our shares of common stock began trading on the nasdaq capital market on may 13 , 2015. as a result of the initial public offering , we received approximately $ 15.9 million in net proceeds , after deducting underwriting discounts and commissions of $ 1.2 million and offering expenses of $ 3.3 million , including a $ 0.4 million non-cash expense . 63 in september 2015 , we entered into a four year manufacture and supply agreement , or supply agreement , with a contract manufacturer in india for the manufacture and supply of active pharmaceutical ingredient , or api . for each calendar year , we and the manufacturer will agree to a minimum annual quantity that we will purchase . in october 2015 , we entered into a formulation development and manufacturing contract with a manufacturer , whereby the manufacturer will provide enteric-coated tablets to us for use in animals . the total amount committed to be paid by the company during 2015 and 2016 under this contract is estimated to be approximately $ 850,000. in december 2015 , we hired a new chief financial officer and entered into an employment agreement . in december 2015 , we entered into an amendment to our technology transfer and commercial manufacturing agreement with our contract manufacturer in italy delaying a 150,000 payment which was originally due on december 31 , 2015. this payment is now due on march 31 , 2016. in december 2015 , we met benchmarks which reduced our restricted cash balance by $ 1.5 million from $ 4.5 million to $ 3.0 million as required by hercules technology growth capital , inc. , or hercules technology , pursuant to the loan and security agreement dated august 18 , 2015 , between us , certain of our subsidiaries , the several banks and other financial institutions or entities from time to time party thereto as lenders and hercules technology . in december 2015 , we paid a license fee of $ 500,000 to napo pharmaceuticals pursuant to the amended and restated license agreement , dated august 6 , 2014 as amended , between napo and us . in february 2016 , we hired a chief veterinary officer and entered into an employment agreement . in february 2016 , we completed a follow-on registration offering of our common stock . in connection with the offering , we issued 2,000,000 shares of our common stock at a price to the public of $ 2.50 per share . as a result of the follow-on offering , we received $ 4.1 million in net proceeds , after deducting underwriting discounts and commissions of $ 373,000 and estimated offering expenses of $ 540,000. financial operations overview we were incorporated in june 2013 in delaware . napo formed our company to develop and commercialize animal health products . prior to our incorporation , the only activities of napo related to animal health were limited to the retention of consultants to evaluate potential strategic alternatives . we were previously a majority-owned subsidiary of napo . however , following the closing of our may 2015 initial public offering , we are no longer majority-owned by napo . we have not generated any material revenue to date and expect to continue to incur significant research and development and other expenses . our net loss attributable to common stockholders was $ 16.6 million and $ 9.3 million for the years ended december 31 , 2015 and 2014. as of december 31 , 2015 , we had total stockholders ' equity of $ 4.4 million and cash and cash equivalents of $ 7.7 million . we expect to continue to incur losses for the foreseeable future as we expand our product development activities , seek necessary approvals for our product candidates , conduct species-specific formulation studies for our non-prescription products , establish api manufacturing capabilities and begin commercialization activities . as a result , we expect to experience increased expenditures for 2016. revenue we sell our primary commercial product neonorm to distributors under agreements that may provide distributor price adjustments and rights of return under certain circumstances . until we have sufficient sales history and pipeline visibility , we will defer revenue and costs of distributor sales until products are sold by the distributor to the distributor 's customers . revenue recognition depends on notification either 64 directly from the distributor that product has been sold to the distributor 's customer , when we have access to the data . we maintain system controls to verify that the reported distributor and third party data is accurate . deferred revenue on shipments to distributors will reflect the estimated effects of distributor price adjustments , if any , and the estimated amount of gross margin expected to be realized when the distributor sells through product purchased from the company . accounts receivable from distributors will be recognized and included in deferred revenue when we ship product to the distributor . we relieve inventory and recognize revenue typically upon shipment by the distributor to their customer . while we did not have revenue in the year ended december 31 , 2014 , we did recognize $ 258,381 in revenue for the year ended december 31 , 2015. cost of revenue cost of revenue expenses consist of costs to manufacture , package and distribute neonorm that distributors have sold through to their customers . research and development expense research and development expenses consist primarily of clinical and contract manufacturing expense , personnel and related benefit expense , stock-based compensation expense , employee travel expense , reforestation expenses and expenses attributable to services received from napo under the service agreement . clinical and contract manufacturing expense consists primarily of costs to conduct stability , safety and efficacy studies , and manufacturing startup expenses at an outsourced api provider in italy . we typically use our employee and infrastructure resources across multiple development programs . story_separator_special_tag while we base our estimates and judgments on our experience and on various other factors that we believe to be reasonable under the circumstances , actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies used in the preparation of our financial statements require significant judgments and estimates . for additional information relating to these and 72 other accounting policies , see note 2 to our audited financial statements , appearing elsewhere in this report . accrued research and development expenses as part of the process of preparing our financial statements , we are required to estimate accrued research and development expenses . estimated accrued expenses include fees paid to vendors and clinical sites in connection with our clinical trials and studies . we review new and open contracts and communicate with applicable internal and vendor personnel to identify services that have been performed on our behalf and estimate the level of service performed and the associated costs incurred for the service when we have not yet been invoiced or otherwise notified of the actual cost for accrued expenses . the majority of our service providers invoice us monthly in arrears for services performed or as milestones are achieved in relation to our contract manufacturers . we make estimates of our accrued expenses as of each reporting date . we base our accrued expenses related to clinical trials and studies on our estimates of the services received and efforts expended pursuant to contracts with vendors , our internal resources , and payments to clinical sites based on enrollment projections . the financial terms of the vendor agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . payments under some of these contracts depend on factors such as the successful enrollment of animals and the completion of development milestones . we estimate the time period over which services will be performed and the level of effort to be expended in each period . if the actual timing of the performance of services or the level of effort varies from our estimate , we adjust the related expense accrual accordingly on a prospective basis . if we do not identify costs that have been incurred or if we underestimate or overestimate the level of services performed or the costs of these services , our actual expenses could differ from our estimates . to date , we have not made any material adjustments to our estimates of accrued research and development expenses or the level of services performed in any reporting period presented . accounting for stock-based compensation during 2013 , we did not issue any stock awards to employees , directors or consultants and did not incur any stock based compensation expense . beginning in the second quarter of 2014 , we awarded options and restricted stock units . we measure stock-based awards granted to employees and directors at fair value on the date of grant and recognize the corresponding compensation expense of the awards , net of estimated forfeitures , over the requisite service periods , which correspond to the vesting periods of the awards . key assumptions . our black-scholes-merton option-pricing model requires the input of highly subjective assumptions , including the fair value of the underlying common stock , the expected volatility of the price of our common stock , the expected term of the option , risk-free interest rates and the expected dividend yield of our common stock . these estimates involve inherent uncertainties and the application of management 's judgment . if factors change and different assumptions are used , our stock-based compensation expense could be materially different in the future . these assumptions are estimated as follows : fair value of our common stockour common stock is valued by reference to the publicly-traded price of our common stock . expected volatilityas we do not have any trading history for our common stock , the expected stock price volatility for our common stock was estimated by taking the average historic price volatility for industry peers based on daily price observations for common stock values over a period equivalent to the expected term of our stock option grants . we did not rely on implied volatilities of traded options in our industry peers ' common stock because the volume of activity was relatively low . we intend to continue to consistently apply this process using the same or similar public 73 companies until a sufficient amount of historical information regarding the volatility of our own common stock share price becomes available . expected termthe expected term represents the period that our stock-based awards are expected to be outstanding . it is based on the `` simplified method `` for developing the estimate of the expected life of a `` plain vanilla `` stock option . under this approach , the expected term is presumed to be the midpoint between the average vesting date and the end of the contractual term for each vesting tranche . we intend to continue to apply this process until a sufficient amount of historical exercise activity is available to be able to reliably estimate the expected term . risk-free interest ratethe risk-free interest rate is based on the yields of u.s. treasury securities with maturities similar to the expected term of the options for each option group . dividend yieldwe have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future . consequently , we used an expected dividend yield of zero . forfeitureswe estimate forfeitures at the time of grant and revise those estimates periodically in subsequent periods . we use historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest . common stock valuations . prior to our ipo , the fair value of the common stock underlying our stock options

cash used in operating activities during the year ended december 31 , 2015 , cash used in operating activities resulted from our net loss of $ 16.3 million , offset by non-cash accretion of debt discounts of $ 2.5 million , non-cash revaluation of warrant liability of $ 502,000 and stock-based compensation of $ 992,000 , amortization of debt issuance costs of $ 130,000 , accretion of the balloon payment on the long-term debt of $ 116,000 , loss on the sale of property and equipment of $ 35,000 , depreciation expense of $ 5,000 , net of changes in operating assets and liabilities of $ 2.3 million . during the year ended december 31 , 2014 , cash used in operating activities resulted from our net loss of $ 8.6 million , offset by the non-cash expense of the write-off of certain materials received from napo pharmaceuticals , inc. of $ 1.1 million , warrants issued in connection with transfer agreement and line of credit of $ 152,000 , accretion of the debt discount of $ 177,000 , amortization of the debt issuance costs of $ 21,000 , and stock-based compensation of $ 164,000 , offset by of the revaluation of the warrant liability of $ 51,000 and by changes in operating assets and liabilities of $ 1.7 million . cash used in investing activities during the year ended december 31 , 2015 , cash used in investing activities primarily consisted of $ 3.0 million in restricted cash that resulted from our issuance of long-term debt , $ 23,000 from the purchase of property and equipment , net of $ 21,000 from the sale of property and equipment . during the year ended december 31 , 2014 , cash used in investing activities consisted of $ 55,000 from the purchase of property and equipment .


 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 used in operating activities during the year ended december 31 , 2015 , cash used in operating activities resulted from our net loss of $ 16.3 million , offset by non-cash accretion of debt discounts of $ 2.5 million , non-cash revaluation of warrant liability of $ 502,000 and stock-based compensation of $ 992,000 , amortization of debt issuance costs of $ 130,000 , accretion of the balloon payment on the long-term debt of $ 116,000 , loss on the sale of property and equipment of $ 35,000 , depreciation expense of $ 5,000 , net of changes in operating assets and liabilities of $ 2.3 million . during the year ended december 31 , 2014 , cash used in operating activities resulted from our net loss of $ 8.6 million , offset by the non-cash expense of the write-off of certain materials received from napo pharmaceuticals , inc. of $ 1.1 million , warrants issued in connection with transfer agreement and line of credit of $ 152,000 , accretion of the debt discount of $ 177,000 , amortization of the debt issuance costs of $ 21,000 , and stock-based compensation of $ 164,000 , offset by of the revaluation of the warrant liability of $ 51,000 and by changes in operating assets and liabilities of $ 1.7 million . cash used in investing activities during the year ended december 31 , 2015 , cash used in investing activities primarily consisted of $ 3.0 million in restricted cash that resulted from our issuance of long-term debt , $ 23,000 from the purchase of property and equipment , net of $ 21,000 from the sale of property and equipment . during the year ended december 31 , 2014 , cash used in investing activities consisted of $ 55,000 from the purchase of property and equipment .
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 Suspicious Activity Report : our shares of common stock began trading on the nasdaq capital market on may 13 , 2015. as a result of the initial public offering , we received approximately $ 15.9 million in net proceeds , after deducting underwriting discounts and commissions of $ 1.2 million and offering expenses of $ 3.3 million , including a $ 0.4 million non-cash expense . 63 in september 2015 , we entered into a four year manufacture and supply agreement , or supply agreement , with a contract manufacturer in india for the manufacture and supply of active pharmaceutical ingredient , or api . for each calendar year , we and the manufacturer will agree to a minimum annual quantity that we will purchase . in october 2015 , we entered into a formulation development and manufacturing contract with a manufacturer , whereby the manufacturer will provide enteric-coated tablets to us for use in animals . the total amount committed to be paid by the company during 2015 and 2016 under this contract is estimated to be approximately $ 850,000. in december 2015 , we hired a new chief financial officer and entered into an employment agreement . in december 2015 , we entered into an amendment to our technology transfer and commercial manufacturing agreement with our contract manufacturer in italy delaying a 150,000 payment which was originally due on december 31 , 2015. this payment is now due on march 31 , 2016. in december 2015 , we met benchmarks which reduced our restricted cash balance by $ 1.5 million from $ 4.5 million to $ 3.0 million as required by hercules technology growth capital , inc. , or hercules technology , pursuant to the loan and security agreement dated august 18 , 2015 , between us , certain of our subsidiaries , the several banks and other financial institutions or entities from time to time party thereto as lenders and hercules technology . in december 2015 , we paid a license fee of $ 500,000 to napo pharmaceuticals pursuant to the amended and restated license agreement , dated august 6 , 2014 as amended , between napo and us . in february 2016 , we hired a chief veterinary officer and entered into an employment agreement . in february 2016 , we completed a follow-on registration offering of our common stock . in connection with the offering , we issued 2,000,000 shares of our common stock at a price to the public of $ 2.50 per share . as a result of the follow-on offering , we received $ 4.1 million in net proceeds , after deducting underwriting discounts and commissions of $ 373,000 and estimated offering expenses of $ 540,000. financial operations overview we were incorporated in june 2013 in delaware . napo formed our company to develop and commercialize animal health products . prior to our incorporation , the only activities of napo related to animal health were limited to the retention of consultants to evaluate potential strategic alternatives . we were previously a majority-owned subsidiary of napo . however , following the closing of our may 2015 initial public offering , we are no longer majority-owned by napo . we have not generated any material revenue to date and expect to continue to incur significant research and development and other expenses . our net loss attributable to common stockholders was $ 16.6 million and $ 9.3 million for the years ended december 31 , 2015 and 2014. as of december 31 , 2015 , we had total stockholders ' equity of $ 4.4 million and cash and cash equivalents of $ 7.7 million . we expect to continue to incur losses for the foreseeable future as we expand our product development activities , seek necessary approvals for our product candidates , conduct species-specific formulation studies for our non-prescription products , establish api manufacturing capabilities and begin commercialization activities . as a result , we expect to experience increased expenditures for 2016. revenue we sell our primary commercial product neonorm to distributors under agreements that may provide distributor price adjustments and rights of return under certain circumstances . until we have sufficient sales history and pipeline visibility , we will defer revenue and costs of distributor sales until products are sold by the distributor to the distributor 's customers . revenue recognition depends on notification either 64 directly from the distributor that product has been sold to the distributor 's customer , when we have access to the data . we maintain system controls to verify that the reported distributor and third party data is accurate . deferred revenue on shipments to distributors will reflect the estimated effects of distributor price adjustments , if any , and the estimated amount of gross margin expected to be realized when the distributor sells through product purchased from the company . accounts receivable from distributors will be recognized and included in deferred revenue when we ship product to the distributor . we relieve inventory and recognize revenue typically upon shipment by the distributor to their customer . while we did not have revenue in the year ended december 31 , 2014 , we did recognize $ 258,381 in revenue for the year ended december 31 , 2015. cost of revenue cost of revenue expenses consist of costs to manufacture , package and distribute neonorm that distributors have sold through to their customers . research and development expense research and development expenses consist primarily of clinical and contract manufacturing expense , personnel and related benefit expense , stock-based compensation expense , employee travel expense , reforestation expenses and expenses attributable to services received from napo under the service agreement . clinical and contract manufacturing expense consists primarily of costs to conduct stability , safety and efficacy studies , and manufacturing startup expenses at an outsourced api provider in italy . we typically use our employee and infrastructure resources across multiple development programs . story_separator_special_tag while we base our estimates and judgments on our experience and on various other factors that we believe to be reasonable under the circumstances , actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies used in the preparation of our financial statements require significant judgments and estimates . for additional information relating to these and 72 other accounting policies , see note 2 to our audited financial statements , appearing elsewhere in this report . accrued research and development expenses as part of the process of preparing our financial statements , we are required to estimate accrued research and development expenses . estimated accrued expenses include fees paid to vendors and clinical sites in connection with our clinical trials and studies . we review new and open contracts and communicate with applicable internal and vendor personnel to identify services that have been performed on our behalf and estimate the level of service performed and the associated costs incurred for the service when we have not yet been invoiced or otherwise notified of the actual cost for accrued expenses . the majority of our service providers invoice us monthly in arrears for services performed or as milestones are achieved in relation to our contract manufacturers . we make estimates of our accrued expenses as of each reporting date . we base our accrued expenses related to clinical trials and studies on our estimates of the services received and efforts expended pursuant to contracts with vendors , our internal resources , and payments to clinical sites based on enrollment projections . the financial terms of the vendor agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . payments under some of these contracts depend on factors such as the successful enrollment of animals and the completion of development milestones . we estimate the time period over which services will be performed and the level of effort to be expended in each period . if the actual timing of the performance of services or the level of effort varies from our estimate , we adjust the related expense accrual accordingly on a prospective basis . if we do not identify costs that have been incurred or if we underestimate or overestimate the level of services performed or the costs of these services , our actual expenses could differ from our estimates . to date , we have not made any material adjustments to our estimates of accrued research and development expenses or the level of services performed in any reporting period presented . accounting for stock-based compensation during 2013 , we did not issue any stock awards to employees , directors or consultants and did not incur any stock based compensation expense . beginning in the second quarter of 2014 , we awarded options and restricted stock units . we measure stock-based awards granted to employees and directors at fair value on the date of grant and recognize the corresponding compensation expense of the awards , net of estimated forfeitures , over the requisite service periods , which correspond to the vesting periods of the awards . key assumptions . our black-scholes-merton option-pricing model requires the input of highly subjective assumptions , including the fair value of the underlying common stock , the expected volatility of the price of our common stock , the expected term of the option , risk-free interest rates and the expected dividend yield of our common stock . these estimates involve inherent uncertainties and the application of management 's judgment . if factors change and different assumptions are used , our stock-based compensation expense could be materially different in the future . these assumptions are estimated as follows : fair value of our common stockour common stock is valued by reference to the publicly-traded price of our common stock . expected volatilityas we do not have any trading history for our common stock , the expected stock price volatility for our common stock was estimated by taking the average historic price volatility for industry peers based on daily price observations for common stock values over a period equivalent to the expected term of our stock option grants . we did not rely on implied volatilities of traded options in our industry peers ' common stock because the volume of activity was relatively low . we intend to continue to consistently apply this process using the same or similar public 73 companies until a sufficient amount of historical information regarding the volatility of our own common stock share price becomes available . expected termthe expected term represents the period that our stock-based awards are expected to be outstanding . it is based on the `` simplified method `` for developing the estimate of the expected life of a `` plain vanilla `` stock option . under this approach , the expected term is presumed to be the midpoint between the average vesting date and the end of the contractual term for each vesting tranche . we intend to continue to apply this process until a sufficient amount of historical exercise activity is available to be able to reliably estimate the expected term . risk-free interest ratethe risk-free interest rate is based on the yields of u.s. treasury securities with maturities similar to the expected term of the options for each option group . dividend yieldwe have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future . consequently , we used an expected dividend yield of zero . forfeitureswe estimate forfeitures at the time of grant and revise those estimates periodically in subsequent periods . we use historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest . common stock valuations . prior to our ipo , the fair value of the common stock underlying our stock options

