we expect to continue to incur net losses and negative cash flow from operating activities for at least the next year primarily as a result of our efforts to commercialize zohydro er , the clinical development for relday , required post-market testing for zohydro er , additional development activities with respect to zohydro er , including the development of an abuse deterrent formulation of zohydro er , and the cost of the sales and marketing expenses associated with sumavel dosepro and zohydro er . as of december 31 , 2013 , we had cash and cash equivalents of $ 72.0 million . 82 on march 27 , 2013 , we entered into a controlled equity offering sales agreement , or the sales agreement , with cantor fitzgerald & co. , or cantor , as sales agent , under which we issued and sold shares of our common stock from time to time through cantor . the sales of common stock made under the sales agreement were made in “ at-the-market ” offerings as defined in rule 415 of the securities act of 1933 , as amended , or the securities act . under the sales agreement , we issued 6.8 million shares of our common stock during 2013 at an average stock issuance price of $ 1.66 per share , resulting in net proceeds of approximately $ 10.8 million . the sales agreement with cantor terminated on november 16 , 2013. on november 12 , 2013 , we completed a public offering of common stock for net proceeds of approximately $ 64.5 million ( including over-allotment purchase ) , after deducting underwriting discounts and commissions of $ 4.1 million and offering expenses of approximately $ 0.4 million , or the november 2013 offering . we sold a total of 30,666,667 shares of our common stock ( including the underwriters ' over-allotment purchase of 4,000,000 shares ) at a purchase price of $ 2.25 per share . although it is difficult to predict future liquidity requirements , we believe that our cash and cash equivalents as of december 31 , 2013 , and our projected product revenues from sumavel dosepro and zohydro er , will be sufficient to fund our operations through 2014. we will need to obtain additional funds to finance our operations beyond that point , or possibly earlier . we intend to raise additional capital , if necessary , through public or private equity offerings , debt financings , receivables financings or through collaborations or partnerships with other companies . if we are unsuccessful in raising additional required funds , we may be required to significantly delay , reduce the scope of or eliminate one or more of our development programs or our commercialization efforts , or cease operating as a going concern . we also may be required to relinquish , license or otherwise dispose of rights to product candidates or products that we would otherwise seek to develop or commercialize ourselves on terms that are less favorable than might otherwise be available . in its report on our consolidated financial statements for the year ended december 31 , 2013 , our independent registered public accounting firm included an explanatory paragraph expressing substantial doubt regarding our ability to continue as a going concern . mallinckrodt llc co-promotion agreement in june 2012 , we entered into a co-promotion agreement with mallinckrodt llc , or mallinckrodt . under the terms of the co-promotion agreement , mallinckrodt was granted a co-exclusive right ( with us ) to promote sumavel dosepro in the united states . mallinckrodt 's sales team began selling sumavel dosepro in august 2012. the initial term of the agreement was to run through june 30 , 2014. in january 2014 , we entered into an amendment to the co-promotion agreement , whereby the agreement terminated on january 31 , 2014. we assumed full responsibility for the commercialization of sumavel dosepro in february 2014. in partial consideration of mallinckrodt 's sales efforts , we paid mallinckrodt a service fee on a quarterly basis through january 31 , 2014 that represented a specified fixed percentage of net sales of prescriptions generated from mallinckrodt 's prescriber audience over a baseline amount of net sales . in addition , in connection with the termination of the co-promotion agreement , we are required to make a one-time tail payment to mallinckrodt , calculated as a fixed percentage of net sales from the mallinckrodt targeted prescriber audience during the 12-month period ending on january 31 , 2015. a liability for this tail-payment will be recorded in the first quarter of 2014 once it is reasonably estimable . for the twelve months ended december 31 , 2013 and 2012 , we incurred service fee expenses of $ 1.0 million and $ 0.2 million , respectively . altus formulation inc. development and option agreement in november 2013 , we entered into a development and option agreement with altus formulation inc. , or altus . under the agreement , altus is responsible for the development of abuse deterrent formulations of hydrocodone using altus ' intellitab drug delivery platform and will be reimbursed by us for its development efforts on the product . we are responsible for the conduct of the clinical development of the product . we paid a non-refundable upfront fee to altus of $ 0.8 million and we are also obligated to pay altus up to $ 3.5 million in total future milestone payments upon the achievement of various development and regulatory milestones . story_separator_special_tag accordingly , we deferred recognition of revenue on product shipments of sumavel dosepro until the right of return no longer existed , which occurred at the earlier of the time sumavel dosepro units were dispensed through patient prescriptions or expiration of the right of return . units dispensed are generally not subject to return , except in the rare cases where the product malfunctions or the product is damaged in transit . we estimate patient prescriptions dispensed using an analysis of third-party information , including third-party market research data . product returns . our estimated product return allowances for sumavel dosepro require a high degree of judgment and are subject to change based on our experience and certain quantitative and qualitative factors . sumavel dosepro 's shelf life is determined by the shorter expiry date of its two subassemblies , which is currently approximately 30 months from the date of manufacture . our return policy allows for the customer to return unused product six months before and up to one year after its expiration date for a credit at the then-current wholesaler acquisition cost , or wac , reduced by a nominal fee for processing the return . we have monitored and analyzed actual return history since product launch . our analysis of actual product return history considers actual product returns on an individual product lot basis since product launch , the dating of the product at the time of shipment into the distribution channel , prescription trends , trends in customer purchases and their inventory management practices , and changes in the estimated levels of inventory within the distribution channel to estimate our exposure for returned product . because of the shelf life of sumavel dosepro and the duration of time under which our customers may return product 86 through our return policy , there may be a significant period of time between when the product is shipped and when we issue credits on returned product . accordingly , we may have to adjust these estimates , which could have a significant effect on product sales and earnings in the period of adjustments . based on our analysis of actual product return history , we increased our estimate for product returns , resulting in adjustments of $ 1.2 million in the first quarter of 2013 and $ 2.4 million in the third quarter of 2013 , which led to decreases in net product revenue and earnings for the year ended december 31 , 2013. further , as a result of our third quarter 2013 product returns analysis , we began utilizing a higher product returns rate for sumavel dosepro sales . a 1 % increase or decrease in our returns reserve as a percentage of product shipped in the years ended december 31 , 2013 and 2012 would have a financial statement impact of approximately $ 0.5 million for each of the years ended december 31 , 2013 and 2012. we permit certain wholesale pharmaceutical distributors to purchase limited quantities of product after the announcement of an increase to the wac of our product and prior to the effectiveness of the increase . in turn , wac price increases can result in accelerated purchases by wholesalers relative to anticipated retail and prescription demand . the timing of purchases made by wholesale distributors and retail pharmacies are subject to fluctuations for these reasons among others . absent accelerated purchasing by wholesalers or other periodic changes in buying patterns , the wholesale channel has historically contained approximately three to four weeks of product on hand . wholesaler and retail pharmacy distribution fees . we offer distribution fees to certain wholesale distributors and retail pharmacies based on contractually determined rates . we accrue the distribution fees on shipment to the respective wholesale distributors and retail pharmacies and recognize the distribution fees as a reduction of revenue in the same period the related revenue is recognized . prompt pay discounts . we offer cash discounts to our customers , generally 2 % of the sales price , as an incentive for prompt payment . we account for cash discounts by reducing accounts receivable by the full amount and recognizing the discount as a reduction of revenue in the same period the related revenue is recognized . chargebacks . we provide discounts primarily to authorized users of the federal supply schedule , or fss , of the general services administration under an fss contract negotiated by the department of veterans affairs and various organizations under medicaid contracts and regulations . these entities purchase products from the wholesale distributors at a discounted price , and the wholesale distributors then charge back to us the difference between the current retail price and the price the federal entity paid for the product . we estimate and accrue chargebacks based on estimated wholesaler inventory levels , current contract prices and historical chargeback activity . chargebacks are recognized as a reduction of revenue in the period the related revenue is recognized . rebates . we participate in certain rebate programs , which provide discounted prescriptions to qualified insured patients . under these rebate programs , we pay a rebate to the third-party administrator of the program , generally two to three months after the quarter in which prescriptions subject to the rebate are filled . we estimate and accrue these rebates based on current contract prices , historical and estimated future percentages of product sold to qualified patients and estimated levels of inventory in the distribution channel . rebates are recognized as a reduction of revenue in the period the related revenue is recognized . patient discount programs . we offer discount card programs to patients for sumavel dosepro in which patients receive discounts on their prescriptions that are reimbursed by us . we estimate the total amount that will be redeemed based on levels of inventory in the distribution and retail channels and recognize the discount as a reduction of revenue in the same period the related revenue

cash and cash equivalents . cash and cash equivalents totaled $ 72.0 million and $ 41.2 million at december 31 , 2013 and december 31 , 2012 , respectively . the following table summarizes our cash flows from ( used in ) operating , investing and financing activities for the years ended december 31 , 2013 , 2012 and 2011 : replace_table_token_7_th operating activities . net cash used in operating activities was $ 44.9 million , $ 52.2 million and $ 80.5 million for the years ended december 31 , 2013 , 2012 and 2011 , respectively . net cash used for the year ended december 31 , 2013 primarily reflects the use of cash for operations , adjusted for non-cash charges , including a $ 21.9 million change in fair value of warrant liabilities and $ 8.2 million for stock-based compensation ( which includes $ 0.2 million in stock-based compensation from restructuring ) , partially offset by a $ ( 0.8 ) million change in fair value of embedded derivatives . significant working capital uses of cash for the year ended december 31 , 2013 included personnel-related costs , sales and marketing expenses for sumavel dosepro and preparation for the launch of zohydro er , research and development costs ( primarily for employee and infrastructure resources ) and other professional services . net cash used for the year ended december 31 , 2012 primarily reflects the use of cash for operations , adjusted for non-cash charges , including $ 6.2 million in stock-based compensation , offset by an $ 11.8 million change in fair value of warrant liabilities and an $ 8.5 million reduction in deferred revenue related to the termination of the astellas co-promotion agreement . significant working capital uses of cash for the year ended december 31 , 2012 included personnel-related costs , research and development costs ( primarily for zohydro er and relday ) , sales and marketing expenses for sumavel dosepro , and other professional services .


 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.
     ```cash and cash equivalents . cash and cash equivalents totaled $ 72.0 million and $ 41.2 million at december 31 , 2013 and december 31 , 2012 , respectively . the following table summarizes our cash flows from ( used in ) operating , investing and financing activities for the years ended december 31 , 2013 , 2012 and 2011 : replace_table_token_7_th operating activities . net cash used in operating activities was $ 44.9 million , $ 52.2 million and $ 80.5 million for the years ended december 31 , 2013 , 2012 and 2011 , respectively . net cash used for the year ended december 31 , 2013 primarily reflects the use of cash for operations , adjusted for non-cash charges , including a $ 21.9 million change in fair value of warrant liabilities and $ 8.2 million for stock-based compensation ( which includes $ 0.2 million in stock-based compensation from restructuring ) , partially offset by a $ ( 0.8 ) million change in fair value of embedded derivatives . significant working capital uses of cash for the year ended december 31 , 2013 included personnel-related costs , sales and marketing expenses for sumavel dosepro and preparation for the launch of zohydro er , research and development costs ( primarily for employee and infrastructure resources ) and other professional services . net cash used for the year ended december 31 , 2012 primarily reflects the use of cash for operations , adjusted for non-cash charges , including $ 6.2 million in stock-based compensation , offset by an $ 11.8 million change in fair value of warrant liabilities and an $ 8.5 million reduction in deferred revenue related to the termination of the astellas co-promotion agreement . significant working capital uses of cash for the year ended december 31 , 2012 included personnel-related costs , research and development costs ( primarily for zohydro er and relday ) , sales and marketing expenses for sumavel dosepro , and other professional services .
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 Suspicious Activity Report : we expect to continue to incur net losses and negative cash flow from operating activities for at least the next year primarily as a result of our efforts to commercialize zohydro er , the clinical development for relday , required post-market testing for zohydro er , additional development activities with respect to zohydro er , including the development of an abuse deterrent formulation of zohydro er , and the cost of the sales and marketing expenses associated with sumavel dosepro and zohydro er . as of december 31 , 2013 , we had cash and cash equivalents of $ 72.0 million . 82 on march 27 , 2013 , we entered into a controlled equity offering sales agreement , or the sales agreement , with cantor fitzgerald & co. , or cantor , as sales agent , under which we issued and sold shares of our common stock from time to time through cantor . the sales of common stock made under the sales agreement were made in “ at-the-market ” offerings as defined in rule 415 of the securities act of 1933 , as amended , or the securities act . under the sales agreement , we issued 6.8 million shares of our common stock during 2013 at an average stock issuance price of $ 1.66 per share , resulting in net proceeds of approximately $ 10.8 million . the sales agreement with cantor terminated on november 16 , 2013. on november 12 , 2013 , we completed a public offering of common stock for net proceeds of approximately $ 64.5 million ( including over-allotment purchase ) , after deducting underwriting discounts and commissions of $ 4.1 million and offering expenses of approximately $ 0.4 million , or the november 2013 offering . we sold a total of 30,666,667 shares of our common stock ( including the underwriters ' over-allotment purchase of 4,000,000 shares ) at a purchase price of $ 2.25 per share . although it is difficult to predict future liquidity requirements , we believe that our cash and cash equivalents as of december 31 , 2013 , and our projected product revenues from sumavel dosepro and zohydro er , will be sufficient to fund our operations through 2014. we will need to obtain additional funds to finance our operations beyond that point , or possibly earlier . we intend to raise additional capital , if necessary , through public or private equity offerings , debt financings , receivables financings or through collaborations or partnerships with other companies . if we are unsuccessful in raising additional required funds , we may be required to significantly delay , reduce the scope of or eliminate one or more of our development programs or our commercialization efforts , or cease operating as a going concern . we also may be required to relinquish , license or otherwise dispose of rights to product candidates or products that we would otherwise seek to develop or commercialize ourselves on terms that are less favorable than might otherwise be available . in its report on our consolidated financial statements for the year ended december 31 , 2013 , our independent registered public accounting firm included an explanatory paragraph expressing substantial doubt regarding our ability to continue as a going concern . mallinckrodt llc co-promotion agreement in june 2012 , we entered into a co-promotion agreement with mallinckrodt llc , or mallinckrodt . under the terms of the co-promotion agreement , mallinckrodt was granted a co-exclusive right ( with us ) to promote sumavel dosepro in the united states . mallinckrodt 's sales team began selling sumavel dosepro in august 2012. the initial term of the agreement was to run through june 30 , 2014. in january 2014 , we entered into an amendment to the co-promotion agreement , whereby the agreement terminated on january 31 , 2014. we assumed full responsibility for the commercialization of sumavel dosepro in february 2014. in partial consideration of mallinckrodt 's sales efforts , we paid mallinckrodt a service fee on a quarterly basis through january 31 , 2014 that represented a specified fixed percentage of net sales of prescriptions generated from mallinckrodt 's prescriber audience over a baseline amount of net sales . in addition , in connection with the termination of the co-promotion agreement , we are required to make a one-time tail payment to mallinckrodt , calculated as a fixed percentage of net sales from the mallinckrodt targeted prescriber audience during the 12-month period ending on january 31 , 2015. a liability for this tail-payment will be recorded in the first quarter of 2014 once it is reasonably estimable . for the twelve months ended december 31 , 2013 and 2012 , we incurred service fee expenses of $ 1.0 million and $ 0.2 million , respectively . altus formulation inc. development and option agreement in november 2013 , we entered into a development and option agreement with altus formulation inc. , or altus . under the agreement , altus is responsible for the development of abuse deterrent formulations of hydrocodone using altus ' intellitab drug delivery platform and will be reimbursed by us for its development efforts on the product . we are responsible for the conduct of the clinical development of the product . we paid a non-refundable upfront fee to altus of $ 0.8 million and we are also obligated to pay altus up to $ 3.5 million in total future milestone payments upon the achievement of various development and regulatory milestones . story_separator_special_tag accordingly , we deferred recognition of revenue on product shipments of sumavel dosepro until the right of return no longer existed , which occurred at the earlier of the time sumavel dosepro units were dispensed through patient prescriptions or expiration of the right of return . units dispensed are generally not subject to return , except in the rare cases where the product malfunctions or the product is damaged in transit . we estimate patient prescriptions dispensed using an analysis of third-party information , including third-party market research data . product returns . our estimated product return allowances for sumavel dosepro require a high degree of judgment and are subject to change based on our experience and certain quantitative and qualitative factors . sumavel dosepro 's shelf life is determined by the shorter expiry date of its two subassemblies , which is currently approximately 30 months from the date of manufacture . our return policy allows for the customer to return unused product six months before and up to one year after its expiration date for a credit at the then-current wholesaler acquisition cost , or wac , reduced by a nominal fee for processing the return . we have monitored and analyzed actual return history since product launch . our analysis of actual product return history considers actual product returns on an individual product lot basis since product launch , the dating of the product at the time of shipment into the distribution channel , prescription trends , trends in customer purchases and their inventory management practices , and changes in the estimated levels of inventory within the distribution channel to estimate our exposure for returned product . because of the shelf life of sumavel dosepro and the duration of time under which our customers may return product 86 through our return policy , there may be a significant period of time between when the product is shipped and when we issue credits on returned product . accordingly , we may have to adjust these estimates , which could have a significant effect on product sales and earnings in the period of adjustments . based on our analysis of actual product return history , we increased our estimate for product returns , resulting in adjustments of $ 1.2 million in the first quarter of 2013 and $ 2.4 million in the third quarter of 2013 , which led to decreases in net product revenue and earnings for the year ended december 31 , 2013. further , as a result of our third quarter 2013 product returns analysis , we began utilizing a higher product returns rate for sumavel dosepro sales . a 1 % increase or decrease in our returns reserve as a percentage of product shipped in the years ended december 31 , 2013 and 2012 would have a financial statement impact of approximately $ 0.5 million for each of the years ended december 31 , 2013 and 2012. we permit certain wholesale pharmaceutical distributors to purchase limited quantities of product after the announcement of an increase to the wac of our product and prior to the effectiveness of the increase . in turn , wac price increases can result in accelerated purchases by wholesalers relative to anticipated retail and prescription demand . the timing of purchases made by wholesale distributors and retail pharmacies are subject to fluctuations for these reasons among others . absent accelerated purchasing by wholesalers or other periodic changes in buying patterns , the wholesale channel has historically contained approximately three to four weeks of product on hand . wholesaler and retail pharmacy distribution fees . we offer distribution fees to certain wholesale distributors and retail pharmacies based on contractually determined rates . we accrue the distribution fees on shipment to the respective wholesale distributors and retail pharmacies and recognize the distribution fees as a reduction of revenue in the same period the related revenue is recognized . prompt pay discounts . we offer cash discounts to our customers , generally 2 % of the sales price , as an incentive for prompt payment . we account for cash discounts by reducing accounts receivable by the full amount and recognizing the discount as a reduction of revenue in the same period the related revenue is recognized . chargebacks . we provide discounts primarily to authorized users of the federal supply schedule , or fss , of the general services administration under an fss contract negotiated by the department of veterans affairs and various organizations under medicaid contracts and regulations . these entities purchase products from the wholesale distributors at a discounted price , and the wholesale distributors then charge back to us the difference between the current retail price and the price the federal entity paid for the product . we estimate and accrue chargebacks based on estimated wholesaler inventory levels , current contract prices and historical chargeback activity . chargebacks are recognized as a reduction of revenue in the period the related revenue is recognized . rebates . we participate in certain rebate programs , which provide discounted prescriptions to qualified insured patients . under these rebate programs , we pay a rebate to the third-party administrator of the program , generally two to three months after the quarter in which prescriptions subject to the rebate are filled . we estimate and accrue these rebates based on current contract prices , historical and estimated future percentages of product sold to qualified patients and estimated levels of inventory in the distribution channel . rebates are recognized as a reduction of revenue in the period the related revenue is recognized . patient discount programs . we offer discount card programs to patients for sumavel dosepro in which patients receive discounts on their prescriptions that are reimbursed by us . we estimate the total amount that will be redeemed based on levels of inventory in the distribution and retail channels and recognize the discount as a reduction of revenue in the same period the related revenue

