” in addition , even if our results of operations , financial condition and liquidity , and the developments in our business and the industry in which we operate are consistent with the forward-looking statements contained in this annual report , they may not be predictive of results or developments in future periods . we caution readers not to place undue reliance on any forward-looking statements made by us , which speak only as of the date they are made . we disclaim any obligation , except as specifically required by law and the rules of the sec to publicly update or revise any such statements to reflect any change in our expectations or in events , conditions or circumstances on which any such statements may be based , or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements . overview we are a clinical-stage biotechnology company focused on pioneering a new approach to treat complex diseases and improve health using endogenous metabolic modulator , or emm , compositions . our product candidates are comprised of multiple emms that are engineered in distinct combinations and ratios with the goal of simultaneously impacting multiple biological pathways . our pipeline includes our lead therapeutic candidates : axa1665 for the reduction in risk of recurrent overt hepatic encephalopathy , or ohe , and axa1125 for non-alcoholic steatohepatitis , or nash . using our development platform , we have efficiently designed product candidates that are comprised of amino acids and their derivatives , which have a general history of safe use . the orally administered emm compositions that we have tested to date have shown the potential to generate multifactorial effects in our initial clinical studies . to date , we have funded our operations with proceeds from the sale of preferred stock and common stock , and borrowing of debt . since our inception , we have incurred significant operating losses . our ability to generate product revenue sufficient to achieve profitability will depend heavily on the successful development and eventual commercialization of one or more of our current or future product candidates . our net losses were $ 56.5 million and $ 59.0 million for the years ended december 31 , 2020 and 2019 , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 272.6 million . we expect to continue to incur significant expenses for at least the next several years as we continue to develop our product candidates . as a result , we will need substantial additional funding to support our continuing operations and pursue our growth strategy . until such time as we can generate significant revenue from product sales , if ever , we expect to finance our operations through a combination of equity offerings , debt financings , strategic alliances and marketing and licensing arrangements . we may be unable to raise additional funds or enter into such other agreements or arrangements when needed on favorable terms , or at all . if we fail to raise capital or enter into such agreements as , and when , needed , we may have to significantly delay , scale back or discontinue the development and commercialization of one or more of our product candidates or delay our pursuit of potential in-licenses or acquisitions . because of the numerous risks and uncertainties associated with product development , we are unable to predict the timing or amount of increased expenses or when or if we will be able to achieve or maintain profitability . even if we are able to generate product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . 105 table of contents as of december 31 , 2020 , we had cash , cash equivalents , and marketable securities of $ 107.3 million . we believe that our existing cash , cash equivalents , and marketable securities as of december 31 , 2020 will enable us to fund our operating expenses , capital expenditure requirements and debt service payments for at least the next 12 months following the filing date of this annual report on form 10-k. we have based this estimate on assumptions that may prove to be wrong , and we could exhaust our available capital resources sooner than we expect . see “ —liquidity and capital resources . ” to finance our operations significantly beyond that point , we will need to raise additional capital , which can not be assured . the extent to which covid-19 impacts our business , operations or financial results will depend on future developments , which are highly uncertain and can not be predicted with confidence , such as the duration of the pandemic , new information that may emerge concerning the severity of covid-19 or the nature or effectiveness of actions to contain covid-19 or treat its impact , among others . we can not presently predict the scope and severity of any potential business shutdowns or disruptions . if we or any of the third parties with whom we engage , however , were to experience shutdowns or other business disruptions , our ability to conduct our business in the manner and on the timelines presently planned could be materially and negatively affected , which could have a material adverse impact on our business , results of operations and financial condition . story_separator_special_tag we also intend to continue to evaluate options to refinance our outstanding long-term debt . the amounts involved in any such transactions , individually or in the aggregate , may be material . critical accounting policies and significant judgments and estimates our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the united states . the preparation of our consolidated financial statements and related disclosures requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenue , costs and expenses , and the disclosure of contingent assets and liabilities in our financial statements . we base our estimates on historical experience , known trends and events and various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . we evaluate our estimates and assumptions on an ongoing basis . our actual results may differ from these estimates under different assumptions or conditions . while our significant accounting policies are described in more detail in note 2 to our consolidated financial statements appearing elsewhere in this annual report , we believe that the following accounting policies are those most critical to the judgments and estimates used in the preparation of our consolidated financial statements . 111 table of contents accrued research and development expenses as part of the process of preparing our consolidated financial statements , we are required to estimate our accrued research and development expenses . this process involves reviewing open contracts and purchase orders , communicating with our personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual costs . the majority of our service providers invoice us in arrears for services performed , on a pre-determined schedule or when contractual milestones are met ; however , some require advanced payments . we make estimates of our accrued expenses as of each balance sheet date in the consolidated financial statements based on facts and circumstances known to us at that time . we periodically confirm the accuracy of these estimates with the service providers and make adjustments if necessary . examples of estimated accrued research and development expenses include fees paid to vendors including cros and cmos for research and development services . we base our expenses related to research and development on our estimates of the services received and efforts expended pursuant to quotes and contracts with cros that conduct and manage clinical trials , clinical studies and preclinical development activities on our behalf . the financial terms of these agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . there may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the expense . payments under some of these contracts depend on factors such as the successful enrollment of patients or subjects and the completion of clinical milestones . in accruing service fees , we estimate the time period over which services will be performed and the level of effort to be expended in each period . if the actual timing of the performance of services or the level of effort varies from the estimate , we adjust the accrual or the amount of prepaid expenses accordingly . 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 relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period . to date , there have not been any material adjustments to our prior estimates of accrued research and development expenses . stock-based compensation we estimate the fair value of our stock-based awards to employees and non-employees using the black-scholes option-pricing model , which requires the input of highly subjective assumptions , including ( a ) the expected volatility of our stock , ( b ) the expected term of the award , ( c ) the risk-free interest rate , and ( d ) expected dividends . due to the lack of company-specific historical and implied volatility data , we base our estimate of expected volatility on the historical volatility of a group of companies in the pharmaceutical and biotechnology industries in a similar stage of development as us and that are publicly traded . for these analyses , we have selected companies with comparable characteristics to ours including enterprise value , risk profiles and with historical share price information sufficient to meet the expected life of the stock-based awards . we compute the historical volatility data using the daily closing prices for the selected companies ' shares during the equivalent period of the calculated expected term of our stock-based awards . we will continue to apply this process until a sufficient amount of historical information regarding the volatility of our own stock price becomes available . we have estimated the expected life of our employee stock options using the `` simplified `` method , whereby , the expected life equals the average of the vesting term and the original contractual term of the option . the risk-free interest rates for periods within the expected life of the option are based on the u.s. treasury yield curve in effect during the period the options were granted . we have elected to account for forfeitures as they occur . off-balance sheet arrangements we did not have during the periods presented , and we do not have , any off-balance sheet arrangements , as defined under applicable sec rules and regulations . 112 table of contents

liquidity and capital resources since our inception , we have not generated any revenue and have incurred significant operating losses and negative cash flows from our operations . we have funded our operations to date primarily with proceeds from the sale of preferred stock and common stock , and borrowings under our loan and security agreement . on may 18 , 2020 , we completed a follow-on public offering pursuant to which we issued an aggregate of 12,650,000 shares of our common stock for net proceeds of approximately $ 55.9 million after deducting the underwriting discounts and commissions and other offering expenses . on june 5 , 2020 , we entered into a sales agreement with svb leerink llc ( “ svb leerink ” ) pursuant to which we may offer and sell shares of our common stock having an aggregate offering price of up to $ 35.0 million from time to time through svb leerink , acting as our agent ( the “ atm offering ” ) . during the year ended december 31 , 2020 , we sold an aggregate of 1,721,267 shares of common stock under the atm offering for net cash proceeds of $ 9.3 million after deducting commissions and expenses of $ 0.5 million .


 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 since our inception , we have not generated any revenue and have incurred significant operating losses and negative cash flows from our operations . we have funded our operations to date primarily with proceeds from the sale of preferred stock and common stock , and borrowings under our loan and security agreement . on may 18 , 2020 , we completed a follow-on public offering pursuant to which we issued an aggregate of 12,650,000 shares of our common stock for net proceeds of approximately $ 55.9 million after deducting the underwriting discounts and commissions and other offering expenses . on june 5 , 2020 , we entered into a sales agreement with svb leerink llc ( “ svb leerink ” ) pursuant to which we may offer and sell shares of our common stock having an aggregate offering price of up to $ 35.0 million from time to time through svb leerink , acting as our agent ( the “ atm offering ” ) . during the year ended december 31 , 2020 , we sold an aggregate of 1,721,267 shares of common stock under the atm offering for net cash proceeds of $ 9.3 million after deducting commissions and expenses of $ 0.5 million .
```    
 Suspicious Activity Report : ” in addition , even if our results of operations , financial condition and liquidity , and the developments in our business and the industry in which we operate are consistent with the forward-looking statements contained in this annual report , they may not be predictive of results or developments in future periods . we caution readers not to place undue reliance on any forward-looking statements made by us , which speak only as of the date they are made . we disclaim any obligation , except as specifically required by law and the rules of the sec to publicly update or revise any such statements to reflect any change in our expectations or in events , conditions or circumstances on which any such statements may be based , or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements . overview we are a clinical-stage biotechnology company focused on pioneering a new approach to treat complex diseases and improve health using endogenous metabolic modulator , or emm , compositions . our product candidates are comprised of multiple emms that are engineered in distinct combinations and ratios with the goal of simultaneously impacting multiple biological pathways . our pipeline includes our lead therapeutic candidates : axa1665 for the reduction in risk of recurrent overt hepatic encephalopathy , or ohe , and axa1125 for non-alcoholic steatohepatitis , or nash . using our development platform , we have efficiently designed product candidates that are comprised of amino acids and their derivatives , which have a general history of safe use . the orally administered emm compositions that we have tested to date have shown the potential to generate multifactorial effects in our initial clinical studies . to date , we have funded our operations with proceeds from the sale of preferred stock and common stock , and borrowing of debt . since our inception , we have incurred significant operating losses . our ability to generate product revenue sufficient to achieve profitability will depend heavily on the successful development and eventual commercialization of one or more of our current or future product candidates . our net losses were $ 56.5 million and $ 59.0 million for the years ended december 31 , 2020 and 2019 , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 272.6 million . we expect to continue to incur significant expenses for at least the next several years as we continue to develop our product candidates . as a result , we will need substantial additional funding to support our continuing operations and pursue our growth strategy . until such time as we can generate significant revenue from product sales , if ever , we expect to finance our operations through a combination of equity offerings , debt financings , strategic alliances and marketing and licensing arrangements . we may be unable to raise additional funds or enter into such other agreements or arrangements when needed on favorable terms , or at all . if we fail to raise capital or enter into such agreements as , and when , needed , we may have to significantly delay , scale back or discontinue the development and commercialization of one or more of our product candidates or delay our pursuit of potential in-licenses or acquisitions . because of the numerous risks and uncertainties associated with product development , we are unable to predict the timing or amount of increased expenses or when or if we will be able to achieve or maintain profitability . even if we are able to generate product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . 105 table of contents as of december 31 , 2020 , we had cash , cash equivalents , and marketable securities of $ 107.3 million . we believe that our existing cash , cash equivalents , and marketable securities as of december 31 , 2020 will enable us to fund our operating expenses , capital expenditure requirements and debt service payments for at least the next 12 months following the filing date of this annual report on form 10-k. we have based this estimate on assumptions that may prove to be wrong , and we could exhaust our available capital resources sooner than we expect . see “ —liquidity and capital resources . ” to finance our operations significantly beyond that point , we will need to raise additional capital , which can not be assured . the extent to which covid-19 impacts our business , operations or financial results will depend on future developments , which are highly uncertain and can not be predicted with confidence , such as the duration of the pandemic , new information that may emerge concerning the severity of covid-19 or the nature or effectiveness of actions to contain covid-19 or treat its impact , among others . we can not presently predict the scope and severity of any potential business shutdowns or disruptions . if we or any of the third parties with whom we engage , however , were to experience shutdowns or other business disruptions , our ability to conduct our business in the manner and on the timelines presently planned could be materially and negatively affected , which could have a material adverse impact on our business , results of operations and financial condition . story_separator_special_tag we also intend to continue to evaluate options to refinance our outstanding long-term debt . the amounts involved in any such transactions , individually or in the aggregate , may be material . critical accounting policies and significant judgments and estimates our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the united states . the preparation of our consolidated financial statements and related disclosures requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenue , costs and expenses , and the disclosure of contingent assets and liabilities in our financial statements . we base our estimates on historical experience , known trends and events and various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . we evaluate our estimates and assumptions on an ongoing basis . our actual results may differ from these estimates under different assumptions or conditions . while our significant accounting policies are described in more detail in note 2 to our consolidated financial statements appearing elsewhere in this annual report , we believe that the following accounting policies are those most critical to the judgments and estimates used in the preparation of our consolidated financial statements . 111 table of contents accrued research and development expenses as part of the process of preparing our consolidated financial statements , we are required to estimate our accrued research and development expenses . this process involves reviewing open contracts and purchase orders , communicating with our personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual costs . the majority of our service providers invoice us in arrears for services performed , on a pre-determined schedule or when contractual milestones are met ; however , some require advanced payments . we make estimates of our accrued expenses as of each balance sheet date in the consolidated financial statements based on facts and circumstances known to us at that time . we periodically confirm the accuracy of these estimates with the service providers and make adjustments if necessary . examples of estimated accrued research and development expenses include fees paid to vendors including cros and cmos for research and development services . we base our expenses related to research and development on our estimates of the services received and efforts expended pursuant to quotes and contracts with cros that conduct and manage clinical trials , clinical studies and preclinical development activities on our behalf . the financial terms of these agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . there may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the expense . payments under some of these contracts depend on factors such as the successful enrollment of patients or subjects and the completion of clinical milestones . in accruing service fees , we estimate the time period over which services will be performed and the level of effort to be expended in each period . if the actual timing of the performance of services or the level of effort varies from the estimate , we adjust the accrual or the amount of prepaid expenses accordingly . 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 relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period . to date , there have not been any material adjustments to our prior estimates of accrued research and development expenses . stock-based compensation we estimate the fair value of our stock-based awards to employees and non-employees using the black-scholes option-pricing model , which requires the input of highly subjective assumptions , including ( a ) the expected volatility of our stock , ( b ) the expected term of the award , ( c ) the risk-free interest rate , and ( d ) expected dividends . due to the lack of company-specific historical and implied volatility data , we base our estimate of expected volatility on the historical volatility of a group of companies in the pharmaceutical and biotechnology industries in a similar stage of development as us and that are publicly traded . for these analyses , we have selected companies with comparable characteristics to ours including enterprise value , risk profiles and with historical share price information sufficient to meet the expected life of the stock-based awards . we compute the historical volatility data using the daily closing prices for the selected companies ' shares during the equivalent period of the calculated expected term of our stock-based awards . we will continue to apply this process until a sufficient amount of historical information regarding the volatility of our own stock price becomes available . we have estimated the expected life of our employee stock options using the `` simplified `` method , whereby , the expected life equals the average of the vesting term and the original contractual term of the option . the risk-free interest rates for periods within the expected life of the option are based on the u.s. treasury yield curve in effect during the period the options were granted . we have elected to account for forfeitures as they occur . off-balance sheet arrangements we did not have during the periods presented , and we do not have , any off-balance sheet arrangements , as defined under applicable sec rules and regulations . 112 table of contents

