the company expects that its operating expenses will increase as it advances its product candidates through preclinical and clinical development , seeks regulatory approval , and prepares for and , if approved , proceeds to commercialization ; acquires , discovers , validates and develops additional product candidates ; obtains , maintains , protects and enforces its intellectual property portfolio ; and hires additional personnel . in addition , the company has incurred and will continue to incur additional costs associated with operating as a public company . the company plans to continue to use third party service providers , including cros and cmos , to carry out its preclinical and clinical development and to manufacture and supply the materials to be used during the development and commercialization of its product candidates . 74 recent events submission of the nda for oc-01 ( varenicline ) nasal spray to fda on december 17 , 2020 , the company submitted a 505 ( b ) ( 2 ) nda to the fda for oc-01 ( varenicline ) nasal spray for the treatment of signs and symptoms of dry eye disease . the mystic , onset-1 and onset-2 clinical trials showed statistically significant improvements in schirmer 's score ( an objective , reproducible , and quantifiable measure of natural tear film production ) , as compared to control , which was the primary endpoint in all studies . key secondary endpoints in onset-1 and onset-2 included change from baseline in symptoms as assessed by eye dryness score . in both of these pivotal studies , there was statistically or nominally statistically significant improvement in symptom scores at day 28 , and in onset-2 as early as day 14 , as compared to control . all doses studied in the clinical trial program were well-tolerated with no serious drug related adverse events . submission of the phase 2 clinical trial protocol for neurotrophic keratopathy ( nk ) to the fda on november 30 , 2020 , the company submitted to the fda a protocol to initiate a clinical study in adult patients with nk , a degenerative disease characterized by decreased corneal sensitivity and poor corneal healing . the submission was made to the company 's ind application for oc-01 ( varenicline ) nasal spray in dry eye disease . nk is the second of a number of important potential indications the company is evaluating for oc-01 ( varenicline ) nasal spray , illustrating the company 's commitment to treating unmet needs related to ocular surface diseases . enrollment of the first patient in the olympia phase 2 study in nk is planned for the first half of 2021. entry into $ 100 million at-the-market sales agreement ( atm ) with cowen and company , llc on november 5 , 2020 , the company entered into an at-the-market sales agreement ( or atm ) with cowen and company , llc , pursuant to which the company may offer and sell shares of the company 's common stock having an aggregate offering price of up to $ 100 million . the atm was entered into by the company concurrently with a registration statement on form s-3 . under the registration statement , the company may offer and sell , in one or more offerings , up to an aggregate of $ 300 million of any combination of securities registered thereunder , consisting of shares of common and preferred stock , debt securities and warrants . the impact of the sars-cov-2 virus pandemic in march 2020 , the world health organization declared the sars-cov-2 virus outbreak to be a pandemic . also , in march of 2020 , due to the sars-cov-2 virus pandemic , the company experienced an impact at select clinical trial sites where ophthalmology practices were closed , or subjects were unable to attend visits , or where clinical trial sites did not feel comfortable putting their staff or subjects into a controlled adverse environment ( cae ® ) , which limited the company 's ability to assess the related secondary endpoint in its onset-2 study for those subjects . the company then conducted a further post-hoc analysis on the data , which led to the discovery of additional treatment benefits in the 1.2 mg/ml dose group that were not captured with the statistical method used for analysis of the secondary endpoint . during the year ended december 31 , 2020 , financial results of the company were not significantly affected by the sars-cov-2 virus pandemic . however , the extent to which the sars-cov-2 virus outbreak affects the company 's future financial results and operations will depend on future developments which are highly uncertain and can not be predicted , including new information which may emerge concerning the severity of the outbreak , and current or future domestic and international actions to contain it and treat it . the company continues to evaluate the impact of the sars-cov-2 virus pandemic on its trials , expected timelines and costs , as well as potential supply-chain challenges as it prepares itself for commercialization of the oc-01 ( varenicline ) nasal spray candidate and as it continues to learn more about the impact of the sars-cov-2 virus pandemic on the industry . the company continues to evaluate and develop pipeline candidates for the potential treatment of various medical indications . the ongoing sars-cov-2 virus pandemic may impact access to supplies necessary to conduct preclinical studies , cause delay to the timelines to initiate or complete in vitro or in vivo animal studies , or indirectly impact the operation of contract organizations that are necessary for the company to advance preclinical projects . if the sars-cov-2 virus pandemic continues and persists for an extended period of time , the company could experience significant disruptions to its clinical development timelines , which could adversely affect its business , financial condition and results of operations . story_separator_special_tag the company anticipates that it will need to raise substantial additional capital , the requirements for which will depend on many factors , including : the scope , timing , rate of progress and costs of the company 's drug discovery efforts , preclinical development activities , laboratory testing and clinical trials for the company 's product candidates ; the number and scope of clinical programs the company decides to pursue ; the cost , timing and outcome of preparing for and undergoing regulatory review of the company 's product candidates ; 78 the scope and costs of development and commercial manufacturing activities ; the cost and timing associated with commercializing of the company 's product candidates , if they receive marketing approval ; the extent to which the company acquires or in-licenses other product candidates and technologies ; the costs of preparing , filing and prosecuting patent applications , maintaining and enforcing the company 's intellectual property rights and defending intellectual property-related claims ; the company 's ability to establish and maintain collaborations on favorable terms , if at all ; its efforts to enhance operational systems and the company 's ability to attract , hire and retain qualified personnel , including personnel to support the development of the company 's product candidates and , ultimately , the sale of the company 's products , following fda approval ; the company 's implementation of operational , financial and management systems ; and any current or future potential effects of the sars-cov-2 virus pandemic on the company 's business , operations , preclinical and clinical development and commercialization timelines and plans ; and the costs associated with being a public company . a change in the outcome of any of these or other variables with respect to the development of any of the company 's product candidates could significantly change the costs and timing associated with the development of that product candidate . furthermore , the company 's operating plans may change in the future , and it will continue to require additional capital to meet operational needs and capital requirements associated with such operating plans . if additional funds are raised by issuing equity securities , the company 's stockholders may experience dilution . any future debt financing into which the company might enter may impose upon it additional covenants that restrict the company 's operations , including limitations on its ability to incur liens or additional debt , pay dividends , repurchase its common stock , make certain investments or engage in certain merger , consolidation or asset sale transactions . any debt financing or additional equity that it raises may contain terms that are not favorable to the company or its stockholders . adequate funding may not be available to the company on acceptable terms or at all , and any uncertainty and volatility in capital markets caused by the sars-cov-2 virus pandemic may negatively impact the availability and cost of capital . the company 's failure to raise capital as and when needed could have a negative impact on its financial condition and ability to pursue its business strategies . if the company is unable to raise additional funds when needed , it may be required to delay , reduce , or terminate some or all of its development programs and clinical trials or may also be required to sell or license to others rights to its p roduct candidates in certain territories or indications that it would prefer to develop and commercialize itself . if the company is required to enter into collaborations and other arrangements to supplement its funds , it may have to give up certain rights that limit its ability to develop and commercialize the product candidates or may have other terms that are not favorable to the company or its stockholders , which could materially affect its business and financial condition . see the section of this annual report on form 10-k titled “ risk factors ” for additional risks associated with the company 's substantial capital requirements . story_separator_special_tag and contracted costs . the estimated costs of research and development provided , but not yet invoiced , are included in accrued liabilities on the balance sheet . if the actual timing of the performance of services or the level of effort varies from the original estimates , the company will adjust the accrual accordingly . payments made to cmos and cros under these arrangements in advance of the performance of the related services are recorded as prepaid expenses and other current assets until the services are rendered . actual results could differ from estimates . income taxes the company accounts for income taxes in accordance with asc 740 , using the asset and liability method whereby deferred tax asset and liability amounts are determined based on the differences between the financial reporting and tax bases of assets and liabilities . the differences are measured using the enacted tax rates and laws that are in effect for the year in which they are expected to affect taxable income . valuation allowances are established where necessary to reduce deferred tax assets to the amounts expected to be realized . the company assesses all material positions taken in any income tax return , including all significant uncertain positions , in all tax years that are still subject to assessment or challenge by relevant taxing authorities . assessing an uncertain tax position begins with the initial determination that the position meets the more-likely-than-not threshold and is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement . as of each balance sheet date , unresolved uncertain tax positions must be reassessed , and the company will determine whether the factors underlying the more-likely-than-not threshold assertion have changed and the amount of the recognized tax benefit is still appropriate . the recognition and measurement of tax benefits requires significant judgment . judgments concerning the recognition

cash flow discussion the following table sets forth the primary sources and uses of cash , cash equivalents , and restricted cash for each of the periods presented below : 79 replace_table_token_3_th cash flows used in operating activities net cash used in operating activities increased by $ 17.6 million for the year ended december 31 , 2020 compared to the year ended december 31 , 2019 , due to higher net loss adjusted for non-cash items , partially offset by an increase in working capital of $ 3.2 million driven primarily by the timing of payments to the company 's service providers . the company 's higher net loss was driven by the continued development of the company 's product candidates , as well as costs incurred in connection with the nda submission for oc-01 ( varenicline ) nasal spray in december 2020. cash flows used in investing activities net cash used in investing activities increased by $ 0.5 million for the year ended december 31 , 2020 compared to the year ended december 31 , 2019 , primarily related to payments for equipment to be used in the manufacturing of oc-01 ( varenicline ) nasal spray . cash flows provided by financing activities net cash provided by financing activities decreased by $ 62.4 million for the year ended december 31 , 2020 compared to the year ended december 31 , 2019 . the decrease was primarily due to the lower net proceeds generated from the company 's follow-on equity offering in may 2020 compared to the net proceeds received from the company 's ipo in november 2019 and from the issuance of redeemable preferred stock in february and april 2019. contractual obligations and commitments the following table summarizes the company 's contractual obligations as of december 31 , 2020 ( in thousands ) : replace_table_token_4_th _ ( 1 ) the company leases office facilities in princeton , new jersey under two non-cancellable operating leases with an expiration date july 31 , 2022. the minimum lease payments above do not include any related common area maintenance charges or real estate taxes .


 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 flow discussion the following table sets forth the primary sources and uses of cash , cash equivalents , and restricted cash for each of the periods presented below : 79 replace_table_token_3_th cash flows used in operating activities net cash used in operating activities increased by $ 17.6 million for the year ended december 31 , 2020 compared to the year ended december 31 , 2019 , due to higher net loss adjusted for non-cash items , partially offset by an increase in working capital of $ 3.2 million driven primarily by the timing of payments to the company 's service providers . the company 's higher net loss was driven by the continued development of the company 's product candidates , as well as costs incurred in connection with the nda submission for oc-01 ( varenicline ) nasal spray in december 2020. cash flows used in investing activities net cash used in investing activities increased by $ 0.5 million for the year ended december 31 , 2020 compared to the year ended december 31 , 2019 , primarily related to payments for equipment to be used in the manufacturing of oc-01 ( varenicline ) nasal spray . cash flows provided by financing activities net cash provided by financing activities decreased by $ 62.4 million for the year ended december 31 , 2020 compared to the year ended december 31 , 2019 . the decrease was primarily due to the lower net proceeds generated from the company 's follow-on equity offering in may 2020 compared to the net proceeds received from the company 's ipo in november 2019 and from the issuance of redeemable preferred stock in february and april 2019. contractual obligations and commitments the following table summarizes the company 's contractual obligations as of december 31 , 2020 ( in thousands ) : replace_table_token_4_th _ ( 1 ) the company leases office facilities in princeton , new jersey under two non-cancellable operating leases with an expiration date july 31 , 2022. the minimum lease payments above do not include any related common area maintenance charges or real estate taxes .
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 Suspicious Activity Report : the company expects that its operating expenses will increase as it advances its product candidates through preclinical and clinical development , seeks regulatory approval , and prepares for and , if approved , proceeds to commercialization ; acquires , discovers , validates and develops additional product candidates ; obtains , maintains , protects and enforces its intellectual property portfolio ; and hires additional personnel . in addition , the company has incurred and will continue to incur additional costs associated with operating as a public company . the company plans to continue to use third party service providers , including cros and cmos , to carry out its preclinical and clinical development and to manufacture and supply the materials to be used during the development and commercialization of its product candidates . 74 recent events submission of the nda for oc-01 ( varenicline ) nasal spray to fda on december 17 , 2020 , the company submitted a 505 ( b ) ( 2 ) nda to the fda for oc-01 ( varenicline ) nasal spray for the treatment of signs and symptoms of dry eye disease . the mystic , onset-1 and onset-2 clinical trials showed statistically significant improvements in schirmer 's score ( an objective , reproducible , and quantifiable measure of natural tear film production ) , as compared to control , which was the primary endpoint in all studies . key secondary endpoints in onset-1 and onset-2 included change from baseline in symptoms as assessed by eye dryness score . in both of these pivotal studies , there was statistically or nominally statistically significant improvement in symptom scores at day 28 , and in onset-2 as early as day 14 , as compared to control . all doses studied in the clinical trial program were well-tolerated with no serious drug related adverse events . submission of the phase 2 clinical trial protocol for neurotrophic keratopathy ( nk ) to the fda on november 30 , 2020 , the company submitted to the fda a protocol to initiate a clinical study in adult patients with nk , a degenerative disease characterized by decreased corneal sensitivity and poor corneal healing . the submission was made to the company 's ind application for oc-01 ( varenicline ) nasal spray in dry eye disease . nk is the second of a number of important potential indications the company is evaluating for oc-01 ( varenicline ) nasal spray , illustrating the company 's commitment to treating unmet needs related to ocular surface diseases . enrollment of the first patient in the olympia phase 2 study in nk is planned for the first half of 2021. entry into $ 100 million at-the-market sales agreement ( atm ) with cowen and company , llc on november 5 , 2020 , the company entered into an at-the-market sales agreement ( or atm ) with cowen and company , llc , pursuant to which the company may offer and sell shares of the company 's common stock having an aggregate offering price of up to $ 100 million . the atm was entered into by the company concurrently with a registration statement on form s-3 . under the registration statement , the company may offer and sell , in one or more offerings , up to an aggregate of $ 300 million of any combination of securities registered thereunder , consisting of shares of common and preferred stock , debt securities and warrants . the impact of the sars-cov-2 virus pandemic in march 2020 , the world health organization declared the sars-cov-2 virus outbreak to be a pandemic . also , in march of 2020 , due to the sars-cov-2 virus pandemic , the company experienced an impact at select clinical trial sites where ophthalmology practices were closed , or subjects were unable to attend visits , or where clinical trial sites did not feel comfortable putting their staff or subjects into a controlled adverse environment ( cae ® ) , which limited the company 's ability to assess the related secondary endpoint in its onset-2 study for those subjects . the company then conducted a further post-hoc analysis on the data , which led to the discovery of additional treatment benefits in the 1.2 mg/ml dose group that were not captured with the statistical method used for analysis of the secondary endpoint . during the year ended december 31 , 2020 , financial results of the company were not significantly affected by the sars-cov-2 virus pandemic . however , the extent to which the sars-cov-2 virus outbreak affects the company 's future financial results and operations will depend on future developments which are highly uncertain and can not be predicted , including new information which may emerge concerning the severity of the outbreak , and current or future domestic and international actions to contain it and treat it . the company continues to evaluate the impact of the sars-cov-2 virus pandemic on its trials , expected timelines and costs , as well as potential supply-chain challenges as it prepares itself for commercialization of the oc-01 ( varenicline ) nasal spray candidate and as it continues to learn more about the impact of the sars-cov-2 virus pandemic on the industry . the company continues to evaluate and develop pipeline candidates for the potential treatment of various medical indications . the ongoing sars-cov-2 virus pandemic may impact access to supplies necessary to conduct preclinical studies , cause delay to the timelines to initiate or complete in vitro or in vivo animal studies , or indirectly impact the operation of contract organizations that are necessary for the company to advance preclinical projects . if the sars-cov-2 virus pandemic continues and persists for an extended period of time , the company could experience significant disruptions to its clinical development timelines , which could adversely affect its business , financial condition and results of operations . story_separator_special_tag the company anticipates that it will need to raise substantial additional capital , the requirements for which will depend on many factors , including : the scope , timing , rate of progress and costs of the company 's drug discovery efforts , preclinical development activities , laboratory testing and clinical trials for the company 's product candidates ; the number and scope of clinical programs the company decides to pursue ; the cost , timing and outcome of preparing for and undergoing regulatory review of the company 's product candidates ; 78 the scope and costs of development and commercial manufacturing activities ; the cost and timing associated with commercializing of the company 's product candidates , if they receive marketing approval ; the extent to which the company acquires or in-licenses other product candidates and technologies ; the costs of preparing , filing and prosecuting patent applications , maintaining and enforcing the company 's intellectual property rights and defending intellectual property-related claims ; the company 's ability to establish and maintain collaborations on favorable terms , if at all ; its efforts to enhance operational systems and the company 's ability to attract , hire and retain qualified personnel , including personnel to support the development of the company 's product candidates and , ultimately , the sale of the company 's products , following fda approval ; the company 's implementation of operational , financial and management systems ; and any current or future potential effects of the sars-cov-2 virus pandemic on the company 's business , operations , preclinical and clinical development and commercialization timelines and plans ; and the costs associated with being a public company . a change in the outcome of any of these or other variables with respect to the development of any of the company 's product candidates could significantly change the costs and timing associated with the development of that product candidate . furthermore , the company 's operating plans may change in the future , and it will continue to require additional capital to meet operational needs and capital requirements associated with such operating plans . if additional funds are raised by issuing equity securities , the company 's stockholders may experience dilution . any future debt financing into which the company might enter may impose upon it additional covenants that restrict the company 's operations , including limitations on its ability to incur liens or additional debt , pay dividends , repurchase its common stock , make certain investments or engage in certain merger , consolidation or asset sale transactions . any debt financing or additional equity that it raises may contain terms that are not favorable to the company or its stockholders . adequate funding may not be available to the company on acceptable terms or at all , and any uncertainty and volatility in capital markets caused by the sars-cov-2 virus pandemic may negatively impact the availability and cost of capital . the company 's failure to raise capital as and when needed could have a negative impact on its financial condition and ability to pursue its business strategies . if the company is unable to raise additional funds when needed , it may be required to delay , reduce , or terminate some or all of its development programs and clinical trials or may also be required to sell or license to others rights to its p roduct candidates in certain territories or indications that it would prefer to develop and commercialize itself . if the company is required to enter into collaborations and other arrangements to supplement its funds , it may have to give up certain rights that limit its ability to develop and commercialize the product candidates or may have other terms that are not favorable to the company or its stockholders , which could materially affect its business and financial condition . see the section of this annual report on form 10-k titled “ risk factors ” for additional risks associated with the company 's substantial capital requirements . story_separator_special_tag and contracted costs . the estimated costs of research and development provided , but not yet invoiced , are included in accrued liabilities on the balance sheet . if the actual timing of the performance of services or the level of effort varies from the original estimates , the company will adjust the accrual accordingly . payments made to cmos and cros under these arrangements in advance of the performance of the related services are recorded as prepaid expenses and other current assets until the services are rendered . actual results could differ from estimates . income taxes the company accounts for income taxes in accordance with asc 740 , using the asset and liability method whereby deferred tax asset and liability amounts are determined based on the differences between the financial reporting and tax bases of assets and liabilities . the differences are measured using the enacted tax rates and laws that are in effect for the year in which they are expected to affect taxable income . valuation allowances are established where necessary to reduce deferred tax assets to the amounts expected to be realized . the company assesses all material positions taken in any income tax return , including all significant uncertain positions , in all tax years that are still subject to assessment or challenge by relevant taxing authorities . assessing an uncertain tax position begins with the initial determination that the position meets the more-likely-than-not threshold and is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement . as of each balance sheet date , unresolved uncertain tax positions must be reassessed , and the company will determine whether the factors underlying the more-likely-than-not threshold assertion have changed and the amount of the recognized tax benefit is still appropriate . the recognition and measurement of tax benefits requires significant judgment . judgments concerning the recognition

