the series awarrants contain a fundamental transactions provision that permitted their settlement in cash at fair value at the option of the holder upon the occurrence of a change in control story_separator_special_tag financial condition and r esults of operations the following discussion and analysis should be read in conjunction with our audited consolidated financial statements and the related notes that appear elsewhere in this annual report on form 10-k. this annual report on form 10-k contains “ forward-looking statements ” within the meaning of section 21e of the securities exchange act of 1934 , as amended , or the exchange act . these statements are often identified by the use of words such as “ may , ” “ will , ” “ expect , ” “ believe , ” “ anticipate , ” “ intend , ” “ could , ” “ should , ” “ estimate , ” “ plan , ” or “ continue , ” and similar expressions or variations . such forward-looking statements are subject to risks , uncertainties and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements . factors that could cause or contribute to such differences include , but are not limited to , those discussed in the section titled “ risk factors , ” set forth in part i , item 1a of this annual report on form 10-k and elsewhere in this report . the forward-looking statements in this annual report on form 10-k represent our views as of the date of this annual report on form 10-k. we anticipate that subsequent events and developments will cause our views to change . however , while we may elect to update these forward-looking statements at some point in the future , we have no current intention of doing so except to the extent required by applicable law . you should , therefore , not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this annual report on form 10-k. business overview we are focused on the development and commercialization of novel therapeutics for the treatment of rare diseases . our lead candidate , diazoxide choline controlled release tablits , or dccr , a once-daily oral tablet for the treatment of prader-willi syndrome , or pwc , is currently being evaluated in a phase iii clinical development program . we initially established our operations as a diversified healthcare company that developed and commercialized innovative diagnostics , devices and therapeutics addressing unmet medical needs , which consisted of : precision metering of gas flow technology marketed as serenz ® allergy relief , or serenz ; cosense ® end-tidal carbon monoxide ( etco ) monitor , or cosense , which measures etco and aids in the detection of excessive hemolysis , a condition in which red blood cells degrade rapidly and which can lead to adverse neurological outcomes ; and , products that included temperature probes , scales , surgical tables , and patient surfaces . on march 7 , 2017 , we completed a merger , or the merger , with essentialis . essentialis 's efforts prior to the merger were focused primarily on developing and testing product candidates that target the atp-sensitive potassium channel , a metabolically-regulated membrane protein whose modulation has the potential to impact a wide range of rare metabolic , cardiovascular , and cns diseases . essentialis had tested dccr as a treatment for pws , a complex metabolic/neurobehavioral disorder . dccr has orphan designation for the treatment of pws in the united states , or u.s. , as well as in the european union , or e.u . subsequent to the merger with essentialis described above , we determined to divest , sell or otherwise dispose of its business efforts focused on the development and commercialization of its serenz and cosense technologies . accordingly , and pursuant to asc 205-20-45-10 , the assets and liabilities related to the discontinued activities of cosense and serenz were presented separately in the balance sheet as held for sale items , and the related operations reported herein for the cosense and serenz activities are reported as discontinued operations in the statements of operations . 55 on december 4 , 2017 , we and our then wholly-owned subsidiary capnia , entered into a joint venture with optasia healthcare limite d , or oahl , with the purpose of developing and commercializing cosense with the intent to transfer ownership of capnia to oahl . during october 2018 , capnia issued 1,690,322 shares of its common stock to oahl , representing 53 % of its outstanding shares , aft er which we no longer held a controlling interest in capnia . accordingly , we deconsolidated capnia 's financial statements from ours and our remaining minority interest in capnia was reported as a minority interest investment in our consolidated balance she et . during september 2019 , the company sold its remaining 47 % investment in capnia to sinon investments llc , or sinon . following the transaction , the company has no interest remaining in capnia and the previous joint venture agreement with oahl has been terminated . on july 30 , 2018 , the fda has granted fast track designation to dccr for the treatment of pws . we are currently conducting a phase iii clinical trial of dccr for the treatment of pws . as of december 31 , 2019 , we had an accumulated deficit of $ 157.8 million , primarily as a result of research and development and general and administrative expenses . story_separator_special_tag results of continuing operations comparison of the years ended december 31 , 2019 and 2018 from continuing operations replace_table_token_0_th revenue we have not commenced commercialization of dccr , our current sole novel therapeutic product , and accordingly , through december 31 , 2019 , have generated no revenue in continuing operations . research and development expense research and development expense of $ 16.3 million for the year ended december 31 , 2019 increased by $ 9.1 million over 2018 resulting primarily from the initiation of the phase iii clinical trial in may 2018. as of december 31 , 2019 , we have 29 clinical trial sites initiated compared to 13 as of december 31 , 2018. as a result , we have 60 incurred increased clinical site costs , con sulting costs , lab costs , and manufacturing costs for dccr production . the company announced the completion of target enrollment in destiny pws , the ongoing phase iii trial of dccr in prader willi syndrome in january 2020. general and administrative expense general and administrative expense of $ 6.9 million during 2019 increased by approximately $ 374,000 from 2018. the slight increase was due to a general increase in the level of operations during the year and primarily consisted of an increase in personnel related costs . change in fair value of contingent consideration we are obligated to make cash payments of up to a maximum of $ 30 million to essentialis stockholders upon the achievement of certain future commercial milestones associated with the sale of essentialis ' product in accordance with the terms of the essentialis merger agreement . the fair value of the liability for the contingent consideration payable by us achieving the commercial sales milestones of $ 100 million and $ 200 million was estimated to be $ 5.9 million as of december 31 , 2019 , an approximate $ 289,000 increase from the estimate as of december 31 , 2018. during 2018 the estimate increased approximately $ 567,000 from the liability of $ 5.1 million estimated at december 31 , 2017. other ( expense ) income other expense of approximately $ 7.3 million in 2019 increased $ 9.7 million from other income of $ 2.5 million during 2018. the increase in other ( expense ) income was primarily due to a net increase in the fair value of warrant liabilities during 2019 compared to a net decrease in 2018 , resulting in a net increase of $ 7.5 million recognized in other ( expense ) income . in addition there was a $ 2.0 million gain recognized during 2018 on the deconsolidation of capnia upon the issuance of majority shares to oahl , and an approximately $ 318,000 higher loss from our minority interest investment in capnia during 2019 compared to 2018. the loss recorded on our minority interest investment in capnia during 2019 includes approximately $ 511,000 for our share of capnia 's net losses during the period , partially offset by a gain of approximately $ 33,000 recognized upon the sale of the investment . these increases were partially offset by an increase in interest and other income of $ 50,000 . 61 results of discontinued operations discontinued operations during 2018 consist of our activities previously dedicated to the development and commercialization of innovative diagnostics , devices and therapeutics addressing unmet medical needs , which consisted of : precision metering of gas flow technology marketed as serenz ® allergy relief , or serenz ; cosense ® end-tidal carbon monoxide ( etco ) monitor , or cosense , which measures etco and aids in the detection of excessive hemolysis , a condition in which red blood cells degrade rapidly ; and products that included temperature probes , scales , surgical tables and patient surfaces . in march 2017 , we determined to divest , sell or otherwise dispose of the cosense , neo force , inc. , and serenz businesses in order to focus on the development and commercialization of novel therapeutics for the treatment of rare diseases . the discontinued operations for the development and commercialization of innovative diagnostic devices and therapeutics are summarized below . replace_table_token_1_th all discontinued operations activity during 2018 related to capnia and its cosense products . during october 2018 , capnia issued 53 % of its outstanding shares of common stock to oahl , leaving us with a noncontrolling interest . accordingly , we deconsolidated capnia 's financial statements from ours and our remaining minority interest in capnia was reported as a minority interest investment in our condensed consolidated balance sheet . during september 2019 , the company sold its remaining 47 % investment in capnia to sinon . as capnia is no longer a consolidated entity of ours , there is no corresponding discontinued operations activity during 2019. story_separator_special_tag to continue incurring losses for the foreseeable future and will be required to raise additional capital to pursue our therapeutic product development initiatives . these conditions raise substantial doubt about our ability to continue as a going concern for a period of one year from the date of this report . discontinued operations cash used in operating activities there were no discontinued operations during 2019. during 2018 , we used net cash of $ 1.4 million for discontinued operating activities . this usage was primarily a result of the $ 1.5 million net loss for discontinued operations , partially offset by the change in working capital balances during the year and non-cash depreciation expense . cash used in investing activities there were no investing activities related to discontinued operations during 2019. during 2018 , we used approximately $ 172,000 of cash for discontinued investing activities , representing the net cash reduction for the deconsolidation of capnia , inc. upon the transfer of the majority share ownership in october 2018. cash provided by financing activities there were no financing activities related to discontinued operations during 2019. net cash provided by financing activities related to discontinued operations was $ 1.5

liquidity and capital resources we had a net loss of $ 30.8 million during 2019 and an accumulated deficit of $ 157.8 million at december 31 , 2019 from having incurred losses since our inception . we had $ 16.2 million of working capital at december 31 , 2019 and used $ 17.4 million of cash in operating activities during 2019. we have financed our operations principally through issuances of equity securities . on october 25 , 2019 , we sold 12,841,667 shares of common stock in an underwritten public offering at a price of $ 1.20 per share for net proceeds of $ 14.5 million . we expect to continue incurring losses for the foreseeable future and will be required to raise additional capital to complete our clinical trials , pursue product development initiatives and penetrate markets for the sale of our products . we believe that we will continue to have access to capital resources through possible public or private equity offerings , debt financings , corporate collaborations or other means , but the access to such capital resources is uncertain and is not assured . if we are unable to secure additional capital , we may be required to curtail our clinical trials and development of new products and take additional measures to reduce costs in order to conserve our cash in amounts sufficient to sustain operations and meet our obligations . these measures could cause significant delays in our efforts to complete clinical trials and commercialize our products , which is critical to the realization of our business plan and our future operations .


 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 had a net loss of $ 30.8 million during 2019 and an accumulated deficit of $ 157.8 million at december 31 , 2019 from having incurred losses since our inception . we had $ 16.2 million of working capital at december 31 , 2019 and used $ 17.4 million of cash in operating activities during 2019. we have financed our operations principally through issuances of equity securities . on october 25 , 2019 , we sold 12,841,667 shares of common stock in an underwritten public offering at a price of $ 1.20 per share for net proceeds of $ 14.5 million . we expect to continue incurring losses for the foreseeable future and will be required to raise additional capital to complete our clinical trials , pursue product development initiatives and penetrate markets for the sale of our products . we believe that we will continue to have access to capital resources through possible public or private equity offerings , debt financings , corporate collaborations or other means , but the access to such capital resources is uncertain and is not assured . if we are unable to secure additional capital , we may be required to curtail our clinical trials and development of new products and take additional measures to reduce costs in order to conserve our cash in amounts sufficient to sustain operations and meet our obligations . these measures could cause significant delays in our efforts to complete clinical trials and commercialize our products , which is critical to the realization of our business plan and our future operations .
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 Suspicious Activity Report : the series awarrants contain a fundamental transactions provision that permitted their settlement in cash at fair value at the option of the holder upon the occurrence of a change in control story_separator_special_tag financial condition and r esults of operations the following discussion and analysis should be read in conjunction with our audited consolidated financial statements and the related notes that appear elsewhere in this annual report on form 10-k. this annual report on form 10-k contains “ forward-looking statements ” within the meaning of section 21e of the securities exchange act of 1934 , as amended , or the exchange act . these statements are often identified by the use of words such as “ may , ” “ will , ” “ expect , ” “ believe , ” “ anticipate , ” “ intend , ” “ could , ” “ should , ” “ estimate , ” “ plan , ” or “ continue , ” and similar expressions or variations . such forward-looking statements are subject to risks , uncertainties and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements . factors that could cause or contribute to such differences include , but are not limited to , those discussed in the section titled “ risk factors , ” set forth in part i , item 1a of this annual report on form 10-k and elsewhere in this report . the forward-looking statements in this annual report on form 10-k represent our views as of the date of this annual report on form 10-k. we anticipate that subsequent events and developments will cause our views to change . however , while we may elect to update these forward-looking statements at some point in the future , we have no current intention of doing so except to the extent required by applicable law . you should , therefore , not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this annual report on form 10-k. business overview we are focused on the development and commercialization of novel therapeutics for the treatment of rare diseases . our lead candidate , diazoxide choline controlled release tablits , or dccr , a once-daily oral tablet for the treatment of prader-willi syndrome , or pwc , is currently being evaluated in a phase iii clinical development program . we initially established our operations as a diversified healthcare company that developed and commercialized innovative diagnostics , devices and therapeutics addressing unmet medical needs , which consisted of : precision metering of gas flow technology marketed as serenz ® allergy relief , or serenz ; cosense ® end-tidal carbon monoxide ( etco ) monitor , or cosense , which measures etco and aids in the detection of excessive hemolysis , a condition in which red blood cells degrade rapidly and which can lead to adverse neurological outcomes ; and , products that included temperature probes , scales , surgical tables , and patient surfaces . on march 7 , 2017 , we completed a merger , or the merger , with essentialis . essentialis 's efforts prior to the merger were focused primarily on developing and testing product candidates that target the atp-sensitive potassium channel , a metabolically-regulated membrane protein whose modulation has the potential to impact a wide range of rare metabolic , cardiovascular , and cns diseases . essentialis had tested dccr as a treatment for pws , a complex metabolic/neurobehavioral disorder . dccr has orphan designation for the treatment of pws in the united states , or u.s. , as well as in the european union , or e.u . subsequent to the merger with essentialis described above , we determined to divest , sell or otherwise dispose of its business efforts focused on the development and commercialization of its serenz and cosense technologies . accordingly , and pursuant to asc 205-20-45-10 , the assets and liabilities related to the discontinued activities of cosense and serenz were presented separately in the balance sheet as held for sale items , and the related operations reported herein for the cosense and serenz activities are reported as discontinued operations in the statements of operations . 55 on december 4 , 2017 , we and our then wholly-owned subsidiary capnia , entered into a joint venture with optasia healthcare limite d , or oahl , with the purpose of developing and commercializing cosense with the intent to transfer ownership of capnia to oahl . during october 2018 , capnia issued 1,690,322 shares of its common stock to oahl , representing 53 % of its outstanding shares , aft er which we no longer held a controlling interest in capnia . accordingly , we deconsolidated capnia 's financial statements from ours and our remaining minority interest in capnia was reported as a minority interest investment in our consolidated balance she et . during september 2019 , the company sold its remaining 47 % investment in capnia to sinon investments llc , or sinon . following the transaction , the company has no interest remaining in capnia and the previous joint venture agreement with oahl has been terminated . on july 30 , 2018 , the fda has granted fast track designation to dccr for the treatment of pws . we are currently conducting a phase iii clinical trial of dccr for the treatment of pws . as of december 31 , 2019 , we had an accumulated deficit of $ 157.8 million , primarily as a result of research and development and general and administrative expenses . story_separator_special_tag results of continuing operations comparison of the years ended december 31 , 2019 and 2018 from continuing operations replace_table_token_0_th revenue we have not commenced commercialization of dccr , our current sole novel therapeutic product , and accordingly , through december 31 , 2019 , have generated no revenue in continuing operations . research and development expense research and development expense of $ 16.3 million for the year ended december 31 , 2019 increased by $ 9.1 million over 2018 resulting primarily from the initiation of the phase iii clinical trial in may 2018. as of december 31 , 2019 , we have 29 clinical trial sites initiated compared to 13 as of december 31 , 2018. as a result , we have 60 incurred increased clinical site costs , con sulting costs , lab costs , and manufacturing costs for dccr production . the company announced the completion of target enrollment in destiny pws , the ongoing phase iii trial of dccr in prader willi syndrome in january 2020. general and administrative expense general and administrative expense of $ 6.9 million during 2019 increased by approximately $ 374,000 from 2018. the slight increase was due to a general increase in the level of operations during the year and primarily consisted of an increase in personnel related costs . change in fair value of contingent consideration we are obligated to make cash payments of up to a maximum of $ 30 million to essentialis stockholders upon the achievement of certain future commercial milestones associated with the sale of essentialis ' product in accordance with the terms of the essentialis merger agreement . the fair value of the liability for the contingent consideration payable by us achieving the commercial sales milestones of $ 100 million and $ 200 million was estimated to be $ 5.9 million as of december 31 , 2019 , an approximate $ 289,000 increase from the estimate as of december 31 , 2018. during 2018 the estimate increased approximately $ 567,000 from the liability of $ 5.1 million estimated at december 31 , 2017. other ( expense ) income other expense of approximately $ 7.3 million in 2019 increased $ 9.7 million from other income of $ 2.5 million during 2018. the increase in other ( expense ) income was primarily due to a net increase in the fair value of warrant liabilities during 2019 compared to a net decrease in 2018 , resulting in a net increase of $ 7.5 million recognized in other ( expense ) income . in addition there was a $ 2.0 million gain recognized during 2018 on the deconsolidation of capnia upon the issuance of majority shares to oahl , and an approximately $ 318,000 higher loss from our minority interest investment in capnia during 2019 compared to 2018. the loss recorded on our minority interest investment in capnia during 2019 includes approximately $ 511,000 for our share of capnia 's net losses during the period , partially offset by a gain of approximately $ 33,000 recognized upon the sale of the investment . these increases were partially offset by an increase in interest and other income of $ 50,000 . 61 results of discontinued operations discontinued operations during 2018 consist of our activities previously dedicated to the development and commercialization of innovative diagnostics , devices and therapeutics addressing unmet medical needs , which consisted of : precision metering of gas flow technology marketed as serenz ® allergy relief , or serenz ; cosense ® end-tidal carbon monoxide ( etco ) monitor , or cosense , which measures etco and aids in the detection of excessive hemolysis , a condition in which red blood cells degrade rapidly ; and products that included temperature probes , scales , surgical tables and patient surfaces . in march 2017 , we determined to divest , sell or otherwise dispose of the cosense , neo force , inc. , and serenz businesses in order to focus on the development and commercialization of novel therapeutics for the treatment of rare diseases . the discontinued operations for the development and commercialization of innovative diagnostic devices and therapeutics are summarized below . replace_table_token_1_th all discontinued operations activity during 2018 related to capnia and its cosense products . during october 2018 , capnia issued 53 % of its outstanding shares of common stock to oahl , leaving us with a noncontrolling interest . accordingly , we deconsolidated capnia 's financial statements from ours and our remaining minority interest in capnia was reported as a minority interest investment in our condensed consolidated balance sheet . during september 2019 , the company sold its remaining 47 % investment in capnia to sinon . as capnia is no longer a consolidated entity of ours , there is no corresponding discontinued operations activity during 2019. story_separator_special_tag to continue incurring losses for the foreseeable future and will be required to raise additional capital to pursue our therapeutic product development initiatives . these conditions raise substantial doubt about our ability to continue as a going concern for a period of one year from the date of this report . discontinued operations cash used in operating activities there were no discontinued operations during 2019. during 2018 , we used net cash of $ 1.4 million for discontinued operating activities . this usage was primarily a result of the $ 1.5 million net loss for discontinued operations , partially offset by the change in working capital balances during the year and non-cash depreciation expense . cash used in investing activities there were no investing activities related to discontinued operations during 2019. during 2018 , we used approximately $ 172,000 of cash for discontinued investing activities , representing the net cash reduction for the deconsolidation of capnia , inc. upon the transfer of the majority share ownership in october 2018. cash provided by financing activities there were no financing activities related to discontinued operations during 2019. net cash provided by financing activities related to discontinued operations was $ 1.5

