this discussion and analysis and other parts of this annual report contain forward-looking statements based upon current beliefs , plans and expectations that involve risks , uncertainties and assumptions , such as statements regarding our plans , objectives , expectations , intentions and projections . our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of several factors , including those set forth under item 1a . risk factors . you should carefully read the risk factors section of this annual report to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements . please also see the section entitled special note regarding forward-looking statements. overview we are a specialty pharmaceutical company focused on the development and commercialization of novel , injectable pain therapies . we are targeting anti-inflammatory and analgesic therapies for the treatment of patients with musculoskeletal conditions , beginning with osteoarthritis , a type of degenerative arthritis , referred to as oa . our broad and diversified portfolio of product candidates addresses the oa pain treatment spectrum , from moderate to severe pain , and provides us with multiple unique opportunities to achieve our goal of commercializing novel , patient-focused pain therapies . our pipeline consists of three proprietary product candidates : fx006 , a sustained-release , intra-articular steroid ; fx007 , a trka receptor antagonist for post-operative pain ; and fx005 , a sustained-release intra-articular p38 map kinase inhibitor . we retain the exclusive worldwide rights to our product candidates . we were incorporated in delaware in november 2007 , and to date we have devoted substantially all of our resources to our development efforts relating to our product candidates , including conducting clinical trials with our product candidates , providing general and administrative support for these operations and protecting our intellectual property . we are a development stage company and do not have 72 any products approved for sale and have not generated any revenue from product sales . from our inception through december 31 , 2013 , we have funded our operations primarily through the sale of our convertible preferred stock and , to a lesser extent , debt financing . from our inception through december 31 , 2013 , we have raised $ 80.0 million from such transactions . on february 18 , 2014 , we completed the initial public offering of our common stock , which resulted in net proceeds to us of approximately $ 67.2 million , after deducting underwriting discounts , commissions and offering costs . we have incurred net losses in each year since our inception in 2007. our net losses were $ 18.2 million , $ 15.0 million and $ 11.4 million for the years ended december 31 , 2013 , 2012 and 2011 , respectively . as of december 31 , 2013 , we had an accumulated deficit of $ 66.2 million . substantially all of our net losses resulted from costs incurred in connection with our development programs and from general and administrative expenses associated with our operations . we expect to continue to incur significant expenses and increasing operating losses for the foreseeable future . we anticipate that our expenses will increase substantially in connection with our ongoing activities , as we : continue the development of our lead product candidate , fx006 , including the planned and future clinical trials ; seek to obtain regulatory approvals for fx006 ; prepare for the potential launch and commercialization of fx006 , if approved ; establish a sales and marketing infrastructure for the commercialization of fx006 , if approved ; expand our development activities and advance additional product candidates ; maintain , expand and protect our intellectual property portfolio ; and add operational , financial and management information systems and personnel , including personnel to support our product development and commercialization efforts and operations as a public company . we do not expect to generate revenue from product sales unless and until we successfully complete development and obtain marketing approval for one or more of our product candidates , which we expect will take a number of years and is subject to significant uncertainty . accordingly , we anticipate that we will need to raise additional capital prior to completing clinical development of fx006 or any of our other product candidates . until such time that we can generate substantial revenue from product sales , if ever , we expect to finance our operating activities through a combination of equity offerings , debt financings , government or other third-party funding and collaborations , and licensing arrangements . however , we may be unable to raise additional funds or enter into such arrangements when needed on favorable terms , or at all , which would have a negative impact on our financial condition and could force us to delay , limit , reduce or terminate our development programs or commercialization efforts or grant to others rights to develop or market product candidates that we would otherwise prefer to develop and market ourselves . failure to receive additional funding could cause us to cease operations , in part or in full . 73 financial overview revenue we have not generated any revenue since our inception . we do not have any products approved for sale , and we do not expect to generate any revenue from the sale of products in the near future . story_separator_special_tag million in personnel and other costs , both offset by a decrease in development expenses related to our fx005 program . the increase of $ 3.8 million in fx006 program expenses related to expenses for our phase 2a clinical trial , which commenced in july 2012 , and our phase 2b dose-ranging clinical trial , which commenced in june 2012 ; additional toxicology studies conducted during the year ended 2012 ; and increased material costs related to our clinical trials . the increase of $ 0.2 million in personnel and other costs primarily related to increased consulting costs and sponsored research costs . the decrease of $ 1.1 million in fx005 program expenses was due to the completion of the phase 2a proof of concept clinical trial in april 2012. general and administrative expenses general and administrative expenses were $ 3.9 million and $ 3.0 million for the years ended december 31 , 2012 and 2011 , respectively . the increase in general and administrative expenses year over year of $ 0.9 million , or 30 % , was primarily due to an increase of $ 0.6 million in salary and related costs from an increase in headcount , and $ 0.3 million in legal fees related to patents for our intellectual property and corporate matters . other income ( expense ) interest income was $ 0.2 million and $ 0.2 million for the years ended december 31 , 2012 and 2011 , respectively . interest income was consistent year over year . other expense was $ 0.2 million and $ 0.3 million for the years ended december 31 , 2012 and 2011 , respectively . the decrease of $ 0.1 million , or 51 % , related to $ 0.2 million of swiss business tax we paid in 2011 , offset by an increase of $ 0.1 million in net amortization of premiums on our marketable securities . story_separator_special_tag 83 contractual obligations the following table discloses aggregate information about our contractual obligations and the periods in which payments are due as of december 31 , 2013 : replace_table_token_11_th ( 1 ) represents the contractually required principal and interest payments on our credit facility in accordance with the required payment schedule and the $ 175,000 final payment to the lender on september 1 , 2016. amounts associated with future interest payments to be made were calculated using the fixed interest rate of 8.0 % per annum . ( 2 ) represents the contractually required payments under our operating lease obligations in existence as of december 31 , 2013 in accordance with the required payment schedule . no assumptions were made with respect to renewing the lease terms at the expiration date of their initial terms . ( 3 ) milestone payments of up to $ 184.0 million will become due under our agreements with astrazeneca as we achieve regulatory and commercial milestones . in addition , we will pay tiered royalties on product sales . we have not included these amounts in this table as we can not estimate or predict when , or if , those amounts will become due . the table above reflects only payment obligations that are fixed or determinable . we enter into contracts in the normal course of business with cros for clinical trials and clinical supply manufacturing , and with vendors for preclinical research studies , research supplies and other services and products for operating purposes . these contracts generally provide for termination on notice , and therefore we believe that our non-cancelable obligations under these agreements are not material . off-balance sheet arrangements during the periods presented , we did not have , nor do we currently have , any off-balance sheet arrangements . recent accounting pronouncements in february 2013 , the financial accounting standards board , or fasb , issued guidance to provide information about the amounts reclassified out of accumulated other comprehensive income , or aoci , by component . an entity is required to present , either on the face of the financial statements or in the notes , 84 significant amounts reclassified out of aoci by the respective line items of net income , but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period . for amounts that are not required to be reclassified in their entirety to net income , an entity is required to cross-reference to other disclosures that provide additional details about those amounts . on january 1 , 2013 , we adopted this standard , which had no impact on our financial position , results of operations or cash flows . in july 2012 , the fasb issued accounting standards update ( asu ) 2012-02 , testing indefinite-lived intangible assets for impairment . the guidance allows companies , at their option , to perform a qualitative assessment of indefinite-lived assets to determine if it is more likely than not that the fair value of the assets exceeds its carrying value . if analysis of the qualitative factors results in the fair value of the indefinite-lived asset exceeding the carrying value , then performing the quantitative assessment is not required . this guidance is effective for interim and annual periods beginning after december 15 , 2012. we adopted this standard on january 1 , 2013 , and it had no impact on our financial position , results of operations or cash flows . jobs act on april 5 , 2012 , the jobs act was enacted . section 107 of the jobs act provides that an emerging growth company can take advantage of the extended transition period provided in section 7 ( a ) ( 2 ) ( b ) of the securities act for complying with new or revised accounting standards . in other words , an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies . we have irrevocably elected not to avail

liquidity and capital resources to date , we have not generated any revenue and have incurred losses since our inception in 2007. as of december 31 , 2013 , we had an accumulated deficit of $ 66.2 million . we anticipate that we will continue to incur losses for the foreseeable future . we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need additional capital to fund our operations , which we may seek to obtain through one or more equity offerings , debt financings , government or other third-party funding , and licensing or collaboration arrangements . since our inception through december 31 , 2013 , we have funded our operations principally through the receipt of funds from the private placement of $ 80.0 million of equity and debt securities . as of december 31 , 2013 , we had cash and cash equivalents of $ 16.2 million and marketable securities of $ 0.3 million . on february 18 , 2014 , we completed the initial public offering of our common stock , which resulted in net proceeds to us of approximately $ 67.2 million , after deducting underwriting discounts , commissions and offering costs . we anticipate that our existing cash , cash equivalents and marketable securities , including the proceeds we received from our initial public offering , will fund our operations into late 2015. cash in excess of immediate requirements is invested in accordance with our investment policy , primarily with a view to capital preservation . 81 the following table shows a summary of our cash flows for each of the years ended december 31 , 2013 , 2012 and 2011 : replace_table_token_10_th net cash used in operating activities operating activities used $ 16.2 million of cash in 2013. the cash flow used in operating activities resulted primarily from our net loss of $ 18.2 million for the period , offset by net non-cash charges of $ 1.3 million and cash provided by changes in our operating assets and liabilities of $ 0.7 million .


 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 to date , we have not generated any revenue and have incurred losses since our inception in 2007. as of december 31 , 2013 , we had an accumulated deficit of $ 66.2 million . we anticipate that we will continue to incur losses for the foreseeable future . we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need additional capital to fund our operations , which we may seek to obtain through one or more equity offerings , debt financings , government or other third-party funding , and licensing or collaboration arrangements . since our inception through december 31 , 2013 , we have funded our operations principally through the receipt of funds from the private placement of $ 80.0 million of equity and debt securities . as of december 31 , 2013 , we had cash and cash equivalents of $ 16.2 million and marketable securities of $ 0.3 million . on february 18 , 2014 , we completed the initial public offering of our common stock , which resulted in net proceeds to us of approximately $ 67.2 million , after deducting underwriting discounts , commissions and offering costs . we anticipate that our existing cash , cash equivalents and marketable securities , including the proceeds we received from our initial public offering , will fund our operations into late 2015. cash in excess of immediate requirements is invested in accordance with our investment policy , primarily with a view to capital preservation . 81 the following table shows a summary of our cash flows for each of the years ended december 31 , 2013 , 2012 and 2011 : replace_table_token_10_th net cash used in operating activities operating activities used $ 16.2 million of cash in 2013. the cash flow used in operating activities resulted primarily from our net loss of $ 18.2 million for the period , offset by net non-cash charges of $ 1.3 million and cash provided by changes in our operating assets and liabilities of $ 0.7 million .
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 Suspicious Activity Report : this discussion and analysis and other parts of this annual report contain forward-looking statements based upon current beliefs , plans and expectations that involve risks , uncertainties and assumptions , such as statements regarding our plans , objectives , expectations , intentions and projections . our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of several factors , including those set forth under item 1a . risk factors . you should carefully read the risk factors section of this annual report to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements . please also see the section entitled special note regarding forward-looking statements. overview we are a specialty pharmaceutical company focused on the development and commercialization of novel , injectable pain therapies . we are targeting anti-inflammatory and analgesic therapies for the treatment of patients with musculoskeletal conditions , beginning with osteoarthritis , a type of degenerative arthritis , referred to as oa . our broad and diversified portfolio of product candidates addresses the oa pain treatment spectrum , from moderate to severe pain , and provides us with multiple unique opportunities to achieve our goal of commercializing novel , patient-focused pain therapies . our pipeline consists of three proprietary product candidates : fx006 , a sustained-release , intra-articular steroid ; fx007 , a trka receptor antagonist for post-operative pain ; and fx005 , a sustained-release intra-articular p38 map kinase inhibitor . we retain the exclusive worldwide rights to our product candidates . we were incorporated in delaware in november 2007 , and to date we have devoted substantially all of our resources to our development efforts relating to our product candidates , including conducting clinical trials with our product candidates , providing general and administrative support for these operations and protecting our intellectual property . we are a development stage company and do not have 72 any products approved for sale and have not generated any revenue from product sales . from our inception through december 31 , 2013 , we have funded our operations primarily through the sale of our convertible preferred stock and , to a lesser extent , debt financing . from our inception through december 31 , 2013 , we have raised $ 80.0 million from such transactions . on february 18 , 2014 , we completed the initial public offering of our common stock , which resulted in net proceeds to us of approximately $ 67.2 million , after deducting underwriting discounts , commissions and offering costs . we have incurred net losses in each year since our inception in 2007. our net losses were $ 18.2 million , $ 15.0 million and $ 11.4 million for the years ended december 31 , 2013 , 2012 and 2011 , respectively . as of december 31 , 2013 , we had an accumulated deficit of $ 66.2 million . substantially all of our net losses resulted from costs incurred in connection with our development programs and from general and administrative expenses associated with our operations . we expect to continue to incur significant expenses and increasing operating losses for the foreseeable future . we anticipate that our expenses will increase substantially in connection with our ongoing activities , as we : continue the development of our lead product candidate , fx006 , including the planned and future clinical trials ; seek to obtain regulatory approvals for fx006 ; prepare for the potential launch and commercialization of fx006 , if approved ; establish a sales and marketing infrastructure for the commercialization of fx006 , if approved ; expand our development activities and advance additional product candidates ; maintain , expand and protect our intellectual property portfolio ; and add operational , financial and management information systems and personnel , including personnel to support our product development and commercialization efforts and operations as a public company . we do not expect to generate revenue from product sales unless and until we successfully complete development and obtain marketing approval for one or more of our product candidates , which we expect will take a number of years and is subject to significant uncertainty . accordingly , we anticipate that we will need to raise additional capital prior to completing clinical development of fx006 or any of our other product candidates . until such time that we can generate substantial revenue from product sales , if ever , we expect to finance our operating activities through a combination of equity offerings , debt financings , government or other third-party funding and collaborations , and licensing arrangements . however , we may be unable to raise additional funds or enter into such arrangements when needed on favorable terms , or at all , which would have a negative impact on our financial condition and could force us to delay , limit , reduce or terminate our development programs or commercialization efforts or grant to others rights to develop or market product candidates that we would otherwise prefer to develop and market ourselves . failure to receive additional funding could cause us to cease operations , in part or in full . 73 financial overview revenue we have not generated any revenue since our inception . we do not have any products approved for sale , and we do not expect to generate any revenue from the sale of products in the near future . story_separator_special_tag million in personnel and other costs , both offset by a decrease in development expenses related to our fx005 program . the increase of $ 3.8 million in fx006 program expenses related to expenses for our phase 2a clinical trial , which commenced in july 2012 , and our phase 2b dose-ranging clinical trial , which commenced in june 2012 ; additional toxicology studies conducted during the year ended 2012 ; and increased material costs related to our clinical trials . the increase of $ 0.2 million in personnel and other costs primarily related to increased consulting costs and sponsored research costs . the decrease of $ 1.1 million in fx005 program expenses was due to the completion of the phase 2a proof of concept clinical trial in april 2012. general and administrative expenses general and administrative expenses were $ 3.9 million and $ 3.0 million for the years ended december 31 , 2012 and 2011 , respectively . the increase in general and administrative expenses year over year of $ 0.9 million , or 30 % , was primarily due to an increase of $ 0.6 million in salary and related costs from an increase in headcount , and $ 0.3 million in legal fees related to patents for our intellectual property and corporate matters . other income ( expense ) interest income was $ 0.2 million and $ 0.2 million for the years ended december 31 , 2012 and 2011 , respectively . interest income was consistent year over year . other expense was $ 0.2 million and $ 0.3 million for the years ended december 31 , 2012 and 2011 , respectively . the decrease of $ 0.1 million , or 51 % , related to $ 0.2 million of swiss business tax we paid in 2011 , offset by an increase of $ 0.1 million in net amortization of premiums on our marketable securities . story_separator_special_tag 83 contractual obligations the following table discloses aggregate information about our contractual obligations and the periods in which payments are due as of december 31 , 2013 : replace_table_token_11_th ( 1 ) represents the contractually required principal and interest payments on our credit facility in accordance with the required payment schedule and the $ 175,000 final payment to the lender on september 1 , 2016. amounts associated with future interest payments to be made were calculated using the fixed interest rate of 8.0 % per annum . ( 2 ) represents the contractually required payments under our operating lease obligations in existence as of december 31 , 2013 in accordance with the required payment schedule . no assumptions were made with respect to renewing the lease terms at the expiration date of their initial terms . ( 3 ) milestone payments of up to $ 184.0 million will become due under our agreements with astrazeneca as we achieve regulatory and commercial milestones . in addition , we will pay tiered royalties on product sales . we have not included these amounts in this table as we can not estimate or predict when , or if , those amounts will become due . the table above reflects only payment obligations that are fixed or determinable . we enter into contracts in the normal course of business with cros for clinical trials and clinical supply manufacturing , and with vendors for preclinical research studies , research supplies and other services and products for operating purposes . these contracts generally provide for termination on notice , and therefore we believe that our non-cancelable obligations under these agreements are not material . off-balance sheet arrangements during the periods presented , we did not have , nor do we currently have , any off-balance sheet arrangements . recent accounting pronouncements in february 2013 , the financial accounting standards board , or fasb , issued guidance to provide information about the amounts reclassified out of accumulated other comprehensive income , or aoci , by component . an entity is required to present , either on the face of the financial statements or in the notes , 84 significant amounts reclassified out of aoci by the respective line items of net income , but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period . for amounts that are not required to be reclassified in their entirety to net income , an entity is required to cross-reference to other disclosures that provide additional details about those amounts . on january 1 , 2013 , we adopted this standard , which had no impact on our financial position , results of operations or cash flows . in july 2012 , the fasb issued accounting standards update ( asu ) 2012-02 , testing indefinite-lived intangible assets for impairment . the guidance allows companies , at their option , to perform a qualitative assessment of indefinite-lived assets to determine if it is more likely than not that the fair value of the assets exceeds its carrying value . if analysis of the qualitative factors results in the fair value of the indefinite-lived asset exceeding the carrying value , then performing the quantitative assessment is not required . this guidance is effective for interim and annual periods beginning after december 15 , 2012. we adopted this standard on january 1 , 2013 , and it had no impact on our financial position , results of operations or cash flows . jobs act on april 5 , 2012 , the jobs act was enacted . section 107 of the jobs act provides that an emerging growth company can take advantage of the extended transition period provided in section 7 ( a ) ( 2 ) ( b ) of the securities act for complying with new or revised accounting standards . in other words , an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies . we have irrevocably elected not to avail

