prior to our initial public offering , or ipo , we had funded our operations primarily from the issuance and sale of redeemable convertible preferred stock . in august 2015 , we completed our ipo pursuant to which we issued 6,900,000 shares of our common stock at a price of $ 20.00 per share , which included 900,000 shares sold pursuant to the exercise of the underwriters ' option to purchase additional shares . we received $ 126.2 million from the ipo , net of underwriting discounts and commissions , and offering expenses incurred by us . we have never been profitable and have incurred net losses in each year since inception . our net losses were $ 46.4 million for the year ended december 31 , 2015 and $ 20.8 million for the year ended december 31 , 2014 . as of december 31 , 2015 we had an accumulated deficit of $ 98.5 million . to date , we have not generated any revenue . we do not expect to receive any revenue from any product candidates that we develop until we obtain regulatory approval and commercialize our products or enter into collaborative agreements with third parties . substantially all of our net losses have resulted from costs incurred in connection with our research and development programs and from general and administrative costs associated with our operations . we had cash and cash equivalents totaling $ 148.5 million as of december 31 , 2015 . recent developments the regents of the university of california license agreement in september 2015 , we executed an agreement with the regents of the university of california , or the regents , for an exclusive license to those rights the regents may own in certain patents and patent applications relating to gbt440 and gbt440 analogs , and in exchange have committed to pay a royalty of less than 1 % on future net sales . we are solely responsible , in consultation with the regents , for preparing , filing , prosecuting and maintaining these patents and patent applications . 56 critical accounting polices and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our financial statements , which have been prepared in accordance with united states generally accepted accounting principles , or u.s. 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 . we believe that the accounting policies discussed below are critical to understanding our historical and future performance , as these policies relate to the more significant areas involving management 's judgments and estimates . accrued research and development costs we record accrued expenses for estimated costs of our research and development activities conducted by third-party service providers , which include the conduct of preclinical studies and clinical trials and contract manufacturing activities . we record the estimated costs of research and development activities based upon the estimated amount of services provided but not yet invoiced , and include these costs in accrued liabilities in the balance sheet and within research and development expense in the statement of operations and comprehensive loss . these costs are a significant component of our research and development expenses . we record accrued expenses for these costs based on the estimated amount of work completed and in accordance with agreements established with these third parties . 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 subjects 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 . our accrued expenses are dependent , in part , upon the receipt of timely and accurate reporting from clinical research organizations and other third-party service providers . to date , there have been no material differences between our accrued liabilities and actual expenses . stock-based compensation we use the black-scholes-merton option pricing model to estimate the fair value of options granted under our equity incentive plans and rights to acquire stock granted under our employee stock purchase plan ( espp ) . the black-scholes-merton option valuation model requires the use of assumptions , including the expected term of the award and the expected stock price volatility . we used the `` simplified `` method , which is based on the mid-point between the vesting date and the end of the contractual term , for the expected option term . we use peer company price volatility to estimate expected stock price volatility due to the limited trading history for our common stock since our ipo in august 2015. the comparable companies were chosen based on their similar size , stage in life cycle , or area of specialty . story_separator_special_tag the increase was primarily due to a $ 0.8 million increase in salaries and benefits as we expanded our business management team , a $ 0.5 million increase in patent and professional services as our business grew in its second full year of operations and a $ 0.2 million increase in other general and administrative expenses due to the growth of our operations . related party expenses related party expenses represent fees for management and advisory services provided by third rock ventures , llc , or trv , a related party due to its significant equity ownership . related party expenses decreased by $ 0.3 million , or 80 % , to $ 0.1 million for the year ended december 31 , 2015 from $ 0.3 million for the year ended december 31 , 2014 , and decreased by $ 0.2 million , or 33 % , to $ 0.3 million for the year ended december 31 , 2014 from $ 0.5 million for the year ended december 31 , 2013 . the decreases were primarily due to a reduction in management services provided from trv as we expanded our internal business management team . change in fair value of series a redeemable convertible preferred stock liability the change in the fair value of the series a redeemable convertible preferred stock liability was zero for the year ended december 31 , 2015 compared to a $ 0.3 million expense for the year ended december 31 , 2014 due to the settlement of series a 60 redeemable convertible preferred stock liability in october 2014 , at which time we were no longer under any obligation to issue additional shares of series a redeemable convertible preferred stock . the change in fair value of series a redeemable convertible preferred stock liability was $ 0.3 million for the year ended december 31 , 2014 , compared to a $ 2.5 million expense for the year ended december 31 , 2013 . the change in both periods represents the increase in fair value of the series a redeemable convertible preferred stock liability associated with our obligation to issue additional shares of series a redeemable convertible preferred stock . income taxes as of december 31 , 2015 , we had net operating loss carryforwards of approximately $ 82.1 million to offset future federal income taxes , if any , through 2035 , and approximately $ 80.0 million that may offset future state income taxes , if any , through 2035. current federal and state tax laws include substantial restrictions on the utilization of net operating losses and tax credits in the event of an ownership change . even if the carryforwards are available , they may be subject to annual limitations , lack of future taxable income , or future ownership changes that could result in the expiration of the carryforwards before they are utilized . at december 31 , 2015 , we recorded a 100 % valuation allowance against our deferred tax assets of approximately $ 36.1 million , as at that time our management believed it was uncertain that they would be fully realized . if we determine in the future that we will be able to realize all or a portion of our net operating loss carryforwards , an adjustment to our net operating loss carryforwards would increase net income in the period in which we make such a determination . story_separator_special_tag activities for the year ended december 31 , 2015 , 2014 and 2013 was primarily related to our purchase of property and equipment for our office and laboratory facilities . 62 cash flows from financing activities net cash provided by financing activities was $ 128.3 million for the year ended december 31 , 2015 , $ 69.3 million for the year ended december 31 , 2014 and $ 15.3 million for the year ended december 31 , 2013 . the cash provided by financing activities in 2015 was primarily related to net proceeds of $ 126.2 million from our ipo in august 2015 and proceeds of $ 2.1 million from the purchase of restricted stock . the cash provided by financing activities in 2014 was primarily related to net proceeds of $ 68.8 million from the issuance of redeemable convertible preferred stock and proceeds from restricted stock purchases of $ 0.4 million . the cash provided by financing activities in 2013 was primarily related to net proceeds from the issuance of redeemable convertible preferred stock of $ 15.2 million . off-balance sheet arrangements as of december 31 , 2015 , we had no off-balance sheet arrangements as defined in item 303 ( a ) ( 4 ) of regulation s-k as promulgated by the sec . contractual obligations and other commitments the following table summarizes our contractual obligations as of december 31 , 2015 : replace_table_token_7_th we have excluded from the above table $ 1.0 million in contractual obligations related to uncertain tax positions as we can not make a reasonably reliable estimate of the period of cash settlement . recent accounting pronouncements from time to time , new accounting pronouncements are issued by the financial accounting standards board ( `` fasb `` ) or other standards setting bodies that are adopted by us as of the specified effective date . unless otherwise discussed , we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial statements upon adoption . in august 2014 , the fasb issued asu no . 2014-15 , disclosure of uncertainties about an entity 's ability to continue as a going concern . asu 2014-15 requires management to evaluate whether there is substantial doubt about an entity 's ability to continue as a going concern and to provide related footnote disclosures . in doing so , companies will have reduced diversity in the timing and content of footnote disclosures than under today 's guidance . asu 2014-15 is effective for us in the first

liquidity and capital resources we are not profitable and have incurred losses and negative cash flows from operations each year since our inception . prior to our ipo , our operations were financed primarily by net proceeds from the sale and issuance of convertible preferred stock . in august 2015 , we completed our ipo pursuant to which we issued 6,900,000 shares of our common stock at a price to the public of $ 20.00 per share , which included the exercise in full of the underwriters ' option to purchase additional shares . we received proceeds of $ 126.2 million , net of underwriting discounts and commissions , and offering expenses incurred by us . as of december 31 , 2015 , we had $ 148.5 million in cash and cash equivalents . our primary use of cash is to fund operating expenses , which consist primarily of research and development expenditures . cash used to fund operating expenses is impacted by the timing of when we pay these expenses , as reflected in the change in our outstanding accounts payable and accrued expenses . we believe that our existing capital resources will be sufficient to fund our planned operations until mid-2017 . we have based this estimate on assumptions that may prove to be wrong , and we could utilize our available capital resources sooner than we currently expect . we will continue to require additional financing to advance gbt440 through clinical development , to develop other potential product candidates from our research programs and to fund operations for the foreseeable future . we will continue to seek funds through equity or debt financings , collaborative or other arrangements with corporate sources , or through other sources of financing . adequate additional funding may not be available to us on acceptable terms , or at all . our failure to raise capital as and when needed could have a negative impact on our financial condition and our ability to pursue our business strategies .


 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 are not profitable and have incurred losses and negative cash flows from operations each year since our inception . prior to our ipo , our operations were financed primarily by net proceeds from the sale and issuance of convertible preferred stock . in august 2015 , we completed our ipo pursuant to which we issued 6,900,000 shares of our common stock at a price to the public of $ 20.00 per share , which included the exercise in full of the underwriters ' option to purchase additional shares . we received proceeds of $ 126.2 million , net of underwriting discounts and commissions , and offering expenses incurred by us . as of december 31 , 2015 , we had $ 148.5 million in cash and cash equivalents . our primary use of cash is to fund operating expenses , which consist primarily of research and development expenditures . cash used to fund operating expenses is impacted by the timing of when we pay these expenses , as reflected in the change in our outstanding accounts payable and accrued expenses . we believe that our existing capital resources will be sufficient to fund our planned operations until mid-2017 . we have based this estimate on assumptions that may prove to be wrong , and we could utilize our available capital resources sooner than we currently expect . we will continue to require additional financing to advance gbt440 through clinical development , to develop other potential product candidates from our research programs and to fund operations for the foreseeable future . we will continue to seek funds through equity or debt financings , collaborative or other arrangements with corporate sources , or through other sources of financing . adequate additional funding may not be available to us on acceptable terms , or at all . our failure to raise capital as and when needed could have a negative impact on our financial condition and our ability to pursue our business strategies .
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 Suspicious Activity Report : prior to our initial public offering , or ipo , we had funded our operations primarily from the issuance and sale of redeemable convertible preferred stock . in august 2015 , we completed our ipo pursuant to which we issued 6,900,000 shares of our common stock at a price of $ 20.00 per share , which included 900,000 shares sold pursuant to the exercise of the underwriters ' option to purchase additional shares . we received $ 126.2 million from the ipo , net of underwriting discounts and commissions , and offering expenses incurred by us . we have never been profitable and have incurred net losses in each year since inception . our net losses were $ 46.4 million for the year ended december 31 , 2015 and $ 20.8 million for the year ended december 31 , 2014 . as of december 31 , 2015 we had an accumulated deficit of $ 98.5 million . to date , we have not generated any revenue . we do not expect to receive any revenue from any product candidates that we develop until we obtain regulatory approval and commercialize our products or enter into collaborative agreements with third parties . substantially all of our net losses have resulted from costs incurred in connection with our research and development programs and from general and administrative costs associated with our operations . we had cash and cash equivalents totaling $ 148.5 million as of december 31 , 2015 . recent developments the regents of the university of california license agreement in september 2015 , we executed an agreement with the regents of the university of california , or the regents , for an exclusive license to those rights the regents may own in certain patents and patent applications relating to gbt440 and gbt440 analogs , and in exchange have committed to pay a royalty of less than 1 % on future net sales . we are solely responsible , in consultation with the regents , for preparing , filing , prosecuting and maintaining these patents and patent applications . 56 critical accounting polices and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our financial statements , which have been prepared in accordance with united states generally accepted accounting principles , or u.s. 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 . we believe that the accounting policies discussed below are critical to understanding our historical and future performance , as these policies relate to the more significant areas involving management 's judgments and estimates . accrued research and development costs we record accrued expenses for estimated costs of our research and development activities conducted by third-party service providers , which include the conduct of preclinical studies and clinical trials and contract manufacturing activities . we record the estimated costs of research and development activities based upon the estimated amount of services provided but not yet invoiced , and include these costs in accrued liabilities in the balance sheet and within research and development expense in the statement of operations and comprehensive loss . these costs are a significant component of our research and development expenses . we record accrued expenses for these costs based on the estimated amount of work completed and in accordance with agreements established with these third parties . 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 subjects 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 . our accrued expenses are dependent , in part , upon the receipt of timely and accurate reporting from clinical research organizations and other third-party service providers . to date , there have been no material differences between our accrued liabilities and actual expenses . stock-based compensation we use the black-scholes-merton option pricing model to estimate the fair value of options granted under our equity incentive plans and rights to acquire stock granted under our employee stock purchase plan ( espp ) . the black-scholes-merton option valuation model requires the use of assumptions , including the expected term of the award and the expected stock price volatility . we used the `` simplified `` method , which is based on the mid-point between the vesting date and the end of the contractual term , for the expected option term . we use peer company price volatility to estimate expected stock price volatility due to the limited trading history for our common stock since our ipo in august 2015. the comparable companies were chosen based on their similar size , stage in life cycle , or area of specialty . story_separator_special_tag the increase was primarily due to a $ 0.8 million increase in salaries and benefits as we expanded our business management team , a $ 0.5 million increase in patent and professional services as our business grew in its second full year of operations and a $ 0.2 million increase in other general and administrative expenses due to the growth of our operations . related party expenses related party expenses represent fees for management and advisory services provided by third rock ventures , llc , or trv , a related party due to its significant equity ownership . related party expenses decreased by $ 0.3 million , or 80 % , to $ 0.1 million for the year ended december 31 , 2015 from $ 0.3 million for the year ended december 31 , 2014 , and decreased by $ 0.2 million , or 33 % , to $ 0.3 million for the year ended december 31 , 2014 from $ 0.5 million for the year ended december 31 , 2013 . the decreases were primarily due to a reduction in management services provided from trv as we expanded our internal business management team . change in fair value of series a redeemable convertible preferred stock liability the change in the fair value of the series a redeemable convertible preferred stock liability was zero for the year ended december 31 , 2015 compared to a $ 0.3 million expense for the year ended december 31 , 2014 due to the settlement of series a 60 redeemable convertible preferred stock liability in october 2014 , at which time we were no longer under any obligation to issue additional shares of series a redeemable convertible preferred stock . the change in fair value of series a redeemable convertible preferred stock liability was $ 0.3 million for the year ended december 31 , 2014 , compared to a $ 2.5 million expense for the year ended december 31 , 2013 . the change in both periods represents the increase in fair value of the series a redeemable convertible preferred stock liability associated with our obligation to issue additional shares of series a redeemable convertible preferred stock . income taxes as of december 31 , 2015 , we had net operating loss carryforwards of approximately $ 82.1 million to offset future federal income taxes , if any , through 2035 , and approximately $ 80.0 million that may offset future state income taxes , if any , through 2035. current federal and state tax laws include substantial restrictions on the utilization of net operating losses and tax credits in the event of an ownership change . even if the carryforwards are available , they may be subject to annual limitations , lack of future taxable income , or future ownership changes that could result in the expiration of the carryforwards before they are utilized . at december 31 , 2015 , we recorded a 100 % valuation allowance against our deferred tax assets of approximately $ 36.1 million , as at that time our management believed it was uncertain that they would be fully realized . if we determine in the future that we will be able to realize all or a portion of our net operating loss carryforwards , an adjustment to our net operating loss carryforwards would increase net income in the period in which we make such a determination . story_separator_special_tag activities for the year ended december 31 , 2015 , 2014 and 2013 was primarily related to our purchase of property and equipment for our office and laboratory facilities . 62 cash flows from financing activities net cash provided by financing activities was $ 128.3 million for the year ended december 31 , 2015 , $ 69.3 million for the year ended december 31 , 2014 and $ 15.3 million for the year ended december 31 , 2013 . the cash provided by financing activities in 2015 was primarily related to net proceeds of $ 126.2 million from our ipo in august 2015 and proceeds of $ 2.1 million from the purchase of restricted stock . the cash provided by financing activities in 2014 was primarily related to net proceeds of $ 68.8 million from the issuance of redeemable convertible preferred stock and proceeds from restricted stock purchases of $ 0.4 million . the cash provided by financing activities in 2013 was primarily related to net proceeds from the issuance of redeemable convertible preferred stock of $ 15.2 million . off-balance sheet arrangements as of december 31 , 2015 , we had no off-balance sheet arrangements as defined in item 303 ( a ) ( 4 ) of regulation s-k as promulgated by the sec . contractual obligations and other commitments the following table summarizes our contractual obligations as of december 31 , 2015 : replace_table_token_7_th we have excluded from the above table $ 1.0 million in contractual obligations related to uncertain tax positions as we can not make a reasonably reliable estimate of the period of cash settlement . recent accounting pronouncements from time to time , new accounting pronouncements are issued by the financial accounting standards board ( `` fasb `` ) or other standards setting bodies that are adopted by us as of the specified effective date . unless otherwise discussed , we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial statements upon adoption . in august 2014 , the fasb issued asu no . 2014-15 , disclosure of uncertainties about an entity 's ability to continue as a going concern . asu 2014-15 requires management to evaluate whether there is substantial doubt about an entity 's ability to continue as a going concern and to provide related footnote disclosures . in doing so , companies will have reduced diversity in the timing and content of footnote disclosures than under today 's guidance . asu 2014-15 is effective for us in the first

