during the initial two-years of the collaboration period , pfizer reimbursed us for certain costs incurred in the development of the licensed products , including fte-based research payments . following the conclusion of the initial collaboration , without extension by pfizer , we had no further substantive performance obligations to pfizer under the agreement , and we recognized the remaining $ 12.6 million of deferred revenue related to the up-front fee in june 2011. subsequently , in august 2013 , we entered into an amendment to the pfizer agreement , in accordance with which pfizer made two $ 1.5 million non-refundable annual license maintenance payments to us in august 2013 and august 2014 and we agreed to certain performance obligations to pfizer for the period 59 starting from the effective date of the amendment . pfizer was also obligated to pay to us contingent milestone-based payments upon the occurrence of certain defined development , commercialization , and sales-based milestones . collaboration and license revenue related to the pfizer agreement during the years ended december 31 , 2014 and 2015 was $ 1.4 million and $ 1.3 million , respectively , reflecting the amortization of the annual license maintenance payments received over the estimated expected period of our performance obligations which was estimated to conclude in august 2015. on april 2 , 2015 , pfizer notified us that it was exercising its right to terminate the research and license agreement effective june 1 , 2015. accordingly , we revised the expected period of performance to end on june 1 , 2015 , and the deferred revenue balance was fully amortized as of that date . we are currently negotiating with pfizer regarding rights to use certain manufacturing materials . in september 2013 , we entered into a license and collaboration agreement with isu abxis pursuant to which we licensed our proprietary human factor ix products to isu abxis for initial development in south korea . under the agreement , isu abxis is responsible for development and manufacturing of the licensed products through phase 1/2 clinical trials . until the completion of phase 1 development , isu abxis also has a right of first refusal with respect to commercialization rights for the licensed products in south korea . isu abxis paid us an up-front signing fee of $ 1.75 million and is obligated to pay to us contingent milestone-based payments on the occurrence of certain defined development events , none of which have been achieved as of december 31 , 2015. collaboration and license revenue related to the isu abxis agreement during the years ended december 31 , 2014 and 2015 was $ 0.4 million and $ 0.4 million , respectively , that reflect the amortization of the up-front fee over the estimated period of our performance obligations , that are estimated to conclude in august 2017. we had a deferred revenue balance of $ 0.7 million as of december 31 , 2015 related to the isu abxis collaboration . on august 20 , 2015 , we completed the business combination between old catalyst and targacept in accordance with the terms of the agreement and plan of merger , dated as of march 5 , 2015 , as amended on may 6 and may 13 , 2015 ( the merger agreement ) . also on august 20 , 2015 , in connection with , and prior to the completion of , the merger , we effected a 7-for-1 reverse stock split of our common stock ( the reverse stock split ) and changed our name to catalyst biosciences , inc. immediately prior to and in connection with the merger , each share of old catalyst preferred stock outstanding was converted into shares of old catalyst common stock at ratios determined in accordance with the old catalyst certificate of incorporation then in effect . under the terms of the merger agreement , at the effective time of the merger , we issued shares of our common stock to old catalyst stockholders , at an exchange rate of 0.0382 shares of common stock , after taking into account the reverse stock split , in exchange for each share of old catalyst common stock outstanding immediately prior to the merger . the exchange rate was calculated by a formula that was determined through arms-length negotiations between targacept and old catalyst . immediately after the merger , there were 11,416,984 shares of our common stock outstanding , and the former old catalyst equity holders beneficially owned approximately 59 % of our common stock . the merger was accounted for as a reverse asset acquisition . we have no products approved for commercial sale and have not generated any revenue from product sales . from inception to december 31 , 2015 , we have raised net cash proceeds of approximately $ 217.4 million , primarily from private placements of convertible preferred stock and the proceeds from the merger in addition to issuances of shares of common stock and warrants and payments received under collaboration agreements . the cash proceeds raised do not include the redeemable convertible notes which are held in restricted cash . we have never been profitable and have incurred significant operating losses in each year since inception . our net losses were $ 14.8 million and $ 6.6 million for years ended december 31 , 2015 and 2014 , respectively . as of december 31 , 2015 , we had an accumulated deficit of $ 131.0 million . substantially all of our operating losses 60 resulted from expenses incurred in connection with our research and development programs and from general and administrative costs associated with our operations . our operating costs have decreased since 2012 due to the termination of the research activities under the pfizer agreement and other agreements , a restructuring of our operations that included a reduction in work force , and the focusing of our research programs . story_separator_special_tag ( 3 ) we had unrecognized tax benefits in the amount of $ 1.3 million as of december 31 , 2015 related to uncertain tax positions . however , there is uncertainty regarding when these benefits will require settlement so these amounts were not included in the contractual obligations table above . off-balance sheet arrangements we do not have any off-balance sheet arrangements . critical accounting polices and estimates the preparation of financial statements and related disclosures in conformity with u.s. generally accepted accounting principles ( gaap ) and the company 's discussion and analysis of its financial condition and operating results require the company 's management to make judgments , assumptions and estimates that affect the amounts reported in its consolidated financial statements and accompanying notes . our significant accounting policies and methods used in preparation of the company 's consolidated financial statements are described in note 2 summary of significant accounting policies of the notes to consolidated financial statements of this annual report on form 10-k. management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities . actual results may differ from these estimates , and such differences may be material . 68 management believes the company 's critical accounting policies and estimates discussed below are critical to understanding its historical and future performance , as these policies relate to the more significant areas involving management 's judgments and estimates . revenue recognition we generate revenue from collaboration agreements pursuant to which we seek the development and commercialization of our product candidates . collaboration agreements provide for the payment to us of up-front license fees , success-based milestone payments , fte-based payments for research services and royalties on any future sales of commercialized products that result from the collaboration . our performance obligations under our remaining collaboration agreement include licenses of intellectual property rights , obligations to provide research and development services , related clinical drug supply and regulatory approval services , and obligations to participate on certain development and or commercialization committees with the collaborators . payments of up-front license fees are recorded as deferred revenue in our balance sheet and are recognized as contract revenue over our estimated period of performance in a manner consistent with the terms of the research and development obligations contained in the respective collaboration agreement . we regularly review the estimated periods of performance related to our collaboration agreements based on the progress made under each arrangement . our estimates of our performance period may change over the course of the agreement term . such a change could have a material impact on the amount of revenue we record in future periods . payments to us for research and development and regulatory approval services are recognized as the services are performed , in accordance with the respective contract terms . payments for such services may be made to or by us based on the number of full-time equivalent researchers assigned to the collaboration project and the related research and development expenses incurred . revenue recognition for multiple element revenue arrangements will have deliverables associated with the arrangement divided into separate units of accounting provided that ( i ) a delivered item has value to the customer on a standalone basis and ( ii ) if the arrangement includes a general right of return relative to the delivered item , delivery or performance of the undelivered item is considered probable and substantially in the control of the vendor . as a biotechnology company with unique and specialized technological undelivered performance obligations associated with our collaborations , our multiple element arrangements have in the past often involved deliverables and consideration that do not meet the criteria for having stand-alone value . such deliverables and consideration must be accounted for under a single unit of accounting along with other arrangement deliverables and consideration that do not have stand-alone value and are recognized as revenue over the estimated period that the performance obligations are to be performed . the revenue is recognized on a proportional performance basis when the levels of the performance obligations under an arrangement can be reasonably estimated and on a straight-line basis when they can not . we also adopted guidance that permits the recognition of revenue contingent upon the achievement of a milestone in its entirety , in the period in which the milestone is achieved , only if the milestone meets certain criteria and is considered to be substantive . as such , we plan to recognize revenue in the period in which the milestone is achieved , only if the milestone is considered to be substantive based on the following criteria : the milestone is commensurate with either ( i ) the vendor 's performance to achieve the milestone , or ( ii ) the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from the vendor 's performance to achieve the milestone ; the milestone relates solely to past performance ; and the milestone is reasonable relative to all of the deliverables and payment terms ( including other potential milestone consideration ) within the arrangement . 69 accrued research and development expenses we record accrued expenses for estimated costs of our research and development activities conducted by external 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 includes these costs in accrued liabilities in the balance sheet and within research and development expense in the consolidated statement of operations . 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

liquidity and capital resources on august 20 , 2015 , we completed our merger with targacept , which provided $ 41.2 million in cash , cash equivalents and short-term investments . prior to that time , our operations had been financed primarily by net proceeds from the sale of convertible preferred stock , and the issuance of convertible notes . as of december 31 , 2015 , we had $ 32.5 million of cash , cash equivalents and short-term investments . we have an accumulated deficit of $ 131.0 million as of december 31 , 2015. our primary uses of cash are to fund operating expenses , including research and development expenditures and general and administrative expenditures . cash used to fund operating expenses is impacted by the timing of when we pay these expenses , as reflected in the change in its outstanding accounts payable and accrued expenses . we believe that our existing capital resources will be sufficient to meet our projected operating requirements for at least the next 12 months . 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 plan to continue to fund losses from operations and capital funding needs through future equity and or debt financings , as well as potential additional collaborations or strategic partnerships with other companies . the sale of additional equity or convertible debt could result in additional dilution to our stockholders . the incurrence of indebtedness would result in debt service obligations and could result in operating and financing covenants that would restrict our operations . we can provide no assurance that financing will be available in the amounts we need or on terms acceptable to us , if at all . if we are not able to secure adequate additional funding we may be forced to delay , make reductions in spending , extend payment terms with suppliers , liquidate assets where possible , and or suspend or curtail planned programs . any of these actions could materially harm our business .


 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 on august 20 , 2015 , we completed our merger with targacept , which provided $ 41.2 million in cash , cash equivalents and short-term investments . prior to that time , our operations had been financed primarily by net proceeds from the sale of convertible preferred stock , and the issuance of convertible notes . as of december 31 , 2015 , we had $ 32.5 million of cash , cash equivalents and short-term investments . we have an accumulated deficit of $ 131.0 million as of december 31 , 2015. our primary uses of cash are to fund operating expenses , including research and development expenditures and general and administrative expenditures . cash used to fund operating expenses is impacted by the timing of when we pay these expenses , as reflected in the change in its outstanding accounts payable and accrued expenses . we believe that our existing capital resources will be sufficient to meet our projected operating requirements for at least the next 12 months . 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 plan to continue to fund losses from operations and capital funding needs through future equity and or debt financings , as well as potential additional collaborations or strategic partnerships with other companies . the sale of additional equity or convertible debt could result in additional dilution to our stockholders . the incurrence of indebtedness would result in debt service obligations and could result in operating and financing covenants that would restrict our operations . we can provide no assurance that financing will be available in the amounts we need or on terms acceptable to us , if at all . if we are not able to secure adequate additional funding we may be forced to delay , make reductions in spending , extend payment terms with suppliers , liquidate assets where possible , and or suspend or curtail planned programs . any of these actions could materially harm our business .
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 Suspicious Activity Report : during the initial two-years of the collaboration period , pfizer reimbursed us for certain costs incurred in the development of the licensed products , including fte-based research payments . following the conclusion of the initial collaboration , without extension by pfizer , we had no further substantive performance obligations to pfizer under the agreement , and we recognized the remaining $ 12.6 million of deferred revenue related to the up-front fee in june 2011. subsequently , in august 2013 , we entered into an amendment to the pfizer agreement , in accordance with which pfizer made two $ 1.5 million non-refundable annual license maintenance payments to us in august 2013 and august 2014 and we agreed to certain performance obligations to pfizer for the period 59 starting from the effective date of the amendment . pfizer was also obligated to pay to us contingent milestone-based payments upon the occurrence of certain defined development , commercialization , and sales-based milestones . collaboration and license revenue related to the pfizer agreement during the years ended december 31 , 2014 and 2015 was $ 1.4 million and $ 1.3 million , respectively , reflecting the amortization of the annual license maintenance payments received over the estimated expected period of our performance obligations which was estimated to conclude in august 2015. on april 2 , 2015 , pfizer notified us that it was exercising its right to terminate the research and license agreement effective june 1 , 2015. accordingly , we revised the expected period of performance to end on june 1 , 2015 , and the deferred revenue balance was fully amortized as of that date . we are currently negotiating with pfizer regarding rights to use certain manufacturing materials . in september 2013 , we entered into a license and collaboration agreement with isu abxis pursuant to which we licensed our proprietary human factor ix products to isu abxis for initial development in south korea . under the agreement , isu abxis is responsible for development and manufacturing of the licensed products through phase 1/2 clinical trials . until the completion of phase 1 development , isu abxis also has a right of first refusal with respect to commercialization rights for the licensed products in south korea . isu abxis paid us an up-front signing fee of $ 1.75 million and is obligated to pay to us contingent milestone-based payments on the occurrence of certain defined development events , none of which have been achieved as of december 31 , 2015. collaboration and license revenue related to the isu abxis agreement during the years ended december 31 , 2014 and 2015 was $ 0.4 million and $ 0.4 million , respectively , that reflect the amortization of the up-front fee over the estimated period of our performance obligations , that are estimated to conclude in august 2017. we had a deferred revenue balance of $ 0.7 million as of december 31 , 2015 related to the isu abxis collaboration . on august 20 , 2015 , we completed the business combination between old catalyst and targacept in accordance with the terms of the agreement and plan of merger , dated as of march 5 , 2015 , as amended on may 6 and may 13 , 2015 ( the merger agreement ) . also on august 20 , 2015 , in connection with , and prior to the completion of , the merger , we effected a 7-for-1 reverse stock split of our common stock ( the reverse stock split ) and changed our name to catalyst biosciences , inc. immediately prior to and in connection with the merger , each share of old catalyst preferred stock outstanding was converted into shares of old catalyst common stock at ratios determined in accordance with the old catalyst certificate of incorporation then in effect . under the terms of the merger agreement , at the effective time of the merger , we issued shares of our common stock to old catalyst stockholders , at an exchange rate of 0.0382 shares of common stock , after taking into account the reverse stock split , in exchange for each share of old catalyst common stock outstanding immediately prior to the merger . the exchange rate was calculated by a formula that was determined through arms-length negotiations between targacept and old catalyst . immediately after the merger , there were 11,416,984 shares of our common stock outstanding , and the former old catalyst equity holders beneficially owned approximately 59 % of our common stock . the merger was accounted for as a reverse asset acquisition . we have no products approved for commercial sale and have not generated any revenue from product sales . from inception to december 31 , 2015 , we have raised net cash proceeds of approximately $ 217.4 million , primarily from private placements of convertible preferred stock and the proceeds from the merger in addition to issuances of shares of common stock and warrants and payments received under collaboration agreements . the cash proceeds raised do not include the redeemable convertible notes which are held in restricted cash . we have never been profitable and have incurred significant operating losses in each year since inception . our net losses were $ 14.8 million and $ 6.6 million for years ended december 31 , 2015 and 2014 , respectively . as of december 31 , 2015 , we had an accumulated deficit of $ 131.0 million . substantially all of our operating losses 60 resulted from expenses incurred in connection with our research and development programs and from general and administrative costs associated with our operations . our operating costs have decreased since 2012 due to the termination of the research activities under the pfizer agreement and other agreements , a restructuring of our operations that included a reduction in work force , and the focusing of our research programs . story_separator_special_tag ( 3 ) we had unrecognized tax benefits in the amount of $ 1.3 million as of december 31 , 2015 related to uncertain tax positions . however , there is uncertainty regarding when these benefits will require settlement so these amounts were not included in the contractual obligations table above . off-balance sheet arrangements we do not have any off-balance sheet arrangements . critical accounting polices and estimates the preparation of financial statements and related disclosures in conformity with u.s. generally accepted accounting principles ( gaap ) and the company 's discussion and analysis of its financial condition and operating results require the company 's management to make judgments , assumptions and estimates that affect the amounts reported in its consolidated financial statements and accompanying notes . our significant accounting policies and methods used in preparation of the company 's consolidated financial statements are described in note 2 summary of significant accounting policies of the notes to consolidated financial statements of this annual report on form 10-k. management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities . actual results may differ from these estimates , and such differences may be material . 68 management believes the company 's critical accounting policies and estimates discussed below are critical to understanding its historical and future performance , as these policies relate to the more significant areas involving management 's judgments and estimates . revenue recognition we generate revenue from collaboration agreements pursuant to which we seek the development and commercialization of our product candidates . collaboration agreements provide for the payment to us of up-front license fees , success-based milestone payments , fte-based payments for research services and royalties on any future sales of commercialized products that result from the collaboration . our performance obligations under our remaining collaboration agreement include licenses of intellectual property rights , obligations to provide research and development services , related clinical drug supply and regulatory approval services , and obligations to participate on certain development and or commercialization committees with the collaborators . payments of up-front license fees are recorded as deferred revenue in our balance sheet and are recognized as contract revenue over our estimated period of performance in a manner consistent with the terms of the research and development obligations contained in the respective collaboration agreement . we regularly review the estimated periods of performance related to our collaboration agreements based on the progress made under each arrangement . our estimates of our performance period may change over the course of the agreement term . such a change could have a material impact on the amount of revenue we record in future periods . payments to us for research and development and regulatory approval services are recognized as the services are performed , in accordance with the respective contract terms . payments for such services may be made to or by us based on the number of full-time equivalent researchers assigned to the collaboration project and the related research and development expenses incurred . revenue recognition for multiple element revenue arrangements will have deliverables associated with the arrangement divided into separate units of accounting provided that ( i ) a delivered item has value to the customer on a standalone basis and ( ii ) if the arrangement includes a general right of return relative to the delivered item , delivery or performance of the undelivered item is considered probable and substantially in the control of the vendor . as a biotechnology company with unique and specialized technological undelivered performance obligations associated with our collaborations , our multiple element arrangements have in the past often involved deliverables and consideration that do not meet the criteria for having stand-alone value . such deliverables and consideration must be accounted for under a single unit of accounting along with other arrangement deliverables and consideration that do not have stand-alone value and are recognized as revenue over the estimated period that the performance obligations are to be performed . the revenue is recognized on a proportional performance basis when the levels of the performance obligations under an arrangement can be reasonably estimated and on a straight-line basis when they can not . we also adopted guidance that permits the recognition of revenue contingent upon the achievement of a milestone in its entirety , in the period in which the milestone is achieved , only if the milestone meets certain criteria and is considered to be substantive . as such , we plan to recognize revenue in the period in which the milestone is achieved , only if the milestone is considered to be substantive based on the following criteria : the milestone is commensurate with either ( i ) the vendor 's performance to achieve the milestone , or ( ii ) the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from the vendor 's performance to achieve the milestone ; the milestone relates solely to past performance ; and the milestone is reasonable relative to all of the deliverables and payment terms ( including other potential milestone consideration ) within the arrangement . 69 accrued research and development expenses we record accrued expenses for estimated costs of our research and development activities conducted by external 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 includes these costs in accrued liabilities in the balance sheet and within research and development expense in the consolidated statement of operations . 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

