we announced the top-line results for zs004 in september 2014 and presented detailed primary and secondary endpoint results for zs004 at the american heart association scientific sessions on november 17 , 2014. the zs004 study results were simultaneously published in the journal of the american medical association , and we announced the publication of detailed results from the zs003 study in the new england journal of medicine on november 21 , 2014. we initiated an extension to the zs004 study , or zs004e , and a long-term safety study , zs005 , in the second quarter of 2014. we expect to file our nda with the fda in the second quarter of 2015 and our maa with the ema in the second half of 2015. zs-9 was developed utilizing proprietary zirconium silicate technology , the rights to which we currently have pursuant to a 2011 license agreement with uop , which grants us an exclusive license under specified patent rights held by uop to develop and commercialize pharmaceutical products for use in the field of removing toxins from bodily fluids and the gastrointestinal ( gi ) tract of humans and animals , which includes zs-9 and any other product covered by the terms of the license agreement . under the terms of the license agreement , we will owe uop royalties equal to 5 % of worldwide net sales of zs-9 made by us or our sublicensees , and we are obligated to make a minimum annual royalty payment to uop , which commenced with payments of $ 25,000 and $ 50,000 in 2010 and 2011 , respectively , increasing to $ 100,000 for 2012 and years thereafter . 83 we have never been profitable and , as of december 31 , 2014 , had an accumulated deficit of $ 114.3 million . we incurred net losses of approximately $ 64.0 million , $ 33.6 million and $ 10.3 million in the fiscal years ended december 31 , 2014 , 2013 and 2012 , respectively . we expect to continue to incur net losses as we advance zs-9 through clinical development , seek regulatory approval , expand our manufacturing capabilities and prepare for and , if approved , proceed to commercialization . we manufacture clinical trial quantities of zs-9 in-house in two facilities from readily available starting materials using specialized equipment . we are currently in the process of increasing our manufacturing capabilities to support anticipated commercial demand . additionally , we have established a supply chain to provide us with the materials required to manufacture zs-9 . we expect to significantly increase our investment in our commercial manufacturing process and inventory of zs-9 , and in our commercialization and marketing related activities as we prepare for a possible commercial launch of zs-9 . we do not have a sales organization , and we will need substantial additional funding to support our operating activities . adequate funding may not be available to us on acceptable terms , or at all . our failure to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on our business , results of operations and financial condition . financial overview on june 23 , 2014 , we completed our ipo of 6,836,111 shares of our common stock for net proceeds of $ 112.1 million after deducting underwriting discounts and commissions and offering expenses . we have invested substantially all of our efforts and financial resources to identify , acquire , and develop our product candidates , and in particular zs-9 , including conducting clinical studies and providing general and administrative support for these operations . to date , we have funded our operations primarily from the sale of convertible preferred stock and equity securities and a small amount of secured debt . we have never been profitable and have incurred net losses in each year since inception . our net losses were $ 64.0 million , $ 33.6 million and $ 10.3 million for the fiscal years ended december 31 , 2014 , 2013 and 2012. as of december 31 , 2014 we had an accumulated deficit of $ 114.3 million . substantially all of our net losses have resulted from costs incurred in connection with our research and development programs and from general and administrative costs associated with our operations . revenue to date , we have not generated any revenues . our ability to generate product revenues , which we do not expect will occur before 2016 , at the earliest , will depend heavily on our obtaining marketing approval from the fda and ema for , and , subsequent to that , our successful commercialization of zs-9 . if we fail to complete the development of zs-9 in a timely manner or to obtain regulatory approval , our ability to generate future revenue , and our results of operations and financial position , would be materially adversely effected . research and development expenses our research and development expenses consist primarily of : salaries and related costs , including stock-based compensation expense , for personnel in our research and development functions ; costs related to nonclinical studies in animal models ; fees paid to clinical consultants , clinical trial sites and vendors in conjunction with implementing and monitoring our clinical trials and acquiring and evaluating clinical trial data , including all related fees , such as for investigator grants , patient screening fees , laboratory work and statistical compilation and analysis ; costs related to production of clinical supplies , including fees paid to contract packagers ; costs related to compliance with drug development regulatory requirements ; annual minimum royalty payments to uop pursuant to a license agreement ; and depreciation and other allocated facility-related and overhead expenses . 84 we expense both internal and external research and development costs in the periods in which they are incurred . story_separator_special_tag in october 2014 , we entered into a one month lease agreement with regus management group , llc for 9 individual offices in grapevine , tx commencing november 1 , 2014 and a five month lease agreement for 15 individual offices in grapevine , tx commencing december 1 , 2014. rent is due and payable on the first day of each month of the lease term . 91 indemnification in the normal course of business , we enter into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications . our exposure under these agreements is unknown because it involves claims that may be made against us in the future , but have not yet been made . to date , we have not paid any claims or been required to defend any action related to our indemnification obligations . however , we may record charges in the future as a result of these indemnification obligations . in accordance with our seventh amended and restated certificate of incorporation and amended and restated bylaws , we have indemnification obligations to our officers and directors for specified events or occurrences , subject to some limits , while they are serving at our request in such capacities . there have been no claims to date , and we have director and officer insurance that may enable us to recover a portion of any amounts paid for future potential claims . off-balance sheet arrangements we do not have any off-balance sheet arrangements . critical accounting polices and significant estimates our financial statements are prepared in accordance with u.s. generally accepted accounting principles , or u.s. gaap . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , costs and expenses and related disclosures . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances . in many instances , we could have reasonably used different accounting estimates , and in other instances changes in the accounting estimates are reasonably likely to occur from period to period . accordingly , actual results could differ significantly from management 's estimates . to the extent that there are material differences between these estimates and actual results , our future financial statement presentation , financial condition , results of operations and cash flows will be affected . while our significant accounting policies are described in the notes to our financial statements , we believe that the accounting policies discussed below are critical to understanding our historical and future performance , as these policies relate to the more significant areas involving management 's judgments and estimates . clinical trial accruals clinical trial costs are a component of research and development expenses . we accrue and expense clinical trial activities performed by third parties based upon actual patient enrollment in accordance with agreements established with third-party vendors and clinical sites . we determine the actual expense accrual through review of patient enrollment databases and the agreed-upon fee to be paid for each patient enrolled less any payments made . during the course of a clinical trial , we may adjust our rate of clinical expense recognition if actual results differ from our estimates . we make estimates of our accrued expenses as of each balance sheet date in our financial statements based on the facts and circumstances known to us at that time . 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 us reporting amounts that are too high or too low for any particular period . our clinical trial accrual is dependent , in part , upon the receipt of timely and accurate reporting from clinical sites and other third-party vendors . through december 31 , 2014 , there have been no material adjustments to our prior period estimates of accrued expenses for clinical trials . stock-based compensation we measure and recognize compensation expense for stock options granted to our employees and directors , based on the estimated fair value of the award on the grant date . historically , for all periods prior to our ipo , the fair values of the shares of common stock underlying our stock-based awards were estimated on each grant date 92 by our board of directors . in order to determine the fair value of our common stock underlying option grants , our board of directors considered , among other things , contemporaneous valuations of our common stock prepared by an unrelated third-party valuation firm . we use the black-scholes valuation model to estimate the fair value of stock option awards . the fair value is recognized as expense , net of estimated forfeitures , over the requisite service period , which is generally the vesting period of the respective award on a straight-line basis . vesting terms for certain employee grant agreements did not initially match the terms approved by our board of directors . accordingly , these options were not considered granted for accounting purposes until a mutual understanding of the terms was obtained through amendment of the grant agreements in january 2014. certain of these options were considered to have service inception dates in 2013 , which resulted in the vested portion of these options being re-measured to fair value throughout 2013. prior to the public trading of our common stock , our board of directors exercised reasonable judgment and considered a number of objective and subjective factors to determine the best estimate of the fair value of our common stock , including : contemporaneous valuations of our common stock performed by unrelated third-party valuation firms ; our stage of development ; our operational and financial performance ; the nature of our services

liquidity and capital resources due to our significant research and development expenditures , we have generated significant operating losses since our inception . we have funded our operations primarily through our ipo , sales of our preferred shares of stock and a small amount of secured debt . our expenditures are primarily related to research and development activities . at december 31 , 2014 , we had available cash and cash equivalents of $ 47.4 million and short-term investments of $ 54.9 million . our cash , cash equivalents and short-term investments are currently held in a variety of interest and non-interest bearing accounts at financial institutions and invested in a variety of short-term interest-bearing instruments . cash in excess of immediate requirements is invested with a view toward liquidity and capital preservation , and we seek to minimize the potential effects of concentration and degrees of risk . 87 in july 2014 , we entered into a credit and security agreement ( credit agreement ) with midcap financial sbic , lp ( midcap ) for a $ 20 million credit facility , secured by all of our assets , with a negative pledge against our intellectual property ( with all amendments thereto , the midcap credit facility ) . the midcap credit facility is structured in two $ 10 million tranches , with the first tranche previously drawn at closing and the second tranche to be drawn after we provide evidence to midcap of positive primary endpoint results from our zs004 clinical study , which has occurred , but before its expiration on october 31 , 2014. in september 2014 , we entered into the first amendment to credit and security agreement , which extended the second tranche commitment termination date from october 31 , 2014 to march 31 , 2015. notes issued under the terms of the credit agreement bear interest at the rate of 7.5 % per annum , payable monthly , have principal payable in 36 monthly installments commencing on january 1 , 2016 and are subject to a $ 50,000 fee which we paid to midcap upon closing .


 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 due to our significant research and development expenditures , we have generated significant operating losses since our inception . we have funded our operations primarily through our ipo , sales of our preferred shares of stock and a small amount of secured debt . our expenditures are primarily related to research and development activities . at december 31 , 2014 , we had available cash and cash equivalents of $ 47.4 million and short-term investments of $ 54.9 million . our cash , cash equivalents and short-term investments are currently held in a variety of interest and non-interest bearing accounts at financial institutions and invested in a variety of short-term interest-bearing instruments . cash in excess of immediate requirements is invested with a view toward liquidity and capital preservation , and we seek to minimize the potential effects of concentration and degrees of risk . 87 in july 2014 , we entered into a credit and security agreement ( credit agreement ) with midcap financial sbic , lp ( midcap ) for a $ 20 million credit facility , secured by all of our assets , with a negative pledge against our intellectual property ( with all amendments thereto , the midcap credit facility ) . the midcap credit facility is structured in two $ 10 million tranches , with the first tranche previously drawn at closing and the second tranche to be drawn after we provide evidence to midcap of positive primary endpoint results from our zs004 clinical study , which has occurred , but before its expiration on october 31 , 2014. in september 2014 , we entered into the first amendment to credit and security agreement , which extended the second tranche commitment termination date from october 31 , 2014 to march 31 , 2015. notes issued under the terms of the credit agreement bear interest at the rate of 7.5 % per annum , payable monthly , have principal payable in 36 monthly installments commencing on january 1 , 2016 and are subject to a $ 50,000 fee which we paid to midcap upon closing .
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 Suspicious Activity Report : we announced the top-line results for zs004 in september 2014 and presented detailed primary and secondary endpoint results for zs004 at the american heart association scientific sessions on november 17 , 2014. the zs004 study results were simultaneously published in the journal of the american medical association , and we announced the publication of detailed results from the zs003 study in the new england journal of medicine on november 21 , 2014. we initiated an extension to the zs004 study , or zs004e , and a long-term safety study , zs005 , in the second quarter of 2014. we expect to file our nda with the fda in the second quarter of 2015 and our maa with the ema in the second half of 2015. zs-9 was developed utilizing proprietary zirconium silicate technology , the rights to which we currently have pursuant to a 2011 license agreement with uop , which grants us an exclusive license under specified patent rights held by uop to develop and commercialize pharmaceutical products for use in the field of removing toxins from bodily fluids and the gastrointestinal ( gi ) tract of humans and animals , which includes zs-9 and any other product covered by the terms of the license agreement . under the terms of the license agreement , we will owe uop royalties equal to 5 % of worldwide net sales of zs-9 made by us or our sublicensees , and we are obligated to make a minimum annual royalty payment to uop , which commenced with payments of $ 25,000 and $ 50,000 in 2010 and 2011 , respectively , increasing to $ 100,000 for 2012 and years thereafter . 83 we have never been profitable and , as of december 31 , 2014 , had an accumulated deficit of $ 114.3 million . we incurred net losses of approximately $ 64.0 million , $ 33.6 million and $ 10.3 million in the fiscal years ended december 31 , 2014 , 2013 and 2012 , respectively . we expect to continue to incur net losses as we advance zs-9 through clinical development , seek regulatory approval , expand our manufacturing capabilities and prepare for and , if approved , proceed to commercialization . we manufacture clinical trial quantities of zs-9 in-house in two facilities from readily available starting materials using specialized equipment . we are currently in the process of increasing our manufacturing capabilities to support anticipated commercial demand . additionally , we have established a supply chain to provide us with the materials required to manufacture zs-9 . we expect to significantly increase our investment in our commercial manufacturing process and inventory of zs-9 , and in our commercialization and marketing related activities as we prepare for a possible commercial launch of zs-9 . we do not have a sales organization , and we will need substantial additional funding to support our operating activities . adequate funding may not be available to us on acceptable terms , or at all . our failure to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on our business , results of operations and financial condition . financial overview on june 23 , 2014 , we completed our ipo of 6,836,111 shares of our common stock for net proceeds of $ 112.1 million after deducting underwriting discounts and commissions and offering expenses . we have invested substantially all of our efforts and financial resources to identify , acquire , and develop our product candidates , and in particular zs-9 , including conducting clinical studies and providing general and administrative support for these operations . to date , we have funded our operations primarily from the sale of convertible preferred stock and equity securities and a small amount of secured debt . we have never been profitable and have incurred net losses in each year since inception . our net losses were $ 64.0 million , $ 33.6 million and $ 10.3 million for the fiscal years ended december 31 , 2014 , 2013 and 2012. as of december 31 , 2014 we had an accumulated deficit of $ 114.3 million . substantially all of our net losses have resulted from costs incurred in connection with our research and development programs and from general and administrative costs associated with our operations . revenue to date , we have not generated any revenues . our ability to generate product revenues , which we do not expect will occur before 2016 , at the earliest , will depend heavily on our obtaining marketing approval from the fda and ema for , and , subsequent to that , our successful commercialization of zs-9 . if we fail to complete the development of zs-9 in a timely manner or to obtain regulatory approval , our ability to generate future revenue , and our results of operations and financial position , would be materially adversely effected . research and development expenses our research and development expenses consist primarily of : salaries and related costs , including stock-based compensation expense , for personnel in our research and development functions ; costs related to nonclinical studies in animal models ; fees paid to clinical consultants , clinical trial sites and vendors in conjunction with implementing and monitoring our clinical trials and acquiring and evaluating clinical trial data , including all related fees , such as for investigator grants , patient screening fees , laboratory work and statistical compilation and analysis ; costs related to production of clinical supplies , including fees paid to contract packagers ; costs related to compliance with drug development regulatory requirements ; annual minimum royalty payments to uop pursuant to a license agreement ; and depreciation and other allocated facility-related and overhead expenses . 84 we expense both internal and external research and development costs in the periods in which they are incurred . story_separator_special_tag in october 2014 , we entered into a one month lease agreement with regus management group , llc for 9 individual offices in grapevine , tx commencing november 1 , 2014 and a five month lease agreement for 15 individual offices in grapevine , tx commencing december 1 , 2014. rent is due and payable on the first day of each month of the lease term . 91 indemnification in the normal course of business , we enter into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications . our exposure under these agreements is unknown because it involves claims that may be made against us in the future , but have not yet been made . to date , we have not paid any claims or been required to defend any action related to our indemnification obligations . however , we may record charges in the future as a result of these indemnification obligations . in accordance with our seventh amended and restated certificate of incorporation and amended and restated bylaws , we have indemnification obligations to our officers and directors for specified events or occurrences , subject to some limits , while they are serving at our request in such capacities . there have been no claims to date , and we have director and officer insurance that may enable us to recover a portion of any amounts paid for future potential claims . off-balance sheet arrangements we do not have any off-balance sheet arrangements . critical accounting polices and significant estimates our financial statements are prepared in accordance with u.s. generally accepted accounting principles , or u.s. gaap . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , costs and expenses and related disclosures . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances . in many instances , we could have reasonably used different accounting estimates , and in other instances changes in the accounting estimates are reasonably likely to occur from period to period . accordingly , actual results could differ significantly from management 's estimates . to the extent that there are material differences between these estimates and actual results , our future financial statement presentation , financial condition , results of operations and cash flows will be affected . while our significant accounting policies are described in the notes to our financial statements , we believe that the accounting policies discussed below are critical to understanding our historical and future performance , as these policies relate to the more significant areas involving management 's judgments and estimates . clinical trial accruals clinical trial costs are a component of research and development expenses . we accrue and expense clinical trial activities performed by third parties based upon actual patient enrollment in accordance with agreements established with third-party vendors and clinical sites . we determine the actual expense accrual through review of patient enrollment databases and the agreed-upon fee to be paid for each patient enrolled less any payments made . during the course of a clinical trial , we may adjust our rate of clinical expense recognition if actual results differ from our estimates . we make estimates of our accrued expenses as of each balance sheet date in our financial statements based on the facts and circumstances known to us at that time . 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 us reporting amounts that are too high or too low for any particular period . our clinical trial accrual is dependent , in part , upon the receipt of timely and accurate reporting from clinical sites and other third-party vendors . through december 31 , 2014 , there have been no material adjustments to our prior period estimates of accrued expenses for clinical trials . stock-based compensation we measure and recognize compensation expense for stock options granted to our employees and directors , based on the estimated fair value of the award on the grant date . historically , for all periods prior to our ipo , the fair values of the shares of common stock underlying our stock-based awards were estimated on each grant date 92 by our board of directors . in order to determine the fair value of our common stock underlying option grants , our board of directors considered , among other things , contemporaneous valuations of our common stock prepared by an unrelated third-party valuation firm . we use the black-scholes valuation model to estimate the fair value of stock option awards . the fair value is recognized as expense , net of estimated forfeitures , over the requisite service period , which is generally the vesting period of the respective award on a straight-line basis . vesting terms for certain employee grant agreements did not initially match the terms approved by our board of directors . accordingly , these options were not considered granted for accounting purposes until a mutual understanding of the terms was obtained through amendment of the grant agreements in january 2014. certain of these options were considered to have service inception dates in 2013 , which resulted in the vested portion of these options being re-measured to fair value throughout 2013. prior to the public trading of our common stock , our board of directors exercised reasonable judgment and considered a number of objective and subjective factors to determine the best estimate of the fair value of our common stock , including : contemporaneous valuations of our common stock performed by unrelated third-party valuation firms ; our stage of development ; our operational and financial performance ; the nature of our services

