in january 2020 , we announced a research collaboration with takeda pharmaceutical company limited to further develop lb-301 in crigler-najjar syndrome , or cn , the second indication to be pursued using the generide platform . in addition to mma and cn , we have demonstrated proof of concept of our platform in hemophilia b and alpha-1-antitrypsin deficiency , or a1atd , animal disease models . we expect to select future product candidates from these genetic diseases or others addressed by targeting the liver initially , and later by targeting the central nervous system , or cns , and muscle . since our inception in 2014 , we have devoted all of our efforts to business planning , research and development , developing and protecting our intellectual property , raising capital , recruiting management and technical staff . we do not have any products approved for sale and have not generated any revenue . as of december 31 , 2019 , we have raised approximately $ 9.8 million in net proceeds through the loan and security agreement in july 2019 , approximately $ 72.3 million in net proceeds through our initial public offering , or ipo , in october 2018 and approximately $ 33.1 million in net proceeds from the sale of our convertible preferred stock in 2016 and 2017 . we have incurred significant operating losses since our inception . our ability to generate product revenue sufficient to achieve profitability will depend on the successful development and commercialization of one or more of our product candidates . our net losses were $ 40.1 million and $ 17.6 million for the years ended december 31 , 2019 and 2018 , respectively . as of december 31 , 2019 , we had an accumulated deficit of $ 67.4 million . we expect to continue to incur significant expenses and increasing operating losses for the foreseeable future in connection with our ongoing activities . furthermore , we now incur additional costs associated with operating as a public company that we did not previously incur or had previously incurred at lower rates as a private company , including significant legal , accounting , investor relations and other expenses . 95 initial public offering on october 23 , 2018 , we completed our ipo , in which we issued and sold 8,050,000 shares of common stock , including 1,050,000 shares sold pursuant to the full exercise of the underwriters ' option to purchase additional shares , at a public offering price of $ 10.00 per share . the aggregate net proceeds to us from the ipo were approximately $ 72.3 million after deducting underwriting discounts and commissions and offering expenses . the shares began trading on the nasdaq global market on october 19 , 2018. upon completion of the ipo , all of our outstanding shares of convertible preferred stock converted into 11,789,775 shares of our common stock . components of results of operations revenue since inception through december 31 , 2019 , we have not generated any revenue . we do not expect to generate any revenue from the sale of products in the near future . if our development efforts for lb-001 , or other product candidates that we may develop in the future , are successful and result in regulatory approval or collaboration or license agreements with third parties , we may generate revenue in the future from a combination of product sales or payments from collaboration or license agreements . operating expenses research and development expenses research and development expenses consist primarily of costs incurred for our research activities , including our discovery efforts and the development of our product candidates , and include : salaries , benefits and other related costs , including stock-based compensation expense , for personnel engaged in research and development functions ; license maintenance fees and milestone fees incurred in connection with various license agreements ; the costs of laboratory supplies and acquiring , developing and manufacturing preclinical study and , eventually , clinical trial materials ; expenses incurred under agreements with contract research organizations , or cros , contract manufacturing organizations , or cmos , as well as academic institutions and consultants that conduct our preclinical studies and other scientific development services ; facility-related expenses , which include direct depreciation costs and allocated expenses for rent and maintenance of facilities and other operating costs ; costs of outside consultants , including their fees , stock-based compensation and related travel expenses ; and costs related to compliance with regulatory requirements . we expense research and development costs as incurred . costs for external development activities are recognized based on an evaluation of the progress to completion of specific tasks . payments for these activities are based on the terms of the individual agreements , which may differ from the pattern of costs incurred , and are reflected in our financial statements as prepaid or accrued research and development expenses . research and development activities are central to our business model . we expect that our research and development expenses will continue to increase for the foreseeable future as we initiate clinical trials for our product candidate lb-001 and continue to discover and develop additional product candidates . if any of our product candidates enter into later stages of clinical development , they will generally have higher development costs than those in earlier stages of clinical development , primarily due to the increased size and duration of later-stage clinical trials . general and administrative expenses general and administrative expenses consist primarily of salaries and other related costs , including stock-based compensation , for personnel in our executive , finance , corporate and business development and administrative functions . story_separator_special_tag for example , if the clinical hold on the ind for lb-001 causes significant delays in the progress of our mma program , the fda or another regulatory authority were to require us to conduct preclinical studies or clinical trials beyond those that we anticipate will be required , or if we experience significant trial delays due to patient enrollment or other reasons , we would be required to expend significant additional financial resources and time on preclinical and clinical research and development activities . any significant delays in our programs may also require us to reevaluate our corporate strategy , resulting in the expenditure of significant resources and time . we may never succeed in obtaining regulatory approval for our product candidates or any future product candidates . until such time , if ever , that we can generate product revenue sufficient to achieve profitability , we expect to finance our cash needs through offerings of securities , private equity financing , debt financings , collaborations , government contracts or other strategic transactions . the terms of financing may adversely affect the holdings or the rights of our stockholders . if we are unable to obtain funding , we may be required to delay , limit , reduce or terminate some or all of our research and product development , product portfolio expansion or future commercialization efforts . we will also continue to incur costs as a public company that we did not previously incur or have previously incurred at lower rates , including increased fees payable to the non-employee members of our board of directors , increased personnel costs , increased director and officer insurance premiums , audit and legal fees , investor relations fees and expenses for compliance with public company reporting requirements under the securities exchange act of 1934 , as amended , or the exchange act , and rules implemented by the sec and the nasdaq global market . contractual obligations and commitments : we are a smaller reporting company , as defined in rule 12b-2 under the securities exchange act of 1934 , as amended , for this reporting period and are not required to provide the information required under this item . 100 critical accounting policies and significant judgments and estimates our management 's discussion and analysis of financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with generally accepted accounting principles in the united states . the preparation of our consolidated financial statements and related disclosures requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , costs and expenses and the disclosure of contingent assets and liabilities in our financial statements . we base our estimates on historical experience , known trends and events and various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . we evaluate our estimates and assumptions on an ongoing basis . our actual results may differ from these estimates under different assumptions or conditions . while our significant accounting policies are described in greater detail in note 2 to our consolidated financial statements appearing at the end of this annual report on form 10-k , we believe that the following accounting policies are those most critical to the judgments and estimates used in the preparation of our consolidated financial statements . accrued research and development expenses as part of the process of preparing our consolidated financial statements , we are required to estimate our accrued research and development expenses . we make estimates of our accrued expenses as of each balance sheet date in the consolidated financial statements based on facts and circumstances known to us at that time . there may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the expense . in accruing service fees , 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 the estimate , we adjust the accrual or the amount of prepaid expenses accordingly . although we do not expect our estimates to be materially different from amounts actually incurred , our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period . to date , there have not been any material adjustments to our prior estimates of accrued research and development expenses . stock-based compensation we account for stock-based compensation transactions using a grant-date fair-value-based method under fasb codification topic 718 , compensation—stock compensation . we account for all stock-based awards granted to employees and non-employees based on their fair value on the date of the grant and recognize compensation expense of those awards , over the requisite service period , which is generally the vesting period of the respective award . we apply the straight-line method of expense recognition to all awards with only service-based vesting conditions . we have also issued restricted stock with performance-based vesting conditions and recorded the expense for these awards when we concluded that it was probable that the performance condition would be achieved . stock-based compensation is classified in the accompanying statements of operations based on the function to which the related services are provided . we recognize stock-based compensation expense for the portion of awards that have vested . forfeitures are accounted for as they occur . we estimate the fair value of each stock option grant on the date of grant using the black-scholes option-pricing model , which uses as inputs

liquidity and capital resources overview since our inception and through december 31 , 2019 , we have not generated any revenue and have incurred significant losses and negative cash flows from our operations . as of december 31 , 2019 , we had cash and cash equivalents of $ 33.1 million and short-term investments of $ 17.5 million , which we believe will be able to fund our operating expenses and capital expenditure requirements into the first quarter of 2021. cash flows the following table summarized our cash flows for each of the years ended december 31 , 2019 and 2018 : replace_table_token_3_th operating activities during the year ended december 31 , 2019 , net cash used in operating activities was approximately $ 38.8 million , primarily related to our net loss adjusted for non-cash charges and changes in the components of working capital . the $ 23.5 million increase in cash used in operating activities during the year ended december 31 , 2019 compared to the year ended december 31 , 2018 , was primarily driven by an increase in our net loss due to an increase in both our research and development and general and administrative expenses . investing activities during the year ended december 31 , 2019 , net cash used in investing activities increased approximately $ 17.9 million , primarily related to net short-term investments activity of $ 17.1 million and a $ 0.8 million increase in the purchases of property and equipment as compared to the year ended december 31 , 2018 . 98 financing activities during the year ended december 31 , 2019 , net cash provided by financing activities was $ 10.1 million , primarily related to net proceeds of $ 9.8 million under the july 2019 loan and security agreement as well as $ 0.2 million related to the exercise of stock options .


 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 overview since our inception and through december 31 , 2019 , we have not generated any revenue and have incurred significant losses and negative cash flows from our operations . as of december 31 , 2019 , we had cash and cash equivalents of $ 33.1 million and short-term investments of $ 17.5 million , which we believe will be able to fund our operating expenses and capital expenditure requirements into the first quarter of 2021. cash flows the following table summarized our cash flows for each of the years ended december 31 , 2019 and 2018 : replace_table_token_3_th operating activities during the year ended december 31 , 2019 , net cash used in operating activities was approximately $ 38.8 million , primarily related to our net loss adjusted for non-cash charges and changes in the components of working capital . the $ 23.5 million increase in cash used in operating activities during the year ended december 31 , 2019 compared to the year ended december 31 , 2018 , was primarily driven by an increase in our net loss due to an increase in both our research and development and general and administrative expenses . investing activities during the year ended december 31 , 2019 , net cash used in investing activities increased approximately $ 17.9 million , primarily related to net short-term investments activity of $ 17.1 million and a $ 0.8 million increase in the purchases of property and equipment as compared to the year ended december 31 , 2018 . 98 financing activities during the year ended december 31 , 2019 , net cash provided by financing activities was $ 10.1 million , primarily related to net proceeds of $ 9.8 million under the july 2019 loan and security agreement as well as $ 0.2 million related to the exercise of stock options .
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 Suspicious Activity Report : in january 2020 , we announced a research collaboration with takeda pharmaceutical company limited to further develop lb-301 in crigler-najjar syndrome , or cn , the second indication to be pursued using the generide platform . in addition to mma and cn , we have demonstrated proof of concept of our platform in hemophilia b and alpha-1-antitrypsin deficiency , or a1atd , animal disease models . we expect to select future product candidates from these genetic diseases or others addressed by targeting the liver initially , and later by targeting the central nervous system , or cns , and muscle . since our inception in 2014 , we have devoted all of our efforts to business planning , research and development , developing and protecting our intellectual property , raising capital , recruiting management and technical staff . we do not have any products approved for sale and have not generated any revenue . as of december 31 , 2019 , we have raised approximately $ 9.8 million in net proceeds through the loan and security agreement in july 2019 , approximately $ 72.3 million in net proceeds through our initial public offering , or ipo , in october 2018 and approximately $ 33.1 million in net proceeds from the sale of our convertible preferred stock in 2016 and 2017 . we have incurred significant operating losses since our inception . our ability to generate product revenue sufficient to achieve profitability will depend on the successful development and commercialization of one or more of our product candidates . our net losses were $ 40.1 million and $ 17.6 million for the years ended december 31 , 2019 and 2018 , respectively . as of december 31 , 2019 , we had an accumulated deficit of $ 67.4 million . we expect to continue to incur significant expenses and increasing operating losses for the foreseeable future in connection with our ongoing activities . furthermore , we now incur additional costs associated with operating as a public company that we did not previously incur or had previously incurred at lower rates as a private company , including significant legal , accounting , investor relations and other expenses . 95 initial public offering on october 23 , 2018 , we completed our ipo , in which we issued and sold 8,050,000 shares of common stock , including 1,050,000 shares sold pursuant to the full exercise of the underwriters ' option to purchase additional shares , at a public offering price of $ 10.00 per share . the aggregate net proceeds to us from the ipo were approximately $ 72.3 million after deducting underwriting discounts and commissions and offering expenses . the shares began trading on the nasdaq global market on october 19 , 2018. upon completion of the ipo , all of our outstanding shares of convertible preferred stock converted into 11,789,775 shares of our common stock . components of results of operations revenue since inception through december 31 , 2019 , we have not generated any revenue . we do not expect to generate any revenue from the sale of products in the near future . if our development efforts for lb-001 , or other product candidates that we may develop in the future , are successful and result in regulatory approval or collaboration or license agreements with third parties , we may generate revenue in the future from a combination of product sales or payments from collaboration or license agreements . operating expenses research and development expenses research and development expenses consist primarily of costs incurred for our research activities , including our discovery efforts and the development of our product candidates , and include : salaries , benefits and other related costs , including stock-based compensation expense , for personnel engaged in research and development functions ; license maintenance fees and milestone fees incurred in connection with various license agreements ; the costs of laboratory supplies and acquiring , developing and manufacturing preclinical study and , eventually , clinical trial materials ; expenses incurred under agreements with contract research organizations , or cros , contract manufacturing organizations , or cmos , as well as academic institutions and consultants that conduct our preclinical studies and other scientific development services ; facility-related expenses , which include direct depreciation costs and allocated expenses for rent and maintenance of facilities and other operating costs ; costs of outside consultants , including their fees , stock-based compensation and related travel expenses ; and costs related to compliance with regulatory requirements . we expense research and development costs as incurred . costs for external development activities are recognized based on an evaluation of the progress to completion of specific tasks . payments for these activities are based on the terms of the individual agreements , which may differ from the pattern of costs incurred , and are reflected in our financial statements as prepaid or accrued research and development expenses . research and development activities are central to our business model . we expect that our research and development expenses will continue to increase for the foreseeable future as we initiate clinical trials for our product candidate lb-001 and continue to discover and develop additional product candidates . if any of our product candidates enter into later stages of clinical development , they will generally have higher development costs than those in earlier stages of clinical development , primarily due to the increased size and duration of later-stage clinical trials . general and administrative expenses general and administrative expenses consist primarily of salaries and other related costs , including stock-based compensation , for personnel in our executive , finance , corporate and business development and administrative functions . story_separator_special_tag for example , if the clinical hold on the ind for lb-001 causes significant delays in the progress of our mma program , the fda or another regulatory authority were to require us to conduct preclinical studies or clinical trials beyond those that we anticipate will be required , or if we experience significant trial delays due to patient enrollment or other reasons , we would be required to expend significant additional financial resources and time on preclinical and clinical research and development activities . any significant delays in our programs may also require us to reevaluate our corporate strategy , resulting in the expenditure of significant resources and time . we may never succeed in obtaining regulatory approval for our product candidates or any future product candidates . until such time , if ever , that we can generate product revenue sufficient to achieve profitability , we expect to finance our cash needs through offerings of securities , private equity financing , debt financings , collaborations , government contracts or other strategic transactions . the terms of financing may adversely affect the holdings or the rights of our stockholders . if we are unable to obtain funding , we may be required to delay , limit , reduce or terminate some or all of our research and product development , product portfolio expansion or future commercialization efforts . we will also continue to incur costs as a public company that we did not previously incur or have previously incurred at lower rates , including increased fees payable to the non-employee members of our board of directors , increased personnel costs , increased director and officer insurance premiums , audit and legal fees , investor relations fees and expenses for compliance with public company reporting requirements under the securities exchange act of 1934 , as amended , or the exchange act , and rules implemented by the sec and the nasdaq global market . contractual obligations and commitments : we are a smaller reporting company , as defined in rule 12b-2 under the securities exchange act of 1934 , as amended , for this reporting period and are not required to provide the information required under this item . 100 critical accounting policies and significant judgments and estimates our management 's discussion and analysis of financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with generally accepted accounting principles in the united states . the preparation of our consolidated financial statements and related disclosures requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , costs and expenses and the disclosure of contingent assets and liabilities in our financial statements . we base our estimates on historical experience , known trends and events and various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . we evaluate our estimates and assumptions on an ongoing basis . our actual results may differ from these estimates under different assumptions or conditions . while our significant accounting policies are described in greater detail in note 2 to our consolidated financial statements appearing at the end of this annual report on form 10-k , we believe that the following accounting policies are those most critical to the judgments and estimates used in the preparation of our consolidated financial statements . accrued research and development expenses as part of the process of preparing our consolidated financial statements , we are required to estimate our accrued research and development expenses . we make estimates of our accrued expenses as of each balance sheet date in the consolidated financial statements based on facts and circumstances known to us at that time . there may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the expense . in accruing service fees , 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 the estimate , we adjust the accrual or the amount of prepaid expenses accordingly . although we do not expect our estimates to be materially different from amounts actually incurred , our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period . to date , there have not been any material adjustments to our prior estimates of accrued research and development expenses . stock-based compensation we account for stock-based compensation transactions using a grant-date fair-value-based method under fasb codification topic 718 , compensation—stock compensation . we account for all stock-based awards granted to employees and non-employees based on their fair value on the date of the grant and recognize compensation expense of those awards , over the requisite service period , which is generally the vesting period of the respective award . we apply the straight-line method of expense recognition to all awards with only service-based vesting conditions . we have also issued restricted stock with performance-based vesting conditions and recorded the expense for these awards when we concluded that it was probable that the performance condition would be achieved . stock-based compensation is classified in the accompanying statements of operations based on the function to which the related services are provided . we recognize stock-based compensation expense for the portion of awards that have vested . forfeitures are accounted for as they occur . we estimate the fair value of each stock option grant on the date of grant using the black-scholes option-pricing model , which uses as inputs

