see part i `` cautionary note regarding forward-looking statements , ” above . forward-looking statements are not guarantees of future performance and our actual results may differ materially from those currently anticipated and from historical results depending upon a variety of factors , including , but not limited to , those discussed in part i , item 1a of this report under the heading “ risk factors , ” which are incorporated herein by reference . business overview we are a clinical-stage biopharmaceutical company committed to advancing innovative products for women 's health . we are driven by a mission to identify , develop and bring to market a diverse portfolio of differentiated therapies that expand treatment options , improve outcomes and facilitate convenience for women , primarily in the areas of contraception , vaginal health , sexual health and fertility . our business strategy is to in-license or otherwise acquire the rights to differentiated product candidates in our areas of focus , some of which have existing clinical proof-of-concept data , to take those candidates through mid to late-stage clinical development , and to establish and leverage strategic partnerships to achieve commercialization . we and our wholly owned subsidiaries operate in one business segment . since july 2017 , we have assembled a portfolio of clinical-stage and pre-clinical-stage candidates . while we will continue to assess opportunities to expand our portfolio , our current focus is on advancing our existing product 82 candidates through mid and late stages of clinical development or fda approval . our portfolio includes three product candidates in advanced clinical development : dare-bv1 , a novel thermosetting bioadhesive hydrogel formulated with clindamycin phosphate 2 % to be administered in a single vaginally delivered application , as a first line treatment for bacterial vaginosis ; ovaprene® , a hormone-free , monthly vaginal contraceptive ; and sildenafil cream , 3.6 % , a proprietary cream formulation of sildenafil for topical administration to the vulva and vagina for treatment of female sexual arousal disorder . our portfolio also includes three product candidates in phase 1 clinical development or that we believe are phase 1-ready : dare-hrt1 , a combination bio-identical estradiol and progesterone intravaginal ring for the treatment of menopausal symptoms , including vasomotor symptoms , as part of a hormone therapy following menopause ; dare-frt1 , an intravaginal ring containing bio-identical progesterone for the prevention of preterm birth and broader luteal phase support as part of an in vitro fertilization treatment plan ; and dare-vva1 , a vaginally delivered formulation of tamoxifen to treat vulvar vaginal atrophy , or vva , in patients with hormone- receptor positive breast cancer . in addition , our portfolio includes these pre-clinical stage product candidates : dare-larc1 , a combination product designed to provide long-acting , reversible contraception comprising an implantable , user-controlled wireless drug delivery system and levonorgestrel ; orb-204 and orb-214 , injectable formulations of etonogestrel designed to provide contraception over 6-month and 12-month periods , respectively ; and dare-rh1 , a novel approach to non-hormonal contraception for both men and women by targeting the catsper ion channel . see item 1 . `` business , `` in part i of this report for additional information regarding our product candidates . our primary operations have consisted of , and are expected to continue to consist primarily of , product research and development and advancing our portfolio of product candidates through clinical development and regulatory approval . we expect that the majority of our research and development expenses in 2021 and 2022 will support the advancement of dare-bv1 , ovaprene and sildenafil cream , 3.6 % . to date , we have not obtained any regulatory approvals for any of our product candidates , commercialized any of our product candidates or generated any revenue . we are subject to several risks common to clinical-stage biopharmaceutical companies , including dependence on key individuals , competition from other companies , the need to develop commercially viable products in a timely and cost-effective manner , and the need to obtain adequate additional capital to fund the development of product candidates . we are also subject to several risks common to other companies in the industry , including rapid technology change , regulatory approval of products , uncertainty of market acceptance of products , competition from substitute products and larger companies , compliance with government regulations , protection of proprietary technology , dependence on third parties , and product liability . the effect of the covid-19 pandemic and efforts to reduce the spread of covid-19 remain a rapidly evolving and uncertain risk to our business , operating results , financial condition and stock price . in november 2020 , the u.s. began to experience a substantial surge in cases and hospitalizations and intensive care unit capacity became strained . states and counties across the country imposed or re-imposed stay-at-home orders and shutdowns of non-essential businesses in efforts to reduce spread of the disease . as of march 29 , 2021 , the u.s. food and drug administration ( fda ) had issued emergency use authorizations for three vaccines for the prevention of covid-19 . however , while president biden recently said that there will be enough vaccine supply for every adult in the u.s. by the end of may 2021 , the vaccination effort in the u.s. and elsewhere got off to a bumpy start and continues to face significant , complex challenges , and the timeline for the pandemic and its associated restrictions to end remain uncertain . story_separator_special_tag in increased salary , benefit and bonus expenses , ( ii ) expenses for legal , professional , and accounting services of approximately $ 212,000 , ( iii ) insurance costs of approximately $ 192,000 due to increased premiums , ( iv ) rent and facilities expenses of approximately $ 183,000 due to the addition of two leases for office and laboratory facilities when we acquired microchips in november 2019 , and ( v ) stock-based compensation expense of approximately $ 161,000. we expect an increase in general and administrative expenses of approximately 10 % to 15 % in 2021 compared to 2020 , primarily due to increased personnel expenses and other general corporate overhead . our 2021 general and administrative expenses could also include significant costs related to commercial readiness activities for dare-bv1 depending on the type and nature of commercial partnership we establish for dare-bv1 in the u.s. , which , if incurred , could increase our 2021 general and administrative expenses above our current expectation . 86 research and development expenses the increase of approximately $ 12.2 million in research and development expenses from 2019 to 2020 was primarily attributable to increases of approximately ( i ) $ 11.6 million in costs related to development activities for our clinical-stage product candidates , primarily driven by the dare-bvfree phase 3 clinical trial and manufacturing and regulatory affairs activities for ovaprene ; ( ii ) $ 2.0 million in costs related to development activities for our pre-clinical stage programs , primarily related to dare-larc1 ; ( iii ) $ 1.3 million in personnel costs reflecting our first full year of personnel costs for the former microchips employees we hired in november 2019 , and ( iv ) stock-based compensation expense of approximately $ 118,000. those increases were partially offset by ( a ) an increase in grant funding recorded as a reduction to research and development expenses of approximately $ 2.4 million under grant awards for dare-larc1 , ovaprene and dare-frt1 and ; ( b ) a cash payment of approximately $ 192,000 and a receivable of approximately $ 268,000 , both of which are recorded as a reduction to research and development expenses and are related to australia 's research and development tax incentive which gives 43.5 % of every dollar spent by eligible companies on eligible research and development activities back to those companies in a cash payment . we expect research and development expenses to increase significantly in 2021 as we continue to develop our product candidates and seek fda approval for dare-bv1 . if we advance our programs as currently planned , our research and development expenses for 2021 could be more than double our research and development expenses for 2020. our 2021 research and development expenses could include up to $ 4.5 million in milestone payments under license agreements related to certain of our product candidates payable by us to our third-party licensors and up to approximately $ 1.0 million in contingent consideration payments under our merger agreement with microchips , all or any portion of which we may elect to pay to the former stockholders of microchips in shares of our common stock . as discussed below in the section titled “ liquidity and capital resources , ” we will need to raise substantial additional capital to continue to fund our operations and successfully execute our current operating plan . the pace and extent of our research and development activities and , therefore , our research and development spend , will depend on our cash resources . we expect our research and development spend to vary across our fiscal quarters . in regard to sildenafil cream , 3.6 % , we anticipate that the costs of the planned phase 2b clinical study will be approximately $ 15.0 to $ 17.0 million , not all of which will be payable in fiscal 2021. license fees the $ 450,001 decrease in license expenses from 2019 to 2020 was attributable to a decrease in license fees accrued or paid . during 2019 , we accrued or paid $ 533,334 of license fees under our license agreements related to dare-hrt1 and dare-bv1 . during 2020 , we accrued or paid $ 83,333 of license fees under our license agreement related to dare-hrt1 . see note 3 `` license and collaboration agreements—in license agreements `` to the accompanying consolidated financial statements for more information about our license agreements . other income the decrease of $ 79,536 in other income from 2019 to 2020 was primarily due to a decrease in interest earned on cash balances in 2020. story_separator_special_tag style= `` min-height:36pt ; width:100 % `` > need to raise additional capital to continue our operations and execute our current product development plans , ” above . cash flows the following table shows a summary of our cash flows for the periods indicated : replace_table_token_3_th operating activities cash used in operating activities during the year ended december 31 , 2020 included a net loss of $ 27.4 million , decreased by non-cash stock-based compensation expense of $ 742,031. components providing operating cash were an approximately $ 1.3 million increase in accrued expenses , a $ 1.0 million increase in deferred license revenue , a $ 157,725 increase in other non-current assets and deferred charges and a $ 95,042 increase in other receivables . components reducing operating cash were a $ 454,133 increase in prepaid expenses , a $ 455,121 decrease in deferred grant funding , and a $ 61,850 decrease in accounts payable . cash used in operating activities during the year ended december 31 , 2019 included a net loss of $ 14.3 million , decreased by non-cash stock-based compensation expense of $ 462,239. components providing operating cash were a $ 621,618 increase in accrued expenses , an increase of $ 608,650 in accounts payable , and an increase of $ 237,937 in other non-current assets and deferred charges . components reducing operating cash were a $ 322,482

liquidity and capital resources plan of operations and future funding requirements we prepared the accompanying consolidated financial statements on a going concern basis , which assumes that we will realize our assets and satisfy our liabilities in the normal course of business . we have a history of losses from operations , we expect negative cash flows from our operations to continue for the foreseeable future , and we expect that our net losses will continue for at least the next several years as we develop and seek to bring to market our existing product candidates and potentially acquire , license and develop additional product candidates . these circumstances raise substantial doubt about our ability to continue as a going concern . the accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and reclassification of assets or the amounts and classifications of liabilities that may result from the outcome of the uncertainty of our ability to remain a going concern . at december 31 , 2020 , our accumulated deficit was approximately $ 71.4 million , our cash and cash equivalents were approximately $ 4.7 million , and our working capital deficit was approximately $ 0.7 million . for the year ended december 31 , 2020 , we incurred a net loss of $ 27.4 million and had negative cash flow from operations of approximately $ 25.2 million . 87 our primary uses of capital are , and we expect will continue to be , staff-related expenses , the cost of clinical trials and regulatory activities related to our product candidates , costs associated with contract manufacturing services and third-party clinical research and development services , payments due under license agreements and our merger agreement with microchips upon the successful achievement of milestones of our product candidates , legal expenses , other regulatory expenses and general overhead costs . our future funding requirements could also include significant costs related to commercialization of our product candidates , if approved , depending on the type and nature of commercial partnerships we establish .


 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 plan of operations and future funding requirements we prepared the accompanying consolidated financial statements on a going concern basis , which assumes that we will realize our assets and satisfy our liabilities in the normal course of business . we have a history of losses from operations , we expect negative cash flows from our operations to continue for the foreseeable future , and we expect that our net losses will continue for at least the next several years as we develop and seek to bring to market our existing product candidates and potentially acquire , license and develop additional product candidates . these circumstances raise substantial doubt about our ability to continue as a going concern . the accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and reclassification of assets or the amounts and classifications of liabilities that may result from the outcome of the uncertainty of our ability to remain a going concern . at december 31 , 2020 , our accumulated deficit was approximately $ 71.4 million , our cash and cash equivalents were approximately $ 4.7 million , and our working capital deficit was approximately $ 0.7 million . for the year ended december 31 , 2020 , we incurred a net loss of $ 27.4 million and had negative cash flow from operations of approximately $ 25.2 million . 87 our primary uses of capital are , and we expect will continue to be , staff-related expenses , the cost of clinical trials and regulatory activities related to our product candidates , costs associated with contract manufacturing services and third-party clinical research and development services , payments due under license agreements and our merger agreement with microchips upon the successful achievement of milestones of our product candidates , legal expenses , other regulatory expenses and general overhead costs . our future funding requirements could also include significant costs related to commercialization of our product candidates , if approved , depending on the type and nature of commercial partnerships we establish .
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 Suspicious Activity Report : see part i `` cautionary note regarding forward-looking statements , ” above . forward-looking statements are not guarantees of future performance and our actual results may differ materially from those currently anticipated and from historical results depending upon a variety of factors , including , but not limited to , those discussed in part i , item 1a of this report under the heading “ risk factors , ” which are incorporated herein by reference . business overview we are a clinical-stage biopharmaceutical company committed to advancing innovative products for women 's health . we are driven by a mission to identify , develop and bring to market a diverse portfolio of differentiated therapies that expand treatment options , improve outcomes and facilitate convenience for women , primarily in the areas of contraception , vaginal health , sexual health and fertility . our business strategy is to in-license or otherwise acquire the rights to differentiated product candidates in our areas of focus , some of which have existing clinical proof-of-concept data , to take those candidates through mid to late-stage clinical development , and to establish and leverage strategic partnerships to achieve commercialization . we and our wholly owned subsidiaries operate in one business segment . since july 2017 , we have assembled a portfolio of clinical-stage and pre-clinical-stage candidates . while we will continue to assess opportunities to expand our portfolio , our current focus is on advancing our existing product 82 candidates through mid and late stages of clinical development or fda approval . our portfolio includes three product candidates in advanced clinical development : dare-bv1 , a novel thermosetting bioadhesive hydrogel formulated with clindamycin phosphate 2 % to be administered in a single vaginally delivered application , as a first line treatment for bacterial vaginosis ; ovaprene® , a hormone-free , monthly vaginal contraceptive ; and sildenafil cream , 3.6 % , a proprietary cream formulation of sildenafil for topical administration to the vulva and vagina for treatment of female sexual arousal disorder . our portfolio also includes three product candidates in phase 1 clinical development or that we believe are phase 1-ready : dare-hrt1 , a combination bio-identical estradiol and progesterone intravaginal ring for the treatment of menopausal symptoms , including vasomotor symptoms , as part of a hormone therapy following menopause ; dare-frt1 , an intravaginal ring containing bio-identical progesterone for the prevention of preterm birth and broader luteal phase support as part of an in vitro fertilization treatment plan ; and dare-vva1 , a vaginally delivered formulation of tamoxifen to treat vulvar vaginal atrophy , or vva , in patients with hormone- receptor positive breast cancer . in addition , our portfolio includes these pre-clinical stage product candidates : dare-larc1 , a combination product designed to provide long-acting , reversible contraception comprising an implantable , user-controlled wireless drug delivery system and levonorgestrel ; orb-204 and orb-214 , injectable formulations of etonogestrel designed to provide contraception over 6-month and 12-month periods , respectively ; and dare-rh1 , a novel approach to non-hormonal contraception for both men and women by targeting the catsper ion channel . see item 1 . `` business , `` in part i of this report for additional information regarding our product candidates . our primary operations have consisted of , and are expected to continue to consist primarily of , product research and development and advancing our portfolio of product candidates through clinical development and regulatory approval . we expect that the majority of our research and development expenses in 2021 and 2022 will support the advancement of dare-bv1 , ovaprene and sildenafil cream , 3.6 % . to date , we have not obtained any regulatory approvals for any of our product candidates , commercialized any of our product candidates or generated any revenue . we are subject to several risks common to clinical-stage biopharmaceutical companies , including dependence on key individuals , competition from other companies , the need to develop commercially viable products in a timely and cost-effective manner , and the need to obtain adequate additional capital to fund the development of product candidates . we are also subject to several risks common to other companies in the industry , including rapid technology change , regulatory approval of products , uncertainty of market acceptance of products , competition from substitute products and larger companies , compliance with government regulations , protection of proprietary technology , dependence on third parties , and product liability . the effect of the covid-19 pandemic and efforts to reduce the spread of covid-19 remain a rapidly evolving and uncertain risk to our business , operating results , financial condition and stock price . in november 2020 , the u.s. began to experience a substantial surge in cases and hospitalizations and intensive care unit capacity became strained . states and counties across the country imposed or re-imposed stay-at-home orders and shutdowns of non-essential businesses in efforts to reduce spread of the disease . as of march 29 , 2021 , the u.s. food and drug administration ( fda ) had issued emergency use authorizations for three vaccines for the prevention of covid-19 . however , while president biden recently said that there will be enough vaccine supply for every adult in the u.s. by the end of may 2021 , the vaccination effort in the u.s. and elsewhere got off to a bumpy start and continues to face significant , complex challenges , and the timeline for the pandemic and its associated restrictions to end remain uncertain . story_separator_special_tag in increased salary , benefit and bonus expenses , ( ii ) expenses for legal , professional , and accounting services of approximately $ 212,000 , ( iii ) insurance costs of approximately $ 192,000 due to increased premiums , ( iv ) rent and facilities expenses of approximately $ 183,000 due to the addition of two leases for office and laboratory facilities when we acquired microchips in november 2019 , and ( v ) stock-based compensation expense of approximately $ 161,000. we expect an increase in general and administrative expenses of approximately 10 % to 15 % in 2021 compared to 2020 , primarily due to increased personnel expenses and other general corporate overhead . our 2021 general and administrative expenses could also include significant costs related to commercial readiness activities for dare-bv1 depending on the type and nature of commercial partnership we establish for dare-bv1 in the u.s. , which , if incurred , could increase our 2021 general and administrative expenses above our current expectation . 86 research and development expenses the increase of approximately $ 12.2 million in research and development expenses from 2019 to 2020 was primarily attributable to increases of approximately ( i ) $ 11.6 million in costs related to development activities for our clinical-stage product candidates , primarily driven by the dare-bvfree phase 3 clinical trial and manufacturing and regulatory affairs activities for ovaprene ; ( ii ) $ 2.0 million in costs related to development activities for our pre-clinical stage programs , primarily related to dare-larc1 ; ( iii ) $ 1.3 million in personnel costs reflecting our first full year of personnel costs for the former microchips employees we hired in november 2019 , and ( iv ) stock-based compensation expense of approximately $ 118,000. those increases were partially offset by ( a ) an increase in grant funding recorded as a reduction to research and development expenses of approximately $ 2.4 million under grant awards for dare-larc1 , ovaprene and dare-frt1 and ; ( b ) a cash payment of approximately $ 192,000 and a receivable of approximately $ 268,000 , both of which are recorded as a reduction to research and development expenses and are related to australia 's research and development tax incentive which gives 43.5 % of every dollar spent by eligible companies on eligible research and development activities back to those companies in a cash payment . we expect research and development expenses to increase significantly in 2021 as we continue to develop our product candidates and seek fda approval for dare-bv1 . if we advance our programs as currently planned , our research and development expenses for 2021 could be more than double our research and development expenses for 2020. our 2021 research and development expenses could include up to $ 4.5 million in milestone payments under license agreements related to certain of our product candidates payable by us to our third-party licensors and up to approximately $ 1.0 million in contingent consideration payments under our merger agreement with microchips , all or any portion of which we may elect to pay to the former stockholders of microchips in shares of our common stock . as discussed below in the section titled “ liquidity and capital resources , ” we will need to raise substantial additional capital to continue to fund our operations and successfully execute our current operating plan . the pace and extent of our research and development activities and , therefore , our research and development spend , will depend on our cash resources . we expect our research and development spend to vary across our fiscal quarters . in regard to sildenafil cream , 3.6 % , we anticipate that the costs of the planned phase 2b clinical study will be approximately $ 15.0 to $ 17.0 million , not all of which will be payable in fiscal 2021. license fees the $ 450,001 decrease in license expenses from 2019 to 2020 was attributable to a decrease in license fees accrued or paid . during 2019 , we accrued or paid $ 533,334 of license fees under our license agreements related to dare-hrt1 and dare-bv1 . during 2020 , we accrued or paid $ 83,333 of license fees under our license agreement related to dare-hrt1 . see note 3 `` license and collaboration agreements—in license agreements `` to the accompanying consolidated financial statements for more information about our license agreements . other income the decrease of $ 79,536 in other income from 2019 to 2020 was primarily due to a decrease in interest earned on cash balances in 2020. story_separator_special_tag style= `` min-height:36pt ; width:100 % `` > need to raise additional capital to continue our operations and execute our current product development plans , ” above . cash flows the following table shows a summary of our cash flows for the periods indicated : replace_table_token_3_th operating activities cash used in operating activities during the year ended december 31 , 2020 included a net loss of $ 27.4 million , decreased by non-cash stock-based compensation expense of $ 742,031. components providing operating cash were an approximately $ 1.3 million increase in accrued expenses , a $ 1.0 million increase in deferred license revenue , a $ 157,725 increase in other non-current assets and deferred charges and a $ 95,042 increase in other receivables . components reducing operating cash were a $ 454,133 increase in prepaid expenses , a $ 455,121 decrease in deferred grant funding , and a $ 61,850 decrease in accounts payable . cash used in operating activities during the year ended december 31 , 2019 included a net loss of $ 14.3 million , decreased by non-cash stock-based compensation expense of $ 462,239. components providing operating cash were a $ 621,618 increase in accrued expenses , an increase of $ 608,650 in accounts payable , and an increase of $ 237,937 in other non-current assets and deferred charges . components reducing operating cash were a $ 322,482

