52 based on years of focused research in the nnr area , and notwithstanding our clinical development setbacks , we continue to believe that compounds that interact selectively with specific nnr subtypes have the potential to achieve positive medical effects by modulating their activity . we have built a patent estate covering the structure or therapeutic use of small molecules designed to regulate activity in the body by selectively affecting specific nnr subtypes . we do not have current plans to continue development of any of our nnr programs internally . instead we would seek to out-license or sell those assets to one or more third parties . our most advanced nnr product candidates are tc-6499 , tc-6683 ( formerly azd1446 ) , tc-5619 , tc-6987 , tc-1734 and tc 5214 , and they are discussed under the caption business in item 1 of part i of this annual report . we were party to a collaboration agreement with astrazeneca focused on compounds that act on the a 4ß2 nnr , which astrazeneca terminated in october 2014 , effective january 2015. under the agreement astrazeneca was granted an exclusive license to tc-6683 and an earlier-stage compound that arose from the preclinical research collaboration conducted under the agreement from january 2006 to january 2010. the rights to tc-6683 and the other compound reverted to targacept upon effectiveness of termination of the collaboration agreement in january 2015. under a second collaboration agreement with astrazeneca , which we refer to in this annual report as our mdd agreement with astrazeneca ,  we had been co-developing tc-5214 as a treatment for major depressive disorder , or mdd . upon entering into the agreement , we received a $ 200.0 million upfront payment . thereafter , astrazeneca was responsible for 80 % , and we were responsible for 20 % , of the cost of the completed clinical program for tc-5214 in mdd , except that astrazeneca was responsible for 100 % of development costs that were required only for countries outside the united states and the european union . following completion of a phase 3 clinical program for tc-5214 conducted under the agreement , we and astrazeneca announced that a regulatory submission for tc-5214 as an adjunct therapy for mdd would not be pursued and the switch monotherapy trial was discontinued . astrazeneca subsequently terminated the agreement , effective in may 2012. as a result of the termination , all rights and licenses for tc-5214 that we granted under the agreement to astrazeneca terminated and reverted to us . since our inception , we have had limited revenue from product sales and have funded our operations principally through public and private offerings of equity securities , payments under collaboration and alliance agreements , grants and equipment financing . we have historically devoted substantially all of our resources to the discovery and development of our product candidates and technologies , including the design , conduct and management of nonclinical and clinical studies and related manufacturing , regulatory and clinical affairs , as well as intellectual property prosecution . in the second quarter of 2012 , we completed a reduction in force as part of a plan to focus our resources on our more advanced programs . in october 2012 , we announced a second reduction in force , as well as our plan to close our laboratory operations . we completed the second reduction in force and the laboratory closings in december 2012 and are no longer devoting resources to drug discovery or nonclinical research activities . we sold virtually all of our laboratory equipment after we closed our laboratories . we completed a further reduction in force in the fourth quarter of 2014 , decreasing the number of our employees by 26 % to 20 in order to align our resources with our short-term operating needs . except for a small number of periods in which we generated net income due primarily to the recognition into revenue of amounts received under collaboration agreements , we have not been profitable . as of december 31 , 2014 , we had an accumulated deficit of $ 313 million . we expect that we will incur losses in future periods as we incur merger related expenses , as our product candidates advance into later-stage development and as we progress our programs and invest in additional product opportunities . drug development , including clinical trials in particular , is time-consuming , expensive and may never yield a product that will generate revenue . 53 as a clinical-stage company , our revenues , expenses and results of operations are likely to fluctuate significantly from quarter to quarter and year to year . we believe that period-to-period comparisons of our results of operations should not be relied upon as indicative of our future performance . revenue in january 2010 , we received the $ 200.0 million upfront payment under our mdd agreement with astrazeneca , which we recorded as deferred revenue and began recognizing into revenue on a straight-line basis over the estimated period of our substantive performance obligations under the agreement . in the first quarter of 2012 , we and astrazeneca announced that , based on the totality of the results of the phase 3 program , a regulatory submission ` for tc-5214 as an adjunct therapy for mdd would not be pursued and the switch monotherapy trial was discontinued . these events resulted in a change in the estimated period of our substantive performance obligations under our mdd agreement with astrazeneca . accordingly , we revised the revenue recognition period for the upfront payment and began recognizing the portion of the upfront payment not yet recognized into revenue on a straight-line basis over the remainder of the revised period . story_separator_special_tag the period over which we recognize the revenue may be adjusted from time to time to take into account any delays or acceleration in the development of the applicable product candidate or any extension or shortening of the applicable performance period . any such delay or acceleration in the development of a product candidate , or extension or shortening of a performance period , would result in decreases or increases to the recognition of deferred revenue from period to period . as of december 31 , 2014 , all amounts that we have recorded as deferred revenue are non-refundable . we recognize collaboration research and development revenue from research services performed under collaboration agreements as research is performed and related expenses are incurred . we recognize revenue for non-refundable payments that are based on the achievement of discovery , development , regulatory and commercial milestone events upon achievement of the milestone event if all of the following conditions are met : there is substantive uncertainty regarding achievement of the milestone event at inception of the arrangement ; the payment is commensurate with either our performance to achieve the milestone or with the enhancement of the value of the delivered item ; the payment relates solely to past performance ; and the payment is reasonable relative to all of the deliverables and payment terms within the arrangement . if any of these conditions are not met , we defer recognition of the payment and recognize the payment on a straight-line basis as discussed above . 58 to the extent we are reimbursed under a collaboration or alliance agreement for specific research and development costs , such as third-party manufacturing costs for drug material , we reflect these reimbursable amounts as a component of collaboration research and development revenue and the costs associated with these reimbursable amounts as a component of research and development expenses . accrued expenses in the normal course of our business , we contract with research institutions and contract research organizations that conduct or manage clinical trials or other research and development activities on our behalf and with contract manufacturers that produce drug substance or clinical trial materials for us . the financial terms of these agreements are subject to negotiation , vary among agreements and may result in uneven payment flows . payments under these agreements depend on the performance of services or the achievement of specified events , such as the production of drug substance or clinical trial materials , the recruitment of clinical trial subjects , the completion of portions of a non-clinical study or clinical trial or similar conditions . as part of the process of preparing financial statements , we are required to estimate accrued expenses with the objective of matching the recording of expenses in our financial statements to the actual services received and efforts expended . this process involves reviewing open contracts and purchase orders , communicating with our applicable personnel to identify services that have been performed on our behalf , estimating level of services performed and the associated cost incurred for the services when we have not yet been invoiced or otherwise notified of actual cost and reviewing invoices received that have not yet become due and payable . we make estimates of our accrued expenses as of each balance sheet date in our financial statements based on facts and circumstances known to us . we periodically confirm the accuracy of our estimates with the service providers and make adjustments if necessary . if we do not identify costs that we have begun to incur or if we underestimate or overestimate the level of services performed or the costs of these services , our actual expenses could differ from our estimates . examples of estimated accrued expenses include : fees for services performed by contract research organizations in connection with clinical trials and non-clinical studies ; fees for services performed by clinical trial sites in connection with clinical trials ; fees for services performed by contract manufacturers in connection with the production of clinical trial materials ; and professional service fees . stock-based compensation we record the grant date fair value of stock options and unvested stock awards issued to employees and non-employee directors as stock-based compensation expense over the requisite service periods , which are typically the vesting periods . we currently use the black-scholes-merton formula to estimate grant date fair value of stock options and expect to continue to use this valuation model in the future . the black-scholes-merton formula requires us to make various assumptions , including among others the expected term of the award and expected volatility of our common stock . in the event a modification is made to a stock option after the grant date , we record additional stock-based compensation expense equal to the incremental fair value of the stock option immediately subsequent to the modification as compared to the fair value of the stock option immediately preceding the modification . during 2012 , we modified some outstanding stock options held by executive and non-executive employees who departed targacept to partially accelerate vesting and or extend the permitted period for exercise . these modifications resulted in incremental compensation cost for the year ended december 31 , 2012 of $ 1.4 million . the fair value of unvested stock awards is determined by the closing price of our common stock on the grant date . we recorded stock-based compensation expense related to stock-based awards to employees and directors of $ 3.5 million for the year ended december 31 , 2014 , $ 5.2 million for the year ended december 31 , 2013 , and $ 7.8 million for the year ended december 31 , 2012 ( inclusive of expense 59 resulting from stock option modifications ) . as of december 31 , 2014 , we had $ 4.8 million in total unrecognized compensation cost related to non-vested stock-based compensation arrangements , which we expect to record over a weighted average period of 2.42

sources of liquidity we have historically financed our operations and internal growth primarily through public and private offerings of our securities , payments received under collaboration and alliance agreements , including upfront fees , payments for research and development services and payments upon achievement of milestone events , grants and equipment financing . our cash , cash equivalents and investments in marketable securities were $ 110.8 million as of december 31 , 2014 and $ 143.8 million as of december 31 , 2013. as of december 31 , 2014 , we had $ 53.1 million of cash in 63 bank depository accounts and institutional money market funds at branch banking and trust company , pnc bank and wells fargo & company . substantially all of our remaining cash , cash equivalents and investments were invested as of december 31 , 2014 in corporate debt securities and municipal bonds rated at least a quality or equivalent , u.s. treasury notes and bonds , u.s. and state government agency-backed securities and a certificate of deposit . stock offerings beginning with our initial public offering in april 2006 , we have derived aggregate net proceeds of $ 195.1 million from public offerings of our common stock . we have also derived aggregate net proceeds of $ 121.8 million from private placements of convertible preferred stock , all of which occurred prior to our initial public offering . in november 2013 , we filed a form s-3 with the securities and exchange commission which became effective december 11 , 2013. pursuant to this form s-3 , we may sell shares of common stock having an aggregate offering price of up to $ 200.0 million . under an at-the-market issuance sales agreement , or atm , with mlv & co. , llc , filed concurrently with the form s-3 , we may offer and sell shares of common stock having an aggregate offering price of up to $ 40.0 million . strategic alliances and collaborations as of december 31 , 2014 , we had received $ 61.6 million in aggregate upfront fees and milestone payments under our now terminated collaboration agreement with astrazeneca and an additional $ 26.5


 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.
     ```sources of liquidity we have historically financed our operations and internal growth primarily through public and private offerings of our securities , payments received under collaboration and alliance agreements , including upfront fees , payments for research and development services and payments upon achievement of milestone events , grants and equipment financing . our cash , cash equivalents and investments in marketable securities were $ 110.8 million as of december 31 , 2014 and $ 143.8 million as of december 31 , 2013. as of december 31 , 2014 , we had $ 53.1 million of cash in 63 bank depository accounts and institutional money market funds at branch banking and trust company , pnc bank and wells fargo & company . substantially all of our remaining cash , cash equivalents and investments were invested as of december 31 , 2014 in corporate debt securities and municipal bonds rated at least a quality or equivalent , u.s. treasury notes and bonds , u.s. and state government agency-backed securities and a certificate of deposit . stock offerings beginning with our initial public offering in april 2006 , we have derived aggregate net proceeds of $ 195.1 million from public offerings of our common stock . we have also derived aggregate net proceeds of $ 121.8 million from private placements of convertible preferred stock , all of which occurred prior to our initial public offering . in november 2013 , we filed a form s-3 with the securities and exchange commission which became effective december 11 , 2013. pursuant to this form s-3 , we may sell shares of common stock having an aggregate offering price of up to $ 200.0 million . under an at-the-market issuance sales agreement , or atm , with mlv & co. , llc , filed concurrently with the form s-3 , we may offer and sell shares of common stock having an aggregate offering price of up to $ 40.0 million . strategic alliances and collaborations as of december 31 , 2014 , we had received $ 61.6 million in aggregate upfront fees and milestone payments under our now terminated collaboration agreement with astrazeneca and an additional $ 26.5
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 Suspicious Activity Report : 52 based on years of focused research in the nnr area , and notwithstanding our clinical development setbacks , we continue to believe that compounds that interact selectively with specific nnr subtypes have the potential to achieve positive medical effects by modulating their activity . we have built a patent estate covering the structure or therapeutic use of small molecules designed to regulate activity in the body by selectively affecting specific nnr subtypes . we do not have current plans to continue development of any of our nnr programs internally . instead we would seek to out-license or sell those assets to one or more third parties . our most advanced nnr product candidates are tc-6499 , tc-6683 ( formerly azd1446 ) , tc-5619 , tc-6987 , tc-1734 and tc 5214 , and they are discussed under the caption business in item 1 of part i of this annual report . we were party to a collaboration agreement with astrazeneca focused on compounds that act on the a 4ß2 nnr , which astrazeneca terminated in october 2014 , effective january 2015. under the agreement astrazeneca was granted an exclusive license to tc-6683 and an earlier-stage compound that arose from the preclinical research collaboration conducted under the agreement from january 2006 to january 2010. the rights to tc-6683 and the other compound reverted to targacept upon effectiveness of termination of the collaboration agreement in january 2015. under a second collaboration agreement with astrazeneca , which we refer to in this annual report as our mdd agreement with astrazeneca ,  we had been co-developing tc-5214 as a treatment for major depressive disorder , or mdd . upon entering into the agreement , we received a $ 200.0 million upfront payment . thereafter , astrazeneca was responsible for 80 % , and we were responsible for 20 % , of the cost of the completed clinical program for tc-5214 in mdd , except that astrazeneca was responsible for 100 % of development costs that were required only for countries outside the united states and the european union . following completion of a phase 3 clinical program for tc-5214 conducted under the agreement , we and astrazeneca announced that a regulatory submission for tc-5214 as an adjunct therapy for mdd would not be pursued and the switch monotherapy trial was discontinued . astrazeneca subsequently terminated the agreement , effective in may 2012. as a result of the termination , all rights and licenses for tc-5214 that we granted under the agreement to astrazeneca terminated and reverted to us . since our inception , we have had limited revenue from product sales and have funded our operations principally through public and private offerings of equity securities , payments under collaboration and alliance agreements , grants and equipment financing . we have historically devoted substantially all of our resources to the discovery and development of our product candidates and technologies , including the design , conduct and management of nonclinical and clinical studies and related manufacturing , regulatory and clinical affairs , as well as intellectual property prosecution . in the second quarter of 2012 , we completed a reduction in force as part of a plan to focus our resources on our more advanced programs . in october 2012 , we announced a second reduction in force , as well as our plan to close our laboratory operations . we completed the second reduction in force and the laboratory closings in december 2012 and are no longer devoting resources to drug discovery or nonclinical research activities . we sold virtually all of our laboratory equipment after we closed our laboratories . we completed a further reduction in force in the fourth quarter of 2014 , decreasing the number of our employees by 26 % to 20 in order to align our resources with our short-term operating needs . except for a small number of periods in which we generated net income due primarily to the recognition into revenue of amounts received under collaboration agreements , we have not been profitable . as of december 31 , 2014 , we had an accumulated deficit of $ 313 million . we expect that we will incur losses in future periods as we incur merger related expenses , as our product candidates advance into later-stage development and as we progress our programs and invest in additional product opportunities . drug development , including clinical trials in particular , is time-consuming , expensive and may never yield a product that will generate revenue . 53 as a clinical-stage company , our revenues , expenses and results of operations are likely to fluctuate significantly from quarter to quarter and year to year . we believe that period-to-period comparisons of our results of operations should not be relied upon as indicative of our future performance . revenue in january 2010 , we received the $ 200.0 million upfront payment under our mdd agreement with astrazeneca , which we recorded as deferred revenue and began recognizing into revenue on a straight-line basis over the estimated period of our substantive performance obligations under the agreement . in the first quarter of 2012 , we and astrazeneca announced that , based on the totality of the results of the phase 3 program , a regulatory submission ` for tc-5214 as an adjunct therapy for mdd would not be pursued and the switch monotherapy trial was discontinued . these events resulted in a change in the estimated period of our substantive performance obligations under our mdd agreement with astrazeneca . accordingly , we revised the revenue recognition period for the upfront payment and began recognizing the portion of the upfront payment not yet recognized into revenue on a straight-line basis over the remainder of the revised period . story_separator_special_tag the period over which we recognize the revenue may be adjusted from time to time to take into account any delays or acceleration in the development of the applicable product candidate or any extension or shortening of the applicable performance period . any such delay or acceleration in the development of a product candidate , or extension or shortening of a performance period , would result in decreases or increases to the recognition of deferred revenue from period to period . as of december 31 , 2014 , all amounts that we have recorded as deferred revenue are non-refundable . we recognize collaboration research and development revenue from research services performed under collaboration agreements as research is performed and related expenses are incurred . we recognize revenue for non-refundable payments that are based on the achievement of discovery , development , regulatory and commercial milestone events upon achievement of the milestone event if all of the following conditions are met : there is substantive uncertainty regarding achievement of the milestone event at inception of the arrangement ; the payment is commensurate with either our performance to achieve the milestone or with the enhancement of the value of the delivered item ; the payment relates solely to past performance ; and the payment is reasonable relative to all of the deliverables and payment terms within the arrangement . if any of these conditions are not met , we defer recognition of the payment and recognize the payment on a straight-line basis as discussed above . 58 to the extent we are reimbursed under a collaboration or alliance agreement for specific research and development costs , such as third-party manufacturing costs for drug material , we reflect these reimbursable amounts as a component of collaboration research and development revenue and the costs associated with these reimbursable amounts as a component of research and development expenses . accrued expenses in the normal course of our business , we contract with research institutions and contract research organizations that conduct or manage clinical trials or other research and development activities on our behalf and with contract manufacturers that produce drug substance or clinical trial materials for us . the financial terms of these agreements are subject to negotiation , vary among agreements and may result in uneven payment flows . payments under these agreements depend on the performance of services or the achievement of specified events , such as the production of drug substance or clinical trial materials , the recruitment of clinical trial subjects , the completion of portions of a non-clinical study or clinical trial or similar conditions . as part of the process of preparing financial statements , we are required to estimate accrued expenses with the objective of matching the recording of expenses in our financial statements to the actual services received and efforts expended . this process involves reviewing open contracts and purchase orders , communicating with our applicable personnel to identify services that have been performed on our behalf , estimating level of services performed and the associated cost incurred for the services when we have not yet been invoiced or otherwise notified of actual cost and reviewing invoices received that have not yet become due and payable . we make estimates of our accrued expenses as of each balance sheet date in our financial statements based on facts and circumstances known to us . we periodically confirm the accuracy of our estimates with the service providers and make adjustments if necessary . if we do not identify costs that we have begun to incur or if we underestimate or overestimate the level of services performed or the costs of these services , our actual expenses could differ from our estimates . examples of estimated accrued expenses include : fees for services performed by contract research organizations in connection with clinical trials and non-clinical studies ; fees for services performed by clinical trial sites in connection with clinical trials ; fees for services performed by contract manufacturers in connection with the production of clinical trial materials ; and professional service fees . stock-based compensation we record the grant date fair value of stock options and unvested stock awards issued to employees and non-employee directors as stock-based compensation expense over the requisite service periods , which are typically the vesting periods . we currently use the black-scholes-merton formula to estimate grant date fair value of stock options and expect to continue to use this valuation model in the future . the black-scholes-merton formula requires us to make various assumptions , including among others the expected term of the award and expected volatility of our common stock . in the event a modification is made to a stock option after the grant date , we record additional stock-based compensation expense equal to the incremental fair value of the stock option immediately subsequent to the modification as compared to the fair value of the stock option immediately preceding the modification . during 2012 , we modified some outstanding stock options held by executive and non-executive employees who departed targacept to partially accelerate vesting and or extend the permitted period for exercise . these modifications resulted in incremental compensation cost for the year ended december 31 , 2012 of $ 1.4 million . the fair value of unvested stock awards is determined by the closing price of our common stock on the grant date . we recorded stock-based compensation expense related to stock-based awards to employees and directors of $ 3.5 million for the year ended december 31 , 2014 , $ 5.2 million for the year ended december 31 , 2013 , and $ 7.8 million for the year ended december 31 , 2012 ( inclusive of expense 59 resulting from stock option modifications ) . as of december 31 , 2014 , we had $ 4.8 million in total unrecognized compensation cost related to non-vested stock-based compensation arrangements , which we expect to record over a weighted average period of 2.42

