our failure to raise capital or enter into such other arrangements when needed would have a negative impact on our financial condition and could force us to delay , scale back or discontinue the development of our existing product candidates or our efforts to expand our product pipeline . australian operations in january 2017 , we established crinetics australia pty ltd , or capl , a wholly-owned subsidiary which was formed to conduct various preclinical and clinical activities for our product and development candidates . we believe capl will be eligible for certain financial incentives made available by the australian government for research and development expenses . specifically , the australian taxation office provides for a refundable tax credit in the form of a cash refund equal to 43.5 % of qualified research and development expenditures under the australian research and development tax incentive program , or the australian tax incentive , to australian companies that operate the majority of their research and development activities associated with such projects in australia . a wholly-owned australian subsidiary of a non-australian parent company is eligible to receive the refundable tax credit , provided that the australian subsidiary retains the rights to the data 69 and intellectual property generated in australia , and provided that the total revenues of the parent company and its consolidated subsidiaries during the period for which the refundable tax credit is claimed are less than $ 20.0 million australian dollars . if we lose our ability to operate capl in australia , or if we are ineligible or unable to receive the research and development tax credit , or the australian government significantly reduces or eliminates the tax credit , the actual refund amounts we receive may differ from our estimates . financial operations overview grant revenues to date , we have not generated any revenues from the commercial sale of approved products , and we do not expect to generate revenues from the commercial sale of our product candidates for at least the foreseeable future , if ever . revenues for 2020 , 2019 and 2018 were derived from small business innovation research grants , or sbir grants , awarded to us by the national institute of diabetes and digestive and kidney diseases of the national institutes of health . we do not currently have any active sbir grants nor do we expect grant revenues to be a material source of future funding . research and development to date , our research and development expenses have related primarily to discovery efforts and preclinical and clinical development of our product candidates . research and development expenses are recognized as incurred and payments made prior to the receipt of goods or services to be used in research and development are capitalized until the goods or services are received . research and development expenses include : salaries , payroll taxes , employee benefits , and stock-based compensation charges for those individuals involved in research and development efforts ; external research and development expenses incurred under agreements with contract research organizations , or cros , investigative sites and consultants to conduct our clinical trials and preclinical and nonclinical studies ; costs related to manufacturing our product candidates for clinical trials and preclinical studies , including fees paid to third-party manufacturers ; costs related to compliance with regulatory requirements ; laboratory supplies ; and facilities , depreciation and other allocated expenses for rent , facilities maintenance , insurance , equipment and other supplies . we recognize the australian tax incentive as a reduction of research and development expense . the amounts are determined based on eligible research and development expenditures . the australian tax incentive is recognized when there is reasonable assurance that the australian tax incentive will be received , the relevant expenditure has been incurred , and the amount of the australian tax incentive can be reliably measured . our direct research and development expenses consist principally of external costs , such as fees paid to cros , investigative sites and consultants in connection with our clinical trials , preclinical and non-clinical studies , and costs related to manufacturing clinical trial materials . the majority of our third-party expenses during the three years ended december 31 , 2020 related to the research and development of paltusotine . we deploy our personnel and facility related resources across all of our research and development activities . our clinical development costs may vary significantly based on factors such as : per patient trial costs ; the number of trials required for approval ; the number of sites included in the trials ; the countries in which the trials are conducted ; the length of time required to enroll eligible patients ; the number of patients that participate in the trials ; number of doses that patients receive ; drop-out or discontinuation rates of patients ; potential additional safety monitoring requested by regulatory agencies ; the duration of patient participation in the trials and follow-up ; the cost and timing of manufacturing our product candidates ; the phase of development of our product candidates ; and the efficacy and safety profile of our product candidates . 70 we plan to substantially increase our research and development expenses for the foreseeable future as we continue the development of our product candidates and the discovery of new product candidates . we can not determine with certainty the timing of initiation , the duration or the completion costs of current or future preclinical studies and clinical trials of our product candidates due to the inherently unpredictable nature of preclinical and clinical development . clinical and preclinical development timelines , the probability of success and development costs can differ materially from expectations . story_separator_special_tag the sales agreement may be terminated by either sales agent ( with respect to itself ) or us at any time upon 10 days ' notice to the other parties , or by either sales agent , with respect to itself , at any time in certain circumstances , including the occurrence of a material adverse change . we will pay the sales agents a commission for their services in acting as agent in the sale of common stock in an amount equal to 3 % of the gross sales price per share sold . during 2020 , we issued 275,764 shares of common stock in the atm offering for net proceeds of $ 6.4 million , after deducting commissions . on april 17 , 2020 , we completed a public offering of 8,222,500 shares of our common stock at a public offering price of $ 14.00 per share . we received proceeds of approximately $ 107.9 million from that offering , net of offering discounts and commissions and offering costs of $ 7.3 million . off-balance sheet arrangements we did not have during the periods presented , and we do not currently have , any off-balance sheet arrangements , as defined under applicable sec rules . 75 item 7a . quantitative and qualitat ive disclosures about market risk interest rate risk our cash , cash equivalents and investment securities consist of cash held in readily available checking and money market accounts , as well as short-term debt securities . we are exposed to market risk related to fluctuations in interest rates and market prices . our primary exposure to market risk is interest rate sensitivity , which is affected by changes in the general level of united states interest rates . however , because of the short-term nature of the instruments in our portfolio , a sudden change in market interest rates would not be expected to have a material impact on our financial condition or results of operations . foreign currency we contract with vendors , cros and investigational sites in several foreign countries , including countries in south america , europe and the asia pacific . we are therefore subject to fluctuations in foreign currency rates in connection with these agreements . we do not hedge our foreign currency exchange rate risk . to date , we have not incurred any material adverse effects from foreign currency changes on these contracts . in january 2017 , we formed capl , a wholly-owned subsidiary in australia , which exposes us to foreign currency exchange rate risk . the functional currency of capl is the united states dollar . assets and liabilities of our foreign subsidiary that are not denominated in the functional currency are remeasured into u.s. dollars at foreign currency exchange rates in effect at the balance sheet date except for nonmonetary assets and capital accounts , which are remeasured at historical foreign currency exchange rates in effect at the date of transaction . expenses are generally remeasured at foreign currency exchange rates which approximate average rates in effect during each period . net realized and unrealized gains and losses from foreign currency transactions and remeasurement are reported in other income ( expense ) , net , in the consolidated statements of operations and totaled approximately $ 160,000 and $ 50,000 for the years ended december 31 , 2020 and 2019 , respectively . as of december 31 , 2020 , the impact of a theoretical 10 % change in the exchange rate of the australian dollar would not result in a material gain or loss . inflation risk inflation generally affects us by increasing our cost of labor and clinical trial costs . we do not believe that inflation has had a material effect on our results of operations during the periods presented . item 8. financial statements and supplementary data our consolidated financial statements and the report of our independent registered accounting firm required pursuant to this item are incorporated by reference herein from the applicable information included in item 15 of this report and are presented beginning on page f-1 . item 9. changes and disagreements with accountants on accounting and financial disclosure none . item 9a . controls and procedures evaluation of disclosure controls and procedures we maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our exchange act reports is recorded , processed , summarized and reported within the time periods specified in the sec 's rules and forms , and that such information is accumulated and communicated to our management , including our principal executive officer and our principal financial officer , as appropriate , to allow timely decisions regarding required disclosure . in designing and evaluating the disclosure controls and procedures , management recognizes that any controls and procedures , no matter how well designed and operated , can provide only reasonable assurance of achieving the desired control objectives , and management is necessarily required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures . in addition , the design of any system of controls also is based in part upon certain assumptions about the likelihood of future events , and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions ; over time , control may become inadequate because of changes in conditions , or the degree of compliance with policies or procedures may deteriorate . because of the inherent limitations in a cost-effective control system , misstatements due to error or fraud may occur and not be detected . 76 as of december 31 , 2020 , we carried out an evaluation , under the supervision and with the participation of our management , including our principal executive officer and principal financial officer , of the effectiveness of the design and operation of our disclosure controls and procedures , as defined in rules 13a-15 (

cash flows we have incurred cumulative net losses and negative cash flows from operations since our inception and anticipate we will continue to incur net losses for the foreseeable future . as of december 31 , 2020 , we had an accumulated deficit of $ 167.6 million and unrestricted cash , cash equivalents and investment securities of $ 170.9 million . 73 the following table provides information regarding our cash flows for each of the years in the three-year period ended december 31 , 2020 ( in thousands ) : replace_table_token_3_th comparison of the years ended december 31 , 2020 and 2019 operating activities . net cash used in operating activities was $ 62.0 million and $ 46.4 million for the years ended december 31 , 2020 and 2019 , respectively . the increase in cash used in operations was primarily attributable to development and manufacturing activities associated with paltusotine as well as our other clinical and preclinical programs , and higher personnel-related costs . the net cash used in operating activities during the year ended december 31 , 2020 was primarily due to our net loss of $ 73.8 million , adjusted for $ 11.4 million of noncash charges , including stock-based compensation and depreciation expense , and a $ 0.4 million change in our operating assets and liabilities . the net cash used in operating activities during the year ended december 31 , 2019 was primarily due to our net loss of $ 50.4 million and a $ 2.1 million change in our operating assets and liabilities , adjusted for $ 6.2 million of noncash charges , including stock-based compensation and depreciation expense . investing activities . investing activities consist primarily of purchases and maturities of investment securities and , to a lesser extent , the cash outflow associated with purchases of property and equipment . such activities resulted in net inflows of funds of approximately $ 0.2


 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 we have incurred cumulative net losses and negative cash flows from operations since our inception and anticipate we will continue to incur net losses for the foreseeable future . as of december 31 , 2020 , we had an accumulated deficit of $ 167.6 million and unrestricted cash , cash equivalents and investment securities of $ 170.9 million . 73 the following table provides information regarding our cash flows for each of the years in the three-year period ended december 31 , 2020 ( in thousands ) : replace_table_token_3_th comparison of the years ended december 31 , 2020 and 2019 operating activities . net cash used in operating activities was $ 62.0 million and $ 46.4 million for the years ended december 31 , 2020 and 2019 , respectively . the increase in cash used in operations was primarily attributable to development and manufacturing activities associated with paltusotine as well as our other clinical and preclinical programs , and higher personnel-related costs . the net cash used in operating activities during the year ended december 31 , 2020 was primarily due to our net loss of $ 73.8 million , adjusted for $ 11.4 million of noncash charges , including stock-based compensation and depreciation expense , and a $ 0.4 million change in our operating assets and liabilities . the net cash used in operating activities during the year ended december 31 , 2019 was primarily due to our net loss of $ 50.4 million and a $ 2.1 million change in our operating assets and liabilities , adjusted for $ 6.2 million of noncash charges , including stock-based compensation and depreciation expense . investing activities . investing activities consist primarily of purchases and maturities of investment securities and , to a lesser extent , the cash outflow associated with purchases of property and equipment . such activities resulted in net inflows of funds of approximately $ 0.2
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 Suspicious Activity Report : our failure to raise capital or enter into such other arrangements when needed would have a negative impact on our financial condition and could force us to delay , scale back or discontinue the development of our existing product candidates or our efforts to expand our product pipeline . australian operations in january 2017 , we established crinetics australia pty ltd , or capl , a wholly-owned subsidiary which was formed to conduct various preclinical and clinical activities for our product and development candidates . we believe capl will be eligible for certain financial incentives made available by the australian government for research and development expenses . specifically , the australian taxation office provides for a refundable tax credit in the form of a cash refund equal to 43.5 % of qualified research and development expenditures under the australian research and development tax incentive program , or the australian tax incentive , to australian companies that operate the majority of their research and development activities associated with such projects in australia . a wholly-owned australian subsidiary of a non-australian parent company is eligible to receive the refundable tax credit , provided that the australian subsidiary retains the rights to the data 69 and intellectual property generated in australia , and provided that the total revenues of the parent company and its consolidated subsidiaries during the period for which the refundable tax credit is claimed are less than $ 20.0 million australian dollars . if we lose our ability to operate capl in australia , or if we are ineligible or unable to receive the research and development tax credit , or the australian government significantly reduces or eliminates the tax credit , the actual refund amounts we receive may differ from our estimates . financial operations overview grant revenues to date , we have not generated any revenues from the commercial sale of approved products , and we do not expect to generate revenues from the commercial sale of our product candidates for at least the foreseeable future , if ever . revenues for 2020 , 2019 and 2018 were derived from small business innovation research grants , or sbir grants , awarded to us by the national institute of diabetes and digestive and kidney diseases of the national institutes of health . we do not currently have any active sbir grants nor do we expect grant revenues to be a material source of future funding . research and development to date , our research and development expenses have related primarily to discovery efforts and preclinical and clinical development of our product candidates . research and development expenses are recognized as incurred and payments made prior to the receipt of goods or services to be used in research and development are capitalized until the goods or services are received . research and development expenses include : salaries , payroll taxes , employee benefits , and stock-based compensation charges for those individuals involved in research and development efforts ; external research and development expenses incurred under agreements with contract research organizations , or cros , investigative sites and consultants to conduct our clinical trials and preclinical and nonclinical studies ; costs related to manufacturing our product candidates for clinical trials and preclinical studies , including fees paid to third-party manufacturers ; costs related to compliance with regulatory requirements ; laboratory supplies ; and facilities , depreciation and other allocated expenses for rent , facilities maintenance , insurance , equipment and other supplies . we recognize the australian tax incentive as a reduction of research and development expense . the amounts are determined based on eligible research and development expenditures . the australian tax incentive is recognized when there is reasonable assurance that the australian tax incentive will be received , the relevant expenditure has been incurred , and the amount of the australian tax incentive can be reliably measured . our direct research and development expenses consist principally of external costs , such as fees paid to cros , investigative sites and consultants in connection with our clinical trials , preclinical and non-clinical studies , and costs related to manufacturing clinical trial materials . the majority of our third-party expenses during the three years ended december 31 , 2020 related to the research and development of paltusotine . we deploy our personnel and facility related resources across all of our research and development activities . our clinical development costs may vary significantly based on factors such as : per patient trial costs ; the number of trials required for approval ; the number of sites included in the trials ; the countries in which the trials are conducted ; the length of time required to enroll eligible patients ; the number of patients that participate in the trials ; number of doses that patients receive ; drop-out or discontinuation rates of patients ; potential additional safety monitoring requested by regulatory agencies ; the duration of patient participation in the trials and follow-up ; the cost and timing of manufacturing our product candidates ; the phase of development of our product candidates ; and the efficacy and safety profile of our product candidates . 70 we plan to substantially increase our research and development expenses for the foreseeable future as we continue the development of our product candidates and the discovery of new product candidates . we can not determine with certainty the timing of initiation , the duration or the completion costs of current or future preclinical studies and clinical trials of our product candidates due to the inherently unpredictable nature of preclinical and clinical development . clinical and preclinical development timelines , the probability of success and development costs can differ materially from expectations . story_separator_special_tag the sales agreement may be terminated by either sales agent ( with respect to itself ) or us at any time upon 10 days ' notice to the other parties , or by either sales agent , with respect to itself , at any time in certain circumstances , including the occurrence of a material adverse change . we will pay the sales agents a commission for their services in acting as agent in the sale of common stock in an amount equal to 3 % of the gross sales price per share sold . during 2020 , we issued 275,764 shares of common stock in the atm offering for net proceeds of $ 6.4 million , after deducting commissions . on april 17 , 2020 , we completed a public offering of 8,222,500 shares of our common stock at a public offering price of $ 14.00 per share . we received proceeds of approximately $ 107.9 million from that offering , net of offering discounts and commissions and offering costs of $ 7.3 million . off-balance sheet arrangements we did not have during the periods presented , and we do not currently have , any off-balance sheet arrangements , as defined under applicable sec rules . 75 item 7a . quantitative and qualitat ive disclosures about market risk interest rate risk our cash , cash equivalents and investment securities consist of cash held in readily available checking and money market accounts , as well as short-term debt securities . we are exposed to market risk related to fluctuations in interest rates and market prices . our primary exposure to market risk is interest rate sensitivity , which is affected by changes in the general level of united states interest rates . however , because of the short-term nature of the instruments in our portfolio , a sudden change in market interest rates would not be expected to have a material impact on our financial condition or results of operations . foreign currency we contract with vendors , cros and investigational sites in several foreign countries , including countries in south america , europe and the asia pacific . we are therefore subject to fluctuations in foreign currency rates in connection with these agreements . we do not hedge our foreign currency exchange rate risk . to date , we have not incurred any material adverse effects from foreign currency changes on these contracts . in january 2017 , we formed capl , a wholly-owned subsidiary in australia , which exposes us to foreign currency exchange rate risk . the functional currency of capl is the united states dollar . assets and liabilities of our foreign subsidiary that are not denominated in the functional currency are remeasured into u.s. dollars at foreign currency exchange rates in effect at the balance sheet date except for nonmonetary assets and capital accounts , which are remeasured at historical foreign currency exchange rates in effect at the date of transaction . expenses are generally remeasured at foreign currency exchange rates which approximate average rates in effect during each period . net realized and unrealized gains and losses from foreign currency transactions and remeasurement are reported in other income ( expense ) , net , in the consolidated statements of operations and totaled approximately $ 160,000 and $ 50,000 for the years ended december 31 , 2020 and 2019 , respectively . as of december 31 , 2020 , the impact of a theoretical 10 % change in the exchange rate of the australian dollar would not result in a material gain or loss . inflation risk inflation generally affects us by increasing our cost of labor and clinical trial costs . we do not believe that inflation has had a material effect on our results of operations during the periods presented . item 8. financial statements and supplementary data our consolidated financial statements and the report of our independent registered accounting firm required pursuant to this item are incorporated by reference herein from the applicable information included in item 15 of this report and are presented beginning on page f-1 . item 9. changes and disagreements with accountants on accounting and financial disclosure none . item 9a . controls and procedures evaluation of disclosure controls and procedures we maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our exchange act reports is recorded , processed , summarized and reported within the time periods specified in the sec 's rules and forms , and that such information is accumulated and communicated to our management , including our principal executive officer and our principal financial officer , as appropriate , to allow timely decisions regarding required disclosure . in designing and evaluating the disclosure controls and procedures , management recognizes that any controls and procedures , no matter how well designed and operated , can provide only reasonable assurance of achieving the desired control objectives , and management is necessarily required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures . in addition , the design of any system of controls also is based in part upon certain assumptions about the likelihood of future events , and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions ; over time , control may become inadequate because of changes in conditions , or the degree of compliance with policies or procedures may deteriorate . because of the inherent limitations in a cost-effective control system , misstatements due to error or fraud may occur and not be detected . 76 as of december 31 , 2020 , we carried out an evaluation , under the supervision and with the participation of our management , including our principal executive officer and principal financial officer , of the effectiveness of the design and operation of our disclosure controls and procedures , as defined in rules 13a-15 (

