while we believe that we have a reasonable basis for each forward-looking statement contained in this annual report , we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future , about which we can not be certain . we undertake no obligation to publicly update any forward-looking statements , whether as a result of new information , future events or otherwise . you are advised , however , to consult any further disclosures we make on related subjects in our quarterly reports on form 10-q , current reports on form 8-k , and our website . overview we are a biopharmaceutical company principally focused on developing genetically-targeted therapies for cardiovascular diseases . our lead product candidate is gencaro ( bucindolol hydrochloride ) , a pharmacologically unique beta-blocker and mild vasodilator that we plan to evaluate in a new clinical trial for the treatment of atrial fibrillation , or af , in patients with heart failure and left ventricular dysfunction , or hfref . we have identified common genetic variations in receptors in the cardiovascular system that we believe interact with gencaro 's pharmacology and may predict patient response to the drug . we believe that that gencaro has potential efficacy in reducing or preventing af , and this efficacy may be genetically regulated . we plan to test this hypothesis in a clinical trial of gencaro , known as genetic-af . we have created an adaptive design for genetic-af . we anticipate that the trial will be initiated as a phase 2b study in approximately 200 patients with recent on set , persistent af comparing gencaro to toprol xl for prevention of af in patients with hfref . depending on the results of the phase 2b portion , the trial may then be expanded to a phase 3 study by enrolling an estimated additional 420 patients . we expect that our genetic-af trial will begin enrolling patients in the first quarter of 2014 , and we project the phase 2b study will take approximately two and one-half years to complete from the time the first patient is enrolled until the planned dsmb interim analysis of data from the initial 200 patients . we have been granted patents in the u.s. , europe , and other jurisdictions for methods of treating af and hf patients with gencaro based on genetic testing , which we believe may provide market exclusivity for these uses of gencaro into at least 2026 in the u.s. and into 2025 in europe . in addition , we believe that if gencaro is approved , a gencaro patent will be eligible for patent term extension based on our current clinical trial plans which , if granted , may provide market exclusivity for gencaro into 2029 or 2030 in the u.s. and europe . to support the continued development of gencaro , we completed public equity offerings during 2013 that raised approximately $ 19.3 million in net proceeds . in february 2014 , we completed a public equity offering of approximately $ 7.9 million in net proceeds as additional funds for the planned phase 2b portion of the trial and to support our ongoing operations . in light of the significant uncertainties regarding clinical development timelines and costs for developing drugs such as gencaro , we will need to raise a significant amount of additional capital to finance the completion of genetic-af and our ongoing operations . we anticipate that our current cash and cash equivalents , including the net proceeds from our february 2014 equity offering , will be sufficient to fund our operations , at our projected cost structure , through at least the end of 2015. however , changing circumstances may cause us to consume capital significantly faster or slower than we currently anticipate . we have based these estimates on assumptions that may prove to be wrong , and we could exhaust our available financial resources sooner than we currently anticipate . results of operations research and development expenses research and development , or r & d , expense is comprised of clinical , regulatory , and manufacturing process development activities and costs . our research and development expenses totaled $ 2.9 million for the year ended december 31 , 2013 as compared to $ 1.1 million for 2012 , an increase of approximately $ 1.8 million . during 2013 , our r & d efforts and costs were almost entirely related to the development of gencaro . clinical expense increased approximately $ 590,000 for the year ended december 31 , 2013. the increase is primarily due to project initiation costs for cro and similar service providers that we have engaged for our planned genetic-af clinical trial . we have also added staff during the year to initiate and oversee our planned genetic-af clinical trial project . regulatory and manufacturing process costs increased approximately $ 1.2 million for the year ended december 31 , 2013 compared to the year-ended december 31 , 2012. approximately $ 738,000 of the increase is due to costs incurred for development and production of clinical trial materials , and costs for acquiring the active comparator drug product . our regulatory costs increased approximately $ 351,000 in this same period , which includes costs paid by us to labcorp for development of the diagnostic test for use in our planned genetic-af clinical trial and includes costs of regulatory audits of suppliers to be used in such clinical trial . a portion of the additional costs is attributable to personnel costs as we have increased staff during the year to prepare the clinical trial . story_separator_special_tag r & d expense in 2014 will be substantially higher than 2013 if we initiate our genetic-af clinical trial and begin enrolling patients . 36 general and administrative expenses general and administrative expenses , or g & a , primarily consist of personnel costs , consulting and professional fees , insurance , facilities and depreciation expenses , and various other administrative costs . g & a expenses were $ 4.0 million for the year ended december 31 , 2013 , compared to $ 3.2 million for 2012 , an increase of approximately $ 800,000. the change included increased personnel , consulting , and board advisory costs of approximately $ 546,000 that were primarily attributable to performance bonuses earned and personnel we returned from furlough during the year to assist in our financing efforts and to support our planned initiation of the genetic-af clinical trial . legal , accounting and other professional services of accounted for approximately $ 168,000 of the change and were primarily attributable to our special shareholder meeting held in the first quarter of 2013 and to our financing efforts completed during 2013. g & a expenses in 2014 are expected to be higher than in 2013 as we increase administrative activities to support initiating our genetic-af clinical trial . interest and other income interest and other income was $ 5,000 for the year ended december 31 , 2013 as compared to $ 2,000 for 2012 , resulting in an increase of $ 3,000. this is due to the increase in cash balances resulting from our june 2013 sale of equity securities . interest income was nominal in both years due to low investment yields . we expect interest income to continue to be nominal in 2014. interest and other expense interest and other expense was $ 4,000 for the year ended december 31 , 2013 , as compared to $ 3,000 for 2012. the amounts and related change between years are nominal to our overall operations . based on our current capital structure , interest expense for 2014 is expected to be comparable to 2013. liquidity and capital resources story_separator_special_tag style= `` margin-bottom:0pt ; margin-top:6pt ; font-size:10pt ; ; `` > recruitment of sufficient clinical trial sites , enrollment of patients and enrollment at a rate consistent with our projected timeline ; our ability to control costs associated with the clinical trial and our operations ; our ability to retain the listing of our common stock on the nasdaq capital market ; the market price of our stock and the availability and cost of additional equity capital from existing and potential new investors ; general economic and industry conditions affecting the availability and cost of capital ; the costs of filing , prosecuting , defending and enforcing any patent claims and other intellectual property rights ; and the terms and conditions of our existing collaborative and licensing agreements . the sale of additional equity or convertible debt securities will be necessary for us to complete both phase 2b and phase 3 of the genetic-af clinical trial and submit for fda approval of gencaro . such financing would likely result in additional dilution to our existing stockholders . if we raise additional funds through the incurrence of indebtedness , the obligations related to such indebtedness would be senior to rights of holders of our capital stock and could contain covenants that would restrict our operations . we anticipate that our current cash and cash equivalents , including the approximately $ 7.9 million of net proceeds from our february 2014 equity offering , will be sufficient to fund our operations , at our projected cost structure , through at least the end of 2015 . however , our forecast of the period of time through which our financial resources will be adequate to support our current and forecasted operations could vary materially . critical accounting policies and estimates a critical accounting policy is one that is both important to the portrayal of our financial condition and results of operation and requires management 's most difficult , subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . while our significant accounting policies are described in note 1 of “ notes to consolidated financial statements ” included within item 8 in this report , we believe the following critical accounting policy affected our most significant judgments , assumptions , and estimates used in the preparation of our consolidated financial statements and , therefore , is important in understanding our financial condition and results of operations . accrued expenses as part of the process of preparing our financial statements , we are required to estimate accrued expenses . this process involves identifying services that third parties have performed on our behalf and estimating the level of service performed and the associated cost incurred for these services as of the balance sheet date . examples of estimated accrued expenses include contract service fees , such as fees payable to contract manufacturers in connection with the production of materials related to our drug product , and professional service fees , such as attorneys , consultants , and clinical research organizations . we develop estimates of liabilities using our judgment based upon the facts and circumstances known at the time . off-balance sheet arrangements we have not participated in any transactions with unconsolidated entities , such as special purpose entities , which would have been established for the purpose of facilitating off-balance sheet arrangements . indemnifications in the ordinary course of business , we enter into contractual arrangements under which we may agree to indemnify certain parties from any losses incurred relating to the services they perform on our behalf or for losses arising from certain events as defined within the particular contract . such indemnification obligations may not be subject to maximum loss clauses . we have entered into indemnity agreements with each of our directors , officers and

cash and cash equivalents december 31 , 2013 december 31 , 2012 cash and cash equivalents $ 16,756 $ 2,920 cash flows from operating , investing and financing activities replace_table_token_4_th net cash used in operating activities for the year ended december 31 , 2013 increased nearly $ 1.2 million compared with the 2012 period due to increased r & d and sg & a expenses discussed above . net cash provided by financing activities of approximately $ 19.2 million for the year ended december 31 , 2013 is comprised of approximately $ 19.3 million of net proceeds from the sales of our preferred and common stock , less $ 174,000 in payments made on a vendor financing arrangement . net cash provided by financing activities of approximately $ 1.1 million for the year ended december 31 , 2012 is comprised of approximately $ 1.2 million of net proceeds from the sales of our common stock , less $ 134,000 in payments made on a vendor financing arrangement . sources and uses of capital our primary sources of liquidity to date have been capital raised from issuances of shares of our preferred and common stock and funds provided by the merger with nuvelo . the primary uses of our capital resources to date have been to fund operating activities , including research , clinical development and drug manufacturing expenses , license payments , and spending on capital items . 37 we completed three equity-financing transactions in 2013 and raised approximately $ 19.3 million , net of offering costs . on january 22 , 2013 , we sold approximately $ 1 million of our common stock and warrants for common stock in a private placement transaction with accredited investors including our chief executive officer . we issued 356,430 shares of common stock together with warrants to purchase 249,501 shares of common stock . the net proceeds , after deducting placement agent fees and other offering expenses , were approximately $ 805,000. each unit , consisting of a share of common stock and a warrant to purchase 0.70 shares of common stock , was sold at a purchase price of $ 2.81 per unit .


 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 and cash equivalents december 31 , 2013 december 31 , 2012 cash and cash equivalents $ 16,756 $ 2,920 cash flows from operating , investing and financing activities replace_table_token_4_th net cash used in operating activities for the year ended december 31 , 2013 increased nearly $ 1.2 million compared with the 2012 period due to increased r & d and sg & a expenses discussed above . net cash provided by financing activities of approximately $ 19.2 million for the year ended december 31 , 2013 is comprised of approximately $ 19.3 million of net proceeds from the sales of our preferred and common stock , less $ 174,000 in payments made on a vendor financing arrangement . net cash provided by financing activities of approximately $ 1.1 million for the year ended december 31 , 2012 is comprised of approximately $ 1.2 million of net proceeds from the sales of our common stock , less $ 134,000 in payments made on a vendor financing arrangement . sources and uses of capital our primary sources of liquidity to date have been capital raised from issuances of shares of our preferred and common stock and funds provided by the merger with nuvelo . the primary uses of our capital resources to date have been to fund operating activities , including research , clinical development and drug manufacturing expenses , license payments , and spending on capital items . 37 we completed three equity-financing transactions in 2013 and raised approximately $ 19.3 million , net of offering costs . on january 22 , 2013 , we sold approximately $ 1 million of our common stock and warrants for common stock in a private placement transaction with accredited investors including our chief executive officer . we issued 356,430 shares of common stock together with warrants to purchase 249,501 shares of common stock . the net proceeds , after deducting placement agent fees and other offering expenses , were approximately $ 805,000. each unit , consisting of a share of common stock and a warrant to purchase 0.70 shares of common stock , was sold at a purchase price of $ 2.81 per unit .
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 Suspicious Activity Report : while we believe that we have a reasonable basis for each forward-looking statement contained in this annual report , we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future , about which we can not be certain . we undertake no obligation to publicly update any forward-looking statements , whether as a result of new information , future events or otherwise . you are advised , however , to consult any further disclosures we make on related subjects in our quarterly reports on form 10-q , current reports on form 8-k , and our website . overview we are a biopharmaceutical company principally focused on developing genetically-targeted therapies for cardiovascular diseases . our lead product candidate is gencaro ( bucindolol hydrochloride ) , a pharmacologically unique beta-blocker and mild vasodilator that we plan to evaluate in a new clinical trial for the treatment of atrial fibrillation , or af , in patients with heart failure and left ventricular dysfunction , or hfref . we have identified common genetic variations in receptors in the cardiovascular system that we believe interact with gencaro 's pharmacology and may predict patient response to the drug . we believe that that gencaro has potential efficacy in reducing or preventing af , and this efficacy may be genetically regulated . we plan to test this hypothesis in a clinical trial of gencaro , known as genetic-af . we have created an adaptive design for genetic-af . we anticipate that the trial will be initiated as a phase 2b study in approximately 200 patients with recent on set , persistent af comparing gencaro to toprol xl for prevention of af in patients with hfref . depending on the results of the phase 2b portion , the trial may then be expanded to a phase 3 study by enrolling an estimated additional 420 patients . we expect that our genetic-af trial will begin enrolling patients in the first quarter of 2014 , and we project the phase 2b study will take approximately two and one-half years to complete from the time the first patient is enrolled until the planned dsmb interim analysis of data from the initial 200 patients . we have been granted patents in the u.s. , europe , and other jurisdictions for methods of treating af and hf patients with gencaro based on genetic testing , which we believe may provide market exclusivity for these uses of gencaro into at least 2026 in the u.s. and into 2025 in europe . in addition , we believe that if gencaro is approved , a gencaro patent will be eligible for patent term extension based on our current clinical trial plans which , if granted , may provide market exclusivity for gencaro into 2029 or 2030 in the u.s. and europe . to support the continued development of gencaro , we completed public equity offerings during 2013 that raised approximately $ 19.3 million in net proceeds . in february 2014 , we completed a public equity offering of approximately $ 7.9 million in net proceeds as additional funds for the planned phase 2b portion of the trial and to support our ongoing operations . in light of the significant uncertainties regarding clinical development timelines and costs for developing drugs such as gencaro , we will need to raise a significant amount of additional capital to finance the completion of genetic-af and our ongoing operations . we anticipate that our current cash and cash equivalents , including the net proceeds from our february 2014 equity offering , will be sufficient to fund our operations , at our projected cost structure , through at least the end of 2015. however , changing circumstances may cause us to consume capital significantly faster or slower than we currently anticipate . we have based these estimates on assumptions that may prove to be wrong , and we could exhaust our available financial resources sooner than we currently anticipate . results of operations research and development expenses research and development , or r & d , expense is comprised of clinical , regulatory , and manufacturing process development activities and costs . our research and development expenses totaled $ 2.9 million for the year ended december 31 , 2013 as compared to $ 1.1 million for 2012 , an increase of approximately $ 1.8 million . during 2013 , our r & d efforts and costs were almost entirely related to the development of gencaro . clinical expense increased approximately $ 590,000 for the year ended december 31 , 2013. the increase is primarily due to project initiation costs for cro and similar service providers that we have engaged for our planned genetic-af clinical trial . we have also added staff during the year to initiate and oversee our planned genetic-af clinical trial project . regulatory and manufacturing process costs increased approximately $ 1.2 million for the year ended december 31 , 2013 compared to the year-ended december 31 , 2012. approximately $ 738,000 of the increase is due to costs incurred for development and production of clinical trial materials , and costs for acquiring the active comparator drug product . our regulatory costs increased approximately $ 351,000 in this same period , which includes costs paid by us to labcorp for development of the diagnostic test for use in our planned genetic-af clinical trial and includes costs of regulatory audits of suppliers to be used in such clinical trial . a portion of the additional costs is attributable to personnel costs as we have increased staff during the year to prepare the clinical trial . story_separator_special_tag r & d expense in 2014 will be substantially higher than 2013 if we initiate our genetic-af clinical trial and begin enrolling patients . 36 general and administrative expenses general and administrative expenses , or g & a , primarily consist of personnel costs , consulting and professional fees , insurance , facilities and depreciation expenses , and various other administrative costs . g & a expenses were $ 4.0 million for the year ended december 31 , 2013 , compared to $ 3.2 million for 2012 , an increase of approximately $ 800,000. the change included increased personnel , consulting , and board advisory costs of approximately $ 546,000 that were primarily attributable to performance bonuses earned and personnel we returned from furlough during the year to assist in our financing efforts and to support our planned initiation of the genetic-af clinical trial . legal , accounting and other professional services of accounted for approximately $ 168,000 of the change and were primarily attributable to our special shareholder meeting held in the first quarter of 2013 and to our financing efforts completed during 2013. g & a expenses in 2014 are expected to be higher than in 2013 as we increase administrative activities to support initiating our genetic-af clinical trial . interest and other income interest and other income was $ 5,000 for the year ended december 31 , 2013 as compared to $ 2,000 for 2012 , resulting in an increase of $ 3,000. this is due to the increase in cash balances resulting from our june 2013 sale of equity securities . interest income was nominal in both years due to low investment yields . we expect interest income to continue to be nominal in 2014. interest and other expense interest and other expense was $ 4,000 for the year ended december 31 , 2013 , as compared to $ 3,000 for 2012. the amounts and related change between years are nominal to our overall operations . based on our current capital structure , interest expense for 2014 is expected to be comparable to 2013. liquidity and capital resources story_separator_special_tag style= `` margin-bottom:0pt ; margin-top:6pt ; font-size:10pt ; ; `` > recruitment of sufficient clinical trial sites , enrollment of patients and enrollment at a rate consistent with our projected timeline ; our ability to control costs associated with the clinical trial and our operations ; our ability to retain the listing of our common stock on the nasdaq capital market ; the market price of our stock and the availability and cost of additional equity capital from existing and potential new investors ; general economic and industry conditions affecting the availability and cost of capital ; the costs of filing , prosecuting , defending and enforcing any patent claims and other intellectual property rights ; and the terms and conditions of our existing collaborative and licensing agreements . the sale of additional equity or convertible debt securities will be necessary for us to complete both phase 2b and phase 3 of the genetic-af clinical trial and submit for fda approval of gencaro . such financing would likely result in additional dilution to our existing stockholders . if we raise additional funds through the incurrence of indebtedness , the obligations related to such indebtedness would be senior to rights of holders of our capital stock and could contain covenants that would restrict our operations . we anticipate that our current cash and cash equivalents , including the approximately $ 7.9 million of net proceeds from our february 2014 equity offering , will be sufficient to fund our operations , at our projected cost structure , through at least the end of 2015 . however , our forecast of the period of time through which our financial resources will be adequate to support our current and forecasted operations could vary materially . critical accounting policies and estimates a critical accounting policy is one that is both important to the portrayal of our financial condition and results of operation and requires management 's most difficult , subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . while our significant accounting policies are described in note 1 of “ notes to consolidated financial statements ” included within item 8 in this report , we believe the following critical accounting policy affected our most significant judgments , assumptions , and estimates used in the preparation of our consolidated financial statements and , therefore , is important in understanding our financial condition and results of operations . accrued expenses as part of the process of preparing our financial statements , we are required to estimate accrued expenses . this process involves identifying services that third parties have performed on our behalf and estimating the level of service performed and the associated cost incurred for these services as of the balance sheet date . examples of estimated accrued expenses include contract service fees , such as fees payable to contract manufacturers in connection with the production of materials related to our drug product , and professional service fees , such as attorneys , consultants , and clinical research organizations . we develop estimates of liabilities using our judgment based upon the facts and circumstances known at the time . off-balance sheet arrangements we have not participated in any transactions with unconsolidated entities , such as special purpose entities , which would have been established for the purpose of facilitating off-balance sheet arrangements . indemnifications in the ordinary course of business , we enter into contractual arrangements under which we may agree to indemnify certain parties from any losses incurred relating to the services they perform on our behalf or for losses arising from certain events as defined within the particular contract . such indemnification obligations may not be subject to maximum loss clauses . we have entered into indemnity agreements with each of our directors , officers and

