we undertake no obligation to revise or update any forward-looking statements to reflect any event or circumstance that arises after the date of this report , or to conform such statements to actual results or changes in our expectations . overview we are a commercial stage drug-device company committed to improving the quality of life for patients with ear , nose and throat conditions . we have developed a drug releasing bioabsorbable implant technology that enables targeted and sustained release of therapeutic agents . this targeted drug delivery technology is designed to allow ear , nose and throat , or ent , physicians to improve patient care . our approved and in-development products are designed to treat the spectrum of needs among the estimated 3.5 million u.s. patients who are managed by ent physicians for chronic sinusitis , one of the most prevalent chronic diseases in the united states and one of the most costly conditions for u.s. employers . chronic sinusitis patients include those needing and electing surgery , those who have not had sinus surgery and those that have had one or more surgeries but continue to suffer from symptoms . to address these patient groups , we are : marketing propel ® and propel mini , the first and only steroid releasing implants approved by the u.s. food and drug administration , or fda , for use in patients undergoing surgery for chronic sinusitis . propel has been proven clinically in a meta-analysis of prospective , multicenter , randomized , controlled , double-blind clinical studies to improve surgical outcomes , including a 35 % reduction in the need for postoperative oral steroid and surgical intervention . inserted by a physician into the ethmoid sinuses following sinus surgery , the self-expanding implants are designed to conform to and hold open the surgically enlarged sinus , while gradually releasing an anti-inflammatory steroid over a period of approximately 30 days , before being fully absorbed into the body . seeking approval for the use of propel mini in the frontal sinus . we announced preliminary topline data from the progress trial , designed to evaluate the safety and efficacy of propel mini when placed in the frontal sinuses following surgery , showing that the study met its primary efficacy endpoint and demonstrating a statistically significant 38 % relative reduction in the need for postoperative interventions compared to surgery alone . we submitted a supplemental premarket approval submission to the fda in september 2015 seeking approval to expand the indication of propel mini to treat patients undergoing frontal sinus surgery . conducting clinical trials of resolve , a steroid releasing implant designed to provide a cost-effective , less invasive solution for patients that have had ethmoid sinus surgery yet suffer from recurrent sinus obstruction due to polyps . the resolve implant is designed to be placed in the ethmoid sinus in a procedure conducted in the physician 's office as an alternative to other treatment options such as further medical therapy or revision surgery . we have completed three studies of resolve in a total of 117 patients and in december 2014 , we commenced resolve ii , a phase iii trial enrolling 300 patients to assess the safety and efficacy of the product . conducting clinical trials of nova , a steroid releasing implant designed to fit the ostia , or openings , of the dependent sinuses following enlargement of the sinuses . while sinus enlargement is performed on 52 both revision and primary patients , nova has the potential to provide , in conjunction with balloon openings , a less invasive procedure performed in the physician 's office for patients with primary chronic sinusitis who have not had sinus surgery . we commenced enrollment of the second cohort of patients in the progress study in july 2015. this phase of the progress study is an 80-patient prospective randomized blinded multicenter trial designed to assess the safety and efficacy of nova when placed in the frontal sinuses following sinus surgery . we have expanded our sales organization and we intend to continue to grow our sales force in order to expand our communication of the benefits of our steroid releasing implants to our physician customers . we are working to maintain or increase the account activity of current physician users and to expand our physician user base in order to grow our business . in june 2015 , we completed our follow-on offering by issuing 4,119,300 shares of common stock at an offering price of $ 25.00 per share , for net proceeds of approximately $ 96.4 million , after deducting underwriting discounts and commissions and offering expenses . components of our results of operations revenue all of our revenue is currently derived from sales of propel and propel mini in the united states . we expect our revenue to increase as we expand our sales , marketing and reimbursement infrastructure and increase awareness of our products . we also expect our revenue to fluctuate from quarter to quarter due to a variety of factors . in the first quarter of any calendar year , our results can be impacted by adverse weather and by resetting of annual patient healthcare insurance plan deductibles , both of which may cause patients to delay or decline elective procedures such as functional endoscopic sinus surgery , or fess . in the second quarter , demand may be impacted by the seasonal nature of allergies , the resultant onset of sinus-related symptoms and the growth of high deductible insurance plans which may cause patients to delay or decline elective surgery until their deductible is met later in the year . story_separator_special_tag research and development expenses r & d expenses increased $ 0.8 million , or 9 % , to $ 10.3 million during the year ended december 31 , 2014 , compared to $ 9.5 million during the year ended december 31 , 2013. the increase in r & d expenses was primarily due to an increase in personnel costs as we increased headcount . interest and other income ( expense ) , net interest and other income ( expense ) , net , decreased $ 0.1 million to $ 0.3 million of expense during the year ended december 31 , 2014 , compared to $ 0.4 million of expense during the year ended december 31 , 2013. the changes in interest and other expense , net , were primarily attributable to the fair value adjustments of the convertible preferred stock financing option and preferred stock warrants . the preferred stock warrants were converted to common stock warrants upon the completion of our ipo in july 2014 , and are no longer required to be marked-to-market at each reporting period . story_separator_special_tag critical accounting policies and estimates management 's discussion and analysis of our financial condition and results of operations is based on our financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles . the preparation of these financial statements requires us to make estimates and assumptions for the reported amounts of assets , liabilities , revenue , expenses and related disclosures . our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions and any such differences may be material . while our significant accounting policies are more fully described in note 2 of our financial statements included in this annual report , we believe the following discussion addresses our most critical accounting policies , which are those that are most important to the portrayal of our financial condition and results of operations and require our most difficult , subjective and complex judgments . revenue recognition we derive revenue from the sale of propel and propel mini to hospitals and ambulatory surgery centers in the united states . we recognize revenue when persuasive evidence of an arrangement exists , product delivery has occurred or there is no further obligation , pricing is fixed or determinable and collection is reasonably assured . we must make significant assumptions regarding the future collectability of amounts receivable from customers to determine whether revenue recognition criteria have been met . if collectability is not reasonably assured at the time of shipment , we defer revenue until such criteria have been met . in general , our standard terms and conditions of sale do not allow for product returns . we expense shipping and handling costs as incurred and include them in the cost of sales . in those cases where we bill shipping and handling costs to customers , we classify the amounts billed as a component of revenue . common stock valuation and stock-based compensation we maintain an equity incentive plan to provide long-term incentive for employees , consultants and members of the board of directors . the plan allows for the issuance of non-statutory and incentive stock options to employees and non-statutory stock options to consultants and non-employee directors . we are required to determine the fair value of equity incentive awards and recognize compensation expense for all equity incentive awards made to employees , consultants and directors . stock-based compensation expense is recognized over the requisite service period in the statements of operations and comprehensive loss and is based on awards ultimately expected to vest , therefore the amount of expense has been reduced for estimated forfeitures . we use the straight-line method for expense attribution , except for awards issued with performance-based conditions which require an accelerated attribution method over the requisite performance and service periods . the valuation model we use for calculating the fair value of awards for stock-based compensation expense is the black-scholes option-pricing model , or the black-scholes model . the black-scholes model requires us to make assumptions and judgments about the variables used in the calculation , including the expected term weighted average period of time that the options granted are expected to be outstanding , the volatility of common stock and an assumed risk-free interest rate . following our ipo on july 23 , 2014 , the fair market value of our common stock is determined based on the closing price of our common stock on the nasdaq global market . prior to our ipo , the fair value of the shares of our common stock underlying the stock options had historically been determined by our board of directors . because there was no public market for our common stock , our board of directors had determined the 59 fair value of our common stock at the time of grant of the option by considering a number of objective and subjective factors , including valuations of comparable companies , sales of our convertible preferred stock , our operating and financial performance and the general and industry-specific economic outlook . convertible preferred stock warrant liability for a warrant classified as a derivative liability , we recorded the fair value of that warrant on the balance sheet at the inception of such classification and adjusted to fair value at each financial reporting date . we recorded the changes in the fair value of the warrants in the statements of operations and comprehensive loss as a component of interest and other income or expense as appropriate . we continued to adjust the carrying value of the convertible preferred stock warrant liability for changes in the fair value of the warrants until the

liquidity and capital resources overview as of december 31 , 2015 , we had cash , cash equivalents and short-term investments of $ 124.3 million and an accumulated deficit of $ 123.3 million , compared to cash and cash equivalents of $ 48.4 million and an accumulated deficit of $ 96.6 million as of december 31 , 2014. in june 2015 , we completed our follow-on offering , issuing 4,119,300 shares of common stock at an offering price of $ 25.00 per share yielding net proceeds of $ 96.4 million after deducting underwriting discounts and commissions and offering expenses . 56 cash flows replace_table_token_6_th net cash used in operating activities during the year ended december 31 , 2015 , net cash used in operating activities was $ 20.1 million , consisting primarily of a net loss of $ 26.6 million , partially offset by non-cash charges of $ 6.4 million and a decrease in net operating assets of $ 0.1 million . the cash used in operations was primarily due to the ongoing commercialization of propel and propel mini . to support the ongoing commercialization of these products , we continued to expand our sales , marketing and reimbursement organizations . the non-cash charges primarily consisted of stock-based compensation expense . the decrease in net operating assets is primarily due to an increase in accrued compensation , partially offset by an increase in accounts receivable and inventory . during the year ended december 31 , 2014 , net cash used in operating activities was $ 18.0 million , consisting primarily of a net loss of $ 18.4 million and an increase in net operating assets of $ 2.2 million , partially offset by non-cash charges of $ 2.6 million . the cash used in operations was primarily due to the ongoing commercialization of propel and propel mini . to support the ongoing commercialization of these products , we continued to expand our sales , marketing and reimbursement organizations resulting in an increase in accounts receivable , partially offset by an increase in accrued compensation .


 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 as of december 31 , 2015 , we had cash , cash equivalents and short-term investments of $ 124.3 million and an accumulated deficit of $ 123.3 million , compared to cash and cash equivalents of $ 48.4 million and an accumulated deficit of $ 96.6 million as of december 31 , 2014. in june 2015 , we completed our follow-on offering , issuing 4,119,300 shares of common stock at an offering price of $ 25.00 per share yielding net proceeds of $ 96.4 million after deducting underwriting discounts and commissions and offering expenses . 56 cash flows replace_table_token_6_th net cash used in operating activities during the year ended december 31 , 2015 , net cash used in operating activities was $ 20.1 million , consisting primarily of a net loss of $ 26.6 million , partially offset by non-cash charges of $ 6.4 million and a decrease in net operating assets of $ 0.1 million . the cash used in operations was primarily due to the ongoing commercialization of propel and propel mini . to support the ongoing commercialization of these products , we continued to expand our sales , marketing and reimbursement organizations . the non-cash charges primarily consisted of stock-based compensation expense . the decrease in net operating assets is primarily due to an increase in accrued compensation , partially offset by an increase in accounts receivable and inventory . during the year ended december 31 , 2014 , net cash used in operating activities was $ 18.0 million , consisting primarily of a net loss of $ 18.4 million and an increase in net operating assets of $ 2.2 million , partially offset by non-cash charges of $ 2.6 million . the cash used in operations was primarily due to the ongoing commercialization of propel and propel mini . to support the ongoing commercialization of these products , we continued to expand our sales , marketing and reimbursement organizations resulting in an increase in accounts receivable , partially offset by an increase in accrued compensation .
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 Suspicious Activity Report : we undertake no obligation to revise or update any forward-looking statements to reflect any event or circumstance that arises after the date of this report , or to conform such statements to actual results or changes in our expectations . overview we are a commercial stage drug-device company committed to improving the quality of life for patients with ear , nose and throat conditions . we have developed a drug releasing bioabsorbable implant technology that enables targeted and sustained release of therapeutic agents . this targeted drug delivery technology is designed to allow ear , nose and throat , or ent , physicians to improve patient care . our approved and in-development products are designed to treat the spectrum of needs among the estimated 3.5 million u.s. patients who are managed by ent physicians for chronic sinusitis , one of the most prevalent chronic diseases in the united states and one of the most costly conditions for u.s. employers . chronic sinusitis patients include those needing and electing surgery , those who have not had sinus surgery and those that have had one or more surgeries but continue to suffer from symptoms . to address these patient groups , we are : marketing propel ® and propel mini , the first and only steroid releasing implants approved by the u.s. food and drug administration , or fda , for use in patients undergoing surgery for chronic sinusitis . propel has been proven clinically in a meta-analysis of prospective , multicenter , randomized , controlled , double-blind clinical studies to improve surgical outcomes , including a 35 % reduction in the need for postoperative oral steroid and surgical intervention . inserted by a physician into the ethmoid sinuses following sinus surgery , the self-expanding implants are designed to conform to and hold open the surgically enlarged sinus , while gradually releasing an anti-inflammatory steroid over a period of approximately 30 days , before being fully absorbed into the body . seeking approval for the use of propel mini in the frontal sinus . we announced preliminary topline data from the progress trial , designed to evaluate the safety and efficacy of propel mini when placed in the frontal sinuses following surgery , showing that the study met its primary efficacy endpoint and demonstrating a statistically significant 38 % relative reduction in the need for postoperative interventions compared to surgery alone . we submitted a supplemental premarket approval submission to the fda in september 2015 seeking approval to expand the indication of propel mini to treat patients undergoing frontal sinus surgery . conducting clinical trials of resolve , a steroid releasing implant designed to provide a cost-effective , less invasive solution for patients that have had ethmoid sinus surgery yet suffer from recurrent sinus obstruction due to polyps . the resolve implant is designed to be placed in the ethmoid sinus in a procedure conducted in the physician 's office as an alternative to other treatment options such as further medical therapy or revision surgery . we have completed three studies of resolve in a total of 117 patients and in december 2014 , we commenced resolve ii , a phase iii trial enrolling 300 patients to assess the safety and efficacy of the product . conducting clinical trials of nova , a steroid releasing implant designed to fit the ostia , or openings , of the dependent sinuses following enlargement of the sinuses . while sinus enlargement is performed on 52 both revision and primary patients , nova has the potential to provide , in conjunction with balloon openings , a less invasive procedure performed in the physician 's office for patients with primary chronic sinusitis who have not had sinus surgery . we commenced enrollment of the second cohort of patients in the progress study in july 2015. this phase of the progress study is an 80-patient prospective randomized blinded multicenter trial designed to assess the safety and efficacy of nova when placed in the frontal sinuses following sinus surgery . we have expanded our sales organization and we intend to continue to grow our sales force in order to expand our communication of the benefits of our steroid releasing implants to our physician customers . we are working to maintain or increase the account activity of current physician users and to expand our physician user base in order to grow our business . in june 2015 , we completed our follow-on offering by issuing 4,119,300 shares of common stock at an offering price of $ 25.00 per share , for net proceeds of approximately $ 96.4 million , after deducting underwriting discounts and commissions and offering expenses . components of our results of operations revenue all of our revenue is currently derived from sales of propel and propel mini in the united states . we expect our revenue to increase as we expand our sales , marketing and reimbursement infrastructure and increase awareness of our products . we also expect our revenue to fluctuate from quarter to quarter due to a variety of factors . in the first quarter of any calendar year , our results can be impacted by adverse weather and by resetting of annual patient healthcare insurance plan deductibles , both of which may cause patients to delay or decline elective procedures such as functional endoscopic sinus surgery , or fess . in the second quarter , demand may be impacted by the seasonal nature of allergies , the resultant onset of sinus-related symptoms and the growth of high deductible insurance plans which may cause patients to delay or decline elective surgery until their deductible is met later in the year . story_separator_special_tag research and development expenses r & d expenses increased $ 0.8 million , or 9 % , to $ 10.3 million during the year ended december 31 , 2014 , compared to $ 9.5 million during the year ended december 31 , 2013. the increase in r & d expenses was primarily due to an increase in personnel costs as we increased headcount . interest and other income ( expense ) , net interest and other income ( expense ) , net , decreased $ 0.1 million to $ 0.3 million of expense during the year ended december 31 , 2014 , compared to $ 0.4 million of expense during the year ended december 31 , 2013. the changes in interest and other expense , net , were primarily attributable to the fair value adjustments of the convertible preferred stock financing option and preferred stock warrants . the preferred stock warrants were converted to common stock warrants upon the completion of our ipo in july 2014 , and are no longer required to be marked-to-market at each reporting period . story_separator_special_tag critical accounting policies and estimates management 's discussion and analysis of our financial condition and results of operations is based on our financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles . the preparation of these financial statements requires us to make estimates and assumptions for the reported amounts of assets , liabilities , revenue , expenses and related disclosures . our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions and any such differences may be material . while our significant accounting policies are more fully described in note 2 of our financial statements included in this annual report , we believe the following discussion addresses our most critical accounting policies , which are those that are most important to the portrayal of our financial condition and results of operations and require our most difficult , subjective and complex judgments . revenue recognition we derive revenue from the sale of propel and propel mini to hospitals and ambulatory surgery centers in the united states . we recognize revenue when persuasive evidence of an arrangement exists , product delivery has occurred or there is no further obligation , pricing is fixed or determinable and collection is reasonably assured . we must make significant assumptions regarding the future collectability of amounts receivable from customers to determine whether revenue recognition criteria have been met . if collectability is not reasonably assured at the time of shipment , we defer revenue until such criteria have been met . in general , our standard terms and conditions of sale do not allow for product returns . we expense shipping and handling costs as incurred and include them in the cost of sales . in those cases where we bill shipping and handling costs to customers , we classify the amounts billed as a component of revenue . common stock valuation and stock-based compensation we maintain an equity incentive plan to provide long-term incentive for employees , consultants and members of the board of directors . the plan allows for the issuance of non-statutory and incentive stock options to employees and non-statutory stock options to consultants and non-employee directors . we are required to determine the fair value of equity incentive awards and recognize compensation expense for all equity incentive awards made to employees , consultants and directors . stock-based compensation expense is recognized over the requisite service period in the statements of operations and comprehensive loss and is based on awards ultimately expected to vest , therefore the amount of expense has been reduced for estimated forfeitures . we use the straight-line method for expense attribution , except for awards issued with performance-based conditions which require an accelerated attribution method over the requisite performance and service periods . the valuation model we use for calculating the fair value of awards for stock-based compensation expense is the black-scholes option-pricing model , or the black-scholes model . the black-scholes model requires us to make assumptions and judgments about the variables used in the calculation , including the expected term weighted average period of time that the options granted are expected to be outstanding , the volatility of common stock and an assumed risk-free interest rate . following our ipo on july 23 , 2014 , the fair market value of our common stock is determined based on the closing price of our common stock on the nasdaq global market . prior to our ipo , the fair value of the shares of our common stock underlying the stock options had historically been determined by our board of directors . because there was no public market for our common stock , our board of directors had determined the 59 fair value of our common stock at the time of grant of the option by considering a number of objective and subjective factors , including valuations of comparable companies , sales of our convertible preferred stock , our operating and financial performance and the general and industry-specific economic outlook . convertible preferred stock warrant liability for a warrant classified as a derivative liability , we recorded the fair value of that warrant on the balance sheet at the inception of such classification and adjusted to fair value at each financial reporting date . we recorded the changes in the fair value of the warrants in the statements of operations and comprehensive loss as a component of interest and other income or expense as appropriate . we continued to adjust the carrying value of the convertible preferred stock warrant liability for changes in the fair value of the warrants until the

