in january 2019 , the company cancelled all of the individual study contracts with itr and entered into a contract with canada inc. ( dba vjo non-clinical development ( “ vjo ” ) ) to complete additional pre-clinical research and development services in order to take advantage of eligible canadian tax credits . the services related to the contract with vjo were sub-contracted to itr under substantially the same terms as the initial contract with itr , with fees payable for the services under this contract totaling $ 4,412,000 , as amended . during the years ended december 31 story_separator_special_tag general we were formed as a delaware corporation on january 24 , 2018 for the purpose of developing and commercializing innovative drug products based on our patented thin film freezing , or tff , technology platform ” . since our formation , we have focused on the development of our initial drug candidates , the establishment of strategic relationships with established pharmaceutical companies for the licensing of our tff technology platform and the pursuit of additional working capital . we have not commenced revenue-producing operations . since our organization in 2018 , we have engaged in the following financing transactions : series a preferred stock placements . in march 2018 , we conducted a private placement of 5,662,000 shares of our series a preferred stock , at an offering price of $ 2.50 per share , for the gross proceeds of approximately $ 14.2 million , and in may 2019 we conducted a private placement of 3,268,000 shares of our series a preferred stock , at an offering price of $ 2.50 per share , for the gross proceeds of approximately $ 8.2 million . the shares of our series a preferred stock accumulated dividends at the rate of 6 % per annum . the shares of series a preferred stock , including all accrued but unpaid dividends on the series a preferred stock , which totalled $ 1,603,709 , automatically converted into 9,571,692 shares of our common stock concurrent with the completion of our initial public offering at the conversion price of $ 2.50 . 42 initial public offering . on october 25 , 2019 , we conducted an initial public offering of 4,400,000 shares of common stock at a public offering price of $ 5.00 per share . after the payment of underwriter discounts and offering expenses , and after giving effect to the underwriters ' exercise of its overallotment option on november 20 , 2019 to purchase an additional 479,300 shares of our common stock at the offering price of $ 5.00 per share , we received net proceeds of approximately $ 21.8 million . results of operations we were formed in january 2018 and have not commenced revenue-producing operations . to date , our operations have consisted of the development and early-stage testing of our initial product candidates . in connection with our organization on january 24 , 2018 , we entered into a contribution and subscription agreement with lung therapeutics , inc. , or lti , our former parent , pursuant to which we agreed to acquire from lti certain of lti 's non-core intellectual property rights and other assets , or the acquired assets , all of which relate to our thin film freezing technology . we closed on the acquisition of the acquired assets concurrent with the close of the initial series a preferred stock financing in march 2018. the operations surrounding the acquired assets are deemed to be our accounting predecessor and the results of operations in the financial summary below for the period january 1 , 2018 through january 23 , 2018 reflect the results of operations of the acquired assets , which were immaterial , as our predecessor . during the fiscal years ended december 31 , 2019 and 2018 , we incurred $ 8.8 million and $ 848,809 of research and development expenses and $ 3.2 million and $ 3.0 million of general and administrative expenses , respectively . the increase in research and development expenses during 2019 was due to the ramp-up of research and development activities following the completion of our funding in may 2019. we incurred a net loss applicable to common stockholders of $ 36.7 million and $ 4.6 million for the fiscal years ended december 31 , 2019 and 2018 , respectively . the increase in net loss applicable to common stockholders in 2019 was due to a deemed dividend of $ 24.0 million upon the conversion of our series a preferred stock in october 2019. financial condition as of december 31 , 2019 , we had total assets of approximately $ 29.2 million and working capital of approximately $ 28.8 million . as of december 31 , 2019 , our liquidity included approximately $ 28.1 million of cash and cash equivalents . we believe that our cash on-hand as of the date of this report is sufficient to fund our proposed operating plan for , at least , the 12 months following the date of this report . however , as of the date of this report , we believe that we will ultimately need additional capital to fund our operations through to the marketing approval for tff vori and tff tac-lac , assuming such approval can be obtained at all , and to engage in the substantial development of any other of our drug candidates , such as formulation , early stage animal testing and formal toxicology studies . we intend to seek additional funds through various financing sources , including the sale of our equity and debt securities , licensing fees for our technology and co-development and joint ventures with industry partners , with a preference towards licensing fees for our technology and co-development and joint ventures with industry partners . in addition , we will consider alternatives to our current business plan that may enable to us to achieve revenue producing operations and meaningful commercial success with a smaller amount story_separator_special_tag in january 2019 , the company cancelled all of the individual study contracts with itr and entered into a contract with canada inc. ( dba vjo non-clinical development ( “ vjo ” ) ) to complete additional pre-clinical research and development services in order to take advantage of eligible canadian tax credits . the services related to the contract with vjo were sub-contracted to itr under substantially the same terms as the initial contract with itr , with fees payable for the services under this contract totaling $ 4,412,000 , as amended . during the years ended december 31 story_separator_special_tag general we were formed as a delaware corporation on january 24 , 2018 for the purpose of developing and commercializing innovative drug products based on our patented thin film freezing , or tff , technology platform ” . since our formation , we have focused on the development of our initial drug candidates , the establishment of strategic relationships with established pharmaceutical companies for the licensing of our tff technology platform and the pursuit of additional working capital . we have not commenced revenue-producing operations . since our organization in 2018 , we have engaged in the following financing transactions : series a preferred stock placements . in march 2018 , we conducted a private placement of 5,662,000 shares of our series a preferred stock , at an offering price of $ 2.50 per share , for the gross proceeds of approximately $ 14.2 million , and in may 2019 we conducted a private placement of 3,268,000 shares of our series a preferred stock , at an offering price of $ 2.50 per share , for the gross proceeds of approximately $ 8.2 million . the shares of our series a preferred stock accumulated dividends at the rate of 6 % per annum . the shares of series a preferred stock , including all accrued but unpaid dividends on the series a preferred stock , which totalled $ 1,603,709 , automatically converted into 9,571,692 shares of our common stock concurrent with the completion of our initial public offering at the conversion price of $ 2.50 . 42 initial public offering . on october 25 , 2019 , we conducted an initial public offering of 4,400,000 shares of common stock at a public offering price of $ 5.00 per share . after the payment of underwriter discounts and offering expenses , and after giving effect to the underwriters ' exercise of its overallotment option on november 20 , 2019 to purchase an additional 479,300 shares of our common stock at the offering price of $ 5.00 per share , we received net proceeds of approximately $ 21.8 million . results of operations we were formed in january 2018 and have not commenced revenue-producing operations . to date , our operations have consisted of the development and early-stage testing of our initial product candidates . in connection with our organization on january 24 , 2018 , we entered into a contribution and subscription agreement with lung therapeutics , inc. , or lti , our former parent , pursuant to which we agreed to acquire from lti certain of lti 's non-core intellectual property rights and other assets , or the acquired assets , all of which relate to our thin film freezing technology . we closed on the acquisition of the acquired assets concurrent with the close of the initial series a preferred stock financing in march 2018. the operations surrounding the acquired assets are deemed to be our accounting predecessor and the results of operations in the financial summary below for the period january 1 , 2018 through january 23 , 2018 reflect the results of operations of the acquired assets , which were immaterial , as our predecessor . during the fiscal years ended december 31 , 2019 and 2018 , we incurred $ 8.8 million and $ 848,809 of research and development expenses and $ 3.2 million and $ 3.0 million of general and administrative expenses , respectively . the increase in research and development expenses during 2019 was due to the ramp-up of research and development activities following the completion of our funding in may 2019. we incurred a net loss applicable to common stockholders of $ 36.7 million and $ 4.6 million for the fiscal years ended december 31 , 2019 and 2018 , respectively . the increase in net loss applicable to common stockholders in 2019 was due to a deemed dividend of $ 24.0 million upon the conversion of our series a preferred stock in october 2019. financial condition as of december 31 , 2019 , we had total assets of approximately $ 29.2 million and working capital of approximately $ 28.8 million . as of december 31 , 2019 , our liquidity included approximately $ 28.1 million of cash and cash equivalents . we believe that our cash on-hand as of the date of this report is sufficient to fund our proposed operating plan for , at least , the 12 months following the date of this report . however , as of the date of this report , we believe that we will ultimately need additional capital to fund our operations through to the marketing approval for tff vori and tff tac-lac , assuming such approval can be obtained at all , and to engage in the substantial development of any other of our drug candidates , such as formulation , early stage animal testing and formal toxicology studies . we intend to seek additional funds through various financing sources , including the sale of our equity and debt securities , licensing fees for our technology and co-development and joint ventures with industry partners , with a preference towards licensing fees for our technology and co-development and joint ventures with industry partners . in addition , we will consider alternatives to our current business plan that may enable to us to achieve revenue producing operations and meaningful commercial success with a smaller amount

cash flows the following table sets forth a summary of our cash flows for the periods ended december 31 , 2019 and 2018 : replace_table_token_0_th ( 1 ) the period from january 1 , 2018 through january 23 , 2018 was not material the increase in cash used in operating activities is primarily a result of higher operating losses in 2019 due to our business expansion , including additional personnel and increased product candidate development activity . the financing activity primarily consists of the series a preferred stock private placements in 2018 , 2019 and the october 2019 initial public offering , or ipo . critical accounting policies our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the united states of america , or gaap . the preparation of our consolidated financial statements and related disclosures requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , costs and expenses in our consolidated financial statements . we base our estimates on historical experience , known trends and events and various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . we evaluate our estimates and assumptions on an ongoing basis . our actual results may differ from these estimates under different assumptions or conditions . while our significant accounting policies are described in more detail in note 3 to our consolidated financial statements included herein , we believe that the following accounting policies are those most critical to the judgments and estimates used in the preparation of our consolidated financial statements . stock-based compensation we compute stock-based compensation in accordance with authoritative guidance .


 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 the following table sets forth a summary of our cash flows for the periods ended december 31 , 2019 and 2018 : replace_table_token_0_th ( 1 ) the period from january 1 , 2018 through january 23 , 2018 was not material the increase in cash used in operating activities is primarily a result of higher operating losses in 2019 due to our business expansion , including additional personnel and increased product candidate development activity . the financing activity primarily consists of the series a preferred stock private placements in 2018 , 2019 and the october 2019 initial public offering , or ipo . critical accounting policies our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the united states of america , or gaap . the preparation of our consolidated financial statements and related disclosures requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , costs and expenses in our consolidated financial statements . we base our estimates on historical experience , known trends and events and various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . we evaluate our estimates and assumptions on an ongoing basis . our actual results may differ from these estimates under different assumptions or conditions . while our significant accounting policies are described in more detail in note 3 to our consolidated financial statements included herein , we believe that the following accounting policies are those most critical to the judgments and estimates used in the preparation of our consolidated financial statements . stock-based compensation we compute stock-based compensation in accordance with authoritative guidance .
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 Suspicious Activity Report : in january 2019 , the company cancelled all of the individual study contracts with itr and entered into a contract with canada inc. ( dba vjo non-clinical development ( “ vjo ” ) ) to complete additional pre-clinical research and development services in order to take advantage of eligible canadian tax credits . the services related to the contract with vjo were sub-contracted to itr under substantially the same terms as the initial contract with itr , with fees payable for the services under this contract totaling $ 4,412,000 , as amended . during the years ended december 31 story_separator_special_tag general we were formed as a delaware corporation on january 24 , 2018 for the purpose of developing and commercializing innovative drug products based on our patented thin film freezing , or tff , technology platform ” . since our formation , we have focused on the development of our initial drug candidates , the establishment of strategic relationships with established pharmaceutical companies for the licensing of our tff technology platform and the pursuit of additional working capital . we have not commenced revenue-producing operations . since our organization in 2018 , we have engaged in the following financing transactions : series a preferred stock placements . in march 2018 , we conducted a private placement of 5,662,000 shares of our series a preferred stock , at an offering price of $ 2.50 per share , for the gross proceeds of approximately $ 14.2 million , and in may 2019 we conducted a private placement of 3,268,000 shares of our series a preferred stock , at an offering price of $ 2.50 per share , for the gross proceeds of approximately $ 8.2 million . the shares of our series a preferred stock accumulated dividends at the rate of 6 % per annum . the shares of series a preferred stock , including all accrued but unpaid dividends on the series a preferred stock , which totalled $ 1,603,709 , automatically converted into 9,571,692 shares of our common stock concurrent with the completion of our initial public offering at the conversion price of $ 2.50 . 42 initial public offering . on october 25 , 2019 , we conducted an initial public offering of 4,400,000 shares of common stock at a public offering price of $ 5.00 per share . after the payment of underwriter discounts and offering expenses , and after giving effect to the underwriters ' exercise of its overallotment option on november 20 , 2019 to purchase an additional 479,300 shares of our common stock at the offering price of $ 5.00 per share , we received net proceeds of approximately $ 21.8 million . results of operations we were formed in january 2018 and have not commenced revenue-producing operations . to date , our operations have consisted of the development and early-stage testing of our initial product candidates . in connection with our organization on january 24 , 2018 , we entered into a contribution and subscription agreement with lung therapeutics , inc. , or lti , our former parent , pursuant to which we agreed to acquire from lti certain of lti 's non-core intellectual property rights and other assets , or the acquired assets , all of which relate to our thin film freezing technology . we closed on the acquisition of the acquired assets concurrent with the close of the initial series a preferred stock financing in march 2018. the operations surrounding the acquired assets are deemed to be our accounting predecessor and the results of operations in the financial summary below for the period january 1 , 2018 through january 23 , 2018 reflect the results of operations of the acquired assets , which were immaterial , as our predecessor . during the fiscal years ended december 31 , 2019 and 2018 , we incurred $ 8.8 million and $ 848,809 of research and development expenses and $ 3.2 million and $ 3.0 million of general and administrative expenses , respectively . the increase in research and development expenses during 2019 was due to the ramp-up of research and development activities following the completion of our funding in may 2019. we incurred a net loss applicable to common stockholders of $ 36.7 million and $ 4.6 million for the fiscal years ended december 31 , 2019 and 2018 , respectively . the increase in net loss applicable to common stockholders in 2019 was due to a deemed dividend of $ 24.0 million upon the conversion of our series a preferred stock in october 2019. financial condition as of december 31 , 2019 , we had total assets of approximately $ 29.2 million and working capital of approximately $ 28.8 million . as of december 31 , 2019 , our liquidity included approximately $ 28.1 million of cash and cash equivalents . we believe that our cash on-hand as of the date of this report is sufficient to fund our proposed operating plan for , at least , the 12 months following the date of this report . however , as of the date of this report , we believe that we will ultimately need additional capital to fund our operations through to the marketing approval for tff vori and tff tac-lac , assuming such approval can be obtained at all , and to engage in the substantial development of any other of our drug candidates , such as formulation , early stage animal testing and formal toxicology studies . we intend to seek additional funds through various financing sources , including the sale of our equity and debt securities , licensing fees for our technology and co-development and joint ventures with industry partners , with a preference towards licensing fees for our technology and co-development and joint ventures with industry partners . in addition , we will consider alternatives to our current business plan that may enable to us to achieve revenue producing operations and meaningful commercial success with a smaller amount story_separator_special_tag in january 2019 , the company cancelled all of the individual study contracts with itr and entered into a contract with canada inc. ( dba vjo non-clinical development ( “ vjo ” ) ) to complete additional pre-clinical research and development services in order to take advantage of eligible canadian tax credits . the services related to the contract with vjo were sub-contracted to itr under substantially the same terms as the initial contract with itr , with fees payable for the services under this contract totaling $ 4,412,000 , as amended . during the years ended december 31 story_separator_special_tag general we were formed as a delaware corporation on january 24 , 2018 for the purpose of developing and commercializing innovative drug products based on our patented thin film freezing , or tff , technology platform ” . since our formation , we have focused on the development of our initial drug candidates , the establishment of strategic relationships with established pharmaceutical companies for the licensing of our tff technology platform and the pursuit of additional working capital . we have not commenced revenue-producing operations . since our organization in 2018 , we have engaged in the following financing transactions : series a preferred stock placements . in march 2018 , we conducted a private placement of 5,662,000 shares of our series a preferred stock , at an offering price of $ 2.50 per share , for the gross proceeds of approximately $ 14.2 million , and in may 2019 we conducted a private placement of 3,268,000 shares of our series a preferred stock , at an offering price of $ 2.50 per share , for the gross proceeds of approximately $ 8.2 million . the shares of our series a preferred stock accumulated dividends at the rate of 6 % per annum . the shares of series a preferred stock , including all accrued but unpaid dividends on the series a preferred stock , which totalled $ 1,603,709 , automatically converted into 9,571,692 shares of our common stock concurrent with the completion of our initial public offering at the conversion price of $ 2.50 . 42 initial public offering . on october 25 , 2019 , we conducted an initial public offering of 4,400,000 shares of common stock at a public offering price of $ 5.00 per share . after the payment of underwriter discounts and offering expenses , and after giving effect to the underwriters ' exercise of its overallotment option on november 20 , 2019 to purchase an additional 479,300 shares of our common stock at the offering price of $ 5.00 per share , we received net proceeds of approximately $ 21.8 million . results of operations we were formed in january 2018 and have not commenced revenue-producing operations . to date , our operations have consisted of the development and early-stage testing of our initial product candidates . in connection with our organization on january 24 , 2018 , we entered into a contribution and subscription agreement with lung therapeutics , inc. , or lti , our former parent , pursuant to which we agreed to acquire from lti certain of lti 's non-core intellectual property rights and other assets , or the acquired assets , all of which relate to our thin film freezing technology . we closed on the acquisition of the acquired assets concurrent with the close of the initial series a preferred stock financing in march 2018. the operations surrounding the acquired assets are deemed to be our accounting predecessor and the results of operations in the financial summary below for the period january 1 , 2018 through january 23 , 2018 reflect the results of operations of the acquired assets , which were immaterial , as our predecessor . during the fiscal years ended december 31 , 2019 and 2018 , we incurred $ 8.8 million and $ 848,809 of research and development expenses and $ 3.2 million and $ 3.0 million of general and administrative expenses , respectively . the increase in research and development expenses during 2019 was due to the ramp-up of research and development activities following the completion of our funding in may 2019. we incurred a net loss applicable to common stockholders of $ 36.7 million and $ 4.6 million for the fiscal years ended december 31 , 2019 and 2018 , respectively . the increase in net loss applicable to common stockholders in 2019 was due to a deemed dividend of $ 24.0 million upon the conversion of our series a preferred stock in october 2019. financial condition as of december 31 , 2019 , we had total assets of approximately $ 29.2 million and working capital of approximately $ 28.8 million . as of december 31 , 2019 , our liquidity included approximately $ 28.1 million of cash and cash equivalents . we believe that our cash on-hand as of the date of this report is sufficient to fund our proposed operating plan for , at least , the 12 months following the date of this report . however , as of the date of this report , we believe that we will ultimately need additional capital to fund our operations through to the marketing approval for tff vori and tff tac-lac , assuming such approval can be obtained at all , and to engage in the substantial development of any other of our drug candidates , such as formulation , early stage animal testing and formal toxicology studies . we intend to seek additional funds through various financing sources , including the sale of our equity and debt securities , licensing fees for our technology and co-development and joint ventures with industry partners , with a preference towards licensing fees for our technology and co-development and joint ventures with industry partners . in addition , we will consider alternatives to our current business plan that may enable to us to achieve revenue producing operations and meaningful commercial success with a smaller amount

