both cap-1002 and cap-1001 are derived from cardiospheres , or csps , and we do not plan to develop csps as a therapeutic . cap-1002 for the treatment of duchenne muscular dystrophy : based on our understanding of the mechanism of action of cap-1002 which has been seen in pre-clinical models of dmd , we believe that cap-1002 has the potential to decrease inflammation and muscle degeneration while exerting positive effects on muscle regeneration , all of which may translate into patients retaining muscle function for a longer period of time . data supporting peripheral intravenous route of administration of cap-1002 in the dmd setting has been provided by pre-clinical mouse studies where cdcs , the active ingredient in cap-1002 , have been shown to increase exercise capacity and diaphragmatic function . 61 phase ii hope-2 clinical trial hope-2 is a randomized , double-blind , placebo-controlled clinical trial which is being conducted at multiple sites located in the united states . originally , hope-2 was designed as an 84 patient clinical trial , but we are pursuing a sample size re-estimation that will likely lead to a significant reduction in the number of dmd patients . to date , we have enrolled 20 patients in our hope-2 clinical trial . the clinical trial will evaluate the safety and efficacy of repeat , intravenous , or iv , doses of cap-1002 , in boys and young men with evidence of skeletal muscle impairment regardless of ambulatory status and on a stable regimen of systemic glucocorticoids . while there are many clinical initiatives in dmd , hope-2 is one of the very few to focus on non-ambulant patients . these boys and young men are looking to maintain what function they have in their arms and hands , and capricor 's previous study of a single intracoronary dose of cap-1002 provided preliminary evidence of efficacy that cap-1002 may be able to help dmd patients retain , or slow the loss of , upper limb function . after a patient in the trial had a serious adverse event in the form of anaphylaxis , we put a voluntary hold on dosing in december 2018 to develop a plan to manage potential allergic reactions . the investigation suggests that the patient may have been allergic to something contained in the investigational product , including an excipient , or inactive ingredient , in the formulation . to reduce the risk of future events , we initiated a pre-medication strategy commonly used by physicians to prevent and treat allergic reactions . after an approximate one month period , the fda and the data and safety monitoring board ( dsmb ) granted us permission to resume enrollment in the study . in june 2017 , we had a meeting with the fda to discuss potential clinical endpoints that could be used for registration strategies for cap-1002 in the dmd indication . the minutes of the meeting indicated the fda 's willingness to accept capricor 's proposal to use the performance of the upper limb , or pul , test as the basis for the primary efficacy endpoint for clinical studies in support of a biologics license application , or bla . the pul test is an outcomes instrument that was specifically designed to assess upper limb function in ambulant and non-ambulant patients with dmd . in december 2018 , we met again with the fda as part of the expedited review afforded under the rmat designation . the fda grants the rmat designation to investigational regenerative medicine therapies intended to treat a serious condition and for which preliminary clinical evidence indicates a potential to address unmet medical needs for that condition . during the rmat discussion , which was reflected in subsequent meeting minutes issued by the fda , capricor asked whether the fda would agree if hope-2 , could serve as a registration study if hope-2 provides evidence that cap-1002 is safe and effective in treating duchenne muscular dystrophy . the fda advised capricor to request an end of phase meeting after completion of the trial to determine whether hope-2 could serve as the registration study . the fda also reiterated its support for the use of the performance of the upper limb ( pul ) 2.0 mid-level test , or the pul 2.0 , which is described in more detail below , as the primary efficacy endpoint for hope-2 . in addition , the agency stated that the trial would need to provide evidence of clinically meaningful changes in the pul , as well as other evidence supportive of cap-1002 efficacy for patients with advanced duchenne muscular dystrophy , in order to potentially serve as a registration trial . the primary efficacy endpoint will be the relative change in patients ' abilities to perform manual tasks that relate to activities of daily living and are important to their quality of life . these abilities will be measured through the pul test , a validated test for skeletal muscle function in dmd . hope-2 will focus on the mid-level dimension of the pul 2.0 – or the ability to use muscles from the elbow to the fingers , which are essential for operating wheelchairs and performing other daily functions . in hope-2 , we may include additional secondary and exploratory endpoints such as cardiac function , pulmonary function testing , quality of life and additional measures . currently , we are evaluating several options with respect to the hope-2 trial , which includes a reduction in the number of patients to 20 , a reduction in the dosing protocol for certain subjects as well as a data analysis to be conducted at the 6-month time-point as opposed to the originally designed 12-month time-point for certain subjects . story_separator_special_tag we are currently conducting studies in pre-clinical models of various conditions to explore the possible therapeutic benefits that cap-2003 may possess . it is unknown at this time when an ind will be submitted for any particular indication . additionally , in pre-clinical studies , we are exploring the use of cap-2003 as a potential vehicle for delivering therapies to targeted tissues in the human body . in july 2018 , capricor , inc. entered into a cooperative research and development agreement with the u.s. army institute of surgical research pursuant to which the parties agreed to cooperate in research and development on the evaluation of cap-2003 for the treatment of trauma related injuries and conditions , which are now the third leading cause of death in the u.s. at this time , we are considering various strategic options with respect to this program . inactive or discontinued product candidates cap-1001 : cap-1001 consists of autologous cdcs . this product candidate was evaluated in the randomized , double-blind , placebo-controlled phase i caduceus clinical trial in patients who had recently experienced an mi . the study was sponsored and conducted by csmc in collaboration with jhu . at present , there is no plan for another clinical trial for cap-1001 . csps : csps are a 3d micro-tissue from which cdcs are derived , and have shown significant healing effects in pre-clinical models of heart failure . while we consider csps an important asset , at present there is no plan to develop csps as a therapeutic agent . natriuretic peptides : in february 2017 , we elected to terminate our former natriuretic peptide development program , consisting of cenderitide ( cd-np ) and cu-np , so as to more efficiently focus our resources and efforts on our cap-1002 and cap-2003 programs . financial operations overview we have no commercial product sales to date and will not have the ability to generate any commercial product revenue until after we have received approval from the fda or equivalent foreign regulatory bodies to begin selling our pharmaceutical product candidates . developing pharmaceutical products is a lengthy and very expensive process . even if we obtain the capital necessary to continue the development of our product candidates , whether through a strategic transaction or otherwise , we do not expect to complete the development of a product candidate for several years , if ever . to date , most of our development expenses have related to our product candidates , consisting of cap-1002 , cap-2003 and our former product candidate , cenderitide . as we proceed with the clinical development of cap-1002 , and as we further develop cap-2003 and other additional products , our expenses will further increase . accordingly , our success depends not only on the safety and efficacy of our product candidates , but also on our ability to finance the development of the products and our clinical programs . our major sources of working capital to date have been proceeds from private and public equity sales , grants received from the nih and the department of defense , or dod , a payment from janssen and a loan and grant award from cirm . research and development , or r & d , expenses consist primarily of salaries and related personnel costs , supplies , clinical trial costs , patient treatment costs , rent for laboratories and manufacturing facilities , consulting fees , costs of personnel and supplies for manufacturing , costs of service providers for pre-clinical , clinical and manufacturing , and certain legal expenses resulting from intellectual property prosecution , stock compensation expense and other expenses relating to the design , development , testing and enhancement of our product candidates . except for certain capitalized intangible assets , r & d costs are expensed as incurred . 66 general and administrative , or g & a , expenses consist primarily of salaries and related expenses for executive , finance and other administrative personnel , stock compensation expense , accounting , legal and other professional fees , consulting expenses , rent for corporate offices , business insurance and other corporate expenses . our results have included non-cash compensation expense due to the issuance of stock options and warrants , as applicable . we expense the fair value of stock options and warrants over their vesting period as applicable . when more precise pricing data is unavailable , we determine the fair value of stock options using the black-scholes option-pricing model . the terms and vesting schedules for share-based awards vary by type of grant and the employment status of the grantee . generally , the awards vest based upon time-based or performance-based conditions . performance-based conditions generally include the attainment of goals related to our financial performance and product development . stock-based compensation expense is included in the consolidated statements of operations under g & a or r & d expenses , as applicable . we expect to record additional non-cash compensation expense in the future , which may be significant . results of operations for the fiscal years ended december 31 , 2018 and 2017 revenue collaboration income . as a result of the janssen agreement , collaboration income for the years ended december 31 , 2018 and 2017 was zero and approximately $ 1.4 million , respectively . on june 30 , 2017 , capricor was informed by janssen that janssen would not be exercising its exclusive license option under the janssen agreement . additionally , there are no further activities ongoing in connection with the collaboration with janssen and all revenue was recognized as of june 30 , 2017. grant income . grant income for the years ended december 31 , 2018 and 2017 was approximately $ 1.0 million and $ 1.1 million , respectively . the decrease in grant income of approximately $ 0.1 million in 2018 as compared to 2017 is primarily due to the timing of grant activities . the pre-clinical

restricted cash we had two awards with cirm designated for specific use , the cirm loan agreement in connection with the allstar phase ii clinical trial and the cirm award related to the hope phase i/ii clinical trial . restricted cash represents funds received under these awards which are to be allocated to the research costs as incurred . generally , a reduction of restricted cash occurs when we deem certain costs are attributable to the respective award . recently issued or newly adopted accounting pronouncements in may 2014 , the fasb issued accounting standards update ( “ asu ” ) 2014-09 , revenue from contracts with customers ( topic 606 ) ( “ asu 2014-09 ” ) . asu 2014-09 amended the existing accounting standards for revenue recognition . asu 2014-09 establishes principles for recognizing revenue based on the value of transferred goods or services as they occur in the contract . asu 2014-09 also requires additional disclosure about the nature , amount , timing and uncertainty of revenue and cash flows arising from customer contracts , including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract . the company adopted asu 2014-09 and all subsequent updates related to this topic in the first quarter of 2018 using the modified retrospective approach . the adoption of this asu was applied to only those contracts that were not completed upon the initial application . the adoption of this update did not have a material impact on the company 's financial statements .


 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.
     ```restricted cash we had two awards with cirm designated for specific use , the cirm loan agreement in connection with the allstar phase ii clinical trial and the cirm award related to the hope phase i/ii clinical trial . restricted cash represents funds received under these awards which are to be allocated to the research costs as incurred . generally , a reduction of restricted cash occurs when we deem certain costs are attributable to the respective award . recently issued or newly adopted accounting pronouncements in may 2014 , the fasb issued accounting standards update ( “ asu ” ) 2014-09 , revenue from contracts with customers ( topic 606 ) ( “ asu 2014-09 ” ) . asu 2014-09 amended the existing accounting standards for revenue recognition . asu 2014-09 establishes principles for recognizing revenue based on the value of transferred goods or services as they occur in the contract . asu 2014-09 also requires additional disclosure about the nature , amount , timing and uncertainty of revenue and cash flows arising from customer contracts , including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract . the company adopted asu 2014-09 and all subsequent updates related to this topic in the first quarter of 2018 using the modified retrospective approach . the adoption of this asu was applied to only those contracts that were not completed upon the initial application . the adoption of this update did not have a material impact on the company 's financial statements .
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 Suspicious Activity Report : both cap-1002 and cap-1001 are derived from cardiospheres , or csps , and we do not plan to develop csps as a therapeutic . cap-1002 for the treatment of duchenne muscular dystrophy : based on our understanding of the mechanism of action of cap-1002 which has been seen in pre-clinical models of dmd , we believe that cap-1002 has the potential to decrease inflammation and muscle degeneration while exerting positive effects on muscle regeneration , all of which may translate into patients retaining muscle function for a longer period of time . data supporting peripheral intravenous route of administration of cap-1002 in the dmd setting has been provided by pre-clinical mouse studies where cdcs , the active ingredient in cap-1002 , have been shown to increase exercise capacity and diaphragmatic function . 61 phase ii hope-2 clinical trial hope-2 is a randomized , double-blind , placebo-controlled clinical trial which is being conducted at multiple sites located in the united states . originally , hope-2 was designed as an 84 patient clinical trial , but we are pursuing a sample size re-estimation that will likely lead to a significant reduction in the number of dmd patients . to date , we have enrolled 20 patients in our hope-2 clinical trial . the clinical trial will evaluate the safety and efficacy of repeat , intravenous , or iv , doses of cap-1002 , in boys and young men with evidence of skeletal muscle impairment regardless of ambulatory status and on a stable regimen of systemic glucocorticoids . while there are many clinical initiatives in dmd , hope-2 is one of the very few to focus on non-ambulant patients . these boys and young men are looking to maintain what function they have in their arms and hands , and capricor 's previous study of a single intracoronary dose of cap-1002 provided preliminary evidence of efficacy that cap-1002 may be able to help dmd patients retain , or slow the loss of , upper limb function . after a patient in the trial had a serious adverse event in the form of anaphylaxis , we put a voluntary hold on dosing in december 2018 to develop a plan to manage potential allergic reactions . the investigation suggests that the patient may have been allergic to something contained in the investigational product , including an excipient , or inactive ingredient , in the formulation . to reduce the risk of future events , we initiated a pre-medication strategy commonly used by physicians to prevent and treat allergic reactions . after an approximate one month period , the fda and the data and safety monitoring board ( dsmb ) granted us permission to resume enrollment in the study . in june 2017 , we had a meeting with the fda to discuss potential clinical endpoints that could be used for registration strategies for cap-1002 in the dmd indication . the minutes of the meeting indicated the fda 's willingness to accept capricor 's proposal to use the performance of the upper limb , or pul , test as the basis for the primary efficacy endpoint for clinical studies in support of a biologics license application , or bla . the pul test is an outcomes instrument that was specifically designed to assess upper limb function in ambulant and non-ambulant patients with dmd . in december 2018 , we met again with the fda as part of the expedited review afforded under the rmat designation . the fda grants the rmat designation to investigational regenerative medicine therapies intended to treat a serious condition and for which preliminary clinical evidence indicates a potential to address unmet medical needs for that condition . during the rmat discussion , which was reflected in subsequent meeting minutes issued by the fda , capricor asked whether the fda would agree if hope-2 , could serve as a registration study if hope-2 provides evidence that cap-1002 is safe and effective in treating duchenne muscular dystrophy . the fda advised capricor to request an end of phase meeting after completion of the trial to determine whether hope-2 could serve as the registration study . the fda also reiterated its support for the use of the performance of the upper limb ( pul ) 2.0 mid-level test , or the pul 2.0 , which is described in more detail below , as the primary efficacy endpoint for hope-2 . in addition , the agency stated that the trial would need to provide evidence of clinically meaningful changes in the pul , as well as other evidence supportive of cap-1002 efficacy for patients with advanced duchenne muscular dystrophy , in order to potentially serve as a registration trial . the primary efficacy endpoint will be the relative change in patients ' abilities to perform manual tasks that relate to activities of daily living and are important to their quality of life . these abilities will be measured through the pul test , a validated test for skeletal muscle function in dmd . hope-2 will focus on the mid-level dimension of the pul 2.0 – or the ability to use muscles from the elbow to the fingers , which are essential for operating wheelchairs and performing other daily functions . in hope-2 , we may include additional secondary and exploratory endpoints such as cardiac function , pulmonary function testing , quality of life and additional measures . currently , we are evaluating several options with respect to the hope-2 trial , which includes a reduction in the number of patients to 20 , a reduction in the dosing protocol for certain subjects as well as a data analysis to be conducted at the 6-month time-point as opposed to the originally designed 12-month time-point for certain subjects . story_separator_special_tag we are currently conducting studies in pre-clinical models of various conditions to explore the possible therapeutic benefits that cap-2003 may possess . it is unknown at this time when an ind will be submitted for any particular indication . additionally , in pre-clinical studies , we are exploring the use of cap-2003 as a potential vehicle for delivering therapies to targeted tissues in the human body . in july 2018 , capricor , inc. entered into a cooperative research and development agreement with the u.s. army institute of surgical research pursuant to which the parties agreed to cooperate in research and development on the evaluation of cap-2003 for the treatment of trauma related injuries and conditions , which are now the third leading cause of death in the u.s. at this time , we are considering various strategic options with respect to this program . inactive or discontinued product candidates cap-1001 : cap-1001 consists of autologous cdcs . this product candidate was evaluated in the randomized , double-blind , placebo-controlled phase i caduceus clinical trial in patients who had recently experienced an mi . the study was sponsored and conducted by csmc in collaboration with jhu . at present , there is no plan for another clinical trial for cap-1001 . csps : csps are a 3d micro-tissue from which cdcs are derived , and have shown significant healing effects in pre-clinical models of heart failure . while we consider csps an important asset , at present there is no plan to develop csps as a therapeutic agent . natriuretic peptides : in february 2017 , we elected to terminate our former natriuretic peptide development program , consisting of cenderitide ( cd-np ) and cu-np , so as to more efficiently focus our resources and efforts on our cap-1002 and cap-2003 programs . financial operations overview we have no commercial product sales to date and will not have the ability to generate any commercial product revenue until after we have received approval from the fda or equivalent foreign regulatory bodies to begin selling our pharmaceutical product candidates . developing pharmaceutical products is a lengthy and very expensive process . even if we obtain the capital necessary to continue the development of our product candidates , whether through a strategic transaction or otherwise , we do not expect to complete the development of a product candidate for several years , if ever . to date , most of our development expenses have related to our product candidates , consisting of cap-1002 , cap-2003 and our former product candidate , cenderitide . as we proceed with the clinical development of cap-1002 , and as we further develop cap-2003 and other additional products , our expenses will further increase . accordingly , our success depends not only on the safety and efficacy of our product candidates , but also on our ability to finance the development of the products and our clinical programs . our major sources of working capital to date have been proceeds from private and public equity sales , grants received from the nih and the department of defense , or dod , a payment from janssen and a loan and grant award from cirm . research and development , or r & d , expenses consist primarily of salaries and related personnel costs , supplies , clinical trial costs , patient treatment costs , rent for laboratories and manufacturing facilities , consulting fees , costs of personnel and supplies for manufacturing , costs of service providers for pre-clinical , clinical and manufacturing , and certain legal expenses resulting from intellectual property prosecution , stock compensation expense and other expenses relating to the design , development , testing and enhancement of our product candidates . except for certain capitalized intangible assets , r & d costs are expensed as incurred . 66 general and administrative , or g & a , expenses consist primarily of salaries and related expenses for executive , finance and other administrative personnel , stock compensation expense , accounting , legal and other professional fees , consulting expenses , rent for corporate offices , business insurance and other corporate expenses . our results have included non-cash compensation expense due to the issuance of stock options and warrants , as applicable . we expense the fair value of stock options and warrants over their vesting period as applicable . when more precise pricing data is unavailable , we determine the fair value of stock options using the black-scholes option-pricing model . the terms and vesting schedules for share-based awards vary by type of grant and the employment status of the grantee . generally , the awards vest based upon time-based or performance-based conditions . performance-based conditions generally include the attainment of goals related to our financial performance and product development . stock-based compensation expense is included in the consolidated statements of operations under g & a or r & d expenses , as applicable . we expect to record additional non-cash compensation expense in the future , which may be significant . results of operations for the fiscal years ended december 31 , 2018 and 2017 revenue collaboration income . as a result of the janssen agreement , collaboration income for the years ended december 31 , 2018 and 2017 was zero and approximately $ 1.4 million , respectively . on june 30 , 2017 , capricor was informed by janssen that janssen would not be exercising its exclusive license option under the janssen agreement . additionally , there are no further activities ongoing in connection with the collaboration with janssen and all revenue was recognized as of june 30 , 2017. grant income . grant income for the years ended december 31 , 2018 and 2017 was approximately $ 1.0 million and $ 1.1 million , respectively . the decrease in grant income of approximately $ 0.1 million in 2018 as compared to 2017 is primarily due to the timing of grant activities . the pre-clinical

