double-blind , placebo-controlled , abdominal surgery trial ( iap 310 ) in march 2013 , we reported top-line data demonstrating that zalviso met its primary endpoint in a pivotal phase 3 trial designed to compare the efficacy and safety of zalviso to placebo in the management of acute post-operative pain after major open abdominal surgery . adverse events reported in the trial were generally mild or moderate in nature and similar in both placebo and treatment groups . utilizing a randomized , double-blind , placebo-controlled design , this pivotal phase 3 trial enrolled 178 adult patients at 13 u.s. sites . double-blind , placebo-controlled , orthopedic surgery trial ( iap 311 ) in may 2013 , we reported top-line data demonstrating that zalviso met its primary endpoint in a pivotal phase 3 trial designed to compare the efficacy and safety of zalviso to placebo in the management of acute post-operative pain after major orthopedic surgery . utilizing a randomized , double-blind , placebo-controlled design , this pivotal phase 3 trial enrolled 426 adult patients at 34 u.s. sites . treatment-emergent adverse events were generally mild to moderate in nature and similar for the majority of adverse events between zalviso and placebo-treated patients , despite the shorter duration of exposure in the placebo-treated patients caused by early termination due to inadequate analgesia . as noted above , assuming successful approval of our nda on or about the pdufa action date , we anticipate launching the commercial sale of zalviso in the united states in the first quarter of 2015. in december 2013 , we announced a commercial collaboration with grünenthal , covering the territory of the european union , certain other european countries and australia for zalviso for potential use in the management of moderate-to-severe acute pain within a hospital , hospice , nursing home or other medically supervised setting . we retain all rights in remaining countries , including the united states , asia and latin america . under the terms of the agreement , we received an upfront cash payment of $ 30.0 million . we are eligible to receive approximately $ 220 million in additional milestone payments , based upon successful regulatory and product development efforts and net sales target achievements . the upfront payment along with regulatory and development milestones constitute approximately one third of the total $ 250m milestone payments , while sales target achievements represent two thirds of the total . grünenthal will also make tiered royalty , supply and trademark fee payments in the mid-teens up to the mid-twenties percent range , on net sales of zalviso in the grünenthal territory . grünenthal will be responsible for all commercial activities for zalviso , including obtaining and maintaining pharmaceutical product regulatory approval in the grünenthal territory . we will be responsible for obtaining and maintaining device regulatory approval in the grünenthal territory and manufacturing and supply of zalviso to grünenthal for commercial sales . arx-04 we are also developing a sufentanil single-dose nanotab , or arx-04 , for the treatment of moderate-to-severe acute pain to be administered by a healthcare professional to a patient in settings of acute pain , such as on the battlefield , in the emergency room or in ambulatory care facilities . in december 2013 , we completed an end of phase 2 meeting with the fda to identify a phase 3 program pathway forward for evaluation of arx-04 . this definition of the phase 3 program allows acelrx to continue to refine phase 3 protocols with the agency in the coming months , with the goal of initiating phase 3 studies for arx-04 in the second half of 2014. in april 2013 , we reported top-line data showing that the primary endpoint was achieved in a placebo-controlled , dose-finding , phase 2 clinical trial of arx-04 for acute pain . this trial randomized 101 patients following bunionectomy surgery in a 2:2:1 ratio to 30 mcg sufentanil , 20 mcg sufentanil or placebo treatment arms . ninety-one percent of patients entering the trial completed the 12-hour trial period . 70 research and development of arx-04 , including the phase 2 trial and pre-phase 3 development , was funded by a $ 5.6 million grant from the u.s. army medical research and materiel command , or usamrmc . as of december 31 , 2013 , we had recognized the full amount of the grant , $ 5.6 million . financial overview we have incurred net losses and generated negative cash flows from operations since inception and expect to incur losses in the future as we continue our research and development activities and commercialization activities and commercialization activities . we believe that continued investment in research and development is critical to attaining our strategic objectives . in order to develop our product candidates as commercially viable therapeutics , we expect to expend significant resources for expertise in the manufacturing , regulatory affairs , clinical research and other aspects of pharmaceutical development . in addition , as we pursue commercial development of our product candidates we expect the business aspects of our company to become more complex . we plan in the future to add personnel and incur additional costs related to the maturation of our business and the potential commercialization of zalviso , our lead product candidate . to date , we have funded our operations primarily through the issuance of equity securities , borrowings , payments from our corporate collaboration and our research grants . our revenues to date have consisted primarily of revenues from our research grant with the usamrmc and through our collaboration with grünenthal . story_separator_special_tag the warrants were subject to remeasurement at each balance sheet date , and any change in fair value was recognized as a component of other income ( expense ) , net , in the statements of operations . we estimated the fair value of these warrants at the respective balance sheet dates using the black-scholes option-pricing model . we used assumptions to estimate the fair value of the warrants including the remaining contractual terms of the warrants , risk-free interest rates , expected dividend yields and the fair value and expected volatility of the underlying stock . these assumptions were subjective and the fair value of the warrants to purchase convertible preferred stock could have differed significantly had we used different assumptions . upon the completion of our ipo in february 2011 , all of our warrants to purchase convertible preferred stock had been exercised or converted into warrants to purchase common stock . at that time , the then-current aggregate fair value of these warrants was reclassified from liabilities to additional paid-in capital and we will no longer remeasure the liability associated with these warrants to purchase convertible preferred stock to fair value . bridge loan on september 14 , 2010 , we entered into a bridge loan financing , in which we issued notes to certain existing investors for an aggregate purchase price of $ 8.0 million , or the 2010 notes . the 2010 notes could not be prepaid without the written consent of the holders of the 2010 notes , bore interest at a rate of 4.0 % per annum and had a maturity date of the earliest of ( 1 ) september 14 , 2011 or ( 2 ) an event of default . the principal and the interest under the 2010 notes were converted into common stock in connection with our ipo at a conversion price equal to 80 % of the ipo price , or $ 4.00 per share . under the terms of the bridge loan agreement , upon the election of the holders of a majority of the aggregate principal amount payable under the 2010 notes , we agreed to issue an additional $ 4.0 million of the 2010 notes . 75 this additional $ 4.0 million was determined to be a call option that was recorded at its fair value of $ 0.5 million as a debt discount that was amortized to interest expense during the period when the notes were outstanding until conversion in connection with our ipo . the fair value of the call option was determined by evaluating multiple potential outcomes using a market approach and an income approach depending on the scenario and discounted these values back to december 31 , 2010 while applying estimated probabilities to each scenario value . as of december 31 , 2010 , these scenarios included a potential ipo , merger or sale at different times during 2011 and 2012 as well as remaining private . during the quarter ending march 31 , 2011 , the 2010 notes were amended so that the call option expired upon the closing of our ipo . also in connection with the bridge loan financing , we issued warrants , or the 2010 warrants , with a fair value of $ 1.3 million , which was recorded as a debt discount that was amortized to interest expense during the period where the warrants were outstanding until exercised at the time of the ipo as detailed above in warrants to purchase convertible preferred stock. we used considerable judgment in determining the fair value of these instruments and had we used different assumptions , the resulting fair values could have been materially different . subsequent to december 31 , 2010 , and in conjunction with our ipo , the principal and accrued interest under the 2010 notes converted into 2,034,438 shares of common stock and the 2010 warrants were exercised on a net issuance basis for 107,246 shares of series c convertible preferred stock , which such shares of series c convertible preferred stock were automatically converted into 107,246 shares of common stock immediately prior to the closing of our ipo . income taxes significant management judgment is required in determining our provision or benefit for income taxes , any uncertain tax positions , deferred tax assets and liabilities , and any valuation allowance recorded against our net deferred tax assets . we make these estimates and judgments about our future taxable income that are based on assumptions that are consistent with our future plans . since inception , and as of december 31 , 2013 , we have recorded a full valuation allowance on our net deferred tax assets due to uncertainties related to our ability to utilize our deferred tax assets in the foreseeable future . these deferred tax assets primarily consist of certain net operating loss carryforwards and research and development tax credits . should the actual amounts differ from our estimates , the amount of our valuation allowance could be materially impacted . since inception , we have incurred operating losses and , accordingly , we have not recorded a provision for income taxes for any of the periods presented . results of operations our results of operations have fluctuated from period to period and may continue to fluctuate in the future , based upon the progress of our research and development efforts and variations in the level of expenses related to developmental efforts during any given period . results of operations for any period may be unrelated to results of operations for any other period . in addition , historical results should not be viewed as indicative of future operating results . we are subject to risks common to companies in our industry and at our stage of development , including risks inherent in our research and development efforts , reliance upon our collaborator , enforcement of our patent and proprietary rights , need for future capital , potential competition and uncertainty

cash flows replace_table_token_13_th cash flows from operating activities the primary use of cash for our operating activities during these periods was to fund the development of our product candidates . our cash used for operating activities also reflected changes in our working capital and adjustments for non-cash charges , such as depreciation and amortization of our fixed assets , stock-based compensation , interest expense related to our debt financings , and the revaluation of our warrant liabilities . net cash used in operating activities of $ 0.5 million during the year ended december 31 , 2013 reflected a net loss of $ 23.4 million , partially offset by aggregate non-cash charges of $ 20.0 million and a net change of $ 2.9 million in our net operating assets and liabilities . non-cash charges primarily included $ 14.1 million for the revaluation of the pipe warrant liability and the contingent put option liability , $ 3.5 million in stock-based compensation and $ 1.2 million for the loss on extinguishment of debt associated with our original loan agreement with hercules , which was amended in december 2013. the net change in our operating assets and liabilities was primarily a 81 result of an increase in deferred revenue of $ 2.6 million associated with our collaboration agreement with grünenthal and a decrease in prepaid expenses of $ 1.1 million due to completion of our phase 3 clinical trials for zalviso in 2013. net cash used in operating activities of $ 24.6 million during the year ended december 31 , 2012 reflected a net loss of $ 33.4 million , partially offset by aggregate non-cash charges of $ 5.3 million and a net change of $ 3.5 million in our net operating assets and liabilities . non-cash charges primarily included $ 2.2 million in stock-based compensation and $ 1.4 million for the revaluation of the pipe warrant liability and the contingent put option liability .


 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 replace_table_token_13_th cash flows from operating activities the primary use of cash for our operating activities during these periods was to fund the development of our product candidates . our cash used for operating activities also reflected changes in our working capital and adjustments for non-cash charges , such as depreciation and amortization of our fixed assets , stock-based compensation , interest expense related to our debt financings , and the revaluation of our warrant liabilities . net cash used in operating activities of $ 0.5 million during the year ended december 31 , 2013 reflected a net loss of $ 23.4 million , partially offset by aggregate non-cash charges of $ 20.0 million and a net change of $ 2.9 million in our net operating assets and liabilities . non-cash charges primarily included $ 14.1 million for the revaluation of the pipe warrant liability and the contingent put option liability , $ 3.5 million in stock-based compensation and $ 1.2 million for the loss on extinguishment of debt associated with our original loan agreement with hercules , which was amended in december 2013. the net change in our operating assets and liabilities was primarily a 81 result of an increase in deferred revenue of $ 2.6 million associated with our collaboration agreement with grünenthal and a decrease in prepaid expenses of $ 1.1 million due to completion of our phase 3 clinical trials for zalviso in 2013. net cash used in operating activities of $ 24.6 million during the year ended december 31 , 2012 reflected a net loss of $ 33.4 million , partially offset by aggregate non-cash charges of $ 5.3 million and a net change of $ 3.5 million in our net operating assets and liabilities . non-cash charges primarily included $ 2.2 million in stock-based compensation and $ 1.4 million for the revaluation of the pipe warrant liability and the contingent put option liability .
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 Suspicious Activity Report : double-blind , placebo-controlled , abdominal surgery trial ( iap 310 ) in march 2013 , we reported top-line data demonstrating that zalviso met its primary endpoint in a pivotal phase 3 trial designed to compare the efficacy and safety of zalviso to placebo in the management of acute post-operative pain after major open abdominal surgery . adverse events reported in the trial were generally mild or moderate in nature and similar in both placebo and treatment groups . utilizing a randomized , double-blind , placebo-controlled design , this pivotal phase 3 trial enrolled 178 adult patients at 13 u.s. sites . double-blind , placebo-controlled , orthopedic surgery trial ( iap 311 ) in may 2013 , we reported top-line data demonstrating that zalviso met its primary endpoint in a pivotal phase 3 trial designed to compare the efficacy and safety of zalviso to placebo in the management of acute post-operative pain after major orthopedic surgery . utilizing a randomized , double-blind , placebo-controlled design , this pivotal phase 3 trial enrolled 426 adult patients at 34 u.s. sites . treatment-emergent adverse events were generally mild to moderate in nature and similar for the majority of adverse events between zalviso and placebo-treated patients , despite the shorter duration of exposure in the placebo-treated patients caused by early termination due to inadequate analgesia . as noted above , assuming successful approval of our nda on or about the pdufa action date , we anticipate launching the commercial sale of zalviso in the united states in the first quarter of 2015. in december 2013 , we announced a commercial collaboration with grünenthal , covering the territory of the european union , certain other european countries and australia for zalviso for potential use in the management of moderate-to-severe acute pain within a hospital , hospice , nursing home or other medically supervised setting . we retain all rights in remaining countries , including the united states , asia and latin america . under the terms of the agreement , we received an upfront cash payment of $ 30.0 million . we are eligible to receive approximately $ 220 million in additional milestone payments , based upon successful regulatory and product development efforts and net sales target achievements . the upfront payment along with regulatory and development milestones constitute approximately one third of the total $ 250m milestone payments , while sales target achievements represent two thirds of the total . grünenthal will also make tiered royalty , supply and trademark fee payments in the mid-teens up to the mid-twenties percent range , on net sales of zalviso in the grünenthal territory . grünenthal will be responsible for all commercial activities for zalviso , including obtaining and maintaining pharmaceutical product regulatory approval in the grünenthal territory . we will be responsible for obtaining and maintaining device regulatory approval in the grünenthal territory and manufacturing and supply of zalviso to grünenthal for commercial sales . arx-04 we are also developing a sufentanil single-dose nanotab , or arx-04 , for the treatment of moderate-to-severe acute pain to be administered by a healthcare professional to a patient in settings of acute pain , such as on the battlefield , in the emergency room or in ambulatory care facilities . in december 2013 , we completed an end of phase 2 meeting with the fda to identify a phase 3 program pathway forward for evaluation of arx-04 . this definition of the phase 3 program allows acelrx to continue to refine phase 3 protocols with the agency in the coming months , with the goal of initiating phase 3 studies for arx-04 in the second half of 2014. in april 2013 , we reported top-line data showing that the primary endpoint was achieved in a placebo-controlled , dose-finding , phase 2 clinical trial of arx-04 for acute pain . this trial randomized 101 patients following bunionectomy surgery in a 2:2:1 ratio to 30 mcg sufentanil , 20 mcg sufentanil or placebo treatment arms . ninety-one percent of patients entering the trial completed the 12-hour trial period . 70 research and development of arx-04 , including the phase 2 trial and pre-phase 3 development , was funded by a $ 5.6 million grant from the u.s. army medical research and materiel command , or usamrmc . as of december 31 , 2013 , we had recognized the full amount of the grant , $ 5.6 million . financial overview we have incurred net losses and generated negative cash flows from operations since inception and expect to incur losses in the future as we continue our research and development activities and commercialization activities and commercialization activities . we believe that continued investment in research and development is critical to attaining our strategic objectives . in order to develop our product candidates as commercially viable therapeutics , we expect to expend significant resources for expertise in the manufacturing , regulatory affairs , clinical research and other aspects of pharmaceutical development . in addition , as we pursue commercial development of our product candidates we expect the business aspects of our company to become more complex . we plan in the future to add personnel and incur additional costs related to the maturation of our business and the potential commercialization of zalviso , our lead product candidate . to date , we have funded our operations primarily through the issuance of equity securities , borrowings , payments from our corporate collaboration and our research grants . our revenues to date have consisted primarily of revenues from our research grant with the usamrmc and through our collaboration with grünenthal . story_separator_special_tag the warrants were subject to remeasurement at each balance sheet date , and any change in fair value was recognized as a component of other income ( expense ) , net , in the statements of operations . we estimated the fair value of these warrants at the respective balance sheet dates using the black-scholes option-pricing model . we used assumptions to estimate the fair value of the warrants including the remaining contractual terms of the warrants , risk-free interest rates , expected dividend yields and the fair value and expected volatility of the underlying stock . these assumptions were subjective and the fair value of the warrants to purchase convertible preferred stock could have differed significantly had we used different assumptions . upon the completion of our ipo in february 2011 , all of our warrants to purchase convertible preferred stock had been exercised or converted into warrants to purchase common stock . at that time , the then-current aggregate fair value of these warrants was reclassified from liabilities to additional paid-in capital and we will no longer remeasure the liability associated with these warrants to purchase convertible preferred stock to fair value . bridge loan on september 14 , 2010 , we entered into a bridge loan financing , in which we issued notes to certain existing investors for an aggregate purchase price of $ 8.0 million , or the 2010 notes . the 2010 notes could not be prepaid without the written consent of the holders of the 2010 notes , bore interest at a rate of 4.0 % per annum and had a maturity date of the earliest of ( 1 ) september 14 , 2011 or ( 2 ) an event of default . the principal and the interest under the 2010 notes were converted into common stock in connection with our ipo at a conversion price equal to 80 % of the ipo price , or $ 4.00 per share . under the terms of the bridge loan agreement , upon the election of the holders of a majority of the aggregate principal amount payable under the 2010 notes , we agreed to issue an additional $ 4.0 million of the 2010 notes . 75 this additional $ 4.0 million was determined to be a call option that was recorded at its fair value of $ 0.5 million as a debt discount that was amortized to interest expense during the period when the notes were outstanding until conversion in connection with our ipo . the fair value of the call option was determined by evaluating multiple potential outcomes using a market approach and an income approach depending on the scenario and discounted these values back to december 31 , 2010 while applying estimated probabilities to each scenario value . as of december 31 , 2010 , these scenarios included a potential ipo , merger or sale at different times during 2011 and 2012 as well as remaining private . during the quarter ending march 31 , 2011 , the 2010 notes were amended so that the call option expired upon the closing of our ipo . also in connection with the bridge loan financing , we issued warrants , or the 2010 warrants , with a fair value of $ 1.3 million , which was recorded as a debt discount that was amortized to interest expense during the period where the warrants were outstanding until exercised at the time of the ipo as detailed above in warrants to purchase convertible preferred stock. we used considerable judgment in determining the fair value of these instruments and had we used different assumptions , the resulting fair values could have been materially different . subsequent to december 31 , 2010 , and in conjunction with our ipo , the principal and accrued interest under the 2010 notes converted into 2,034,438 shares of common stock and the 2010 warrants were exercised on a net issuance basis for 107,246 shares of series c convertible preferred stock , which such shares of series c convertible preferred stock were automatically converted into 107,246 shares of common stock immediately prior to the closing of our ipo . income taxes significant management judgment is required in determining our provision or benefit for income taxes , any uncertain tax positions , deferred tax assets and liabilities , and any valuation allowance recorded against our net deferred tax assets . we make these estimates and judgments about our future taxable income that are based on assumptions that are consistent with our future plans . since inception , and as of december 31 , 2013 , we have recorded a full valuation allowance on our net deferred tax assets due to uncertainties related to our ability to utilize our deferred tax assets in the foreseeable future . these deferred tax assets primarily consist of certain net operating loss carryforwards and research and development tax credits . should the actual amounts differ from our estimates , the amount of our valuation allowance could be materially impacted . since inception , we have incurred operating losses and , accordingly , we have not recorded a provision for income taxes for any of the periods presented . results of operations our results of operations have fluctuated from period to period and may continue to fluctuate in the future , based upon the progress of our research and development efforts and variations in the level of expenses related to developmental efforts during any given period . results of operations for any period may be unrelated to results of operations for any other period . in addition , historical results should not be viewed as indicative of future operating results . we are subject to risks common to companies in our industry and at our stage of development , including risks inherent in our research and development efforts , reliance upon our collaborator , enforcement of our patent and proprietary rights , need for future capital , potential competition and uncertainty

