you should review the section titled “ risk factors ” in this annual report on form 10-k for a discussion of important factors that could cause actual results to differ materially from the results described below . overview we are a clinical-stage biopharmaceutical company focused on the development of drug products that are intended to provide treatment for patients who have a high unmet medical need condition that effects survival or the patient 's quality of life and have few or no treatment options . we currently have three drugs in various stages of clinical development . our most advanced product candidate , pcs499 , is an oral tablet that is a deuterated analog of one of the major metabolites of pentoxifylline ( ptx or trental® ) . we have completed a phase 2a trial for pcs499 and will begin recruiting for a phase 2 trial in the first half of 2021. in addition , we have in-licensed pcs6422 ( eniluracil ) from elion oncology and pcs12852 from yuhan corporation . pcs6422 will be orally administered with capecitabine in a phase 1b dose-escalation study in patients with advanced refractory gastrointestinal ( gi ) tract tumors , with recruitment beginning in the first half of 2021. pcs12852 has already been evaluated in clinical studies in south korea and we anticipate a response back to our pre-ind meeting questions by march 31 , 2021. our remaining two drug assets whose active molecules have been shown to be clinically efficacious require additional toxicology data in order to advance these candidates to an ind stage of development . 52 our strategy our strategy is to acquire or in-license development candidates that will not only treat a specific group of patients with unmet medical needs , but may also have the potential to chart a more efficient path to registration . in many instances , these clinical candidates have significant pre-clinical and clinical data that we can leverage to high value inflection points while de-risking the programs and adding in optionality to potential future indications . the regulatory science approach our team has developed over the last 20+ years seeks to leverage the earlier data and identify the least risk path toward commercialization/registration of these drugs . we apply rigorous standards to identify drugs for our portfolio , namely : i. the drug must represent a treatment option to patients with a high unmet medical need condition by improving survival and or quality of life for these patients , ii . the drug or its metabolite or a drug with similar pharmacological properties must have demonstrated some evidence of efficacy in the target population , and iii . the drug can be quickly developed such that within 2-4 years , critical value-added clinical milestones can be achieved while advancing the drug closer to commercialization and adding to the potential for a high return on investment . in order to add significant value to our in-licensed drugs within 2 to 4 years , the drugs must be in the clinical development stage and not in discovery stage , and during those 2 to 4 years we must be able to obtain clinical data to support the added value . the additional clinical data could range from a clinical proof-of-concept data to further demonstrate that the proposed pharmacology occurs clinically in the targeted patient population to a pivotal well-designed randomized controlled trial . our portfolio specifically includes drugs that ( i ) already have clinical proof-of-concept data demonstrating the desired pharmacological activity in humans or , minimally , clinical evidence in the form of case studies or clinical experience demonstrating the drug or a similar drug pharmacologically can successfully treat patients with the targeted indication ; ( ii ) target indications for which the fda believes that a single positive pivotal study demonstrating efficacy provides enough evidence that the clinical benefits of the drug and its approval outweighs the risks associated with the drug or the present standard of care ( e.g . , some orphan indications , many serious life-threatening conditions , some serious quality of life conditions ) ; and or ( iii ) target indications where the prevalence of the condition and the likelihood of patients enrolling in a study meet the desired time-frame to demonstrate that the drug can , at some level , treat or potentially treat patients with the condition . to advance our mission , we have assembled an experienced and talented management and product development team . our team is experienced in developing drug products through all principal regulatory tiers from ind enabling studies to nda submission . our combined scientific , development and regulatory experience has resulted in more than 30 drug approvals by the fda , over 100 meetings with the fda and involvement with more than 50 drug development programs , including drug products targeted to patients who have an unmet medical need . although we believe that the skills and experience of our team in drug development and commercialization is an important indicator of our future success , the past successes of our team in developing and commercializing pharmaceutical products does not guarantee that they will successfully develop and commercialize drugs for us . in addition , the growth in revenues of companies at which our executive officers and directors served in was due to many factors and does not guarantee that they will successfully operate or manage us or that we will experience similar growth in revenues , even if they continue to serve as executive officers and or directors . our ability to generate meaningful revenue from any products depends on our ability to out-license the drugs in the u.s. and or ex-u.s. story_separator_special_tag the capitalized costs for the license rights to pcs499 , in addition to the fair value of the common stock issued , also includes $ 1,782 in transaction costs and $ 3,037,147 associated with the initial recognition of an offsetting deferred tax liability related to the acquired temporary difference for an asset purchased that is not a business combination and has a nominal tax basis in accordance with asc 740-10-25-51 income taxes . in accordance with asc topic 730 , research and development , we capitalized the costs of acquiring the exclusive license rights to pcs499 as the exclusive license rights represent intangible assets to be used in research and development activities that have future alternative uses . 59 we used a market approach to estimate the fair value of the common stock issued to concert in this transaction . our estimate was based on the final negotiated number of shares of stock issued and the volume weighted average price of our common stock quoted on the otc pink marketplace over a 45-day period preceding the mid-february 2018 finalized negotiation of the modification to the option and license agreement with concert . we believe the fair values used to record intangible assets acquired in this transaction are based upon reasonable estimates and assumptions given the facts and circumstances as of the related valuation dates . we determined our intangible assets to have finite useful lives and review them for impairment when facts or circumstances suggest that the carrying value of these assets may not be recoverable . clinical trial accruals / research and development as part of the process of preparing our consolidated financial statements , we are required to estimate expenses resulting from our obligations under contracts with vendors , cros and consultants and under clinical site agreements related to conducting our clinical trials . the financial terms of these contracts vary and may result in payment flows that do not match the period over which materials or services are provided under such contracts . our clinical trial accruals are based on estimates of patient enrollment and related costs at clinical investigator sites as well as estimates for the services received and efforts expended pursuant to contracts with multiple research institutions and cros that conduct and manage clinical trials on our behalf . during a clinical trial , we will adjust the clinical expense recognition if actual results differ from estimates . we make estimates of accrued expenses as of each balance sheet date based on the facts and circumstances known at that time . our clinical trial accruals are partially dependent on the accurate reporting by the cro and other third-party vendors . although we do not expect estimates to differ materially from actual amounts , our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that may be too high or too low for any reporting period . payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered . we expense research and development costs as they are incurred . stock-based compensation we account for the cost of employee services received in exchange for the award of equity instruments based on the fair value of the award , determined on the date of grant . significant assumptions utilized in determining the fair value of our stock options include the volatility rate , estimated term of the options , risk-free interest rate and forfeiture rate . the expense is to be recognized over the period during which an employee is required to provide services in exchange for the award . we estimate forfeitures at the time of grant and make revisions , if necessary , at each reporting period if actual forfeitures differ from those estimates . non-employee stock-based compensation awards generally are immediately vested and have no future performance requirements by the non-employee and the total stock-based compensation charge is recorded in the period of the measurement date . we estimate the fair value of stock option grants using the black-scholes option pricing model , and the assumptions used in calculating the fair value of stock-based awards represent management 's best estimates and involve inherent uncertainties and the application of management 's judgment . the black-scholes option-pricing model requires the use of subjective assumptions that include the expected stock price volatility and the fair value of the underlying common stock on the date of grant . see note 5 – stock-based compensation for information concerning certain of the specific assumptions we used in applying the black-scholes option pricing model to determine the estimated fair value of our stock options granted during the years ended december 31 , 2020 and 2019. all stock-based compensation costs are recorded in general and administrative or research and development costs in the consolidated statements of operations based upon the underlying individual 's role . 60 income taxes we account for income taxes in accordance with asc topic 740 , income taxes . under the asset and liability method , deferred income taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss carryforwards . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled . the effect of changes in tax rates on deferred tax assets and liabilities is recognized in income in the period such changes are enacted . a valuation allowance is provided against net deferred tax assets if recoverability is uncertain on a more likely than not basis . as of december 31 , 2020 and 2019 , we have established a valuation allowance to offset certain deferred tax assets . we recognize

liquidity and capital resources on october 6 , 2020 , we closed an underwritten public offering of 4,800,000 shares of common stock for a public offering price of $ 4.00 per share . net proceeds from the offering were approximately $ 17.1 million . on february 24 , 2021 , we closed a private placement for the sale of 1,321,132 shares of our common stock at a purchase price of $ 7.75 per share to accredited and institutional investors for gross proceeds of $ 10.2 million . net proceeds from the offering were $ 9.9 million . at december 31 , 2020 , we had $ 15,416,224 in cash . net cash used in our operating activities during the year ended december 31 , 2020 totaled $ 3,143,196 compared to $ 2,750,145 for the year ended december 31 , 2019. we have incurred losses since inception , devoting substantially all of our efforts toward research and development , and have an accumulated deficit of approximately $ 25.4 million at december 31 , 2020. during the year ended december 31 , 2020 , we generated a net loss of approximately $ 14.4 million and we expect to continue to generate operating losses and negative cash flow from operation for the foreseeable future . however , we believe our cash balance at december 31 , 2020 , along with the $ 9.9 million in net proceeds from the february 2021 private placement , is adequate to fund our budgeted operations through 2023. our ability to execute our longer-term operating plans , including unplanned future clinical trials for our portfolio of drugs depend on our ability to obtain additional funding from the sale of equity and or debt securities , a strategic transaction or other funding transactions . we plan to continue to actively pursue financing alternatives , but there can be no assurance that we will obtain the necessary funding in the future when necessary .


 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 on october 6 , 2020 , we closed an underwritten public offering of 4,800,000 shares of common stock for a public offering price of $ 4.00 per share . net proceeds from the offering were approximately $ 17.1 million . on february 24 , 2021 , we closed a private placement for the sale of 1,321,132 shares of our common stock at a purchase price of $ 7.75 per share to accredited and institutional investors for gross proceeds of $ 10.2 million . net proceeds from the offering were $ 9.9 million . at december 31 , 2020 , we had $ 15,416,224 in cash . net cash used in our operating activities during the year ended december 31 , 2020 totaled $ 3,143,196 compared to $ 2,750,145 for the year ended december 31 , 2019. we have incurred losses since inception , devoting substantially all of our efforts toward research and development , and have an accumulated deficit of approximately $ 25.4 million at december 31 , 2020. during the year ended december 31 , 2020 , we generated a net loss of approximately $ 14.4 million and we expect to continue to generate operating losses and negative cash flow from operation for the foreseeable future . however , we believe our cash balance at december 31 , 2020 , along with the $ 9.9 million in net proceeds from the february 2021 private placement , is adequate to fund our budgeted operations through 2023. our ability to execute our longer-term operating plans , including unplanned future clinical trials for our portfolio of drugs depend on our ability to obtain additional funding from the sale of equity and or debt securities , a strategic transaction or other funding transactions . we plan to continue to actively pursue financing alternatives , but there can be no assurance that we will obtain the necessary funding in the future when necessary .
```    
 Suspicious Activity Report : you should review the section titled “ risk factors ” in this annual report on form 10-k for a discussion of important factors that could cause actual results to differ materially from the results described below . overview we are a clinical-stage biopharmaceutical company focused on the development of drug products that are intended to provide treatment for patients who have a high unmet medical need condition that effects survival or the patient 's quality of life and have few or no treatment options . we currently have three drugs in various stages of clinical development . our most advanced product candidate , pcs499 , is an oral tablet that is a deuterated analog of one of the major metabolites of pentoxifylline ( ptx or trental® ) . we have completed a phase 2a trial for pcs499 and will begin recruiting for a phase 2 trial in the first half of 2021. in addition , we have in-licensed pcs6422 ( eniluracil ) from elion oncology and pcs12852 from yuhan corporation . pcs6422 will be orally administered with capecitabine in a phase 1b dose-escalation study in patients with advanced refractory gastrointestinal ( gi ) tract tumors , with recruitment beginning in the first half of 2021. pcs12852 has already been evaluated in clinical studies in south korea and we anticipate a response back to our pre-ind meeting questions by march 31 , 2021. our remaining two drug assets whose active molecules have been shown to be clinically efficacious require additional toxicology data in order to advance these candidates to an ind stage of development . 52 our strategy our strategy is to acquire or in-license development candidates that will not only treat a specific group of patients with unmet medical needs , but may also have the potential to chart a more efficient path to registration . in many instances , these clinical candidates have significant pre-clinical and clinical data that we can leverage to high value inflection points while de-risking the programs and adding in optionality to potential future indications . the regulatory science approach our team has developed over the last 20+ years seeks to leverage the earlier data and identify the least risk path toward commercialization/registration of these drugs . we apply rigorous standards to identify drugs for our portfolio , namely : i. the drug must represent a treatment option to patients with a high unmet medical need condition by improving survival and or quality of life for these patients , ii . the drug or its metabolite or a drug with similar pharmacological properties must have demonstrated some evidence of efficacy in the target population , and iii . the drug can be quickly developed such that within 2-4 years , critical value-added clinical milestones can be achieved while advancing the drug closer to commercialization and adding to the potential for a high return on investment . in order to add significant value to our in-licensed drugs within 2 to 4 years , the drugs must be in the clinical development stage and not in discovery stage , and during those 2 to 4 years we must be able to obtain clinical data to support the added value . the additional clinical data could range from a clinical proof-of-concept data to further demonstrate that the proposed pharmacology occurs clinically in the targeted patient population to a pivotal well-designed randomized controlled trial . our portfolio specifically includes drugs that ( i ) already have clinical proof-of-concept data demonstrating the desired pharmacological activity in humans or , minimally , clinical evidence in the form of case studies or clinical experience demonstrating the drug or a similar drug pharmacologically can successfully treat patients with the targeted indication ; ( ii ) target indications for which the fda believes that a single positive pivotal study demonstrating efficacy provides enough evidence that the clinical benefits of the drug and its approval outweighs the risks associated with the drug or the present standard of care ( e.g . , some orphan indications , many serious life-threatening conditions , some serious quality of life conditions ) ; and or ( iii ) target indications where the prevalence of the condition and the likelihood of patients enrolling in a study meet the desired time-frame to demonstrate that the drug can , at some level , treat or potentially treat patients with the condition . to advance our mission , we have assembled an experienced and talented management and product development team . our team is experienced in developing drug products through all principal regulatory tiers from ind enabling studies to nda submission . our combined scientific , development and regulatory experience has resulted in more than 30 drug approvals by the fda , over 100 meetings with the fda and involvement with more than 50 drug development programs , including drug products targeted to patients who have an unmet medical need . although we believe that the skills and experience of our team in drug development and commercialization is an important indicator of our future success , the past successes of our team in developing and commercializing pharmaceutical products does not guarantee that they will successfully develop and commercialize drugs for us . in addition , the growth in revenues of companies at which our executive officers and directors served in was due to many factors and does not guarantee that they will successfully operate or manage us or that we will experience similar growth in revenues , even if they continue to serve as executive officers and or directors . our ability to generate meaningful revenue from any products depends on our ability to out-license the drugs in the u.s. and or ex-u.s. story_separator_special_tag the capitalized costs for the license rights to pcs499 , in addition to the fair value of the common stock issued , also includes $ 1,782 in transaction costs and $ 3,037,147 associated with the initial recognition of an offsetting deferred tax liability related to the acquired temporary difference for an asset purchased that is not a business combination and has a nominal tax basis in accordance with asc 740-10-25-51 income taxes . in accordance with asc topic 730 , research and development , we capitalized the costs of acquiring the exclusive license rights to pcs499 as the exclusive license rights represent intangible assets to be used in research and development activities that have future alternative uses . 59 we used a market approach to estimate the fair value of the common stock issued to concert in this transaction . our estimate was based on the final negotiated number of shares of stock issued and the volume weighted average price of our common stock quoted on the otc pink marketplace over a 45-day period preceding the mid-february 2018 finalized negotiation of the modification to the option and license agreement with concert . we believe the fair values used to record intangible assets acquired in this transaction are based upon reasonable estimates and assumptions given the facts and circumstances as of the related valuation dates . we determined our intangible assets to have finite useful lives and review them for impairment when facts or circumstances suggest that the carrying value of these assets may not be recoverable . clinical trial accruals / research and development as part of the process of preparing our consolidated financial statements , we are required to estimate expenses resulting from our obligations under contracts with vendors , cros and consultants and under clinical site agreements related to conducting our clinical trials . the financial terms of these contracts vary and may result in payment flows that do not match the period over which materials or services are provided under such contracts . our clinical trial accruals are based on estimates of patient enrollment and related costs at clinical investigator sites as well as estimates for the services received and efforts expended pursuant to contracts with multiple research institutions and cros that conduct and manage clinical trials on our behalf . during a clinical trial , we will adjust the clinical expense recognition if actual results differ from estimates . we make estimates of accrued expenses as of each balance sheet date based on the facts and circumstances known at that time . our clinical trial accruals are partially dependent on the accurate reporting by the cro and other third-party vendors . although we do not expect estimates to differ materially from actual amounts , our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that may be too high or too low for any reporting period . payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered . we expense research and development costs as they are incurred . stock-based compensation we account for the cost of employee services received in exchange for the award of equity instruments based on the fair value of the award , determined on the date of grant . significant assumptions utilized in determining the fair value of our stock options include the volatility rate , estimated term of the options , risk-free interest rate and forfeiture rate . the expense is to be recognized over the period during which an employee is required to provide services in exchange for the award . we estimate forfeitures at the time of grant and make revisions , if necessary , at each reporting period if actual forfeitures differ from those estimates . non-employee stock-based compensation awards generally are immediately vested and have no future performance requirements by the non-employee and the total stock-based compensation charge is recorded in the period of the measurement date . we estimate the fair value of stock option grants using the black-scholes option pricing model , and the assumptions used in calculating the fair value of stock-based awards represent management 's best estimates and involve inherent uncertainties and the application of management 's judgment . the black-scholes option-pricing model requires the use of subjective assumptions that include the expected stock price volatility and the fair value of the underlying common stock on the date of grant . see note 5 – stock-based compensation for information concerning certain of the specific assumptions we used in applying the black-scholes option pricing model to determine the estimated fair value of our stock options granted during the years ended december 31 , 2020 and 2019. all stock-based compensation costs are recorded in general and administrative or research and development costs in the consolidated statements of operations based upon the underlying individual 's role . 60 income taxes we account for income taxes in accordance with asc topic 740 , income taxes . under the asset and liability method , deferred income taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss carryforwards . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled . the effect of changes in tax rates on deferred tax assets and liabilities is recognized in income in the period such changes are enacted . a valuation allowance is provided against net deferred tax assets if recoverability is uncertain on a more likely than not basis . as of december 31 , 2020 and 2019 , we have established a valuation allowance to offset certain deferred tax assets . we recognize

