we are developing a new class of oral selective nonpeptide somatostatin type 5 receptor , or sst5 , agonists designed to treat congenital hyperinsulinism , or chi . we are currently conducting first-in-human enabling studies with our lead sst5 agonist development candidate . to date , we have devoted substantially all of our resources to drug discovery , conducting preclinical studies and clinical trials , obtaining and maintaining patents related to our product candidates , and the provision of general and administrative support for these operations . we recognize revenues from various research and development grants , but do not have any products approved for sale and have not generated any product sales . we have funded our operations to date primarily through our grant revenues , the private placement of our preferred stock , and our initial public offering , or ipo , in july 2018. as of december 31 , 2019 , we had unrestricted cash , cash equivalents and investment securities of $ 118.4 million . we have incurred cumulative net losses since our inception and , as of december 31 , 2019 , we had an accumulated deficit of $ 93.8 million . our net losses may fluctuate significantly from quarter-to-quarter and year-to-year , depending on the timing of our clinical trials and preclinical studies and our expenditures on other research and development activities . we expect our expenses and operating losses will increase substantially as we conduct our ongoing and planned clinical trials , continue our research and development activities and conduct preclinical studies , hire additional personnel , protect our intellectual 69 property and incur costs associated with being a public company , including audit , legal , regulatory , and tax-related services associated with maint aining compliance with exchange listing and securities and exchange commission , or sec , requirements , director and officer insurance premiums , and investor relations costs . we do not expect to generate any revenues from product sales unless and until we successfully complete development and obtain regulatory approval for one or more of our product candidates , which we expect will take a number of years . if we obtain regulatory approval for any of our product candidates , we expect to incur significant commercialization expenses related to product sales , marketing , manufacturing and distribution . accordingly , until such time as we can generate significant revenue from sales of our product candidates , if ever , we expect to finance our cash needs through equity offerings , debt financings or other capital sources , including potentially collaborations , licenses and other similar arrangements . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all . our failure to raise capital or enter into such other arrangements when needed would have a negative impact on our financial condition and could force us to delay , scale back or discontinue the development of our existing product candidates or our efforts to expand our product pipeline . australian operations in january 2017 , we established crinetics australia pty ltd , or capl , a wholly-owned subsidiary which was formed to conduct various preclinical and clinical activities for our product and development candidates . we believe capl will be eligible for certain financial incentives made available by the australian government for research and development expenses . specifically , the australian taxation office provides for a refundable tax credit in the form of a cash refund equal to 43.5 % of qualified research and development expenditures under the australian research and development tax incentive program , or the australian tax incentive , to australian companies that operate the majority of their research and development activities associated with such projects in australia . a wholly-owned australian subsidiary of a non-australian parent company is eligible to receive the refundable tax credit , provided that the australian subsidiary retains the rights to the data and intellectual property generated in australia , and provided that the total revenues of the parent company and its consolidated subsidiaries during the period for which the refundable tax credit is claimed are less than $ 20.0 million australian dollars . if we lose our ability to operate capl in australia , or if we are ineligible or unable to receive the research and development tax credit , or the australian government significantly reduces or eliminates the tax credit , the actual refund amounts we receive may differ from our estimates . financial operations overview grant revenues to date , we have not generated any revenues from the commercial sale of approved products , and we do not expect to generate revenues from the commercial sale of our product candidates for at least the foreseeable future , if ever . revenues for 2019 , 2018 and 2017 were derived from small business innovation research grants , or sbir grants , awarded to us by the national institute of diabetes and digestive and kidney diseases of the national institutes of health . we do not currently expect future grant revenues to be a material source of funding . research and development to date , our research and development expenses have related primarily to discovery efforts and preclinical and clinical development of our product candidates . research and development expenses are recognized as incurred and payments made prior to the receipt of goods or services to be used in research and development are capitalized until the goods or services are received . story_separator_special_tag to the extent that we raise additional capital through the sale of equity or convertible debt securities , the ownership interest of our stockholders will be or could be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders . debt financing and preferred equity financing , if available , may involve agreements that include covenants limiting or restricting our ability to take specific actions , such as incurring additional debt , making capital expenditures or declaring dividends . if we raise funds through collaborations , licenses and other similar arrangements with third parties , we may have to relinquish valuable rights to our technologies , future revenue streams , research programs or product candidates or grant licenses on terms that may not be favorable to us and or may reduce the value of our common stock . if we are unable to raise additional funds through equity or debt financings when needed , we may be required to delay , limit , reduce or terminate our product development or future commercialization efforts or grant rights to develop and market our product candidates even if we would otherwise prefer to develop and market such product candidates ourselves . in august 2019 , we entered into a sales agreement , or the sales agreement , with svb leerink llc and cantor fitzgerald & co. , or collectively , the sales agents , under which we may , from time to time , sell shares of our common stock having an aggregate offering price of up to $ 75.0 million through the sales agents . sales of our common stock made pursuant to the sales agreement , if any , will be made directly on or through the nasdaq global select market under our effective shelf registration statement on form s-3 filed on august 19 , 2019 by means of ordinary brokers ' transactions at market prices . additionally , under the terms of the sales agreement , we may also sell shares of our common stock through the sales agents , on the nasdaq global select market or otherwise , at negotiated prices or at prices related to the prevailing market price . we are not obligated to , and we can not provide any assurances that we will , make any sales of the shares under the sales agreement . the sales agreement may be terminated by either sales agent ( with respect to itself ) or us at any time upon 10 days ' notice to the other parties , or by either sales agent , with respect to itself , at any time in certain circumstances , including the occurrence of a material adverse change . we will pay the sales agents a commission for their services in acting as agent in the sale of common stock in an amount equal to 3 % of the gross sales price per share sold . as of december 31 , 2019 , no shares had been issued pursuant to the sales agreement . between january 1 , 2020 and march 6 , 2020 , the company issued 275,764 shares of common stock in the atm offering for net proceeds of $ 6.4 million , after deducting commissions . contractual obligations and commitments the following table summarizes our contractual obligations at december 31 , 2019 ( in thousands ) : replace_table_token_6_th ( 1 ) our operating lease obligations relate to our corporate headquarters in san diego , california . we enter into contracts in the normal course of business with clinical trial sites and clinical supply manufacturers and with vendors for preclinical studies , research supplies and other services and products for operating purposes . these contracts generally provide for termination after a notice period , and , therefore , are cancelable contracts and not included in the table above . off-balance sheet arrangements we did not have during the periods presented , and we do not currently have , any off-balance sheet arrangements , as defined under applicable sec rules . 76 item 7a . quantitative and qualitat ive disclosures about market risk interest rate risk our cash , cash equivalents and investment securities consist of cash held in readily available checking and money market accounts , as well as short-term debt securities . we are exposed to market risk related to fluctuations in interest rates and market prices . our primary exposure to market risk is interest rate sensitivity , which is affected by changes in the general level of united states interest rates . however , because of the short-term nature of the instruments in our portfolio , a sudden change in market interest rates would not be expected to have a material impact on our financial condition or results of operations . foreign currency we contract with vendors , cros and investigational sites in several foreign countries , including countries in south america , europe and the asia pacific . we are therefore subject to fluctuations in foreign currency rates in connection with these agreements . we do not hedge our foreign currency exchange rate risk . to date , we have not incurred any material adverse effects from foreign currency changes on these contracts . in january 2017 , we formed capl , a wholly-owned subsidiary in australia , which exposes us to foreign currency exchange rate risk . the functional currency of capl is the united states dollar . assets and liabilities of our foreign subsidiary that are not denominated in the functional currency are remeasured into u.s. dollars at foreign currency exchange rates in effect at the balance sheet date except for nonmonetary assets and capital accounts , which are remeasured at historical foreign currency exchange rates in effect at the date of transaction . expenses are generally remeasured at foreign currency exchange rates which approximate average rates in effect during each period . net realized and unrealized gains and losses

cash flows we have incurred cumulative net losses and negative cash flows from operations since our inception and anticipate we will continue to incur net losses for the foreseeable future . as of december 31 , 2019 , we had an accumulated deficit of $ 93.8 million and unrestricted cash , cash equivalents and investment securities of $ 118.4 million . the following table provides information regarding our cash flows for each of the years in the three-year period ended december 31 , 2019 ( in thousands ) : replace_table_token_5_th comparison of the years ended december 31 , 2019 and 2018 operating activities . net cash used in operating activities was $ 46.4 million and $ 19.5 million for the years ended december 31 , 2019 and 2018 , respectively . the increase in cash used in operations was primarily attributable to development and manufacturing activities associated with paltusotine as well as our other clinical and preclinical programs , and higher personnel-related costs . the net cash used in operating activities during the year ended december 31 , 2019 was primarily due to our net loss of $ 50.4 million and a $ 2.1 million change in operating assets and liabilities , adjusted for $ 6.2 million of noncash charges , including stock-based compensation and depreciation expense . net cash used in operating activities during the year ended december 31 , 2018 was primarily due to our net loss of $ 27.1 million , adjusted for $ 2.4 million of noncash charges , primarily for stock-based compensation and depreciation expense , and a $ 5.3 million change in operating assets and liabilities . 74 investing activities . investing activities consist primarily of purchases and maturities of investment securities and , to a lesser extent , the cash outflow associated with purchases of property and equipment . such activities resulted in a net inflow of funds of approximately $ 41.7 million during 2019 , compared to approximately $ 119 .5 million used during 2 018. financing activities .


 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 we have incurred cumulative net losses and negative cash flows from operations since our inception and anticipate we will continue to incur net losses for the foreseeable future . as of december 31 , 2019 , we had an accumulated deficit of $ 93.8 million and unrestricted cash , cash equivalents and investment securities of $ 118.4 million . the following table provides information regarding our cash flows for each of the years in the three-year period ended december 31 , 2019 ( in thousands ) : replace_table_token_5_th comparison of the years ended december 31 , 2019 and 2018 operating activities . net cash used in operating activities was $ 46.4 million and $ 19.5 million for the years ended december 31 , 2019 and 2018 , respectively . the increase in cash used in operations was primarily attributable to development and manufacturing activities associated with paltusotine as well as our other clinical and preclinical programs , and higher personnel-related costs . the net cash used in operating activities during the year ended december 31 , 2019 was primarily due to our net loss of $ 50.4 million and a $ 2.1 million change in operating assets and liabilities , adjusted for $ 6.2 million of noncash charges , including stock-based compensation and depreciation expense . net cash used in operating activities during the year ended december 31 , 2018 was primarily due to our net loss of $ 27.1 million , adjusted for $ 2.4 million of noncash charges , primarily for stock-based compensation and depreciation expense , and a $ 5.3 million change in operating assets and liabilities . 74 investing activities . investing activities consist primarily of purchases and maturities of investment securities and , to a lesser extent , the cash outflow associated with purchases of property and equipment . such activities resulted in a net inflow of funds of approximately $ 41.7 million during 2019 , compared to approximately $ 119 .5 million used during 2 018. financing activities .
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 Suspicious Activity Report : we are developing a new class of oral selective nonpeptide somatostatin type 5 receptor , or sst5 , agonists designed to treat congenital hyperinsulinism , or chi . we are currently conducting first-in-human enabling studies with our lead sst5 agonist development candidate . to date , we have devoted substantially all of our resources to drug discovery , conducting preclinical studies and clinical trials , obtaining and maintaining patents related to our product candidates , and the provision of general and administrative support for these operations . we recognize revenues from various research and development grants , but do not have any products approved for sale and have not generated any product sales . we have funded our operations to date primarily through our grant revenues , the private placement of our preferred stock , and our initial public offering , or ipo , in july 2018. as of december 31 , 2019 , we had unrestricted cash , cash equivalents and investment securities of $ 118.4 million . we have incurred cumulative net losses since our inception and , as of december 31 , 2019 , we had an accumulated deficit of $ 93.8 million . our net losses may fluctuate significantly from quarter-to-quarter and year-to-year , depending on the timing of our clinical trials and preclinical studies and our expenditures on other research and development activities . we expect our expenses and operating losses will increase substantially as we conduct our ongoing and planned clinical trials , continue our research and development activities and conduct preclinical studies , hire additional personnel , protect our intellectual 69 property and incur costs associated with being a public company , including audit , legal , regulatory , and tax-related services associated with maint aining compliance with exchange listing and securities and exchange commission , or sec , requirements , director and officer insurance premiums , and investor relations costs . we do not expect to generate any revenues from product sales unless and until we successfully complete development and obtain regulatory approval for one or more of our product candidates , which we expect will take a number of years . if we obtain regulatory approval for any of our product candidates , we expect to incur significant commercialization expenses related to product sales , marketing , manufacturing and distribution . accordingly , until such time as we can generate significant revenue from sales of our product candidates , if ever , we expect to finance our cash needs through equity offerings , debt financings or other capital sources , including potentially collaborations , licenses and other similar arrangements . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all . our failure to raise capital or enter into such other arrangements when needed would have a negative impact on our financial condition and could force us to delay , scale back or discontinue the development of our existing product candidates or our efforts to expand our product pipeline . australian operations in january 2017 , we established crinetics australia pty ltd , or capl , a wholly-owned subsidiary which was formed to conduct various preclinical and clinical activities for our product and development candidates . we believe capl will be eligible for certain financial incentives made available by the australian government for research and development expenses . specifically , the australian taxation office provides for a refundable tax credit in the form of a cash refund equal to 43.5 % of qualified research and development expenditures under the australian research and development tax incentive program , or the australian tax incentive , to australian companies that operate the majority of their research and development activities associated with such projects in australia . a wholly-owned australian subsidiary of a non-australian parent company is eligible to receive the refundable tax credit , provided that the australian subsidiary retains the rights to the data and intellectual property generated in australia , and provided that the total revenues of the parent company and its consolidated subsidiaries during the period for which the refundable tax credit is claimed are less than $ 20.0 million australian dollars . if we lose our ability to operate capl in australia , or if we are ineligible or unable to receive the research and development tax credit , or the australian government significantly reduces or eliminates the tax credit , the actual refund amounts we receive may differ from our estimates . financial operations overview grant revenues to date , we have not generated any revenues from the commercial sale of approved products , and we do not expect to generate revenues from the commercial sale of our product candidates for at least the foreseeable future , if ever . revenues for 2019 , 2018 and 2017 were derived from small business innovation research grants , or sbir grants , awarded to us by the national institute of diabetes and digestive and kidney diseases of the national institutes of health . we do not currently expect future grant revenues to be a material source of funding . research and development to date , our research and development expenses have related primarily to discovery efforts and preclinical and clinical development of our product candidates . research and development expenses are recognized as incurred and payments made prior to the receipt of goods or services to be used in research and development are capitalized until the goods or services are received . story_separator_special_tag to the extent that we raise additional capital through the sale of equity or convertible debt securities , the ownership interest of our stockholders will be or could be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders . debt financing and preferred equity financing , if available , may involve agreements that include covenants limiting or restricting our ability to take specific actions , such as incurring additional debt , making capital expenditures or declaring dividends . if we raise funds through collaborations , licenses and other similar arrangements with third parties , we may have to relinquish valuable rights to our technologies , future revenue streams , research programs or product candidates or grant licenses on terms that may not be favorable to us and or may reduce the value of our common stock . if we are unable to raise additional funds through equity or debt financings when needed , we may be required to delay , limit , reduce or terminate our product development or future commercialization efforts or grant rights to develop and market our product candidates even if we would otherwise prefer to develop and market such product candidates ourselves . in august 2019 , we entered into a sales agreement , or the sales agreement , with svb leerink llc and cantor fitzgerald & co. , or collectively , the sales agents , under which we may , from time to time , sell shares of our common stock having an aggregate offering price of up to $ 75.0 million through the sales agents . sales of our common stock made pursuant to the sales agreement , if any , will be made directly on or through the nasdaq global select market under our effective shelf registration statement on form s-3 filed on august 19 , 2019 by means of ordinary brokers ' transactions at market prices . additionally , under the terms of the sales agreement , we may also sell shares of our common stock through the sales agents , on the nasdaq global select market or otherwise , at negotiated prices or at prices related to the prevailing market price . we are not obligated to , and we can not provide any assurances that we will , make any sales of the shares under the sales agreement . the sales agreement may be terminated by either sales agent ( with respect to itself ) or us at any time upon 10 days ' notice to the other parties , or by either sales agent , with respect to itself , at any time in certain circumstances , including the occurrence of a material adverse change . we will pay the sales agents a commission for their services in acting as agent in the sale of common stock in an amount equal to 3 % of the gross sales price per share sold . as of december 31 , 2019 , no shares had been issued pursuant to the sales agreement . between january 1 , 2020 and march 6 , 2020 , the company issued 275,764 shares of common stock in the atm offering for net proceeds of $ 6.4 million , after deducting commissions . contractual obligations and commitments the following table summarizes our contractual obligations at december 31 , 2019 ( in thousands ) : replace_table_token_6_th ( 1 ) our operating lease obligations relate to our corporate headquarters in san diego , california . we enter into contracts in the normal course of business with clinical trial sites and clinical supply manufacturers and with vendors for preclinical studies , research supplies and other services and products for operating purposes . these contracts generally provide for termination after a notice period , and , therefore , are cancelable contracts and not included in the table above . off-balance sheet arrangements we did not have during the periods presented , and we do not currently have , any off-balance sheet arrangements , as defined under applicable sec rules . 76 item 7a . quantitative and qualitat ive disclosures about market risk interest rate risk our cash , cash equivalents and investment securities consist of cash held in readily available checking and money market accounts , as well as short-term debt securities . we are exposed to market risk related to fluctuations in interest rates and market prices . our primary exposure to market risk is interest rate sensitivity , which is affected by changes in the general level of united states interest rates . however , because of the short-term nature of the instruments in our portfolio , a sudden change in market interest rates would not be expected to have a material impact on our financial condition or results of operations . foreign currency we contract with vendors , cros and investigational sites in several foreign countries , including countries in south america , europe and the asia pacific . we are therefore subject to fluctuations in foreign currency rates in connection with these agreements . we do not hedge our foreign currency exchange rate risk . to date , we have not incurred any material adverse effects from foreign currency changes on these contracts . in january 2017 , we formed capl , a wholly-owned subsidiary in australia , which exposes us to foreign currency exchange rate risk . the functional currency of capl is the united states dollar . assets and liabilities of our foreign subsidiary that are not denominated in the functional currency are remeasured into u.s. dollars at foreign currency exchange rates in effect at the balance sheet date except for nonmonetary assets and capital accounts , which are remeasured at historical foreign currency exchange rates in effect at the date of transaction . expenses are generally remeasured at foreign currency exchange rates which approximate average rates in effect during each period . net realized and unrealized gains and losses

