we assess the development , commercialization and or partnering strategies with respect to each of our internal product candidates periodically based on several factors , including clinical trial results , competitive positioning , and funding requirements and resources . our core technology portfolio consists of our checkpoint antibody program , our heat shock protein ( `` hsp `` ) platform ( based on our hsp technologies ) , and our saponin platform ( based on our saponin adjuvant technologies ) . our checkpoint antibody program became part of our portfolio with the recent acquisition of 4-antibody ag , a private european-based biopharmaceutical company ( `` 4-ab `` ) . this acquisition ( the `` acquisition `` ) provided us with a technology platform for the rapid discovery and optimization of fully-human antibodies against a wide array of molecular targets . this platform has been applied to six immune checkpoint targets seeking therapeutic antibody check point modulators ( `` cpms `` ) to regulate immune response to cancers and other diseases . our proprietary antibody discovery engine , retrocyte display ® , is designed to generate high quality therapeutic antibody drug candidates quickly using a high-throughput approach incorporating human antibody libraries expressed in mammalian b-lineage cells . we currently have pre-clinical checkpoint antibody programs targeting gitr , ox40 , ctla-4 , pd-1 , tim-3 and lag-3 from 4-ab 's technologies . we have selected two gitr agonists and one ctla-4 antagonist to advance into pre-clinical development . we are targeting to identify development candidates for the other four checkpoint programs during 2014 , and to be in a position to file investigational new drug applications on four candidates within the next two years . within our hsp platform we are developing our prophage series cancer vaccines . our prophage series cancer vaccine are autologous therapies derived from cells extracted from the patient 's tumor . as a result , prophage series vaccines contain a precise antigenic ‘ fingerprint ' of a patient 's particular cancer and are designed to reprogram the body 's immune system to target only cells bearing this fingerprint , reducing the risk that powerful anti-cancer agents will target healthy tissue and cause debilitating side effects often associated with chemotherapy and radiation therapy . we believe that in contrast to many other autologous vaccines that are based on cellular preparations , the prophage series is based on a stable protein preparation produced via a relatively simple manufacturing process . our prophage series g vaccines are currently being studied in two different settings of glioblastoma multiforme , or gbm : newly diagnosed and recurrent disease . also within our hsp platform , is herpv , a recombinant , synthetic vaccine containing multiple antigens derived from the herpes simplex 2 virus . herpv is currently in a phase 2 clinical trial , and we believe it is one of the most clinically-advanced therapeutic vaccines for the treatment of genital herpes in clinical development . combining our heat shock protein technology and our qs-21 stimulon adjuvant , herpv represents a potential new approach to the treatment of genital herpes . rather than attempting to suppress the virus , which is what antivirals do , herpv has the potential to enable the individual 's own immune system to stop the virus from causing and transmitting disease without chronic treatment . in november 2013 , we released top line results from a phase 2 , randomized , double blind , multicenter clinical trial of herpv in hsv-2 positive genital herpes patients , which showed that the trial met its primary endpoint . we anticipate reporting additional study results assessing the efficacy of a booster injection of herpv during the first half of 2014. within our saponin platform is qs-21 stimulon ® adjuvant , or qs-21 stimulon . qs-21 stimulon is a saponin extracted from the bark of the quillaja saponaria tree , also known as the soapbark , an evergreen tree native to warm temperate central chile . qs-21 stimulon has become a key component in the development of investigational preventive vaccine formulations across a wide variety of infectious diseases , including several investigational therapeutic vaccines intended to treat cancer and degenerative disorders . qs-21 stimulon has been widely studied and approximately 50,000 patients have received vaccines containing the adjuvant . the key licensees of qs-21 stimulon are glaxosmithkline ( `` gsk `` ) and janssen alzheimer immunotherapy ( `` janssen ai `` ) . qs-21 stimulon is currently being studied in 21 vaccine indications , which include gsk 's phase 3 vaccine programs for rts , s for malaria , mage-a3 cancer immunotherapeutic for non-small cell lung cancer and melanoma and hz/su for shingles . in addition , janssen ai 's qs-21 stimulon adjuvant-containing vaccine candidate is in phase 2 trials for the treatment of alzheimer 's disease . if any of our partners ' products containing qs-21 stimulon successfully completes clinical development and receives approval for commercial sale , we are generally entitled to receive royalties for 10 years after commercial launch , with some exceptions . 39 in addition to our internal development efforts , we continue to pursue partnering opportunities . we are seeking partners for select products in our portfolio , which include herpv , qs-21 stimulon and the prophage g-series vaccines , g-100 and g-200 as well as our antibody therapeutic candidates . we are also exploring in-licensing , acquisitions and sponsored research opportunities . our business activities have included product research and development , intellectual property prosecution , manufacturing , regulatory and clinical affairs , corporate finance and development , business development , and support of our collaborations . story_separator_special_tag critical accounting policies and estimates the sec defines “ critical accounting policies ” as those that require the application of management 's most difficult , subjective , or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods . the preparation of consolidated financial statements in conformity with u.s. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . we base those estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances . actual results could differ from those estimates . the following listing is not intended to be a comprehensive list of all of our accounting policies . our significant accounting policies are described in note 2 of the notes to our consolidated financial statements contained elsewhere in this annual report on form 10-k. in many cases , the accounting treatment of a particular transaction is dictated by u.s. generally accepted accounting principles , with no need for our judgment in its application . there are also areas in which our judgment in selecting an available alternative would not produce a materially different result . we have identified the following as our critical accounting policies . share-based compensation in accordance with the fair value recognition provisions of the financial accounting standards board ( `` fasb `` ) accounting standards codification ( `` asc `` ) 718 , compensation—stock compensation , we recognize share-based 44 compensation expense net of an estimated forfeiture rate and only recognize compensation expense for those share-based awards expected to vest . compensation expense is recognized on a straight-line basis over the requisite service period of the award . stock options granted to certain non-employees have been accounted for based on the fair value method of accounting in accordance with asc 505-50 , equity- equity-based payments to non-employees . as a result , the noncash charge to operations for non-employee options with vesting or other performance criteria is affected each reporting period , until the non-employee options vest , by changes in the fair value of our common stock . under the provisions of asc 505-50 , the change in fair value of vested options issued to non-employees is reflected in the statement of operations each reporting period , until the options are exercised or expire . determining the appropriate fair value model and calculating the fair value of share-based awards requires the use of highly subjective assumptions , including the expected life of the share-based awards and stock price volatility . the assumptions used in calculating the fair value of share-based awards represent management 's best estimates , but these estimates involve inherent uncertainties and the application of management judgment . as a result , if factors change and we use different assumptions , our share-based compensation expense could be materially different in the future . in addition , if our actual forfeiture rate is materially different from our estimate , the share-based compensation expense could be significantly different from what we have recorded in the current period . see note 8 of the notes to our consolidated financial statements contained elsewhere in this annual report on form 10-k for a further discussion on share-based compensation . revenue recognition revenue for services under research and development contracts are recognized as the services are performed , or as clinical trial materials are provided . non-refundable milestone payments that represent the completion of a separate earnings process are recognized as revenue when earned . license fees and royalties are recognized as they are earned . revenue recognized from collaborative agreements is based upon the provisions of asc 605-25 , revenue recognition—multiple element arrangements , as amended by accounting standards update 2009-13. fair value measurements in accordance with asc 820 , fair value measurements and disclosures , we measure fair value based on a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available . the fair value hierarchy is broken down into three levels based on the source of inputs . we have elected to measure our contingent royalty consideration at fair value in accordance with asc 825 , financial instruments . the fair value of our contingent royalty consideration is based on significant inputs not observable in the market , which require it to be reported as a level 3 liability within the fair value hierarchy . the valuation uses assumptions we believe would be made by a market participant . in particular , the valuation analysis used the income approach based on the sum of the economic income that an asset is anticipated to produce in the future . in this case that asset is the potential royalty income to be paid to us as a result of certain license agreements for qs-21 stimulon and the potential net sales generated from herpv . the fair value of the contingent royalty consideration is estimated by applying a risk adjusted discount rate to the probability adjusted royalty revenue stream based on expected approval dates . these fair value estimates are most sensitive to changes in the probability of regulatory approvals . the discounted cash flow method of the income approach was chosen as the method best suited to valuing the contingent royalty consideration . recent accounting pronouncements in february 2013 , the fasb issued accounting standards update no . 2013-02 , `` reporting of amounts reclassified out of accumulated other comprehensive income `` , ( `` asu 2013-02 `` ) . asu 2013-02 requires entities to disclose items reclassified out of accumulated other comprehensive income ( `` aoci `` ) and into net income

liquidity and capital resources we have incurred annual operating losses since inception , and we had an accumulated deficit of $ 649.1 million as of december 31 , 2013 . we expect to incur significant losses over the next several years as we continue clinical trials , manage our regulatory processes , prepare for potential commercialization of products , and continue development of our technologies . we have financed our operations primarily through the sale of equity and debt , and interest income earned on cash , cash equivalents , and short-term investment balances . from our inception through december 31 , 2013 , we have raised aggregate net proceeds of $ 561.5 million through the sale of common and preferred stock , the exercise of stock options and warrants , proceeds from our employee stock purchase plan , and the issuance of convertible and other notes . during february 2014 , we raised additional net proceeds of approximately $ 56.0 million through an underwritten offering of our common stock . in addition , during the quarter ended march 31 , 2012 , we received $ 9.0 million from gsk for a first right to negotiate the 42 purchase of agenus or certain of its assets and an expanded license agreement and $ 6.25 million through a license of non-core technologies with an existing licensee . we granted gsk the first right to negotiate for the purchase of the company or certain of our assets which will expire in march 2017. we also maintain an effective registration statement to sell an aggregate of up to ten million shares of our common stock from time to time pursuant to an at the market issuance sales agreement with mlv & co. llc , as sales agent . as of december 31 , 2013 , we have 5.2 million shares available for sale under this agreement . however , as a result of our issuance of shares of our common stock in connection with our february 2014 public offering and the acquisition , we do not currently have sufficient authorized shares of common stock in order to continue to make sales under this agreement .


 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 we have incurred annual operating losses since inception , and we had an accumulated deficit of $ 649.1 million as of december 31 , 2013 . we expect to incur significant losses over the next several years as we continue clinical trials , manage our regulatory processes , prepare for potential commercialization of products , and continue development of our technologies . we have financed our operations primarily through the sale of equity and debt , and interest income earned on cash , cash equivalents , and short-term investment balances . from our inception through december 31 , 2013 , we have raised aggregate net proceeds of $ 561.5 million through the sale of common and preferred stock , the exercise of stock options and warrants , proceeds from our employee stock purchase plan , and the issuance of convertible and other notes . during february 2014 , we raised additional net proceeds of approximately $ 56.0 million through an underwritten offering of our common stock . in addition , during the quarter ended march 31 , 2012 , we received $ 9.0 million from gsk for a first right to negotiate the 42 purchase of agenus or certain of its assets and an expanded license agreement and $ 6.25 million through a license of non-core technologies with an existing licensee . we granted gsk the first right to negotiate for the purchase of the company or certain of our assets which will expire in march 2017. we also maintain an effective registration statement to sell an aggregate of up to ten million shares of our common stock from time to time pursuant to an at the market issuance sales agreement with mlv & co. llc , as sales agent . as of december 31 , 2013 , we have 5.2 million shares available for sale under this agreement . however , as a result of our issuance of shares of our common stock in connection with our february 2014 public offering and the acquisition , we do not currently have sufficient authorized shares of common stock in order to continue to make sales under this agreement .
```    
 Suspicious Activity Report : we assess the development , commercialization and or partnering strategies with respect to each of our internal product candidates periodically based on several factors , including clinical trial results , competitive positioning , and funding requirements and resources . our core technology portfolio consists of our checkpoint antibody program , our heat shock protein ( `` hsp `` ) platform ( based on our hsp technologies ) , and our saponin platform ( based on our saponin adjuvant technologies ) . our checkpoint antibody program became part of our portfolio with the recent acquisition of 4-antibody ag , a private european-based biopharmaceutical company ( `` 4-ab `` ) . this acquisition ( the `` acquisition `` ) provided us with a technology platform for the rapid discovery and optimization of fully-human antibodies against a wide array of molecular targets . this platform has been applied to six immune checkpoint targets seeking therapeutic antibody check point modulators ( `` cpms `` ) to regulate immune response to cancers and other diseases . our proprietary antibody discovery engine , retrocyte display ® , is designed to generate high quality therapeutic antibody drug candidates quickly using a high-throughput approach incorporating human antibody libraries expressed in mammalian b-lineage cells . we currently have pre-clinical checkpoint antibody programs targeting gitr , ox40 , ctla-4 , pd-1 , tim-3 and lag-3 from 4-ab 's technologies . we have selected two gitr agonists and one ctla-4 antagonist to advance into pre-clinical development . we are targeting to identify development candidates for the other four checkpoint programs during 2014 , and to be in a position to file investigational new drug applications on four candidates within the next two years . within our hsp platform we are developing our prophage series cancer vaccines . our prophage series cancer vaccine are autologous therapies derived from cells extracted from the patient 's tumor . as a result , prophage series vaccines contain a precise antigenic ‘ fingerprint ' of a patient 's particular cancer and are designed to reprogram the body 's immune system to target only cells bearing this fingerprint , reducing the risk that powerful anti-cancer agents will target healthy tissue and cause debilitating side effects often associated with chemotherapy and radiation therapy . we believe that in contrast to many other autologous vaccines that are based on cellular preparations , the prophage series is based on a stable protein preparation produced via a relatively simple manufacturing process . our prophage series g vaccines are currently being studied in two different settings of glioblastoma multiforme , or gbm : newly diagnosed and recurrent disease . also within our hsp platform , is herpv , a recombinant , synthetic vaccine containing multiple antigens derived from the herpes simplex 2 virus . herpv is currently in a phase 2 clinical trial , and we believe it is one of the most clinically-advanced therapeutic vaccines for the treatment of genital herpes in clinical development . combining our heat shock protein technology and our qs-21 stimulon adjuvant , herpv represents a potential new approach to the treatment of genital herpes . rather than attempting to suppress the virus , which is what antivirals do , herpv has the potential to enable the individual 's own immune system to stop the virus from causing and transmitting disease without chronic treatment . in november 2013 , we released top line results from a phase 2 , randomized , double blind , multicenter clinical trial of herpv in hsv-2 positive genital herpes patients , which showed that the trial met its primary endpoint . we anticipate reporting additional study results assessing the efficacy of a booster injection of herpv during the first half of 2014. within our saponin platform is qs-21 stimulon ® adjuvant , or qs-21 stimulon . qs-21 stimulon is a saponin extracted from the bark of the quillaja saponaria tree , also known as the soapbark , an evergreen tree native to warm temperate central chile . qs-21 stimulon has become a key component in the development of investigational preventive vaccine formulations across a wide variety of infectious diseases , including several investigational therapeutic vaccines intended to treat cancer and degenerative disorders . qs-21 stimulon has been widely studied and approximately 50,000 patients have received vaccines containing the adjuvant . the key licensees of qs-21 stimulon are glaxosmithkline ( `` gsk `` ) and janssen alzheimer immunotherapy ( `` janssen ai `` ) . qs-21 stimulon is currently being studied in 21 vaccine indications , which include gsk 's phase 3 vaccine programs for rts , s for malaria , mage-a3 cancer immunotherapeutic for non-small cell lung cancer and melanoma and hz/su for shingles . in addition , janssen ai 's qs-21 stimulon adjuvant-containing vaccine candidate is in phase 2 trials for the treatment of alzheimer 's disease . if any of our partners ' products containing qs-21 stimulon successfully completes clinical development and receives approval for commercial sale , we are generally entitled to receive royalties for 10 years after commercial launch , with some exceptions . 39 in addition to our internal development efforts , we continue to pursue partnering opportunities . we are seeking partners for select products in our portfolio , which include herpv , qs-21 stimulon and the prophage g-series vaccines , g-100 and g-200 as well as our antibody therapeutic candidates . we are also exploring in-licensing , acquisitions and sponsored research opportunities . our business activities have included product research and development , intellectual property prosecution , manufacturing , regulatory and clinical affairs , corporate finance and development , business development , and support of our collaborations . story_separator_special_tag critical accounting policies and estimates the sec defines “ critical accounting policies ” as those that require the application of management 's most difficult , subjective , or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods . the preparation of consolidated financial statements in conformity with u.s. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . we base those estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances . actual results could differ from those estimates . the following listing is not intended to be a comprehensive list of all of our accounting policies . our significant accounting policies are described in note 2 of the notes to our consolidated financial statements contained elsewhere in this annual report on form 10-k. in many cases , the accounting treatment of a particular transaction is dictated by u.s. generally accepted accounting principles , with no need for our judgment in its application . there are also areas in which our judgment in selecting an available alternative would not produce a materially different result . we have identified the following as our critical accounting policies . share-based compensation in accordance with the fair value recognition provisions of the financial accounting standards board ( `` fasb `` ) accounting standards codification ( `` asc `` ) 718 , compensation—stock compensation , we recognize share-based 44 compensation expense net of an estimated forfeiture rate and only recognize compensation expense for those share-based awards expected to vest . compensation expense is recognized on a straight-line basis over the requisite service period of the award . stock options granted to certain non-employees have been accounted for based on the fair value method of accounting in accordance with asc 505-50 , equity- equity-based payments to non-employees . as a result , the noncash charge to operations for non-employee options with vesting or other performance criteria is affected each reporting period , until the non-employee options vest , by changes in the fair value of our common stock . under the provisions of asc 505-50 , the change in fair value of vested options issued to non-employees is reflected in the statement of operations each reporting period , until the options are exercised or expire . determining the appropriate fair value model and calculating the fair value of share-based awards requires the use of highly subjective assumptions , including the expected life of the share-based awards and stock price volatility . the assumptions used in calculating the fair value of share-based awards represent management 's best estimates , but these estimates involve inherent uncertainties and the application of management judgment . as a result , if factors change and we use different assumptions , our share-based compensation expense could be materially different in the future . in addition , if our actual forfeiture rate is materially different from our estimate , the share-based compensation expense could be significantly different from what we have recorded in the current period . see note 8 of the notes to our consolidated financial statements contained elsewhere in this annual report on form 10-k for a further discussion on share-based compensation . revenue recognition revenue for services under research and development contracts are recognized as the services are performed , or as clinical trial materials are provided . non-refundable milestone payments that represent the completion of a separate earnings process are recognized as revenue when earned . license fees and royalties are recognized as they are earned . revenue recognized from collaborative agreements is based upon the provisions of asc 605-25 , revenue recognition—multiple element arrangements , as amended by accounting standards update 2009-13. fair value measurements in accordance with asc 820 , fair value measurements and disclosures , we measure fair value based on a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available . the fair value hierarchy is broken down into three levels based on the source of inputs . we have elected to measure our contingent royalty consideration at fair value in accordance with asc 825 , financial instruments . the fair value of our contingent royalty consideration is based on significant inputs not observable in the market , which require it to be reported as a level 3 liability within the fair value hierarchy . the valuation uses assumptions we believe would be made by a market participant . in particular , the valuation analysis used the income approach based on the sum of the economic income that an asset is anticipated to produce in the future . in this case that asset is the potential royalty income to be paid to us as a result of certain license agreements for qs-21 stimulon and the potential net sales generated from herpv . the fair value of the contingent royalty consideration is estimated by applying a risk adjusted discount rate to the probability adjusted royalty revenue stream based on expected approval dates . these fair value estimates are most sensitive to changes in the probability of regulatory approvals . the discounted cash flow method of the income approach was chosen as the method best suited to valuing the contingent royalty consideration . recent accounting pronouncements in february 2013 , the fasb issued accounting standards update no . 2013-02 , `` reporting of amounts reclassified out of accumulated other comprehensive income `` , ( `` asu 2013-02 `` ) . asu 2013-02 requires entities to disclose items reclassified out of accumulated other comprehensive income ( `` aoci `` ) and into net income

