through this collaboration , we seek to understand how the therapeutic effect of immune checkpoint inhibitors , such as antibodies to ctla-4 and pd-1 , are modulated by blocking translocation of certain metabolites and bacterial antigens and toxins from interacting with the host immune system in pre-clinical oncology models . building on previous research that showed a type of permeability known as “ leaky gut ” that may cause microbial translocation of toxic products into circulation of the bloodstream , we are expanding our work in liver disease . initial in vitro data suggests the potential use of larazotide in alcoholic liver diseases . we entered into a research collaboration with massachusetts general hospital to explore larazotide in animal models for the treatment of ash . monster merger on january 29 , 2018 , monster and private innovate completed a reverse recapitalization in accordance with the terms of the monster merger agreement . in connection with the transaction , private innovate changed its name to ib pharmaceuticals inc. pursuant to the monster merger agreement , monster merger sub merged with and into ib pharmaceuticals with ib pharmaceuticals surviving as the wholly owned subsidiary of monster . immediately following the monster merger , monster changed its name to innovate biopharmaceuticals , inc. on march 29 , 2018 , ib pharmaceuticals was merged into innovate and ceased to exist . the monster merger is further described in “ note 1—summary of significant accounting policies ” and “ note 3—monster merger and financing ” to the accompanying financial statements included in this annual report on form 10-k. agreement and plan of merger and reorganization with rdd pharma , ltd. on october 6 , 2019 , we entered into the rdd merger agreement , pursuant to which we agreed to acquire all of the outstanding capital stock of privately-held rdd , an israel corporation , in exchange for a combination of common and preferred shares to be issued by us . the rdd merger will include a concurrent capital raise led by orbimed advisors llc , with a minimum funding requirement of $ 10 million . we are targeting completion of the rdd merger and rdd merger financing near the end of the first quarter of 2020. upon closing of the rdd merger , on an as-converted , fully diluted basis , our current stockholders will own approximately 62 % of the combined company 's capital stock and the current rdd stockholders will own approximately 38 % of the combined company 's capital stock . the final ownership percentages are subject to dilution based on the final amount of capital invested in the rdd merger financing , which will dilute both the current innovate stockholders and current rdd stockholders on a pro rata basis . we intend to use the proceeds from the rdd merger financing to advance our phase 3 clinical trial for the treatment of celiac disease as well as for progression of rdd 's current pipeline . subject to and concurrently with the closing of the rdd merger , the board will appoint john temperato , the chief executive officer of rdd , as chief executive officer of the combined company , 9 meters biopharma , inc. financial overview since our inception , we have focused our efforts and resources on identifying and developing our research and development programs . we have not had any products approved for commercial sale and have incurred operating losses in each year since inception . substantially all of our operating losses resulted from expenses incurred in connection with our research and 72 development programs and from general and administrative costs associated with our operations . as of december 31 , 2019 , we had an accumulated deficit of $ 70.6 million . we incurred net losses of $ 27.0 million and $ 24.2 million for the years ended december 31 , 2019 and 2018 , respectively . we expect to continue to incur significant expenses and increase our operating losses for the foreseeable future , which may fluctuate significantly between periods . we anticipate that our expenses will increase substantially as and to the extent we : continue research and development , including preclinical and clinical development of our existing and future product candidates , including inn-202 ; complete integration of operations and personnel associated with the proposed rdd merger ; potentially seek regulatory approval for our product candidates ; commercialize any product candidates for which we obtain regulatory approval ; maintain and protect our intellectual property rights ; add operational , financial and management information systems and personnel ; and continue to incur additional legal , accounting , regulatory , tax-related and other expenses required to operate as a public company . as such , we will need substantial additional funding to support our operating activities . adequate funding may not be available to us on acceptable terms , or at all . we currently anticipate that we will seek to fund our operations through equity or debt financings , strategic alliances or licensing arrangements , or other sources of financing . our failure to obtain sufficient funds on acceptable terms could have a material adverse effect on our business , results of operations and financial condition . other recent developments in june 2019 , we expanded our senior management team by appointing edward j. sitar as our chief financial officer . mr. sitar has extensive experience in finance and the life sciences industry . mr. sitar is responsible for developing and implementing our financial strategy and growth plans . in february 2019 , we strengthened our clinical development team by appointing patrick griffin , m.d . , f.a.c.p . as our chief medical officer . dr. griffin has several decades of clinical development experience in gastroenterology , autoimmune and metabolic diseases and has overseen multiple phase 3 clinical trials . story_separator_special_tag there are no further amounts outstanding under the senior convertible note and the senior convertible note has been canceled . amortization of the debt discount for the note and senior convertible note totaled approximately $ 2.5 million for the year ended december 31 , 2018 and is recorded as interest expense in the accompanying statements of operations and comprehensive loss . there was no such expense related to the note and senior convertible note during the year ended december 31 , 2019. unsecured convertible promissory note on march 8 , 2019 , we entered into a securities purchase agreement pursuant to which we issued an unsecured convertible promissory note , or the unsecured convertible note , in the principal amount of $ 5.5 million . the holder of the unsecured 77 convertible note , or the convertible noteholder , may elect to convert all or a portion of the unsecured convertible note at any time and from time to time into our common stock at a conversion price of $ 3.25 per share , subject to adjustment for stock splits , dividends , combinations and similar events . we may prepay all or a portion of the unsecured convertible note at any time for an amount equal to 115 % of then outstanding obligations or the portion of the obligations we are prepaying . the purchase price of the unsecured convertible note was $ 5.0 million and the unsecured convertible note carries an original issuance discount of $ 0.5 million , which is included in the principal amount of the unsecured convertible note . in addition , we agreed to pay $ 20,000 of transaction expenses , which were netted out of the purchase price of the unsecured convertible note . we also incurred additional transaction costs of approximately $ 37,000 , which were recorded as debt issuance costs . as a result of the redemption features of the unsecured convertible note , further described in “ note 6—debt , ” we are amortizing the debt issuance costs and accreting the oid to interest expense over the estimated redemption period of 15 months , using the effective interest method . the various conversion and redemption features contained in the unsecured convertible note are embedded derivative instruments , which were recorded as a debt discount and derivative liability at the issuance date at their estimated fair value of $ 1.3 million . amortization of debt discount and accretion of the oid for the unsecured convertible note recorded as interest expense was approximately $ 1.1 million for the year ended december 31 , 2019. the unsecured convertible note bears interest at the rate of 10 % ( which will increase to 18 % upon and during the continuance of an event of default ) per annum , compounding on a daily basis . all principal and accrued interest on the unsecured convertible note is due on the second-year anniversary of the unsecured convertible note 's issuance . during the year ended december 31 , 2019 , we made principal payments of $ 1.5 million under the unsecured convertible note . at any time after the six-month anniversary of the issuance of the unsecured convertible note , ( i ) if the average volume weighted average price over 20 trading dates exceeds $ 10.00 per share , we may generally require that the unsecured convertible note convert into shares of our common stock at the $ 3.25 ( as adjusted ) conversion price , and ( ii ) the convertible noteholder may elect to require all or a portion of the unsecured convertible note be redeemed by us . if the convertible noteholder requires a redemption , we , at our discretion , may pay the redeemed portion of the unsecured convertible note in cash or in our common stock at a conversion rate equal to the lesser of ( i ) the $ 3.25 ( as adjusted ) conversion rate or ( ii ) 80 % of the average of the five lowest volume weighted-average prices of our common stock over the preceding 20 trading days . the convertible noteholder may not redeem more than $ 500,000 per calendar month during the period between the six-month anniversary of the date of issuance until the first-year anniversary of the date of issuance and $ 750,000 per calendar month thereafter . our obligation or right to deliver our shares upon the conversion or redemption of the unsecured convertible note is subject to a 19.99 % cap and subject to a floor price trading price of $ 3.25 ( unless waived by us ) . any amounts elected to be redeemed once the cap is reached or if the market price is less than the $ 3.25 floor price must be paid in cash . in addition , we will be required to pay in cash any amounts elected to be redeemed by the noteholder if any of the following conditions are not satisfied as of the date the noteholder delivers a notice of redemption : ( i ) all conversion shares are freely tradable under rule 144 of the securities act without the need for registration under applicable federal and state securities laws ( without regard to any limitation on conversion of the notes ) , ( ii ) no event of default ( as defined in the applicable note ) has occurred and is continuing , ( iii ) the average and median daily dollar volume of our common stock for the prior 20 and 200 trading days is greater than $ 250,000 , ( iv ) the five-day volume weighted-average price of our common stock is at least $ 1.00 per share and ( v ) our market capitalization is at least $ 15 million . if there is an event of default under the unsecured convertible note , the convertible noteholder may accelerate our obligations or elect to increase the outstanding obligations under the unsecured convertible note . the amount of

cash flows the following table sets forth the primary sources and uses of cash for the years ended december 31 , 2019 and 2018 : replace_table_token_4_th operating activities for the year ended december 31 , 2019 , net cash used in operating activities of approximately $ 18.0 million primarily consisted of a net loss of $ 27.0 million and a non-cash gain of $ 1.2 million for the extinguishment of the senior convertible note derivative liability and changes in the fair value of the warrant liabilities and the unsecured convertible note derivative liability . these decreases were offset by adjustments for non-cash share-based compensation of approximately $ 2.9 million , non-cash warrant inducement expense of $ 1.3 million , non-cash loss of $ 1.0 million on the extinguishment of debt , non-cash interest expense of approximately $ 1.1 million , write-off of deferred offering costs associated with the atm facility of $ 0.1 million and a net change of approximately $ 3.9 million due to changes in operating assets and liabilities . for the year ended december 31 , 2018 , net cash used in operating activities of approximately $ 15.2 million primarily consisted of a net loss of $ 24.2 million , offset by adjustments for non-cash share-based compensation of approximately $ 3.8 million , beneficial conversion feature of $ 3.1 million , non-cash interest expense of approximately $ 2.8 million offset by the change in fair value of derivative liability of $ 0.1 million and a net change totaling approximately $ 0.7 million due to increases in prepaid expense , accounts payable and other current assets and accounts payable and decreases in accrued expenses . investing activities for the year ended december 31 , 2019 , net cash used in investing activities of approximately $ 12,000 represented the purchase of computer 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 flows the following table sets forth the primary sources and uses of cash for the years ended december 31 , 2019 and 2018 : replace_table_token_4_th operating activities for the year ended december 31 , 2019 , net cash used in operating activities of approximately $ 18.0 million primarily consisted of a net loss of $ 27.0 million and a non-cash gain of $ 1.2 million for the extinguishment of the senior convertible note derivative liability and changes in the fair value of the warrant liabilities and the unsecured convertible note derivative liability . these decreases were offset by adjustments for non-cash share-based compensation of approximately $ 2.9 million , non-cash warrant inducement expense of $ 1.3 million , non-cash loss of $ 1.0 million on the extinguishment of debt , non-cash interest expense of approximately $ 1.1 million , write-off of deferred offering costs associated with the atm facility of $ 0.1 million and a net change of approximately $ 3.9 million due to changes in operating assets and liabilities . for the year ended december 31 , 2018 , net cash used in operating activities of approximately $ 15.2 million primarily consisted of a net loss of $ 24.2 million , offset by adjustments for non-cash share-based compensation of approximately $ 3.8 million , beneficial conversion feature of $ 3.1 million , non-cash interest expense of approximately $ 2.8 million offset by the change in fair value of derivative liability of $ 0.1 million and a net change totaling approximately $ 0.7 million due to increases in prepaid expense , accounts payable and other current assets and accounts payable and decreases in accrued expenses . investing activities for the year ended december 31 , 2019 , net cash used in investing activities of approximately $ 12,000 represented the purchase of computer equipment .
```    
 Suspicious Activity Report : through this collaboration , we seek to understand how the therapeutic effect of immune checkpoint inhibitors , such as antibodies to ctla-4 and pd-1 , are modulated by blocking translocation of certain metabolites and bacterial antigens and toxins from interacting with the host immune system in pre-clinical oncology models . building on previous research that showed a type of permeability known as “ leaky gut ” that may cause microbial translocation of toxic products into circulation of the bloodstream , we are expanding our work in liver disease . initial in vitro data suggests the potential use of larazotide in alcoholic liver diseases . we entered into a research collaboration with massachusetts general hospital to explore larazotide in animal models for the treatment of ash . monster merger on january 29 , 2018 , monster and private innovate completed a reverse recapitalization in accordance with the terms of the monster merger agreement . in connection with the transaction , private innovate changed its name to ib pharmaceuticals inc. pursuant to the monster merger agreement , monster merger sub merged with and into ib pharmaceuticals with ib pharmaceuticals surviving as the wholly owned subsidiary of monster . immediately following the monster merger , monster changed its name to innovate biopharmaceuticals , inc. on march 29 , 2018 , ib pharmaceuticals was merged into innovate and ceased to exist . the monster merger is further described in “ note 1—summary of significant accounting policies ” and “ note 3—monster merger and financing ” to the accompanying financial statements included in this annual report on form 10-k. agreement and plan of merger and reorganization with rdd pharma , ltd. on october 6 , 2019 , we entered into the rdd merger agreement , pursuant to which we agreed to acquire all of the outstanding capital stock of privately-held rdd , an israel corporation , in exchange for a combination of common and preferred shares to be issued by us . the rdd merger will include a concurrent capital raise led by orbimed advisors llc , with a minimum funding requirement of $ 10 million . we are targeting completion of the rdd merger and rdd merger financing near the end of the first quarter of 2020. upon closing of the rdd merger , on an as-converted , fully diluted basis , our current stockholders will own approximately 62 % of the combined company 's capital stock and the current rdd stockholders will own approximately 38 % of the combined company 's capital stock . the final ownership percentages are subject to dilution based on the final amount of capital invested in the rdd merger financing , which will dilute both the current innovate stockholders and current rdd stockholders on a pro rata basis . we intend to use the proceeds from the rdd merger financing to advance our phase 3 clinical trial for the treatment of celiac disease as well as for progression of rdd 's current pipeline . subject to and concurrently with the closing of the rdd merger , the board will appoint john temperato , the chief executive officer of rdd , as chief executive officer of the combined company , 9 meters biopharma , inc. financial overview since our inception , we have focused our efforts and resources on identifying and developing our research and development programs . we have not had any products approved for commercial sale and have incurred operating losses in each year since inception . substantially all of our operating losses resulted from expenses incurred in connection with our research and 72 development programs and from general and administrative costs associated with our operations . as of december 31 , 2019 , we had an accumulated deficit of $ 70.6 million . we incurred net losses of $ 27.0 million and $ 24.2 million for the years ended december 31 , 2019 and 2018 , respectively . we expect to continue to incur significant expenses and increase our operating losses for the foreseeable future , which may fluctuate significantly between periods . we anticipate that our expenses will increase substantially as and to the extent we : continue research and development , including preclinical and clinical development of our existing and future product candidates , including inn-202 ; complete integration of operations and personnel associated with the proposed rdd merger ; potentially seek regulatory approval for our product candidates ; commercialize any product candidates for which we obtain regulatory approval ; maintain and protect our intellectual property rights ; add operational , financial and management information systems and personnel ; and continue to incur additional legal , accounting , regulatory , tax-related and other expenses required to operate as a public company . as such , we will need substantial additional funding to support our operating activities . adequate funding may not be available to us on acceptable terms , or at all . we currently anticipate that we will seek to fund our operations through equity or debt financings , strategic alliances or licensing arrangements , or other sources of financing . our failure to obtain sufficient funds on acceptable terms could have a material adverse effect on our business , results of operations and financial condition . other recent developments in june 2019 , we expanded our senior management team by appointing edward j. sitar as our chief financial officer . mr. sitar has extensive experience in finance and the life sciences industry . mr. sitar is responsible for developing and implementing our financial strategy and growth plans . in february 2019 , we strengthened our clinical development team by appointing patrick griffin , m.d . , f.a.c.p . as our chief medical officer . dr. griffin has several decades of clinical development experience in gastroenterology , autoimmune and metabolic diseases and has overseen multiple phase 3 clinical trials . story_separator_special_tag there are no further amounts outstanding under the senior convertible note and the senior convertible note has been canceled . amortization of the debt discount for the note and senior convertible note totaled approximately $ 2.5 million for the year ended december 31 , 2018 and is recorded as interest expense in the accompanying statements of operations and comprehensive loss . there was no such expense related to the note and senior convertible note during the year ended december 31 , 2019. unsecured convertible promissory note on march 8 , 2019 , we entered into a securities purchase agreement pursuant to which we issued an unsecured convertible promissory note , or the unsecured convertible note , in the principal amount of $ 5.5 million . the holder of the unsecured 77 convertible note , or the convertible noteholder , may elect to convert all or a portion of the unsecured convertible note at any time and from time to time into our common stock at a conversion price of $ 3.25 per share , subject to adjustment for stock splits , dividends , combinations and similar events . we may prepay all or a portion of the unsecured convertible note at any time for an amount equal to 115 % of then outstanding obligations or the portion of the obligations we are prepaying . the purchase price of the unsecured convertible note was $ 5.0 million and the unsecured convertible note carries an original issuance discount of $ 0.5 million , which is included in the principal amount of the unsecured convertible note . in addition , we agreed to pay $ 20,000 of transaction expenses , which were netted out of the purchase price of the unsecured convertible note . we also incurred additional transaction costs of approximately $ 37,000 , which were recorded as debt issuance costs . as a result of the redemption features of the unsecured convertible note , further described in “ note 6—debt , ” we are amortizing the debt issuance costs and accreting the oid to interest expense over the estimated redemption period of 15 months , using the effective interest method . the various conversion and redemption features contained in the unsecured convertible note are embedded derivative instruments , which were recorded as a debt discount and derivative liability at the issuance date at their estimated fair value of $ 1.3 million . amortization of debt discount and accretion of the oid for the unsecured convertible note recorded as interest expense was approximately $ 1.1 million for the year ended december 31 , 2019. the unsecured convertible note bears interest at the rate of 10 % ( which will increase to 18 % upon and during the continuance of an event of default ) per annum , compounding on a daily basis . all principal and accrued interest on the unsecured convertible note is due on the second-year anniversary of the unsecured convertible note 's issuance . during the year ended december 31 , 2019 , we made principal payments of $ 1.5 million under the unsecured convertible note . at any time after the six-month anniversary of the issuance of the unsecured convertible note , ( i ) if the average volume weighted average price over 20 trading dates exceeds $ 10.00 per share , we may generally require that the unsecured convertible note convert into shares of our common stock at the $ 3.25 ( as adjusted ) conversion price , and ( ii ) the convertible noteholder may elect to require all or a portion of the unsecured convertible note be redeemed by us . if the convertible noteholder requires a redemption , we , at our discretion , may pay the redeemed portion of the unsecured convertible note in cash or in our common stock at a conversion rate equal to the lesser of ( i ) the $ 3.25 ( as adjusted ) conversion rate or ( ii ) 80 % of the average of the five lowest volume weighted-average prices of our common stock over the preceding 20 trading days . the convertible noteholder may not redeem more than $ 500,000 per calendar month during the period between the six-month anniversary of the date of issuance until the first-year anniversary of the date of issuance and $ 750,000 per calendar month thereafter . our obligation or right to deliver our shares upon the conversion or redemption of the unsecured convertible note is subject to a 19.99 % cap and subject to a floor price trading price of $ 3.25 ( unless waived by us ) . any amounts elected to be redeemed once the cap is reached or if the market price is less than the $ 3.25 floor price must be paid in cash . in addition , we will be required to pay in cash any amounts elected to be redeemed by the noteholder if any of the following conditions are not satisfied as of the date the noteholder delivers a notice of redemption : ( i ) all conversion shares are freely tradable under rule 144 of the securities act without the need for registration under applicable federal and state securities laws ( without regard to any limitation on conversion of the notes ) , ( ii ) no event of default ( as defined in the applicable note ) has occurred and is continuing , ( iii ) the average and median daily dollar volume of our common stock for the prior 20 and 200 trading days is greater than $ 250,000 , ( iv ) the five-day volume weighted-average price of our common stock is at least $ 1.00 per share and ( v ) our market capitalization is at least $ 15 million . if there is an event of default under the unsecured convertible note , the convertible noteholder may accelerate our obligations or elect to increase the outstanding obligations under the unsecured convertible note . the amount of

