first quarter 2020 initiate hiring of contract sales force second quarter 2020 complete pre-validation and validation of the commercial manufacturing process consistent with our approved marketing application second half 2020 with first shipment of product in the fourth quarter 2020. our short-term goal is to establish an initial franchise in the multi-billion-dollar u.s. hormonal contraceptive market built on approval of twirla in the u.s. our resources are currently focused on the commercialization of twirla . to that end , our goal is to begin the pre-validation and validation of the commercial manufacturing process in the first half of 2020 , manufacture three validation batches of twirla and complete the process in the second half of 2020. at the same time , we will prepare for the availability of commercial product supply . in the first quarter of 2020 , we plan to initiate work with managed care and patient payors to gain market access for twirla . in the second quarter of 2020 , we plan to begin hiring and training an initial sales team , which we estimate to be in the range of 70 to 100 persons . we intend to ship product to wholesalers in fourth quarter of 2020. we also expect to explore the advancement of our existing pipeline and its possible expansion through business development activities . our current priorities are as follows : successfully complete the pre-validation and validation process for the commercial manufacturing of twirla ; obtain coverage and reimbursement for twirla in the united states from third-party payors ; implement our commercialization plans for twirla to ensure a successful launch in the united states , including building a sales and marketing team and implementing a healthcare compliance program ; establish a supply chain for twirla that will support commercialization across the united states at launch ; complete the design and protocol of the fda-required post-marketing long-term observational study comparing risks for vte and ate in new users of twirla to new users of other chcs ; explore the advancement of our existing pipeline and its possible expansion through business development activities . for more information about the regulatory history of twirla , please see part 1 , item 1 , `` business `` financial overview since our inception in 1997 , we have devoted substantial resources to developing and seeking regulatory approval for twirla , building our intellectual property portfolio , business planning , raising capital and providing general and administrative support for these operations . we incurred research and development expenses of $ 9.9 million , $ 9.8 million and $ 14.4 million during the years ended december 31 , 2019 , 2018 and 2017 , respectively . while we anticipate that a portion of our operating expenses will continue to be related to research and development as we complete the pre-validation manufacturing activities related to twirla , conduct our phase 4 study , and plan the development of our pipeline , we expect our operating expenses to substantially shift towards commercialization . a 83 substantial amount of our resources are currently dedicated to completing manufacturing validation and commercializing twirla . we have funded our operations primarily through sales of common stock , convertible preferred stock , convertible promissory notes and term loans . as of december 31 , 2019 , and 2018 , respectively , we had $ 34.5 million and $ 7.9 million in cash and cash equivalents . in january 2019 , we entered into a common stock sales agreement or the `` 2019 atm agreement , `` under which we were authorized to sell up to an aggregate of $ 10.0 million in gross proceeds through the sale of shares of common stock from time to time in `` at-the-market `` equity offerings ( as defined in rule 415 promulgated under the securities act of 1933 , as amended ) . we agreed to pay a commission of 3 % of the gross proceeds of any common stock sold under this agreement . during the year ended december 31 , 2019 , we issued and sold a total of 1,801,528 shares of common stock under the 2019 atm agreement resulting in net proceeds of approximately $ 2.5 million . we terminated the 2019 atm agreement on july 31 , 2019. in march 2019 , we completed a private placement of 8,426,750 shares of common stock at $ 0.93 per share . proceeds from the private placement , net of offering costs , were approximately $ 7.8 million . in august 2019 , we completed a public offering of 14,526,315 shares of common stock at a price of $ 0.95 per share . proceeds from the public offering , net of underwriting discounts , commissions and offering expenses were approximately $ 12.7 million . in november 2019 , we entered into a second atm agreement , or the `` second 2019 atm agreement , `` under which we were authorized to issue and sell shares of our common stock having aggregate sales proceeds of up to $ 20.0 million from time to time . we paid a commission of 3 % of the gross proceeds from the sales of our common stock under the second 2019 atm agreement . in the year ended december 31 , 2019 , we issued and sold 10,440,908 shares of common stock under the second 2019 atm agreement , representing all the capacity of second atm agreement , resulting in net proceeds of approximately $ 19.3 million . in february 2020 , we entered into a credit agreement and guaranty with perceptive credit holdings iii , lp , or perceptive , for a senior secured term loan facility of up to $ 35 million , which we refer to as the perceptive credit agreement . a first tranche of $ 5 million was funded on execution of the perceptive credit agreement . a second tranche of $ 15 million was funded as a result of the approval of twirla by the fda . story_separator_special_tag on january 1 , 2019 , we adopted the provisions of accounting standards update ( `` asu `` ) 2017-11 earnings per share ( topic 260 ) ; distinguishing liabilities from equity ( topic 480 ) ; derivatives and hedging ( topic 815 ) : ( part 1 ) accounting for certain financial instruments with down round features , ( part ii ) replacement of the indefinite deferral for mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable non-controlling interests with a scope exception , which indicates that a down round feature no longer precludes equity classification when assessing whether an investment is indexed to an entity 's own stock . we used a modified retrospective approach to adoption , which does not restate our financial statements as of the prior year end ( december 31 , 2018 ) . the cumulative effect of adoption of asu 2017-11 resulted in an adjustment to accumulated deficit as of january 1 , 2019 of $ 0.2 million with a corresponding adjustment to additional paid-in capital . warrants to purchase 62,505 shares of common stock at $ 6.00 per share expired on december 14 , 2019 , and none of these warrants were outstanding as of december 31 , 2019. the warrants issued in connection with our debt financing completed in february 2015 are classified as a component of stockholders ' equity . the value of such warrants was determined using the black-scholes option-pricing model . as of december 31 , 2019 , there were outstanding 180,274 warrants to purchase common stock at $ 5.89 per share related to this debt financing . these warrants expire on february 24 , 2020. as part of the february 2020 perceptive credit agreement , we issued perceptive warrants to purchase 1,400,000 shares of agile common stock . the per share exercise price for 700,000 shares is $ 3.74 , which is equal to the 5-day volume weighted average exercise price ( `` 5 day vwap `` ) as of the trading day immediately prior to closing . the per share exercise price for the remaining 700,000 shares of our common stock is $ 4.67 , which is 1.25 times the 5 day vwap . stock-based compensation we account for stock-based compensation under asc 718 , accounting for stock based compensation , under which compensation expense is generally recognized over the vesting period of the award . determining the amount of stock-based compensation to be required requires us to develop estimates of fair values of stock options as of the grant date . 89 we account for stock-based compensation by measuring and recognizing expense for all stock-based payments made to employees and directors based on estimated grant date fair values . we use the straight-line method to allocate compensation cost to reporting periods over each optionee 's requisite service period , which is generally the vesting period . we estimate the fair value of our stock-based awards to employees and directors using the black-scholes option valuation model , or black-scholes model . the black-scholes model requires the input of subjective assumptions , including the expected stock price volatility , the calculation of expected term and the fair value of the underlying common stock on the date of grant , among other inputs . the risk-free interest rate was determined with the implied yield currently available for zero-coupon u.s. government issues with a remaining term approximating the expected life of the options . we also award restricted stock units ( `` rsus `` ) to employees and our board of directors ( the `` board `` ) . rsus are generally subject to forfeiture if employment terminates prior to the completion of the vesting restrictions . we expense the cost of the rsus , which is determined to be the fair market value of the shares of common stock underlying the rsus at the date of grant , ratably over the period during which the vesting restrictions lapse . cost associated with performance-based restricted stock units with a performance condition which affects the vesting is recognized only if the performance condition is probable of being satisfied . comparison of years ended december 31 , 2019 and 2018 replace_table_token_5_th research and development expenses . research and development expenses increased by $ 0.1 million , or 0.8 % , from $ 9.8 million for the year ended december 31 , 2018 to $ 9.9 million for the year ended december 31 , 2019. this overall increase in research and development expenses was primarily due to the following : an increase in regulatory expense of $ 2.4 million for the year ended december 31 , 2019 as compared to the year ended december 31 , 2018. this increase is primarily related to consulting fees incurred in connection with the resubmission of our nda for twirla as well as costs associated with the preparation for and attendance at the fda advisory committee meeting ; an increase in clinical development expenses of $ 0.5 million for the year ended december 31 , 2019 as compared to the year ended december 31 , 2018. this increase primarily relates to the 90 costs associated with the comparative wear study of twirla and xulane which was initiated and completed during the first quarter of 2019 ; a decrease in manufacturing commercialization expenses of $ 1.5 million for the year ended december 31 , 2019 as compared to the year ended december 31 , 2018. this decrease from 2019 to 2018 reflects reduced activity associated with the scale-up and on-going qualification of the commercial manufacturing equipment primarily as a result of the receipt of the 2017 crl . costs related to the qualification , validation and manufacture of twirla were recorded as research and development expenses until we received approval for the twirla nda ; a decrease in stock compensation expense of $ 0.8 million for the year ended december 31 , 2019 as compared to the year ended december 31 , 2018. this

liquidity and capital resources in january 2019 , we entered into the 2019 atm agreement under which we were authorized to issue and sell shares of our common stock having aggregate sales proceeds of up to $ 10.0 million from time to time . we paid a commission of 3 % of the gross proceeds from the sales of our common stock under the 2019 atm agreement . in the year ended december 31 , 2019 , we sold 1,801,528 shares of common stock under the 2019 atm agreement , resulting in net proceeds of approximately $ 2.5 million . we terminated the 2019 atm agreement on july 31 , 2019. in march 2019 , we completed a private placement of 8,426,750 shares of common stock at $ 0.93 per share . proceeds from our private placement , net of offering costs were approximately $ 7.8 million . in august 2019 , we completed a public offering of 14,526,315 shares of our common stock at a price of $ 0.95 per share . proceeds from the public offering , net of underwriting discounts , commissions and offering expenses were approximately $ 12.7 million . in november 2019 , we entered into the second 2019 atm agreement under which we were authorized to issue and sell shares of our common stock having aggregate sales proceeds of up to $ 20.0 million from time to time . we paid a commission of 3 % of the gross proceeds from the sales of our common stock under the second 2019 atm agreement . in the year ended december 31 , 2019 , we sold 10,440,908 shares of common stock under the second 2019 atm agreement , representing all the capacity available , resulting in net proceeds of approximately $ 19.3 million . at december 31 , 2019 , we had cash and cash equivalents totaling $ 34.5 million . we invest our cash equivalents in short-term highly liquid , interest-bearing investment-grade and government securities in order to preserve principal .


 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 in january 2019 , we entered into the 2019 atm agreement under which we were authorized to issue and sell shares of our common stock having aggregate sales proceeds of up to $ 10.0 million from time to time . we paid a commission of 3 % of the gross proceeds from the sales of our common stock under the 2019 atm agreement . in the year ended december 31 , 2019 , we sold 1,801,528 shares of common stock under the 2019 atm agreement , resulting in net proceeds of approximately $ 2.5 million . we terminated the 2019 atm agreement on july 31 , 2019. in march 2019 , we completed a private placement of 8,426,750 shares of common stock at $ 0.93 per share . proceeds from our private placement , net of offering costs were approximately $ 7.8 million . in august 2019 , we completed a public offering of 14,526,315 shares of our common stock at a price of $ 0.95 per share . proceeds from the public offering , net of underwriting discounts , commissions and offering expenses were approximately $ 12.7 million . in november 2019 , we entered into the second 2019 atm agreement under which we were authorized to issue and sell shares of our common stock having aggregate sales proceeds of up to $ 20.0 million from time to time . we paid a commission of 3 % of the gross proceeds from the sales of our common stock under the second 2019 atm agreement . in the year ended december 31 , 2019 , we sold 10,440,908 shares of common stock under the second 2019 atm agreement , representing all the capacity available , resulting in net proceeds of approximately $ 19.3 million . at december 31 , 2019 , we had cash and cash equivalents totaling $ 34.5 million . we invest our cash equivalents in short-term highly liquid , interest-bearing investment-grade and government securities in order to preserve principal .
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 Suspicious Activity Report : first quarter 2020 initiate hiring of contract sales force second quarter 2020 complete pre-validation and validation of the commercial manufacturing process consistent with our approved marketing application second half 2020 with first shipment of product in the fourth quarter 2020. our short-term goal is to establish an initial franchise in the multi-billion-dollar u.s. hormonal contraceptive market built on approval of twirla in the u.s. our resources are currently focused on the commercialization of twirla . to that end , our goal is to begin the pre-validation and validation of the commercial manufacturing process in the first half of 2020 , manufacture three validation batches of twirla and complete the process in the second half of 2020. at the same time , we will prepare for the availability of commercial product supply . in the first quarter of 2020 , we plan to initiate work with managed care and patient payors to gain market access for twirla . in the second quarter of 2020 , we plan to begin hiring and training an initial sales team , which we estimate to be in the range of 70 to 100 persons . we intend to ship product to wholesalers in fourth quarter of 2020. we also expect to explore the advancement of our existing pipeline and its possible expansion through business development activities . our current priorities are as follows : successfully complete the pre-validation and validation process for the commercial manufacturing of twirla ; obtain coverage and reimbursement for twirla in the united states from third-party payors ; implement our commercialization plans for twirla to ensure a successful launch in the united states , including building a sales and marketing team and implementing a healthcare compliance program ; establish a supply chain for twirla that will support commercialization across the united states at launch ; complete the design and protocol of the fda-required post-marketing long-term observational study comparing risks for vte and ate in new users of twirla to new users of other chcs ; explore the advancement of our existing pipeline and its possible expansion through business development activities . for more information about the regulatory history of twirla , please see part 1 , item 1 , `` business `` financial overview since our inception in 1997 , we have devoted substantial resources to developing and seeking regulatory approval for twirla , building our intellectual property portfolio , business planning , raising capital and providing general and administrative support for these operations . we incurred research and development expenses of $ 9.9 million , $ 9.8 million and $ 14.4 million during the years ended december 31 , 2019 , 2018 and 2017 , respectively . while we anticipate that a portion of our operating expenses will continue to be related to research and development as we complete the pre-validation manufacturing activities related to twirla , conduct our phase 4 study , and plan the development of our pipeline , we expect our operating expenses to substantially shift towards commercialization . a 83 substantial amount of our resources are currently dedicated to completing manufacturing validation and commercializing twirla . we have funded our operations primarily through sales of common stock , convertible preferred stock , convertible promissory notes and term loans . as of december 31 , 2019 , and 2018 , respectively , we had $ 34.5 million and $ 7.9 million in cash and cash equivalents . in january 2019 , we entered into a common stock sales agreement or the `` 2019 atm agreement , `` under which we were authorized to sell up to an aggregate of $ 10.0 million in gross proceeds through the sale of shares of common stock from time to time in `` at-the-market `` equity offerings ( as defined in rule 415 promulgated under the securities act of 1933 , as amended ) . we agreed to pay a commission of 3 % of the gross proceeds of any common stock sold under this agreement . during the year ended december 31 , 2019 , we issued and sold a total of 1,801,528 shares of common stock under the 2019 atm agreement resulting in net proceeds of approximately $ 2.5 million . we terminated the 2019 atm agreement on july 31 , 2019. in march 2019 , we completed a private placement of 8,426,750 shares of common stock at $ 0.93 per share . proceeds from the private placement , net of offering costs , were approximately $ 7.8 million . in august 2019 , we completed a public offering of 14,526,315 shares of common stock at a price of $ 0.95 per share . proceeds from the public offering , net of underwriting discounts , commissions and offering expenses were approximately $ 12.7 million . in november 2019 , we entered into a second atm agreement , or the `` second 2019 atm agreement , `` under which we were authorized to issue and sell shares of our common stock having aggregate sales proceeds of up to $ 20.0 million from time to time . we paid a commission of 3 % of the gross proceeds from the sales of our common stock under the second 2019 atm agreement . in the year ended december 31 , 2019 , we issued and sold 10,440,908 shares of common stock under the second 2019 atm agreement , representing all the capacity of second atm agreement , resulting in net proceeds of approximately $ 19.3 million . in february 2020 , we entered into a credit agreement and guaranty with perceptive credit holdings iii , lp , or perceptive , for a senior secured term loan facility of up to $ 35 million , which we refer to as the perceptive credit agreement . a first tranche of $ 5 million was funded on execution of the perceptive credit agreement . a second tranche of $ 15 million was funded as a result of the approval of twirla by the fda . story_separator_special_tag on january 1 , 2019 , we adopted the provisions of accounting standards update ( `` asu `` ) 2017-11 earnings per share ( topic 260 ) ; distinguishing liabilities from equity ( topic 480 ) ; derivatives and hedging ( topic 815 ) : ( part 1 ) accounting for certain financial instruments with down round features , ( part ii ) replacement of the indefinite deferral for mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable non-controlling interests with a scope exception , which indicates that a down round feature no longer precludes equity classification when assessing whether an investment is indexed to an entity 's own stock . we used a modified retrospective approach to adoption , which does not restate our financial statements as of the prior year end ( december 31 , 2018 ) . the cumulative effect of adoption of asu 2017-11 resulted in an adjustment to accumulated deficit as of january 1 , 2019 of $ 0.2 million with a corresponding adjustment to additional paid-in capital . warrants to purchase 62,505 shares of common stock at $ 6.00 per share expired on december 14 , 2019 , and none of these warrants were outstanding as of december 31 , 2019. the warrants issued in connection with our debt financing completed in february 2015 are classified as a component of stockholders ' equity . the value of such warrants was determined using the black-scholes option-pricing model . as of december 31 , 2019 , there were outstanding 180,274 warrants to purchase common stock at $ 5.89 per share related to this debt financing . these warrants expire on february 24 , 2020. as part of the february 2020 perceptive credit agreement , we issued perceptive warrants to purchase 1,400,000 shares of agile common stock . the per share exercise price for 700,000 shares is $ 3.74 , which is equal to the 5-day volume weighted average exercise price ( `` 5 day vwap `` ) as of the trading day immediately prior to closing . the per share exercise price for the remaining 700,000 shares of our common stock is $ 4.67 , which is 1.25 times the 5 day vwap . stock-based compensation we account for stock-based compensation under asc 718 , accounting for stock based compensation , under which compensation expense is generally recognized over the vesting period of the award . determining the amount of stock-based compensation to be required requires us to develop estimates of fair values of stock options as of the grant date . 89 we account for stock-based compensation by measuring and recognizing expense for all stock-based payments made to employees and directors based on estimated grant date fair values . we use the straight-line method to allocate compensation cost to reporting periods over each optionee 's requisite service period , which is generally the vesting period . we estimate the fair value of our stock-based awards to employees and directors using the black-scholes option valuation model , or black-scholes model . the black-scholes model requires the input of subjective assumptions , including the expected stock price volatility , the calculation of expected term and the fair value of the underlying common stock on the date of grant , among other inputs . the risk-free interest rate was determined with the implied yield currently available for zero-coupon u.s. government issues with a remaining term approximating the expected life of the options . we also award restricted stock units ( `` rsus `` ) to employees and our board of directors ( the `` board `` ) . rsus are generally subject to forfeiture if employment terminates prior to the completion of the vesting restrictions . we expense the cost of the rsus , which is determined to be the fair market value of the shares of common stock underlying the rsus at the date of grant , ratably over the period during which the vesting restrictions lapse . cost associated with performance-based restricted stock units with a performance condition which affects the vesting is recognized only if the performance condition is probable of being satisfied . comparison of years ended december 31 , 2019 and 2018 replace_table_token_5_th research and development expenses . research and development expenses increased by $ 0.1 million , or 0.8 % , from $ 9.8 million for the year ended december 31 , 2018 to $ 9.9 million for the year ended december 31 , 2019. this overall increase in research and development expenses was primarily due to the following : an increase in regulatory expense of $ 2.4 million for the year ended december 31 , 2019 as compared to the year ended december 31 , 2018. this increase is primarily related to consulting fees incurred in connection with the resubmission of our nda for twirla as well as costs associated with the preparation for and attendance at the fda advisory committee meeting ; an increase in clinical development expenses of $ 0.5 million for the year ended december 31 , 2019 as compared to the year ended december 31 , 2018. this increase primarily relates to the 90 costs associated with the comparative wear study of twirla and xulane which was initiated and completed during the first quarter of 2019 ; a decrease in manufacturing commercialization expenses of $ 1.5 million for the year ended december 31 , 2019 as compared to the year ended december 31 , 2018. this decrease from 2019 to 2018 reflects reduced activity associated with the scale-up and on-going qualification of the commercial manufacturing equipment primarily as a result of the receipt of the 2017 crl . costs related to the qualification , validation and manufacture of twirla were recorded as research and development expenses until we received approval for the twirla nda ; a decrease in stock compensation expense of $ 0.8 million for the year ended december 31 , 2019 as compared to the year ended december 31 , 2018. this

