our product will need to receive clearance from the fda , in order to be marketed in the united states . we submitted our filing for premarket clearance approval with the fda on march 4 , 2019. we also intend to secure regulatory approval in numerous international markets and are currently developing a regulatory strategy for these markets . our business model anticipates generating revenue from the sale of our rap console to dermatologists , plastic surgeons , and other physician offices , as well as medi-spas under the supervision of a doctor . our model contemplates recurring revenues will be generated by the sale of disposable cartridges that are utilized with each patient visit and treatment . we believe additional revenues will result from maintenance services to our customers . our system comprises a control unit with a hand piece and our consumable treatment cartridges , which are designed to allow a physician to perform a single office visit involving multiple laser passes on an average-sized tattoo or a single stand-alone treatment for cellulite reduction . in simple terms , we expect this to translate into approximately one treatment cartridge per patient , per visit . our ongoing research and development activities are primarily focused on obtaining fda clearance for our system and then developing our system and treatment head for tattoo removal procedures . in addition to these development activities related to tattoo removal , we are exploring additional uses of rap technology for the dermatology , plastic surgery , and aesthetic markets , as well as new methods for improving the safety and efficacy of laser-based devices . we have initiated a proof-of-concept clinical trial for the reduction of cellulite and expect to conclude this study by mid-2019 . the medical technology and aesthetic product markets are highly competitive and dynamic and are characterized by rapid and substantial technological development and product innovations . we will compete with many other technologies for consumer demand . further , the aesthetic industry in which we will operate is particularly vulnerable to economic trends . the decision to undergo a procedure from our systems will be driven by consumer demand . procedures performed using our systems are elective procedures , the cost of which must be borne by the patient and are not reimbursable through government or private health insurance . in times of economic uncertainty or recession , individuals often reduce the amount of money that they spend on discretionary items , including aesthetic procedures . the general economic difficulties being experienced and the lack of availability of consumer credit for some of our customers ' patients could adversely affect the markets in which we will operate . recent developments on february 19 , 2019 , we consummated our ipo . in the ipo , we sold a total of 2,172,591 shares of common stock at a purchase price of $ 5.00 per share for gross proceeds of $ 10,862,955 and net proceeds of approximately $ 9,700,000. in connection with the closing of the ipo , our convertible notes ( and related accrued interest ) of $ 11,784,987 were converted into 6,825,391 shares of our common stock , accrued dividends of $ 4,773,480 were converted into 954,696 shares of our common stock , preferred stock , both series a and series b , were converted into 2,534,766 shares of our common stock . in addition , 127,500 shares of unvested restricted grants were immediately vested upon the completion of the ipo . total shares of common stock outstanding at the closing of the ipo amounted to 14,613,000. upon the closing of the ipo , certain notes were to be automatically converted according to their terms into our common stock to the extent and provided that certain holders of these notes are not permitted to convert such notes to the extent that the holders or any of its affiliates would beneficially own in excess of 4.99 % of our common stock after such conversion . due to this 4.99 % limitation , principal representing $ 47,781 of these notes remained outstanding and will be converted into 273,034 shares of our common stock at such time when the conversion will not result in the holders and any of its affiliates to own more than 4.99 % of our outstanding common shares . the maturity date of these notes is automatically extended until such date the notes are fully converted and these notes cease to accrue interest and are not repayable in cash . based on our current plans , we estimate our cash resources , including cash on hand of $ 133,435 at december 31 , 2018 and the approximate $ 9,700,000 of net proceeds received from our ipo , is sufficient to fund our operations into but not beyond february 2020. however , we can not be certain that our business plan , including raising additional subsequent capital , obtaining regulatory clearance for its products currently under development , commercializing and generating revenues from products currently under development , and controlling expenses , will be achieved . a failure to raise sufficient capital will adversely impact our ability to meet our financial obligations as they become due and payable and to achieve our intended business objectives . 42 we submitted our filing for premarket clearance approval with the fda on march 4 , 2019. on march 18 , 2019 , the fda notified us that the administrative acceptance review had been conducted on our premarket notification ( 510 ( k ) ) , and it was found to contain all of the necessary elements and information needed to proceed with the substantive review . we have initiated a proof-of-concept clinical trial for the reduction of cellulite . story_separator_special_tag we have completed the study treatments and all patient follow-up visits and expect to conclude this study by mid-2019 . results of operations for the year ended december 31 , 2018 compared to the year ended december 31 , 2017 below is a summary of the results of operations : replace_table_token_4_th research and development . r & d expenses increased by $ 704,471 compared to the same period in 2017 , primarily due to increases in contract engineering expenses of $ 879,643 , salaries and related expenses of $ 270,270 , which is largely due to personnel expenses allocated more to r & d in the current period than in the prior period , and license and other expenses of $ 61,073. these increases were offset by decreases in animal research expenses of $ 252,600 and clinical trial expenses of $ 253,915. sales and marketing . s & m expenses increased by $ 213,313 compared to the same period in 2017 , primarily due to an increase in expenses related to social media development of $ 215,486 offset by decreases in fees for our scientific advisory board ( “ sab ” ) and other conference related expenses of meetings of $ 2,173. we include our sab fees in s & m because they primarily advise on our product launch and marketing decisions related to dermatologists and prospective patients . general and administrative . g & a expenses increased by $ 105,844 compared to same period in 2017 primarily due to increase in stock compensation expenses of $ 352,079 , driven primarily by the increase in expenses related to the granting of stock options , membership fee expenses of $ 16,293 , it expenses of $ 52,758 , investor relations expenses of $ 45,039 and accounting and other professional expenses of $ 93,241. these expenses were offset by decreases in salaries and related expenses of $ 325,692 , primarily due to the accrual of bonuses in the first quarter of 2017 that were forgiven in 2018 , travel expenses of $ 100,511 , which were higher in the prior year due to the clinical trials that were being conducted in that period requiring significant travel to the trial site , and other expenses of $ 27,363. other ( income ) expenses . other ( income ) expenses increased by $ 820,271 compared to the same period in 2017 mainly due to increase in interest expense of $ 819,671 , which was a result of additional convertible and non-convertible notes issued during 2018 . 43 story_separator_special_tag agreed to pay a nonrefundable annual maintenance fee starting on the third anniversary of the effective date of the agreement , which escalates each anniversary . additionally , we agreed to a running royalty percentage of net sales . we also agreed to make certain milestone and sublicensing payments . md anderson has the right to terminate the agreement upon advanced notice in the event of a default by us . the agreement will expire upon the expiration of the licensed intellectual property . the rights obtained by us pursuant to the agreement are made subject to the rights of the u.s. government to the extent that the technology covered by the licensed intellectual property was developed under a funding agreement between md anderson and the u.s. government . all out-of-pocket expenses incurred by md anderson in filing , prosecuting and maintaining the licensed patents have been and shall continue to be assumed by us . lease commitments we lease space for our corporate office , which provides for a five-year term beginning on july 15 , 2015 , for rent payments of $ 8,053 per month . future minimum lease payments under the operating leases as of december 31 , 2018 were as follows : year ending december , 31 amount 2019 103,737 2020 108,429 thereafter 36,668 total future minimum lease payments $ 248,834 purchase commitments as of december 31 , 2018 , we had no non-cancellable purchase obligations to contract manufacturers and suppliers . unrecognized tax benefits as of december 31 , 2018 , we have not recorded a provision for income taxes in our financial statements as we have been in a loss position since inception and we can not be more certain than not that we will be able to recognize the income tax benefit from our net operating loss carry forward in the future . off-balance sheet arrangements as of december 31 , 2018 , we did not have any relationships with unconsolidated entities or financial partnerships , such as entities often referred to as structured finance or special purpose entities , established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . jobs act accounting election the jumpstart our business startups act of 2012 , or the jobs act , exempts an “ emerging growth company ” such as us from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards . the jobs act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable . we elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies , we , as an emerging growth company , can adopt the new or revised standard at the time private companies adopt the new or revised standard . this may make comparison of our financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used . critical accounting policies and estimates the preparation of financial statements in

liquidity and capital resources since our inception , we have financed our operations through private placements of common stock , convertible preferred stock , convertible and non-convertible bridge notes , and our ipo . our cash and cash equivalents as of december 31 , 2018 was $ 133,435. on february 19 , 2019 , we consummated our ipo . in the ipo , we sold a total of 2,172,591 shares of common stock at a purchase price of $ 5.00 per share for gross proceeds of $ 10,862,955 and net proceeds of approximately $ 9,700,000. in connection with the closing of the ipo , our convertible notes ( and related accrued interest ) of $ 11,784,987 were converted into 6,825,391 shares of our common stock and accrued dividends of $ 4,773,480 were converted into 954,696 shares of our common stock . we expect to continue to invest in our research and development efforts to support our current initiatives . we will not generate revenue until our commercial rap units are cleared by the fda and sold . we estimate our current cash resources , including the approximate $ 9,700,000 of net proceeds from the ipo is sufficient to fund our operations into but not beyond february 2020. we also recognize we will need to raise additional capital in order to continue to execute our business plan , including obtaining regulatory clearance for our products currently under development and commercializing and generating revenues from products under development . there are no assurances that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to us . a failure to raise sufficient capital , generate sufficient product revenues , control expenditures and regulatory matters , among other factors , will adversely impact our ability to meet our financial obligations as they become due and payable and to achieve our intended business objectives . if we are unable to raise sufficient additional funds , we will have to scale back our operations .


 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 since our inception , we have financed our operations through private placements of common stock , convertible preferred stock , convertible and non-convertible bridge notes , and our ipo . our cash and cash equivalents as of december 31 , 2018 was $ 133,435. on february 19 , 2019 , we consummated our ipo . in the ipo , we sold a total of 2,172,591 shares of common stock at a purchase price of $ 5.00 per share for gross proceeds of $ 10,862,955 and net proceeds of approximately $ 9,700,000. in connection with the closing of the ipo , our convertible notes ( and related accrued interest ) of $ 11,784,987 were converted into 6,825,391 shares of our common stock and accrued dividends of $ 4,773,480 were converted into 954,696 shares of our common stock . we expect to continue to invest in our research and development efforts to support our current initiatives . we will not generate revenue until our commercial rap units are cleared by the fda and sold . we estimate our current cash resources , including the approximate $ 9,700,000 of net proceeds from the ipo is sufficient to fund our operations into but not beyond february 2020. we also recognize we will need to raise additional capital in order to continue to execute our business plan , including obtaining regulatory clearance for our products currently under development and commercializing and generating revenues from products under development . there are no assurances that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to us . a failure to raise sufficient capital , generate sufficient product revenues , control expenditures and regulatory matters , among other factors , will adversely impact our ability to meet our financial obligations as they become due and payable and to achieve our intended business objectives . if we are unable to raise sufficient additional funds , we will have to scale back our operations .
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 Suspicious Activity Report : our product will need to receive clearance from the fda , in order to be marketed in the united states . we submitted our filing for premarket clearance approval with the fda on march 4 , 2019. we also intend to secure regulatory approval in numerous international markets and are currently developing a regulatory strategy for these markets . our business model anticipates generating revenue from the sale of our rap console to dermatologists , plastic surgeons , and other physician offices , as well as medi-spas under the supervision of a doctor . our model contemplates recurring revenues will be generated by the sale of disposable cartridges that are utilized with each patient visit and treatment . we believe additional revenues will result from maintenance services to our customers . our system comprises a control unit with a hand piece and our consumable treatment cartridges , which are designed to allow a physician to perform a single office visit involving multiple laser passes on an average-sized tattoo or a single stand-alone treatment for cellulite reduction . in simple terms , we expect this to translate into approximately one treatment cartridge per patient , per visit . our ongoing research and development activities are primarily focused on obtaining fda clearance for our system and then developing our system and treatment head for tattoo removal procedures . in addition to these development activities related to tattoo removal , we are exploring additional uses of rap technology for the dermatology , plastic surgery , and aesthetic markets , as well as new methods for improving the safety and efficacy of laser-based devices . we have initiated a proof-of-concept clinical trial for the reduction of cellulite and expect to conclude this study by mid-2019 . the medical technology and aesthetic product markets are highly competitive and dynamic and are characterized by rapid and substantial technological development and product innovations . we will compete with many other technologies for consumer demand . further , the aesthetic industry in which we will operate is particularly vulnerable to economic trends . the decision to undergo a procedure from our systems will be driven by consumer demand . procedures performed using our systems are elective procedures , the cost of which must be borne by the patient and are not reimbursable through government or private health insurance . in times of economic uncertainty or recession , individuals often reduce the amount of money that they spend on discretionary items , including aesthetic procedures . the general economic difficulties being experienced and the lack of availability of consumer credit for some of our customers ' patients could adversely affect the markets in which we will operate . recent developments on february 19 , 2019 , we consummated our ipo . in the ipo , we sold a total of 2,172,591 shares of common stock at a purchase price of $ 5.00 per share for gross proceeds of $ 10,862,955 and net proceeds of approximately $ 9,700,000. in connection with the closing of the ipo , our convertible notes ( and related accrued interest ) of $ 11,784,987 were converted into 6,825,391 shares of our common stock , accrued dividends of $ 4,773,480 were converted into 954,696 shares of our common stock , preferred stock , both series a and series b , were converted into 2,534,766 shares of our common stock . in addition , 127,500 shares of unvested restricted grants were immediately vested upon the completion of the ipo . total shares of common stock outstanding at the closing of the ipo amounted to 14,613,000. upon the closing of the ipo , certain notes were to be automatically converted according to their terms into our common stock to the extent and provided that certain holders of these notes are not permitted to convert such notes to the extent that the holders or any of its affiliates would beneficially own in excess of 4.99 % of our common stock after such conversion . due to this 4.99 % limitation , principal representing $ 47,781 of these notes remained outstanding and will be converted into 273,034 shares of our common stock at such time when the conversion will not result in the holders and any of its affiliates to own more than 4.99 % of our outstanding common shares . the maturity date of these notes is automatically extended until such date the notes are fully converted and these notes cease to accrue interest and are not repayable in cash . based on our current plans , we estimate our cash resources , including cash on hand of $ 133,435 at december 31 , 2018 and the approximate $ 9,700,000 of net proceeds received from our ipo , is sufficient to fund our operations into but not beyond february 2020. however , we can not be certain that our business plan , including raising additional subsequent capital , obtaining regulatory clearance for its products currently under development , commercializing and generating revenues from products currently under development , and controlling expenses , will be achieved . a failure to raise sufficient capital will adversely impact our ability to meet our financial obligations as they become due and payable and to achieve our intended business objectives . 42 we submitted our filing for premarket clearance approval with the fda on march 4 , 2019. on march 18 , 2019 , the fda notified us that the administrative acceptance review had been conducted on our premarket notification ( 510 ( k ) ) , and it was found to contain all of the necessary elements and information needed to proceed with the substantive review . we have initiated a proof-of-concept clinical trial for the reduction of cellulite . story_separator_special_tag we have completed the study treatments and all patient follow-up visits and expect to conclude this study by mid-2019 . results of operations for the year ended december 31 , 2018 compared to the year ended december 31 , 2017 below is a summary of the results of operations : replace_table_token_4_th research and development . r & d expenses increased by $ 704,471 compared to the same period in 2017 , primarily due to increases in contract engineering expenses of $ 879,643 , salaries and related expenses of $ 270,270 , which is largely due to personnel expenses allocated more to r & d in the current period than in the prior period , and license and other expenses of $ 61,073. these increases were offset by decreases in animal research expenses of $ 252,600 and clinical trial expenses of $ 253,915. sales and marketing . s & m expenses increased by $ 213,313 compared to the same period in 2017 , primarily due to an increase in expenses related to social media development of $ 215,486 offset by decreases in fees for our scientific advisory board ( “ sab ” ) and other conference related expenses of meetings of $ 2,173. we include our sab fees in s & m because they primarily advise on our product launch and marketing decisions related to dermatologists and prospective patients . general and administrative . g & a expenses increased by $ 105,844 compared to same period in 2017 primarily due to increase in stock compensation expenses of $ 352,079 , driven primarily by the increase in expenses related to the granting of stock options , membership fee expenses of $ 16,293 , it expenses of $ 52,758 , investor relations expenses of $ 45,039 and accounting and other professional expenses of $ 93,241. these expenses were offset by decreases in salaries and related expenses of $ 325,692 , primarily due to the accrual of bonuses in the first quarter of 2017 that were forgiven in 2018 , travel expenses of $ 100,511 , which were higher in the prior year due to the clinical trials that were being conducted in that period requiring significant travel to the trial site , and other expenses of $ 27,363. other ( income ) expenses . other ( income ) expenses increased by $ 820,271 compared to the same period in 2017 mainly due to increase in interest expense of $ 819,671 , which was a result of additional convertible and non-convertible notes issued during 2018 . 43 story_separator_special_tag agreed to pay a nonrefundable annual maintenance fee starting on the third anniversary of the effective date of the agreement , which escalates each anniversary . additionally , we agreed to a running royalty percentage of net sales . we also agreed to make certain milestone and sublicensing payments . md anderson has the right to terminate the agreement upon advanced notice in the event of a default by us . the agreement will expire upon the expiration of the licensed intellectual property . the rights obtained by us pursuant to the agreement are made subject to the rights of the u.s. government to the extent that the technology covered by the licensed intellectual property was developed under a funding agreement between md anderson and the u.s. government . all out-of-pocket expenses incurred by md anderson in filing , prosecuting and maintaining the licensed patents have been and shall continue to be assumed by us . lease commitments we lease space for our corporate office , which provides for a five-year term beginning on july 15 , 2015 , for rent payments of $ 8,053 per month . future minimum lease payments under the operating leases as of december 31 , 2018 were as follows : year ending december , 31 amount 2019 103,737 2020 108,429 thereafter 36,668 total future minimum lease payments $ 248,834 purchase commitments as of december 31 , 2018 , we had no non-cancellable purchase obligations to contract manufacturers and suppliers . unrecognized tax benefits as of december 31 , 2018 , we have not recorded a provision for income taxes in our financial statements as we have been in a loss position since inception and we can not be more certain than not that we will be able to recognize the income tax benefit from our net operating loss carry forward in the future . off-balance sheet arrangements as of december 31 , 2018 , we did not have any relationships with unconsolidated entities or financial partnerships , such as entities often referred to as structured finance or special purpose entities , established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . jobs act accounting election the jumpstart our business startups act of 2012 , or the jobs act , exempts an “ emerging growth company ” such as us from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards . the jobs act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable . we elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies , we , as an emerging growth company , can adopt the new or revised standard at the time private companies adopt the new or revised standard . this may make comparison of our financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used . critical accounting policies and estimates the preparation of financial statements in

