in november 2020 , we and verona pharma , inc. ( `` verona u.s. `` ) entered into a term loan facility of up to $ 30.0 million ( the “ term loan ” ) , consisting of term loan advances in an aggregate amount of $ 5.0 million funded at closing , a term loan advance available subject to certain terms and conditions in an aggregate amount of $ 10.0 million , and a term loan advance available subject to certain terms and conditions in an aggregate amount of $ 15.0 million with silicon valley bank ( “ svb ” ) . see “ indebtedness ” below . we believe that our cash and cash equivalents as of december 31 , 2020 , together with funding expected to become available under the term loan and from cash receipts from u.k. tax credits , will enable us to fund our planned operating expenses and capital expenditure requirements into 2023 . 66 covid-19 impact and business continuity to help protect the health and safety of the patients , caregivers and healthcare professionals involved in its ongoing clinical trials of ensifentrine , as well as our employees and independent contractors , we continue to follow guidance from the fda and other health regulatory authorities regarding the conduct of clinical trials during the covid-19 pandemic to ensure the safety of study participants , minimize risks to study integrity , and maintain compliance with good clinical practice . we continue to review this guidance and the effect of the covid-19 pandemic on our operations and clinical trials and will provide an update if we become aware of any meaningful disruption caused by the pandemic to our clinical trials . we are closely monitoring activities at our contract manufacturers associated with clinical supply for our ongoing clinical trials , and are satisfied that appropriate plans and procedures are in place to ensure uninterrupted future supply of ensifentrine to the clinical trial sites , subject to potential limitations on their operations and on the supply chain due to the covid-19 pandemic . we continue to monitor this situation and will provide an update if we become aware of any meaningful disruption caused by the pandemic to the clinical supply of ensifentrine for our clinical trials . significant contracts ligand agreement in 2006 we acquired rhinopharma and assumed contingent liabilities owed to ligand uk development limited ( “ ligand ” ) ( formerly vernalis development limited ) . we refer to the assignment and license agreement as the ligand agreement . ligand assigned to us all of its rights to certain patents and patent applications relating to ensifentrine and related compounds ( the `` ligand patents `` ) and an exclusive , worldwide , royalty-bearing license under certain ligand know-how to develop , manufacture and commercialize products ( the `` licensed products `` ) developed using ligand patents , ligand know-how and the physical stock of certain compounds . the contingent liability comprises a milestone payment on obtaining the first approval of any regulatory authority for the commercialization of a licensed product , low single digit royalties based on the future sales performance of all licensed products and a portion equal to a mid-twenty percent of any consideration received from any sub-licensees for the ligand patents and for ligand know-how . at time of the acquisition the contingent liability was not recognized as part of the acquisition accounting as it was immaterial . we will therefore record as an r & d expense the milestone payment or royalties when they are payable . warrants on july 29 , 2016 , as part of a placement we issued warrants to investors . the warrant holders can subscribe for an ordinary share at a per share exercise price of £1.7238 . they can also opt for a cashless exercise of their warrants whereby they can choose to exchange the warrants held for a reduced number of warrants exercisable at nil consideration . if , after a transaction , should the warrants be exercisable for unlisted securities , the warrant holders may demand a cash payment instead of the delivery of the underlying securities . accordingly , they are accounted for as a liability under asc 480 “ distinguishing liabilities from equity ” and recorded at fair value using the black-scholes valuation methodology , on recognition and at each reporting date . the warrants are currently exercisable and may be exercised by the holders until april 2022 when the warrant instruments may either be exercised , cashlessly exercised , or expire . loan and security agreement in november , 2020 , we entered into the term loan . see “ indebtedness ” for additional information . 67 critical accounting policies and significant judgments and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states of america ( `` us gaap `` ) . the preparation of these financial statements requires us to make estimates , judgments and assumptions that affect the reported amounts of assets and liabilities , disclosure of contingent liabilities as of the dates of the balance sheets and the reported amounts of expenses during the reporting periods . in accordance with us gaap , we evaluate our estimates and judgments on an ongoing basis . while our significant accounting policies are described in more detail in the notes to our 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 financial statements . story_separator_special_tag funding requirements we initiated our phase 3 enhance program for the maintenance treatment of copd in the third quarter of 2020 after raising funds in the private placement that we estimated to be the required funds to complete this program . we believe that our cash and cash equivalents as of december 31 , 2020 , together with funding expected to become available under the term loan and from cash receipts from u.k. tax credits , will enable us to fund our planned operating expenses and capital expenditure requirements into 2023. we will require significant additional capital to further advance clinical and regulatory activities , to fund prelaunch and launch related costs and to create an effective sales and marketing organization to commercialize ensifentrine . we will need to seek additional funding through public or private financings , debt financing , collaboration or licensing agreements and other arrangements . however , there is no guarantee that we will be successful in securing additional finance on acceptable terms , or at all . to the extent that we raise additional capital through the sale of equity or convertible debt securities , the ownership interest of our shareholders and ads holders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect such holders ' rights as a shareholder or ads holder . any future debt financing or preferred equity financing , if available , may involve agreements that include covenants limiting or restricting our ability to take specific actions , such as incurring additional debt , making capital expenditures or declaring dividends and may require the issuance of warrants , which could potentially dilute our security holders ' ownership interests . if we raise additional funds through collaborations , strategic alliances or licensing arrangements with third parties , we may have to relinquish valuable rights to our technologies , future revenue streams , research programs or product candidates or grant licenses on terms that may not be favorable to us . if we are unable to raise additional funds through equity or debt financings when needed , we may be required to delay , limit , reduce or terminate our product development programs or any future commercialization efforts or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves . our future capital requirements for ensifentrine or any future product candidates will depend on many factors , including : the progress , timing and completion of pre-clinical testing and clinical trials for ensifentrine or any future product candidates and the potential that we may be required to conduct additional clinical trials for ensifentrine ; the number of potential new product candidates we decide to in-license and develop ; the costs involved in growing our organization to the size needed to allow for the research , development and potential commercialization of ensifentrine or any future product candidates ; the costs involved in filing patent applications and maintaining and enforcing patents or defending against claims or infringements raised by third parties ; the time and costs involved in obtaining regulatory approvals for ensifentrine or any future product candidate we develop and any delays we may encounter as a result of evolving regulatory requirements or adverse results with respect to ensifentrine or any future product candidates ; 74 any licensing or milestone fees we might have to pay during future development of ensifentrine or any future product candidates ; selling and marketing activities undertaken in connection with the anticipated commercialization of ensifentrine or any future product candidates , if approved , and costs involved in the creation of an effective sales and marketing organization ; and the amount of revenues , if any , we may derive either directly or in the form of royalty payments from future sales of ensifentrine or any future product candidates , if approved . our commercial revenues , if any , will be derived from sales of products that we do not expect to be commercially available for many years , if ever . accordingly , we will need to obtain substantial additional funds to achieve our business objective . off-balance sheet arrangements we do not have any relationships with unconsolidated entities or financial partnerships , including entities sometimes referred to as structured finance or special purpose entities that were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . we do not engage in off-balance sheet financing arrangements . in addition , we do not engage in trading activities involving non-exchange traded contracts . we therefore believe that we are not materially exposed to any financing , liquidity , market or credit risk that could arise if we had engaged in these relationships . recent accounting pronouncements for a discussion of pending and recently adopted accounting pronouncements , see note 2 to our consolidated financial statements included elsewhere in this annual report on form 10-k conversion from ifrs to us gaap as the company no longer qualifies as a foreign private issuer , its consolidated financial statements have been retroactively converted from ifrs to us gaap . the significant differences between ifrs and us gaap as they relate to the company are as follows : ( a ) rhinopharma acquisition in connection with the rhinopharma acquisition in 2006 , an in-process r & d ( “ ip r & d ” ) asset was recognized at fair value under both ifrs ( ifrs 3 “ business combinations ” ) and us gaap ( fas 141 “ business combinations ” ) . under us gaap the ip r & d asset was expensed immediately after its recognition in the business combination . also as part of the acquisition , and under both ifrs and us gaap , an assumed contingent liability was identified but was not recognized as the fair value was immaterial . under ifrs the assumed contingent liability was subsequently measured at amortized

cash flows the following table summarizes our cash flows for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_2_th operating activities net cash used in operating activities increased to $ 45.1 million 2020 , from $ 42.9 million in 2019 , an increase of $ 2.2 million . operating expenses increased by $ 19.8 million , however $ 19.1 million of this was the non-cash share based compensation expense . the remaining variance of $ 1.5 million is due to the timing of supplier payments . investing activities net cash provided by investing activities decreased to $ 9.7 million for 2020 , from $ 47.3 million in 2019 due to less movement of funds from short term investments to cash in 2020. financing activities net cash provided by financing activities was $ 192.3 million for 2020 driven by net proceeds from the private placement and the first advance received under the term loan . we received $ 185.5 million after costs in the private placement . of the costs , $ 1.9 million were recorded in the statement of operations and comprehensive loss and therefore included in net cash used in operating activities . financing activities also includes a net $ 4.9 million receipt from the term loan facility .


 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 flows the following table summarizes our cash flows for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_2_th operating activities net cash used in operating activities increased to $ 45.1 million 2020 , from $ 42.9 million in 2019 , an increase of $ 2.2 million . operating expenses increased by $ 19.8 million , however $ 19.1 million of this was the non-cash share based compensation expense . the remaining variance of $ 1.5 million is due to the timing of supplier payments . investing activities net cash provided by investing activities decreased to $ 9.7 million for 2020 , from $ 47.3 million in 2019 due to less movement of funds from short term investments to cash in 2020. financing activities net cash provided by financing activities was $ 192.3 million for 2020 driven by net proceeds from the private placement and the first advance received under the term loan . we received $ 185.5 million after costs in the private placement . of the costs , $ 1.9 million were recorded in the statement of operations and comprehensive loss and therefore included in net cash used in operating activities . financing activities also includes a net $ 4.9 million receipt from the term loan facility .
```    
 Suspicious Activity Report : in november 2020 , we and verona pharma , inc. ( `` verona u.s. `` ) entered into a term loan facility of up to $ 30.0 million ( the “ term loan ” ) , consisting of term loan advances in an aggregate amount of $ 5.0 million funded at closing , a term loan advance available subject to certain terms and conditions in an aggregate amount of $ 10.0 million , and a term loan advance available subject to certain terms and conditions in an aggregate amount of $ 15.0 million with silicon valley bank ( “ svb ” ) . see “ indebtedness ” below . we believe that our cash and cash equivalents as of december 31 , 2020 , together with funding expected to become available under the term loan and from cash receipts from u.k. tax credits , will enable us to fund our planned operating expenses and capital expenditure requirements into 2023 . 66 covid-19 impact and business continuity to help protect the health and safety of the patients , caregivers and healthcare professionals involved in its ongoing clinical trials of ensifentrine , as well as our employees and independent contractors , we continue to follow guidance from the fda and other health regulatory authorities regarding the conduct of clinical trials during the covid-19 pandemic to ensure the safety of study participants , minimize risks to study integrity , and maintain compliance with good clinical practice . we continue to review this guidance and the effect of the covid-19 pandemic on our operations and clinical trials and will provide an update if we become aware of any meaningful disruption caused by the pandemic to our clinical trials . we are closely monitoring activities at our contract manufacturers associated with clinical supply for our ongoing clinical trials , and are satisfied that appropriate plans and procedures are in place to ensure uninterrupted future supply of ensifentrine to the clinical trial sites , subject to potential limitations on their operations and on the supply chain due to the covid-19 pandemic . we continue to monitor this situation and will provide an update if we become aware of any meaningful disruption caused by the pandemic to the clinical supply of ensifentrine for our clinical trials . significant contracts ligand agreement in 2006 we acquired rhinopharma and assumed contingent liabilities owed to ligand uk development limited ( “ ligand ” ) ( formerly vernalis development limited ) . we refer to the assignment and license agreement as the ligand agreement . ligand assigned to us all of its rights to certain patents and patent applications relating to ensifentrine and related compounds ( the `` ligand patents `` ) and an exclusive , worldwide , royalty-bearing license under certain ligand know-how to develop , manufacture and commercialize products ( the `` licensed products `` ) developed using ligand patents , ligand know-how and the physical stock of certain compounds . the contingent liability comprises a milestone payment on obtaining the first approval of any regulatory authority for the commercialization of a licensed product , low single digit royalties based on the future sales performance of all licensed products and a portion equal to a mid-twenty percent of any consideration received from any sub-licensees for the ligand patents and for ligand know-how . at time of the acquisition the contingent liability was not recognized as part of the acquisition accounting as it was immaterial . we will therefore record as an r & d expense the milestone payment or royalties when they are payable . warrants on july 29 , 2016 , as part of a placement we issued warrants to investors . the warrant holders can subscribe for an ordinary share at a per share exercise price of £1.7238 . they can also opt for a cashless exercise of their warrants whereby they can choose to exchange the warrants held for a reduced number of warrants exercisable at nil consideration . if , after a transaction , should the warrants be exercisable for unlisted securities , the warrant holders may demand a cash payment instead of the delivery of the underlying securities . accordingly , they are accounted for as a liability under asc 480 “ distinguishing liabilities from equity ” and recorded at fair value using the black-scholes valuation methodology , on recognition and at each reporting date . the warrants are currently exercisable and may be exercised by the holders until april 2022 when the warrant instruments may either be exercised , cashlessly exercised , or expire . loan and security agreement in november , 2020 , we entered into the term loan . see “ indebtedness ” for additional information . 67 critical accounting policies and significant judgments and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states of america ( `` us gaap `` ) . the preparation of these financial statements requires us to make estimates , judgments and assumptions that affect the reported amounts of assets and liabilities , disclosure of contingent liabilities as of the dates of the balance sheets and the reported amounts of expenses during the reporting periods . in accordance with us gaap , we evaluate our estimates and judgments on an ongoing basis . while our significant accounting policies are described in more detail in the notes to our 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 financial statements . story_separator_special_tag funding requirements we initiated our phase 3 enhance program for the maintenance treatment of copd in the third quarter of 2020 after raising funds in the private placement that we estimated to be the required funds to complete this program . we believe that our cash and cash equivalents as of december 31 , 2020 , together with funding expected to become available under the term loan and from cash receipts from u.k. tax credits , will enable us to fund our planned operating expenses and capital expenditure requirements into 2023. we will require significant additional capital to further advance clinical and regulatory activities , to fund prelaunch and launch related costs and to create an effective sales and marketing organization to commercialize ensifentrine . we will need to seek additional funding through public or private financings , debt financing , collaboration or licensing agreements and other arrangements . however , there is no guarantee that we will be successful in securing additional finance on acceptable terms , or at all . to the extent that we raise additional capital through the sale of equity or convertible debt securities , the ownership interest of our shareholders and ads holders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect such holders ' rights as a shareholder or ads holder . any future debt financing or preferred equity financing , if available , may involve agreements that include covenants limiting or restricting our ability to take specific actions , such as incurring additional debt , making capital expenditures or declaring dividends and may require the issuance of warrants , which could potentially dilute our security holders ' ownership interests . if we raise additional funds through collaborations , strategic alliances or licensing arrangements with third parties , we may have to relinquish valuable rights to our technologies , future revenue streams , research programs or product candidates or grant licenses on terms that may not be favorable to us . if we are unable to raise additional funds through equity or debt financings when needed , we may be required to delay , limit , reduce or terminate our product development programs or any future commercialization efforts or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves . our future capital requirements for ensifentrine or any future product candidates will depend on many factors , including : the progress , timing and completion of pre-clinical testing and clinical trials for ensifentrine or any future product candidates and the potential that we may be required to conduct additional clinical trials for ensifentrine ; the number of potential new product candidates we decide to in-license and develop ; the costs involved in growing our organization to the size needed to allow for the research , development and potential commercialization of ensifentrine or any future product candidates ; the costs involved in filing patent applications and maintaining and enforcing patents or defending against claims or infringements raised by third parties ; the time and costs involved in obtaining regulatory approvals for ensifentrine or any future product candidate we develop and any delays we may encounter as a result of evolving regulatory requirements or adverse results with respect to ensifentrine or any future product candidates ; 74 any licensing or milestone fees we might have to pay during future development of ensifentrine or any future product candidates ; selling and marketing activities undertaken in connection with the anticipated commercialization of ensifentrine or any future product candidates , if approved , and costs involved in the creation of an effective sales and marketing organization ; and the amount of revenues , if any , we may derive either directly or in the form of royalty payments from future sales of ensifentrine or any future product candidates , if approved . our commercial revenues , if any , will be derived from sales of products that we do not expect to be commercially available for many years , if ever . accordingly , we will need to obtain substantial additional funds to achieve our business objective . off-balance sheet arrangements we do not have any relationships with unconsolidated entities or financial partnerships , including entities sometimes referred to as structured finance or special purpose entities that were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . we do not engage in off-balance sheet financing arrangements . in addition , we do not engage in trading activities involving non-exchange traded contracts . we therefore believe that we are not materially exposed to any financing , liquidity , market or credit risk that could arise if we had engaged in these relationships . recent accounting pronouncements for a discussion of pending and recently adopted accounting pronouncements , see note 2 to our consolidated financial statements included elsewhere in this annual report on form 10-k conversion from ifrs to us gaap as the company no longer qualifies as a foreign private issuer , its consolidated financial statements have been retroactively converted from ifrs to us gaap . the significant differences between ifrs and us gaap as they relate to the company are as follows : ( a ) rhinopharma acquisition in connection with the rhinopharma acquisition in 2006 , an in-process r & d ( “ ip r & d ” ) asset was recognized at fair value under both ifrs ( ifrs 3 “ business combinations ” ) and us gaap ( fas 141 “ business combinations ” ) . under us gaap the ip r & d asset was expensed immediately after its recognition in the business combination . also as part of the acquisition , and under both ifrs and us gaap , an assumed contingent liability was identified but was not recognized as the fair value was immaterial . under ifrs the assumed contingent liability was subsequently measured at amortized

