on may 9 , 2019 , c3j completed a reverse merger with ampliphi , where ceres merger sub , inc. , a wholly-owned subsidiary of ampliphi , merged with and into c3j . following the completion of the merger , and a $ 10.0 million concurrent private placement financing , the former c3j stockholders owned approximately 76 % of our common stock and the former ampliphi stockholders owned approximately 24 % of our common stock . immediately prior to the merger , ampliphi completed a 1-for-14 reverse stock split and changed its name to armata pharmaceuticals , inc. our common stock is traded on the nyse american exchange under the symbol “ armp . ” we are headquartered in marina del rey , ca , in a 35,500 square-foot research and development facility built for product development with capabilities spanning from bench to clinic . in addition to microbiology , synthetic biology , formulation , chemistry and analytical laboratories , the facility is equipped with two licensed gmp drug manufacturing suites enabling the production , testing and release of clinical material . statements contained in this annual report that are not statements of historical fact are forward-looking statements within the meaning of the u.s. private securities litigation reform act of 1995. such forward-looking statements include , without limitation , statements concerning product development plans , commercialization of our products , the expected market opportunity for our products , the use of bacteriophages and synthetic phages to kill bacterial pathogens , having resources sufficient to fund our operations into the second quarter of 2021 , future funding sources , general and administrative expenses , clinical trial and other research and development expenses , costs of manufacturing , costs relating to our intellectual property , capital expenditures , the expected benefits of our targeted phage therapies strategy , the potential market for our products , tax credits and carry-forwards , and litigation-related matters . words such as “ believe , ” “ anticipate , ” “ plan , ” “ expect , ” “ intend , ” “ will , ” “ goal , ” “ potential ” and similar expressions are intended to identify forward-looking statements , though not all forward-looking statements necessarily contain these identifying words . these statements are subject to risks and uncertainties . our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors , including those set forth below under item 1a , “ risk factors ” and elsewhere in this annual report on form 10-k. these forward-looking statements speak only as of the date on which they were made , and we undertake no obligation to update any forward-looking statements . overview we are a clinical-stage biotechnology company focused on the development of precisely targeted bacteriophage therapeutics for the treatment of antibiotic-resistant infections using our proprietary bacteriophage-based technology . bacteriophages or “ phages ” have a powerful and highly differentiated mechanism of action that enables binding to and killing specific bacteria , in contrast to traditional broad-spectrum antibiotics . we believe that phages represent a promising means to treat bacterial infections , especially those that have developed resistance to current standard of care therapies , including the so-called multidrug-resistant or “ superbug ” strains of bacteria . we are a leading developer of phage therapeutics , which are uniquely positioned to address the growing worldwide threat of antibiotic-resistant bacterial infections . we are combining our proprietary approach and expertise in identifying , characterizing and developing both naturally-occurring and engineered ( synthetic ) bacteriophages with our proprietary phage-specific good manufacturing practice compliance ( “ cgmp ” ) manufacturing capabilities to advance a broad pipeline of high-quality bacteriophage product candidates . we believe that synthetic phage , engineered using advances in sequencing and synthetic biology techniques , represent a promising means to advance phage therapy , including phage-based diagnostics and improving upon the ability of natural phage to treat bacterial infections , especially those that have developed resistance to current antibiotic therapies , including the multidrug-resistant or “ superbug ” bacterial pathogens . our phage product candidates aim to address areas of significant unmet clinical need , by targeting key antibiotic-resistant bacteria including those on the world health organization 's global priority pathogens list . 66 we are developing and advancing our second-generation phage product candidate for pseudomonas aeruginosa ( “ p. aeruginosa ” ) , known as ap-pa02 . we anticipate initiating a phase 1b/2 , multi-center , double-blind , randomized , placebo-controlled , single and multiple ascending dose study to evaluate the safety , tolerability , and preliminary efficacy of ap-pa02 in subjects with cystic fibrosis ( “ cf ” ) and chronic pulmonary p. aeruginosa infection in the first half of 2020. we are also developing a second-generation phage product candidate for staphylococcus aureus ( “ s. aureus ” ) , known as ap-sa02 , for the treatment of s. aureus bacteremia . we intend to file an ind application with the fda to initiate a phase 1/2 , multi-center , randomized , double-blind , placebo- controlled dose escalation study that will assess the safety , tolerability , and efficacy of ap-sa02 in the second half of 2020. in partnership with merck & co. , known as merck sharp & dohme outside of the united states and canada ( “ merck ” ) , we are developing proprietary synthetic phage candidates to target undisclosed infectious disease agents . our proprietary phage engineering platform serves to enhance the clinical and commercial prospects of phage therapy . story_separator_special_tag in february 2020 , we completed the first closing of the private placement and raised gross proceeds of $ 2.8 million . considering our current cash resources and the assumed proceeds from the second closing of the private placement with innoviva , management believes our cash resources will be sufficient to fund our planned operations into the second quarter of 2021. for the foreseeable future , our ability to continue its operations is dependent upon our ability to obtain additional capital . future capital requirements we will need to raise additional capital in the future to continue to fund our operations . our future funding requirements will depend on many factors , including : · the costs and timing of our research and development activities ; · the progress and cost of our clinical trials and other research and development activities ; · manufacturing costs associated with our targeted phage therapies strategy and other research and development activities ; · the terms and timing of any collaborative , licensing , acquisition or other arrangements that we may establish ; · whether and when we receive future australian tax rebates , if any ; · the costs and timing of seeking regulatory approvals ; · the costs of filing , prosecuting and enforcing any patent applications , claims , patents and other intellectual property rights ; and · the costs of potential lawsuits involving us or our product candidates . we may seek to raise capital through a variety of sources , including : · the public equity market ; · private equity financings ; · collaborative arrangements , government grants or strategic financings ; · licensing arrangements ; and · story_separator_special_tag potential impairment , or comparing a reporting unit 's estimated fair value to its carrying amount . if a quantitative assessment is performed the evaluation includes management estimates of cash flow projections based on internal future projections and or use of a market approach by looking at market values of comparable companies . our market capitalization is also considered as a part of this analysis . 71 in accordance with our accounting policy , we completed the annual evaluation for impairment of goodwill as of december 31 , 2019 using the qualitative method and determined that no impairment existed . impairment review of in-process research and development ( “ ipr & d ” ) we test our ipr & d asset for impairment as of december 31 of each year or more frequently if indicators of impairment are present . the authoritative accounting guidance provides an optional qualitative assessment for any indicators that indefinite-lived intangible assets are impaired . if it is determined that it is more likely than not that the indefinite-lived intangible assets , including ipr & d , are impaired , the fair value of the indefinite-lived intangible assets is compared with the carrying amount and impairment is recorded for any excess of the carrying amount over the fair value of the indefinite-lived intangible assets . if and when a quantitative analysis of ipr & d assets is required based on the result of the optional qualitative assessment , the estimated fair value of ipr & d assets is calculated based on the income approach , which includes discounting expected future net cash flows associated with the assets to a net present value . the fair value measurements utilized to perform the impairment analysis are categorized within level 3 of the fair value hierarchy . significant management judgment is required in the forecast of future operating results that are used in our impairment analysis . the estimates management use are consistent with the plans and estimates that it uses to manage its business . significant assumptions utilized the income approach model include the timing of clinical studies and regulatory approvals , the probability of success of its research and development programs , timing of commercialization of these programs , forecasted sales , gross margin , selling , general and administrative expenses , capital expenditures , as well as anticipated growth rates . our analysis indicated no impairment existed . valuation of derivatives in connection with the synthetic phage platform , we provided sgi with the right to receive additional payments upon the occurrence of specified events related to 1 ) the initial public offering of shares of c3j 's common stock pursuant to an effective registration statement under the securities act , 2 ) the sale of all or substantially all the assets of c3j to a third party , or 3 ) a consolidation or merger into a third party . we determined that these contingent rights are required to be accounted for as derivatives in accordance with asc 815 — derivatives and hedging . we estimate the fair value of this derivative by forecasting the timing and likelihood of the events occurring and discounting the probability adjusted payments using an appropriate discount based on market interest rates and our own non-performance risk as required by asc 820 — fair value measurement . stock-based compensation compensation expense related to stock options granted is measured at the grant date based on the estimated fair value of the award and is recognized on an accelerated attribution method over the requisite service period . we determine the estimated fair value of each stock option on the date of grant using the black-scholes valuation model which uses assumptions regarding a number of complex and subjective variables . the risk-free interest rate is based on the u.s. treasury yield for a period consistent with the expected term of the option in effect at the time of the grant . expected volatility is based on the historical volatility of our common stock . the expected term represents the period that we expect our stock options to be outstanding . the expected term assumption is estimated using the simplified method set forth in the u.s. securities and exchange ( the “ sec ” ) staff accounting bulletin 110 , which is the

public or private debt . any additional fundraising efforts may divert our management team from their day to day activities , which may adversely affect our ability to develop and commercialize our product candidates . our ability to raise additional funds will depend , in part , on the success of our product development activities , including our targeted phage therapies strategy and any clinical trials we initiate , regulatory events , our ability to identify and enter into in-licensing or other strategic arrangements , and other events or conditions that may affect our value or prospects , as well as factors related to financial , economic and market conditions , many of which are beyond our control . we can not be certain that sufficient 70 funds will be available to us when required or on acceptable terms . if we are unable to secure additional funds on a timely basis or on acceptable terms , we may be required to defer , reduce or eliminate significant planned expenditures , restructure , curtail or eliminate some or all of our development programs or other operations , dispose of technology or assets , pursue an acquisition of our company by a third party at a price that may result in a loss on investment for our stockholders , enter into arrangements that may require us to relinquish rights to certain of our product candidates , technologies or potential markets , file for bankruptcy or cease operations altogether . any of these events could have a material adverse effect on our business , financial condition and results of operations .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```public or private debt . any additional fundraising efforts may divert our management team from their day to day activities , which may adversely affect our ability to develop and commercialize our product candidates . our ability to raise additional funds will depend , in part , on the success of our product development activities , including our targeted phage therapies strategy and any clinical trials we initiate , regulatory events , our ability to identify and enter into in-licensing or other strategic arrangements , and other events or conditions that may affect our value or prospects , as well as factors related to financial , economic and market conditions , many of which are beyond our control . we can not be certain that sufficient 70 funds will be available to us when required or on acceptable terms . if we are unable to secure additional funds on a timely basis or on acceptable terms , we may be required to defer , reduce or eliminate significant planned expenditures , restructure , curtail or eliminate some or all of our development programs or other operations , dispose of technology or assets , pursue an acquisition of our company by a third party at a price that may result in a loss on investment for our stockholders , enter into arrangements that may require us to relinquish rights to certain of our product candidates , technologies or potential markets , file for bankruptcy or cease operations altogether . any of these events could have a material adverse effect on our business , financial condition and results of operations .
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 Suspicious Activity Report : on may 9 , 2019 , c3j completed a reverse merger with ampliphi , where ceres merger sub , inc. , a wholly-owned subsidiary of ampliphi , merged with and into c3j . following the completion of the merger , and a $ 10.0 million concurrent private placement financing , the former c3j stockholders owned approximately 76 % of our common stock and the former ampliphi stockholders owned approximately 24 % of our common stock . immediately prior to the merger , ampliphi completed a 1-for-14 reverse stock split and changed its name to armata pharmaceuticals , inc. our common stock is traded on the nyse american exchange under the symbol “ armp . ” we are headquartered in marina del rey , ca , in a 35,500 square-foot research and development facility built for product development with capabilities spanning from bench to clinic . in addition to microbiology , synthetic biology , formulation , chemistry and analytical laboratories , the facility is equipped with two licensed gmp drug manufacturing suites enabling the production , testing and release of clinical material . statements contained in this annual report that are not statements of historical fact are forward-looking statements within the meaning of the u.s. private securities litigation reform act of 1995. such forward-looking statements include , without limitation , statements concerning product development plans , commercialization of our products , the expected market opportunity for our products , the use of bacteriophages and synthetic phages to kill bacterial pathogens , having resources sufficient to fund our operations into the second quarter of 2021 , future funding sources , general and administrative expenses , clinical trial and other research and development expenses , costs of manufacturing , costs relating to our intellectual property , capital expenditures , the expected benefits of our targeted phage therapies strategy , the potential market for our products , tax credits and carry-forwards , and litigation-related matters . words such as “ believe , ” “ anticipate , ” “ plan , ” “ expect , ” “ intend , ” “ will , ” “ goal , ” “ potential ” and similar expressions are intended to identify forward-looking statements , though not all forward-looking statements necessarily contain these identifying words . these statements are subject to risks and uncertainties . our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors , including those set forth below under item 1a , “ risk factors ” and elsewhere in this annual report on form 10-k. these forward-looking statements speak only as of the date on which they were made , and we undertake no obligation to update any forward-looking statements . overview we are a clinical-stage biotechnology company focused on the development of precisely targeted bacteriophage therapeutics for the treatment of antibiotic-resistant infections using our proprietary bacteriophage-based technology . bacteriophages or “ phages ” have a powerful and highly differentiated mechanism of action that enables binding to and killing specific bacteria , in contrast to traditional broad-spectrum antibiotics . we believe that phages represent a promising means to treat bacterial infections , especially those that have developed resistance to current standard of care therapies , including the so-called multidrug-resistant or “ superbug ” strains of bacteria . we are a leading developer of phage therapeutics , which are uniquely positioned to address the growing worldwide threat of antibiotic-resistant bacterial infections . we are combining our proprietary approach and expertise in identifying , characterizing and developing both naturally-occurring and engineered ( synthetic ) bacteriophages with our proprietary phage-specific good manufacturing practice compliance ( “ cgmp ” ) manufacturing capabilities to advance a broad pipeline of high-quality bacteriophage product candidates . we believe that synthetic phage , engineered using advances in sequencing and synthetic biology techniques , represent a promising means to advance phage therapy , including phage-based diagnostics and improving upon the ability of natural phage to treat bacterial infections , especially those that have developed resistance to current antibiotic therapies , including the multidrug-resistant or “ superbug ” bacterial pathogens . our phage product candidates aim to address areas of significant unmet clinical need , by targeting key antibiotic-resistant bacteria including those on the world health organization 's global priority pathogens list . 66 we are developing and advancing our second-generation phage product candidate for pseudomonas aeruginosa ( “ p. aeruginosa ” ) , known as ap-pa02 . we anticipate initiating a phase 1b/2 , multi-center , double-blind , randomized , placebo-controlled , single and multiple ascending dose study to evaluate the safety , tolerability , and preliminary efficacy of ap-pa02 in subjects with cystic fibrosis ( “ cf ” ) and chronic pulmonary p. aeruginosa infection in the first half of 2020. we are also developing a second-generation phage product candidate for staphylococcus aureus ( “ s. aureus ” ) , known as ap-sa02 , for the treatment of s. aureus bacteremia . we intend to file an ind application with the fda to initiate a phase 1/2 , multi-center , randomized , double-blind , placebo- controlled dose escalation study that will assess the safety , tolerability , and efficacy of ap-sa02 in the second half of 2020. in partnership with merck & co. , known as merck sharp & dohme outside of the united states and canada ( “ merck ” ) , we are developing proprietary synthetic phage candidates to target undisclosed infectious disease agents . our proprietary phage engineering platform serves to enhance the clinical and commercial prospects of phage therapy . story_separator_special_tag in february 2020 , we completed the first closing of the private placement and raised gross proceeds of $ 2.8 million . considering our current cash resources and the assumed proceeds from the second closing of the private placement with innoviva , management believes our cash resources will be sufficient to fund our planned operations into the second quarter of 2021. for the foreseeable future , our ability to continue its operations is dependent upon our ability to obtain additional capital . future capital requirements we will need to raise additional capital in the future to continue to fund our operations . our future funding requirements will depend on many factors , including : · the costs and timing of our research and development activities ; · the progress and cost of our clinical trials and other research and development activities ; · manufacturing costs associated with our targeted phage therapies strategy and other research and development activities ; · the terms and timing of any collaborative , licensing , acquisition or other arrangements that we may establish ; · whether and when we receive future australian tax rebates , if any ; · the costs and timing of seeking regulatory approvals ; · the costs of filing , prosecuting and enforcing any patent applications , claims , patents and other intellectual property rights ; and · the costs of potential lawsuits involving us or our product candidates . we may seek to raise capital through a variety of sources , including : · the public equity market ; · private equity financings ; · collaborative arrangements , government grants or strategic financings ; · licensing arrangements ; and · story_separator_special_tag potential impairment , or comparing a reporting unit 's estimated fair value to its carrying amount . if a quantitative assessment is performed the evaluation includes management estimates of cash flow projections based on internal future projections and or use of a market approach by looking at market values of comparable companies . our market capitalization is also considered as a part of this analysis . 71 in accordance with our accounting policy , we completed the annual evaluation for impairment of goodwill as of december 31 , 2019 using the qualitative method and determined that no impairment existed . impairment review of in-process research and development ( “ ipr & d ” ) we test our ipr & d asset for impairment as of december 31 of each year or more frequently if indicators of impairment are present . the authoritative accounting guidance provides an optional qualitative assessment for any indicators that indefinite-lived intangible assets are impaired . if it is determined that it is more likely than not that the indefinite-lived intangible assets , including ipr & d , are impaired , the fair value of the indefinite-lived intangible assets is compared with the carrying amount and impairment is recorded for any excess of the carrying amount over the fair value of the indefinite-lived intangible assets . if and when a quantitative analysis of ipr & d assets is required based on the result of the optional qualitative assessment , the estimated fair value of ipr & d assets is calculated based on the income approach , which includes discounting expected future net cash flows associated with the assets to a net present value . the fair value measurements utilized to perform the impairment analysis are categorized within level 3 of the fair value hierarchy . significant management judgment is required in the forecast of future operating results that are used in our impairment analysis . the estimates management use are consistent with the plans and estimates that it uses to manage its business . significant assumptions utilized the income approach model include the timing of clinical studies and regulatory approvals , the probability of success of its research and development programs , timing of commercialization of these programs , forecasted sales , gross margin , selling , general and administrative expenses , capital expenditures , as well as anticipated growth rates . our analysis indicated no impairment existed . valuation of derivatives in connection with the synthetic phage platform , we provided sgi with the right to receive additional payments upon the occurrence of specified events related to 1 ) the initial public offering of shares of c3j 's common stock pursuant to an effective registration statement under the securities act , 2 ) the sale of all or substantially all the assets of c3j to a third party , or 3 ) a consolidation or merger into a third party . we determined that these contingent rights are required to be accounted for as derivatives in accordance with asc 815 — derivatives and hedging . we estimate the fair value of this derivative by forecasting the timing and likelihood of the events occurring and discounting the probability adjusted payments using an appropriate discount based on market interest rates and our own non-performance risk as required by asc 820 — fair value measurement . stock-based compensation compensation expense related to stock options granted is measured at the grant date based on the estimated fair value of the award and is recognized on an accelerated attribution method over the requisite service period . we determine the estimated fair value of each stock option on the date of grant using the black-scholes valuation model which uses assumptions regarding a number of complex and subjective variables . the risk-free interest rate is based on the u.s. treasury yield for a period consistent with the expected term of the option in effect at the time of the grant . expected volatility is based on the historical volatility of our common stock . the expected term represents the period that we expect our stock options to be outstanding . the expected term assumption is estimated using the simplified method set forth in the u.s. securities and exchange ( the “ sec ” ) staff accounting bulletin 110 , which is the

