( expense ) , net . this increase was primarily related to gains on the sale of assets and an increase in interest income earned on our cash and cash equivalents . story_separator_special_tag if at all ; our ability to establish a sales , marketing and distribution infrastructure to commercialize etc-1002 in the united states and abroad or our ability to establish any future collaboration or commercialization arrangements on favorable terms , if at all ; the costs of preparing , filing and prosecuting patent applications , maintaining and enforcing our intellectual property rights and defending intellectual property-related claims ; and the implementation of operational and financial information technology . until such time , if ever , as we can generate substantial product revenues , we expect to finance our cash needs through a combination of equity offerings , debt financings , collaborations , strategic alliances and licensing arrangements . we do not have any committed external source of funds . to the extent that we raise additional capital through the sale of equity or convertible debt securities , the ownership interest of our stockholders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect your rights as a common stockholder . debt financing , if available , may involve agreements that include covenants limiting or restricting our ability to take specific actions , such as incurring additional debt , making capital expenditures or declaring dividends . if we raise additional funds through collaborations , strategic alliances or licensing arrangements with pharmaceutical partners , we may have to relinquish valuable rights to our technologies , future revenue streams or etc-1002 or grant licenses on terms that may not be favorable to us . if we are unable to raise additional funds through equity or debt financings or through collaborations , strategic alliances or licensing arrangements when needed , we may be required to delay , limit , reduce or terminate our product development or future commercialization efforts or grant rights to develop and market etc-1002 that we would otherwise prefer to develop and market ourselves . contractual obligations and commitments we were originally party to a single lease that covered both office and laboratory space in plymouth , michigan . the plymouth lease , as amended over time , was scheduled to expire in april 2014 . 73 in february 2014 , we signed a new lease to move our principal executive offices to ann arbor , michigan , while still maintaining our laboratory space in plymouth . the ann arbor lease has a term of 63 months and provides for fixed monthly rent of approximately $ 7,900 , with monthly rent increasing every 12 months , and also provides for certain rent adjustments to be paid as determined by the landlord . in may 2014 , we amended the plymouth lease to ( i ) extend the expiration date from april 2014 to april 2017 , ( ii ) adjust the rentable space to 3,045 square feet , ( iii ) adjust our proportionate share of

liquidity and capital resources we have funded our operations to date primarily through proceeds from sales of preferred stock , convertible promissory notes and warrants , public offerings of common stock and the incurrence of indebtedness . to date , we have not generated any revenue , and we anticipate that we will continue to incur losses for the foreseeable future . in july 2013 , we completed our ipo pursuant to a registration statement on form s-1 . in the ipo , we issued and sold an aggregate of 5,750,000 shares of common stock , including the underwriters ' exercise in full of their over-allotment option , under the registration statement at a public offering price of $ 14.00 per share . net proceeds were approximately $ 72.2 million , after deducting underwriting discounts and commissions and offering expenses . in june 2014 , we entered into a credit facility , which provides for initial borrowings of $ 5.0 million and additional borrowings of $ 15.0 million . we received proceeds of $ 4.9 million , net of issuance costs , from the issuance of secured promissory notes under a term loan as part of the facility . the remaining $ 15.0 million is available to us , at our sole discretion , until march 31 , 2015 , subject to achieving positive development results in our ongoing phase 2b clinical study . all secured promissory notes issued under the credit facility are due on july 1 , 2018 and are collateralized by substantially all of our personal property , other than our intellectual property . there are no financial covenants associated to the credit facility . however , there are negative covenants that limit or restrict our activities , which include limitations on incurring indebtedness , granting liens , mergers or acquisitions , dispositions of assets , making certain investments , entering into certain transactions with affiliates , paying dividends or distributions , encumbering or pledging interest its intellectual property and other certain business transactions .


 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 we have funded our operations to date primarily through proceeds from sales of preferred stock , convertible promissory notes and warrants , public offerings of common stock and the incurrence of indebtedness . to date , we have not generated any revenue , and we anticipate that we will continue to incur losses for the foreseeable future . in july 2013 , we completed our ipo pursuant to a registration statement on form s-1 . in the ipo , we issued and sold an aggregate of 5,750,000 shares of common stock , including the underwriters ' exercise in full of their over-allotment option , under the registration statement at a public offering price of $ 14.00 per share . net proceeds were approximately $ 72.2 million , after deducting underwriting discounts and commissions and offering expenses . in june 2014 , we entered into a credit facility , which provides for initial borrowings of $ 5.0 million and additional borrowings of $ 15.0 million . we received proceeds of $ 4.9 million , net of issuance costs , from the issuance of secured promissory notes under a term loan as part of the facility . the remaining $ 15.0 million is available to us , at our sole discretion , until march 31 , 2015 , subject to achieving positive development results in our ongoing phase 2b clinical study . all secured promissory notes issued under the credit facility are due on july 1 , 2018 and are collateralized by substantially all of our personal property , other than our intellectual property . there are no financial covenants associated to the credit facility . however , there are negative covenants that limit or restrict our activities , which include limitations on incurring indebtedness , granting liens , mergers or acquisitions , dispositions of assets , making certain investments , entering into certain transactions with affiliates , paying dividends or distributions , encumbering or pledging interest its intellectual property and other certain business transactions .
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 Suspicious Activity Report : on july 1 , 2013 , we completed the initial public offering , or ipo , of our common stock pursuant to a registration statement on form s-1 whereby we sold 5,000,000 shares of common stock at a price of $ 14.00 per share . on july 11 , 2013 , the underwriters exercised their over-allotment option in full and purchased an additional 750,000 shares of common stock at a price of $ 14.00 per share . net proceeds from the ipo were approximately $ 72.2 million , including proceeds from the exercise of the underwriters ' over-allotment option , net of underwriting discounts and commissions and offering expenses . upon the closing of the ipo , all outstanding shares of our preferred stock were converted into 9,210,999 shares of common stock . on october 21 , 2014 , we completed an underwritten public offering of 4,887,500 shares of common stock , including 637,500 shares sold pursuant to the full exercise of an over-allotment option granted to the underwriters . all of the shares were offered by us at a price to the public of $ 20.00 per share . the aggregate net proceeds received by us from the offering were $ 91.6 million , net of underwriting discounts and commissions and expenses payable by us . we have not commenced principal operations and do not have any products approved for sale . to date , we have not generated any revenue . we have never been profitable and our net losses were $ 36.4 million , $ 26.1 million and $ 11.7 million for the years ended december 31 , 2014 , 2013 and 2012 , respectively . substantially all of our net losses resulted from costs incurred in connection with research and development programs , general and administrative costs associated with our operations . we expect 63 to incur significant expenses and increasing operating losses for the foreseeable future . we expect our expenses to increase in connection with our ongoing activities , including , among others : conducting additional clinical studies of etc-1002 to complete its development ; seeking regulatory approval for etc-1002 ; commercializing etc-1002 ; and operating as a public company . accordingly , we will need additional funding to support our continuing operations . we will seek to fund our operations through public or private equity or debt financings or through other sources , which may include collaborations with third parties . adequate additional funding may not be available to us on acceptable terms , or at all . our failure to obtain additional funding as and when needed would have a material adverse effect on our financial condition and our ability to pursue our business strategy or continue operations . we will need to generate significant revenues to achieve profitability , and we may never do so . product overview etc-1002 , our lead product candidate , is a first-in-class , orally available , once-daily ldl-cholesterol lowering small molecule therapy designed to lower levels of ldl-cholesterol and to avoid many of the side effects associated with existing ldl-cholesterol lowering therapies . we acquired the rights to etc-1002 from pfizer in 2008. we own the exclusive worldwide rights to etc-1002 and we are not obligated to make any royalty or milestone payments to pfizer . during the year ended december 31 , 2012 , we incurred $ 5.8 million in expenses related to our phase 2a proof-of-concept clinical study in patients with hypercholesterolemia and type 2 diabetes ( etc-1002-005 ) and our phase 2a proof-of-concept clinical study in patients with hypercholesterolemia and a history of statin intolerance ( etc-1002-006 ) which reported top-line results in june 2013 , and our phase 2a clinical study in patients with hypercholesterolemia taking 10 mg of atorvastatin ( etc-1002-007 ) , which reported top-line results in september 2013. during the year ended december 31 , 2013 , we incurred $ 13.7 million in expenses related to our phase 2a proof-of-concept clinical study in patients with hypercholesterolemia and type 2 diabetes ( etc-1002-005 ) , our phase 2a proof-of-concept clinical study in patients with hypercholesterolemia and a history of statin intolerance ( etc-1002-006 ) , our phase 2a clinical study in patients with hypercholesterolemia taking 10 mg of atorvastatin ( etc-1002-007 ) and our phase 2b clinical study in patients with hypercholesterolemia and either with or without statin intolerance ( etc-1002-008 ) . during the year ended december 31 , 2014 , we incurred $ 14.5 million in expenses related to our phase 2b clinical study in patients with hypercholesterolemia with or without statin intolerance ( etc-1002-008 ) , our phase 2b clinical study in patients with hypercholesterolemia already receiving statin therapy ( etc-1002-009 ) , our phase 2 clinical study in patients with hypercholesterolemia and hypertension ( etc-1002-014 ) and other clinical pharmacology studies ( etc-1002-012 and etc-1002-013 ) . we also have two other early-stage programs . we licensed one of these candidates from the cleveland clinic foundation , or ccf , and are obligated to make certain royalty and milestone payments ( consisting of cash and common stock ) to ccf , including a minimum annual cash payment of $ 50,000 during years when a milestone payment is not met . no milestone or royalty payments are due to any third-party in connection with the development and or commercialization of our other preclinical product candidate , esp41091 . 64 financial operations overview revenue to date , we have not generated any revenue , other than grant income . in the future , we may never generate revenue from the sale of etc-1002 or our other product candidates . if we fail to complete the development of etc-1002 or our other product candidates and secure approval from regulatory authorities , our ability to generate future revenue , and our results of operations and financial position will be adversely affected . story_separator_special_tag comparison of the years ended december 31 , 2013 and 2012 the following table summarizes our results of operations for the years ended december 31 , 2013 and 2012 : replace_table_token_12_th research and development expenses research and development expenses for the year ended december 31 , 2013 were $ 16.0 million , compared to $ 8.0 million for the year ended december 31 , 2012 , an increase of $ 8.0 million . the increase in research and development expenses is primarily related to the further development of etc-1002 in our phase 2 clinical program , which includes the completion of two phase 2a clinical studies and the initiation of our phase 2b clinical study in patients with or without statin intolerance . general and administrative expenses general and administrative expenses for the year ended december 31 , 2013 were $ 6.7 million , compared to $ 2.2 million for the year ended december 31 , 2012 , an increase of $ 4.5 million . the increase in general and administrative expenses was primarily attributable to costs to support public company operations , increases in our headcount , which includes increased stock-based compensation expense , and other costs to support our growing organization . 70 interest expense non-cash interest expense for the year ended december 31 , 2013 was $ 0.9 million , compared to $ 1.5 million for the year ended december 31 , 2012 , a decrease of $ 0.6 million . the decrease in interest expense was primarily related to the conversion of our convertible promissory notes issued in january , september and november 2012 , into an aggregate of 16,623,092 shares of series a preferred stock in february 2013 as well as the a decrease in accrued interest on the 8.931 % convertible promissory note issued to pfizer , which was subsequently converted into 6,750,000 shares of series a-1 preferred stock on may 29 , 2013. change in fair value of warrant liability the outstanding warrants to purchase 277,690 shares of our common stock required liability classification and mark-to-market accounting at each reporting period in accordance with asc 480-10 prior to the completion of our ipo . the fair values of the warrants were determined using the monte carlo or the black scholes valuation models and resulted in the recognition of a loss of approximately $ 2.6 million related to the change in fair values for the year ended december 31 , 2013. subsequent to our ipo , the warrants were reclassified to equity as they no longer met the criteria for classification as liabilities . other income ( expense ) , net other income ( expense ) , net for the year ended december 31 , 2013 was income of approximately $ 0.2 million compared to expense of approximately $ 0.1 million for the year ended december 31 , 2012 , a $ 0.3 million increase in other income ( expense ) , net . this increase was primarily related to gains on the sale of assets and an increase in interest income earned on our cash and cash equivalents . story_separator_special_tag if at all ; our ability to establish a sales , marketing and distribution infrastructure to commercialize etc-1002 in the united states and abroad or our ability to establish any future collaboration or commercialization arrangements on favorable terms , if at all ; the costs of preparing , filing and prosecuting patent applications , maintaining and enforcing our intellectual property rights and defending intellectual property-related claims ; and the implementation of operational and financial information technology . until such time , if ever , as we can generate substantial product revenues , we expect to finance our cash needs through a combination of equity offerings , debt financings , collaborations , strategic alliances and licensing arrangements . we do not have any committed external source of funds . to the extent that we raise additional capital through the sale of equity or convertible debt securities , the ownership interest of our stockholders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect your rights as a common stockholder . debt financing , if available , may involve agreements that include covenants limiting or restricting our ability to take specific actions , such as incurring additional debt , making capital expenditures or declaring dividends . if we raise additional funds through collaborations , strategic alliances or licensing arrangements with pharmaceutical partners , we may have to relinquish valuable rights to our technologies , future revenue streams or etc-1002 or grant licenses on terms that may not be favorable to us . if we are unable to raise additional funds through equity or debt financings or through collaborations , strategic alliances or licensing arrangements when needed , we may be required to delay , limit , reduce or terminate our product development or future commercialization efforts or grant rights to develop and market etc-1002 that we would otherwise prefer to develop and market ourselves . contractual obligations and commitments we were originally party to a single lease that covered both office and laboratory space in plymouth , michigan . the plymouth lease , as amended over time , was scheduled to expire in april 2014 . 73 in february 2014 , we signed a new lease to move our principal executive offices to ann arbor , michigan , while still maintaining our laboratory space in plymouth . the ann arbor lease has a term of 63 months and provides for fixed monthly rent of approximately $ 7,900 , with monthly rent increasing every 12 months , and also provides for certain rent adjustments to be paid as determined by the landlord . in may 2014 , we amended the plymouth lease to ( i ) extend the expiration date from april 2014 to april 2017 , ( ii ) adjust the rentable space to 3,045 square feet , ( iii ) adjust our proportionate share of

