93 diabetes gene therapy diabetes is a chronic , metabolic disease characterized by elevated levels of blood glucose ( or blood sugar ) , which leads over time to serious damage to the heart , blood vessels , eyes , kidneys and nerves . the most common is type 2 diabetes , usually in adults , which occurs when the body becomes resistant to insulin or does n't make enough insulin . in the past three decades the prevalence of type 2 diabetes has risen dramatically . type 1 diabetes , once known as juvenile diabetes or insulin-dependent diabetes , is a chronic condition in which the pancreas produces little or no insulin by itself . according to the world health organization , about 422 million people worldwide have diabetes and 1.6 million deaths are directly attributed to diabetes each year . both the number of cases and the prevalence of diabetes have been steadily increasing over the past few decades . our diabetes gene therapy was developed by lead researcher dr. george gittes , at the rangos research center at upmc children 's hospital of pittsburgh . it works by reprogramming beta cells in the pancreas to restore their function , thereby replenishing levels of insulin . the infusion process uses an endoscope and an adeno-associated virus ( aav ) vector to deliver pdx1 and mafa genes to the pancreas . the proteins these genes express have been shown to transform alpha cells in the pancreas into functional beta-like cells , which can produce insulin but are distinct enough from beta cells to evade the body 's immune system . the diabetes gene therapy has been tested in vivo in mice and nonhuman primates . in studies of diabetic mice , the gene therapy approach restored normal blood glucose levels for an extended period of time , typically around four months . according to dr. gittes , the duration of restored blood glucose levels in mice could translate to decades in humans . if successful , this gene therapy could eliminate the need for insulin replacement therapy for diabetic patients . jobs act and recent accounting pronouncements the jobs act , enacted in 2012 , provides that an “ emerging growth company ” may take advantage of the extended transition period provided in section 7 ( a ) ( 2 ) ( b ) of the securities act of 1933 , as amended , for complying with new or revised accounting standards . in other words , an “ emerging growth company ” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies . we have irrevocably elected not to avail ourselves of this extended transition period and , as a result , we will adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies . we have implemented all new accounting pronouncements that are in effect and may affect our financial statements and we do not believe that there are any other new accounting pronouncements that have been issued that would have a material impact on our financial position or results of operations . critical accounting policies and significant judgments and estimates our financial statements have been prepared in accordance with generally accepted accounting principles in the united states ( gaap ) . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported expenses incurred during the reporting periods . our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . 94 we believe that the following accounting policies are the most critical to aid in fully understanding and evaluating our reported financial results , and they require our most difficult , subjective or complex judgments , resulting from the need to make estimates about the effect of matters that are inherently uncertain . research and development costs we record accrued expenses for costs invoiced from research and development activities conducted , on our behalf , by third-party service providers , which include the conduct of preclinical studies and clinical trials and use of contract research and manufacturing activities . we record the costs of research and development activities based upon the amount of services provided , and we include these costs in accrued liabilities in the balance sheets and within research and development expense in the statement of operations . these costs are a significant component of our research and development expenses . purchased materials to be used in future research are capitalized and included in research and development supplies . we estimate the amount of work completed through discussions with internal personnel and external service providers as to the progress or stage of completion of the services and the agreed-upon fee to be paid for such services . we make significant judgments and estimates in determining the accrued balance in each reporting period . as actual costs become known , we adjust our accrued estimates . although we do not expect our estimates to be materially different from amounts actually incurred , our understanding of the status and timing of services performed , the number of patients enrolled and the rate of patient enrollment may vary from our estimates and could result in us reporting amounts that are too high or too low in any particular period . story_separator_special_tag our accrued expenses are dependent , in part , upon the receipt of timely and accurate reporting from cros and other third-party service providers . to date , there have been no material differences from our accrued expenses to actual expenses . income taxes deferred tax assets or liabilities are recorded for temporary differences between financial statement and tax basis of assets and liabilities , using enacted rates in effect for the year in which the differences are expected to reverse . a valuation allowance is recorded if it is more likely than not that a deferred tax asset will not be realized . we have provided a full valuation allowance on our deferred tax assets , which primarily consist of cumulative net operating losses from april 1 , 2009 ( inception ) to december 31 , 2019 . due to our history of operating losses since inception and losses expected to be incurred in the foreseeable future , a full valuation allowance was considered necessary . impairment of long-lived assets management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be realizable or at a minimum annually during the fourth quarter of the year . if an evaluation is required , the estimated future undiscounted cash flows associated with the asset are compared to the asset 's carrying value to determine if an impairment of such asset is necessary . the effect of any impairment would be to expense the difference between the fair value of such asset and its carrying value . 95 components of our results of operations and financial condition operating expenses we classify our operating expenses into three categories : research and development , general and administrative , and depreciation . research and development . research and development expenses consist primarily of : costs incurred to conduct research , such as the discovery and development of our current and potential product candidates ; costs related to production and storage of clinical supplies , including fees paid to contract manufacturers , manufacturing consultants , and cold-storage facilities ; fees paid to clinical consultants , clinical trial sites and vendors , including cros in conjunction with implementing and monitoring our clinical trials and acquiring and evaluating clinical trial data , including all related fees , such as patient screening fees , laboratory work , and statistical compilation and analysis ; and costs related to compliance with drug development regulatory requirements . we recognize all research and development costs as they are incurred . clinical trial costs , contract manufacturing and other development costs incurred by third parties are expensed as the contracted work is performed . we expect our research and development expenses to increase in the future as we advance our current and potential product candidates into and through clinical trials , as we expand our clinical programs to a greater number of sites , as we pursue regulatory approval of our current and potential product candidates in the united states and europe , and as we expand our research programs to include new therapies and new therapy combinations . the process of conducting the necessary clinical research to obtain regulatory approval is costly and time-consuming . the actual probability of success for our current and potential product candidates may be affected by a variety of factors including the quality of our current and potential product candidates , early clinical data , investment in our clinical program , competition , manufacturing capability and commercial viability . we may never succeed in achieving regulatory approval for any of our current and potential product candidates . as a result of the uncertainties discussed above , we are unable to determine the duration and completion costs of our research and development projects or when and to what extent we will generate revenue from the commercialization and sale of our current and potential product candidates . general and administrative . general and administrative expense consists of personnel related costs , which include salaries , as well as the costs of professional services , such as accounting and legal , travel , facilities , information technology and other administrative expenses . we expect our general and administrative expense to increase in future periods due to the anticipated growth of our business and related infrastructure as well as accounting , insurance , investor relations , and other costs associated with being a public company . depreciation . depreciation expense consists of depreciation from our fixed assets consisting of our property , equipment , and furniture . we depreciate our assets over their estimated useful life . we estimate furniture and computer and office equipment to have a 5-year life . 96 results of operations comparison of the years ended december 31 , 2019 and 2018 the following summarizes our results of operations for the years ended december 31 , 2019 and 2018 . research and development expense . research and development expense was $ 1,967,007 for the year ended december 31 , 2019 as compared to $ 971,427 for the year ended december 31 , 2018 . this increase of $ 995,580 , or 102 % , was due to our acceleration of preclinical research and manufacturing process development in 2019 in preparation for the advancement of clinical programs . we expect research and development expense to increase in future periods as we expand our clinical programs to a greater number of sites and our research programs to include new therapy combinations . general and administrative expense . general and administrative expense for the year ended december 31 , 2019 was $ 8,702,596 as compared to $ 11,386,229 for the year ended december 31 , 2018 . the decrease of $ 2,683,633 , or 24 % , in general and administrative expense is related primarily to a one-time larger than normal equity-based compensation amount issued in 2018 to recruit and retain executive leadership , board members , and technical experts to our team

liquidity and capital resources from our inception through december 31 , 2019 , we have never generated revenue from product sales and have incurred net losses in each year since inception . as of december 31 , 2019 , we had an accumulated deficit of $ 40,479,459 . prior to our initial public offering , we funded our operations primarily through the sale and issuance of preferred stock . in connection with our initial public offering , we converted all preferred stock to common stock and forward-split the common stock on a 6.6841954-to-1 basis . as of december 31 , 2019 , we had $ 2,002,492 in cash . on january 21 , 2020 , january 27 , 2020 , and february 19 , 2020 , we sold in aggregate 13,581,000 shares of our common stock for net proceeds of approximately $ 23.4 million after commissions and expenses . we believe the cash at december 31 , 2019 on a pro forma as adjusted basis from sales of our securities in 2020 is sufficient to meet our cash , operational and liquidity requirements for at least 24 months . we are actively pursuing opportunities to extend capital resources to advance long-term corporate and research and development objectives .


 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 from our inception through december 31 , 2019 , we have never generated revenue from product sales and have incurred net losses in each year since inception . as of december 31 , 2019 , we had an accumulated deficit of $ 40,479,459 . prior to our initial public offering , we funded our operations primarily through the sale and issuance of preferred stock . in connection with our initial public offering , we converted all preferred stock to common stock and forward-split the common stock on a 6.6841954-to-1 basis . as of december 31 , 2019 , we had $ 2,002,492 in cash . on january 21 , 2020 , january 27 , 2020 , and february 19 , 2020 , we sold in aggregate 13,581,000 shares of our common stock for net proceeds of approximately $ 23.4 million after commissions and expenses . we believe the cash at december 31 , 2019 on a pro forma as adjusted basis from sales of our securities in 2020 is sufficient to meet our cash , operational and liquidity requirements for at least 24 months . we are actively pursuing opportunities to extend capital resources to advance long-term corporate and research and development objectives .
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 Suspicious Activity Report : 93 diabetes gene therapy diabetes is a chronic , metabolic disease characterized by elevated levels of blood glucose ( or blood sugar ) , which leads over time to serious damage to the heart , blood vessels , eyes , kidneys and nerves . the most common is type 2 diabetes , usually in adults , which occurs when the body becomes resistant to insulin or does n't make enough insulin . in the past three decades the prevalence of type 2 diabetes has risen dramatically . type 1 diabetes , once known as juvenile diabetes or insulin-dependent diabetes , is a chronic condition in which the pancreas produces little or no insulin by itself . according to the world health organization , about 422 million people worldwide have diabetes and 1.6 million deaths are directly attributed to diabetes each year . both the number of cases and the prevalence of diabetes have been steadily increasing over the past few decades . our diabetes gene therapy was developed by lead researcher dr. george gittes , at the rangos research center at upmc children 's hospital of pittsburgh . it works by reprogramming beta cells in the pancreas to restore their function , thereby replenishing levels of insulin . the infusion process uses an endoscope and an adeno-associated virus ( aav ) vector to deliver pdx1 and mafa genes to the pancreas . the proteins these genes express have been shown to transform alpha cells in the pancreas into functional beta-like cells , which can produce insulin but are distinct enough from beta cells to evade the body 's immune system . the diabetes gene therapy has been tested in vivo in mice and nonhuman primates . in studies of diabetic mice , the gene therapy approach restored normal blood glucose levels for an extended period of time , typically around four months . according to dr. gittes , the duration of restored blood glucose levels in mice could translate to decades in humans . if successful , this gene therapy could eliminate the need for insulin replacement therapy for diabetic patients . jobs act and recent accounting pronouncements the jobs act , enacted in 2012 , provides that an “ emerging growth company ” may take advantage of the extended transition period provided in section 7 ( a ) ( 2 ) ( b ) of the securities act of 1933 , as amended , for complying with new or revised accounting standards . in other words , an “ emerging growth company ” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies . we have irrevocably elected not to avail ourselves of this extended transition period and , as a result , we will adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies . we have implemented all new accounting pronouncements that are in effect and may affect our financial statements and we do not believe that there are any other new accounting pronouncements that have been issued that would have a material impact on our financial position or results of operations . critical accounting policies and significant judgments and estimates our financial statements have been prepared in accordance with generally accepted accounting principles in the united states ( gaap ) . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported expenses incurred during the reporting periods . our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . 94 we believe that the following accounting policies are the most critical to aid in fully understanding and evaluating our reported financial results , and they require our most difficult , subjective or complex judgments , resulting from the need to make estimates about the effect of matters that are inherently uncertain . research and development costs we record accrued expenses for costs invoiced from research and development activities conducted , on our behalf , by third-party service providers , which include the conduct of preclinical studies and clinical trials and use of contract research and manufacturing activities . we record the costs of research and development activities based upon the amount of services provided , and we include these costs in accrued liabilities in the balance sheets and within research and development expense in the statement of operations . these costs are a significant component of our research and development expenses . purchased materials to be used in future research are capitalized and included in research and development supplies . we estimate the amount of work completed through discussions with internal personnel and external service providers as to the progress or stage of completion of the services and the agreed-upon fee to be paid for such services . we make significant judgments and estimates in determining the accrued balance in each reporting period . as actual costs become known , we adjust our accrued estimates . although we do not expect our estimates to be materially different from amounts actually incurred , our understanding of the status and timing of services performed , the number of patients enrolled and the rate of patient enrollment may vary from our estimates and could result in us reporting amounts that are too high or too low in any particular period . story_separator_special_tag our accrued expenses are dependent , in part , upon the receipt of timely and accurate reporting from cros and other third-party service providers . to date , there have been no material differences from our accrued expenses to actual expenses . income taxes deferred tax assets or liabilities are recorded for temporary differences between financial statement and tax basis of assets and liabilities , using enacted rates in effect for the year in which the differences are expected to reverse . a valuation allowance is recorded if it is more likely than not that a deferred tax asset will not be realized . we have provided a full valuation allowance on our deferred tax assets , which primarily consist of cumulative net operating losses from april 1 , 2009 ( inception ) to december 31 , 2019 . due to our history of operating losses since inception and losses expected to be incurred in the foreseeable future , a full valuation allowance was considered necessary . impairment of long-lived assets management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be realizable or at a minimum annually during the fourth quarter of the year . if an evaluation is required , the estimated future undiscounted cash flows associated with the asset are compared to the asset 's carrying value to determine if an impairment of such asset is necessary . the effect of any impairment would be to expense the difference between the fair value of such asset and its carrying value . 95 components of our results of operations and financial condition operating expenses we classify our operating expenses into three categories : research and development , general and administrative , and depreciation . research and development . research and development expenses consist primarily of : costs incurred to conduct research , such as the discovery and development of our current and potential product candidates ; costs related to production and storage of clinical supplies , including fees paid to contract manufacturers , manufacturing consultants , and cold-storage facilities ; fees paid to clinical consultants , clinical trial sites and vendors , including cros in conjunction with implementing and monitoring our clinical trials and acquiring and evaluating clinical trial data , including all related fees , such as patient screening fees , laboratory work , and statistical compilation and analysis ; and costs related to compliance with drug development regulatory requirements . we recognize all research and development costs as they are incurred . clinical trial costs , contract manufacturing and other development costs incurred by third parties are expensed as the contracted work is performed . we expect our research and development expenses to increase in the future as we advance our current and potential product candidates into and through clinical trials , as we expand our clinical programs to a greater number of sites , as we pursue regulatory approval of our current and potential product candidates in the united states and europe , and as we expand our research programs to include new therapies and new therapy combinations . the process of conducting the necessary clinical research to obtain regulatory approval is costly and time-consuming . the actual probability of success for our current and potential product candidates may be affected by a variety of factors including the quality of our current and potential product candidates , early clinical data , investment in our clinical program , competition , manufacturing capability and commercial viability . we may never succeed in achieving regulatory approval for any of our current and potential product candidates . as a result of the uncertainties discussed above , we are unable to determine the duration and completion costs of our research and development projects or when and to what extent we will generate revenue from the commercialization and sale of our current and potential product candidates . general and administrative . general and administrative expense consists of personnel related costs , which include salaries , as well as the costs of professional services , such as accounting and legal , travel , facilities , information technology and other administrative expenses . we expect our general and administrative expense to increase in future periods due to the anticipated growth of our business and related infrastructure as well as accounting , insurance , investor relations , and other costs associated with being a public company . depreciation . depreciation expense consists of depreciation from our fixed assets consisting of our property , equipment , and furniture . we depreciate our assets over their estimated useful life . we estimate furniture and computer and office equipment to have a 5-year life . 96 results of operations comparison of the years ended december 31 , 2019 and 2018 the following summarizes our results of operations for the years ended december 31 , 2019 and 2018 . research and development expense . research and development expense was $ 1,967,007 for the year ended december 31 , 2019 as compared to $ 971,427 for the year ended december 31 , 2018 . this increase of $ 995,580 , or 102 % , was due to our acceleration of preclinical research and manufacturing process development in 2019 in preparation for the advancement of clinical programs . we expect research and development expense to increase in future periods as we expand our clinical programs to a greater number of sites and our research programs to include new therapy combinations . general and administrative expense . general and administrative expense for the year ended december 31 , 2019 was $ 8,702,596 as compared to $ 11,386,229 for the year ended december 31 , 2018 . the decrease of $ 2,683,633 , or 24 % , in general and administrative expense is related primarily to a one-time larger than normal equity-based compensation amount issued in 2018 to recruit and retain executive leadership , board members , and technical experts to our team

