in addition , and effective as of the closing , thomas w. d'alonzo , barry i. feinberg , samuel p. sears , jr. and timothy c. tyson have each resigned and retired from the board . on july 20 , 2018 , we extended an offer to dr. thomas smith , as our chief medical officer and member of our executive leadership team effective july 30 , 2018. on august 2 , 2018 , in connection with our 2018 annual meeting of stockholders , our stockholders approved , among other matters , ( i ) amending our certificate of incorporation to increase the number of authorized shares of common stock from 75,000,000 to 125,000,000 ; and ( ii ) to ratify the issuance and sale of our series b preferred stock , par value $ .001 per share , and to approve the issuance of common stock issuable upon the conversion of the series b preferred stock as required by and in accordance with nasdaq marketplace rule 5635 ( d ) . on october 29 , 2018 , we announced the appointment of james vollins as general counsel and member of our executive leadership team effective november 5 , 2018. mr. vollins serves as our chief compliance officer and corporate secretary . we also announced the enhanced title of scott plesha to president and chief commercial officer of the company . 37 on november 9 , 2018 , we filed a shelf registration statement ( as amended on january 18 , 2019 ) which registered up to $ 150 million of our securities for potential future issuance and such registration statement was became effective on february 7 , 2019. on january 15 , 2019 , we announced the appointment of terry coelho as chief financial officer . ms. coelho will also serve as our principal financial officer and principal accounting officer . ms. coelho replaced ernest de paolantonio in these positions effective as of january 15 , 2019. mr. de paolantonio will remain at our company past such date in order to allow for an orderly transition . on february 4 , 2019  we announced that a leading national managed care organization has moved belbuca into preferred status across all its commercial formularies from its previous position of not-covered effective february 1 , 2019. in addition , patients will no longer require a prior authorization to receive their belbuca script . this significant improvement in access for more than 7 million covered lives brings the total of americans with preferred access for belbuca to more than 115 million . our products and related trends our product portfolio currently consists of four products . as of the date of this report , three products are approved by the fda ; the fourth product , while we are not actively studying it at this time , we are evaluating further development opportunities . the three approved products utilize our patented bema thin film drug delivery technology . belbuca is indicated for the management of chronic pain severe enough to require daily , around-the-clock , long-term opioid treatment and for which alternative treatment options are inadequate . this product was originally licensed on a worldwide basis to endo . on october 26 , 2015 , we announced with endo that the fda approved belbuca . belbuca was launched by endo in february 2016. on december 7 , 2016 , we entered into an agreement with endo terminating endo 's licensing of rights for belbuca . this followed a strategic decision made by endo to discontinue commercial efforts in the branded pain business . on january 6 , 2017 , we announced the closing of the transaction to reacquire the license to belbuca from endo . as a result , the worldwide rights to belbuca were transferred back to us . behind a revised commercialization plan , we are leveraging our existing sales force to capitalize on commercial synergies with bunavail . this effort is a focused commercial approach targeting identified healthcare providers which we believe create the potential to incrementally grow belbuca sales without the requirement for significant resources . we also will explore other options for longer-term growth for belbuca . since the initial launch in february 2017 , we further expanded our sales force beginning in january 2018 and again in september to support the commercialization efforts . belbuca and bunavail are currently supported by a field force of approximately 113 sales representatives , thirteen regional sales managers and two area directors . as previously disclosed , the launch has been more challenging because of the increased scrutiny over the prescribing of opioids that is driven by the centers for disease control and prevention guidelines issued in march 2016. the difference that belbuca as schedule iii offers over schedule ii opioids , such as oxycodone , hydrocodone , morphine , etc . , include higher safety index , lower addiction , diversion and abuse risks accompanied by a dose-ceiling effect on respiratory depression , but not on analgesia . the approval of belbuca carries a standard post-approval requirement by the fda to conduct a study to determine the effect of belbuca on qt prolongation ( i.e . an abnormal lengthening of the heartbeat ) . also required is a study assessing the safety and efficacy of belbuca in pediatric patients and participation in a consortium with other holders of ndas for long-acting opioids to assess and better understand the risk of abuse , misuse , addiction and overdose with opioids . both studies are pending . prescription sales of belbuca have significantly increased since promotion began . bunavail was approved by the fda in june 2014 and is indicated for the treatment of opioid dependence . bunavail uses our bema technology combined with buprenorphine in tandem with naloxone , an opioid antagonist . story_separator_special_tag monthly for each product line , we prepare an internal estimate of ending inventory units in the distribution channel by adding estimated inventory in the channel at the beginning of the period , plus net product shipments for the period , less estimated prescriptions written for the period . this is done for each product line by applying a rate of historical activity for rebates , chargebacks and product returns , adjusted for relevant quantitative and qualitative factors discussed above , to the potential exposed product estimated to be in the distribution channel . in addition , we receive daily information from the wholesalers regarding their sales and actual on hand inventory levels of our products . this enables us to execute accurate provisioning procedures . product returns -consistent with industry practice , we offer contractual return rights that allow our customers to return our products within an 18-month period that begins six months prior to and ends twelve months after expiration of the products . rebates - the liability for government program rebates is calculated based on historical and current rebate redemption and utilization rates contractually submitted by each program 's administrator . price adjustments and chargebacks -our estimate of price adjustments and chargebacks are based on its estimated mix of sales to various third-party payers , which are entitled either contractually or statutorily to discounts from our listed prices of our products . if the sales mix to third-party payers is different from our estimates , we may be required to pay higher or lower total price adjustments and or chargebacks than it had estimated , and such differences may be significant . from time to time , we offer certain promotional product-related incentives to our customers . these programs include certain product incentives to pharmacy customers and other sales stocking allowances . we have voucher programs for belbuca and bunavail whereby we offer a point-of-sale subsidy to retail consumers . we estimate our liabilities for these voucher programs based on the actual redemption rates as reported to us by a third-party claims processing organization . we account for the costs of these special promotional programs as price adjustments , which are a reduction of gross revenue . prompt payment discounts -we typically offers our wholesale customers a prompt payment discount of 2 % as an incentive to remit payments within the first 30 to 37 days after the invoice date depending on the customer and the products purchased . gross to net accruals a significant majority of our gross to net adjustments to gross product revenues are the result of accruals for our voucher program and rebates related to medicare part d , the part d coverage gap , medicaid , and commercial contracts with most of those programs having an accrual to payment cycle of anywhere from one to three months . in addition to this relatively short accrual to payment cycle , we receive daily information from the wholesalers regarding their sales of our products and actual on hand inventory levels of its products . this enables us to execute accurate provisioning procedures . consistent with the pharmaceutical industry , the accrual to payment cycle for returns is longer and can take several years depending on the expiration of the related products . prior to january 2017 , we were recording sales when prescriptions were filled . however , beginning in january 1 , 2017 , we began recording revenue based on a sell-in method , as we now have achieved the ability to record sales ex-factory . license and development agreements we periodically enter into license and development agreements to develop and commercialize our products . the arrangements typically are multi-deliverable arrangements that are funded through upfront payments , milestone payments and other forms of payment . depending on the nature of the contract these revenues are classified as research and development reimbursements or contract revenue . 42 product royalty revenues product royalty revenue amounts are based on a percentage of net sales revenue of the onsolis product under our license agreement with mylan . product royalty revenues are computed on a quarterly basis when revenues are fixed or determinable , collectability is reasonably assured , and all other revenue recognition criteria are met . mylan has the right to reject products that do not comply with product , packaging , or regulatory specifications . defective product must be identified by mylan within 10 days after inspection at mylan 's distribution site . we bill mylan immediately upon receipt by mylan of product ( fob manufacturer ) . on a quarterly basis , a reconciliation is prepared that reflects the difference between actual net sales by mylan multiplied by the royalty percentage , and the actual royalty payments made during the quarter ( which is based on a transfer price at the time we invoice mylan ) . the parties true-up the differences within 45 days of each quarter-end . cost of sales cost of sales includes direct costs attributable to the production of belbuca , bunavail , breakyl and painkyl . cost of sales also includes royalty expenses owed to third parties . for belbuca and bunavail , cost of sales includes raw materials , production costs at our contract manufacturing sites , quality testing directly related to the product , lower of cost of market and depreciation on equipment that we have purchased to produce belbuca and bunavail . it also includes any batches not meeting specifications and raw material yield loss . beginning january 1 , 2017 , cost of sales for belbuca and bunavail were recognized when sold to the wholesaler from our distribution center . there was no deferred cost of sales for the years ended december 31 , 2017 nor 2018. yield losses and batches not meeting specifications are expensed as incurred . for breakyl and painkyl , we do not take ownership of the subject product as we do not have inventory . accordingly , raw material

liquidity and capital resources since inception , we have financed our operations principally from the sale of equity securities , proceeds from borrowings , convertible notes , and notes payable , funded research arrangements , revenue generated as a result of our worldwide license and 47 development agreements , the commercialization of our belbuca and bunavail products . we intend to finance our commercialization and working capital needs from existing cash , earnings from the commercialization of belbuca and bunavail , royalty revenue , new sources of debt and equity financing , existing and new licensing and commercial partnership agreements and , potentially , through the exercise of outstanding common stock options and warrants to purchase common stock . on may 11 , 2016 , we and collegium executed a definitive license and development agreement under which we granted to collegium the exclusive rights to develop and commercialize onsolis in the u.s , resulting in a milestone of $ 2.5 million paid to us in june 2016. during 2016 , we received cumulative payments totaling $ 1.3 million which related to royalties based on product purchased in europe by mylan of breakyl . during 2016 , we received cumulative payments totaling $ 0.9 which related to royalties based on product purchased in taiwan by tty of painkyl . on december 8 , 2016 , we announced that we had entered into an agreement endo terminating endo 's licensing of rights for belbuca . the closing of the termination agreement , and the formal termination of the belbuca license to endo and closing of the transactions occurred on january 6 , 2017. on july 12 , 2017 , we , along with purdue pharma ( canada ) announced that we had signed an exclusive agreement for the licensing , distribution , marketing and sale of belbuca in canada . in return for the licensing and distribution rights to belbuca in canada , we were eligible to receive upfront and potential milestones of up to cad 4.5 million as well as royalties on net sales , including approximately cad 1.5 million ( 0.5 million cad and 1.0 million cad received august 2017 and october 2017 , respectfully ) . during 2017 , we received cumulative payments totaling $ 2.2


 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 since inception , we have financed our operations principally from the sale of equity securities , proceeds from borrowings , convertible notes , and notes payable , funded research arrangements , revenue generated as a result of our worldwide license and 47 development agreements , the commercialization of our belbuca and bunavail products . we intend to finance our commercialization and working capital needs from existing cash , earnings from the commercialization of belbuca and bunavail , royalty revenue , new sources of debt and equity financing , existing and new licensing and commercial partnership agreements and , potentially , through the exercise of outstanding common stock options and warrants to purchase common stock . on may 11 , 2016 , we and collegium executed a definitive license and development agreement under which we granted to collegium the exclusive rights to develop and commercialize onsolis in the u.s , resulting in a milestone of $ 2.5 million paid to us in june 2016. during 2016 , we received cumulative payments totaling $ 1.3 million which related to royalties based on product purchased in europe by mylan of breakyl . during 2016 , we received cumulative payments totaling $ 0.9 which related to royalties based on product purchased in taiwan by tty of painkyl . on december 8 , 2016 , we announced that we had entered into an agreement endo terminating endo 's licensing of rights for belbuca . the closing of the termination agreement , and the formal termination of the belbuca license to endo and closing of the transactions occurred on january 6 , 2017. on july 12 , 2017 , we , along with purdue pharma ( canada ) announced that we had signed an exclusive agreement for the licensing , distribution , marketing and sale of belbuca in canada . in return for the licensing and distribution rights to belbuca in canada , we were eligible to receive upfront and potential milestones of up to cad 4.5 million as well as royalties on net sales , including approximately cad 1.5 million ( 0.5 million cad and 1.0 million cad received august 2017 and october 2017 , respectfully ) . during 2017 , we received cumulative payments totaling $ 2.2
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 Suspicious Activity Report : in addition , and effective as of the closing , thomas w. d'alonzo , barry i. feinberg , samuel p. sears , jr. and timothy c. tyson have each resigned and retired from the board . on july 20 , 2018 , we extended an offer to dr. thomas smith , as our chief medical officer and member of our executive leadership team effective july 30 , 2018. on august 2 , 2018 , in connection with our 2018 annual meeting of stockholders , our stockholders approved , among other matters , ( i ) amending our certificate of incorporation to increase the number of authorized shares of common stock from 75,000,000 to 125,000,000 ; and ( ii ) to ratify the issuance and sale of our series b preferred stock , par value $ .001 per share , and to approve the issuance of common stock issuable upon the conversion of the series b preferred stock as required by and in accordance with nasdaq marketplace rule 5635 ( d ) . on october 29 , 2018 , we announced the appointment of james vollins as general counsel and member of our executive leadership team effective november 5 , 2018. mr. vollins serves as our chief compliance officer and corporate secretary . we also announced the enhanced title of scott plesha to president and chief commercial officer of the company . 37 on november 9 , 2018 , we filed a shelf registration statement ( as amended on january 18 , 2019 ) which registered up to $ 150 million of our securities for potential future issuance and such registration statement was became effective on february 7 , 2019. on january 15 , 2019 , we announced the appointment of terry coelho as chief financial officer . ms. coelho will also serve as our principal financial officer and principal accounting officer . ms. coelho replaced ernest de paolantonio in these positions effective as of january 15 , 2019. mr. de paolantonio will remain at our company past such date in order to allow for an orderly transition . on february 4 , 2019  we announced that a leading national managed care organization has moved belbuca into preferred status across all its commercial formularies from its previous position of not-covered effective february 1 , 2019. in addition , patients will no longer require a prior authorization to receive their belbuca script . this significant improvement in access for more than 7 million covered lives brings the total of americans with preferred access for belbuca to more than 115 million . our products and related trends our product portfolio currently consists of four products . as of the date of this report , three products are approved by the fda ; the fourth product , while we are not actively studying it at this time , we are evaluating further development opportunities . the three approved products utilize our patented bema thin film drug delivery technology . belbuca is indicated for the management of chronic pain severe enough to require daily , around-the-clock , long-term opioid treatment and for which alternative treatment options are inadequate . this product was originally licensed on a worldwide basis to endo . on october 26 , 2015 , we announced with endo that the fda approved belbuca . belbuca was launched by endo in february 2016. on december 7 , 2016 , we entered into an agreement with endo terminating endo 's licensing of rights for belbuca . this followed a strategic decision made by endo to discontinue commercial efforts in the branded pain business . on january 6 , 2017 , we announced the closing of the transaction to reacquire the license to belbuca from endo . as a result , the worldwide rights to belbuca were transferred back to us . behind a revised commercialization plan , we are leveraging our existing sales force to capitalize on commercial synergies with bunavail . this effort is a focused commercial approach targeting identified healthcare providers which we believe create the potential to incrementally grow belbuca sales without the requirement for significant resources . we also will explore other options for longer-term growth for belbuca . since the initial launch in february 2017 , we further expanded our sales force beginning in january 2018 and again in september to support the commercialization efforts . belbuca and bunavail are currently supported by a field force of approximately 113 sales representatives , thirteen regional sales managers and two area directors . as previously disclosed , the launch has been more challenging because of the increased scrutiny over the prescribing of opioids that is driven by the centers for disease control and prevention guidelines issued in march 2016. the difference that belbuca as schedule iii offers over schedule ii opioids , such as oxycodone , hydrocodone , morphine , etc . , include higher safety index , lower addiction , diversion and abuse risks accompanied by a dose-ceiling effect on respiratory depression , but not on analgesia . the approval of belbuca carries a standard post-approval requirement by the fda to conduct a study to determine the effect of belbuca on qt prolongation ( i.e . an abnormal lengthening of the heartbeat ) . also required is a study assessing the safety and efficacy of belbuca in pediatric patients and participation in a consortium with other holders of ndas for long-acting opioids to assess and better understand the risk of abuse , misuse , addiction and overdose with opioids . both studies are pending . prescription sales of belbuca have significantly increased since promotion began . bunavail was approved by the fda in june 2014 and is indicated for the treatment of opioid dependence . bunavail uses our bema technology combined with buprenorphine in tandem with naloxone , an opioid antagonist . story_separator_special_tag monthly for each product line , we prepare an internal estimate of ending inventory units in the distribution channel by adding estimated inventory in the channel at the beginning of the period , plus net product shipments for the period , less estimated prescriptions written for the period . this is done for each product line by applying a rate of historical activity for rebates , chargebacks and product returns , adjusted for relevant quantitative and qualitative factors discussed above , to the potential exposed product estimated to be in the distribution channel . in addition , we receive daily information from the wholesalers regarding their sales and actual on hand inventory levels of our products . this enables us to execute accurate provisioning procedures . product returns -consistent with industry practice , we offer contractual return rights that allow our customers to return our products within an 18-month period that begins six months prior to and ends twelve months after expiration of the products . rebates - the liability for government program rebates is calculated based on historical and current rebate redemption and utilization rates contractually submitted by each program 's administrator . price adjustments and chargebacks -our estimate of price adjustments and chargebacks are based on its estimated mix of sales to various third-party payers , which are entitled either contractually or statutorily to discounts from our listed prices of our products . if the sales mix to third-party payers is different from our estimates , we may be required to pay higher or lower total price adjustments and or chargebacks than it had estimated , and such differences may be significant . from time to time , we offer certain promotional product-related incentives to our customers . these programs include certain product incentives to pharmacy customers and other sales stocking allowances . we have voucher programs for belbuca and bunavail whereby we offer a point-of-sale subsidy to retail consumers . we estimate our liabilities for these voucher programs based on the actual redemption rates as reported to us by a third-party claims processing organization . we account for the costs of these special promotional programs as price adjustments , which are a reduction of gross revenue . prompt payment discounts -we typically offers our wholesale customers a prompt payment discount of 2 % as an incentive to remit payments within the first 30 to 37 days after the invoice date depending on the customer and the products purchased . gross to net accruals a significant majority of our gross to net adjustments to gross product revenues are the result of accruals for our voucher program and rebates related to medicare part d , the part d coverage gap , medicaid , and commercial contracts with most of those programs having an accrual to payment cycle of anywhere from one to three months . in addition to this relatively short accrual to payment cycle , we receive daily information from the wholesalers regarding their sales of our products and actual on hand inventory levels of its products . this enables us to execute accurate provisioning procedures . consistent with the pharmaceutical industry , the accrual to payment cycle for returns is longer and can take several years depending on the expiration of the related products . prior to january 2017 , we were recording sales when prescriptions were filled . however , beginning in january 1 , 2017 , we began recording revenue based on a sell-in method , as we now have achieved the ability to record sales ex-factory . license and development agreements we periodically enter into license and development agreements to develop and commercialize our products . the arrangements typically are multi-deliverable arrangements that are funded through upfront payments , milestone payments and other forms of payment . depending on the nature of the contract these revenues are classified as research and development reimbursements or contract revenue . 42 product royalty revenues product royalty revenue amounts are based on a percentage of net sales revenue of the onsolis product under our license agreement with mylan . product royalty revenues are computed on a quarterly basis when revenues are fixed or determinable , collectability is reasonably assured , and all other revenue recognition criteria are met . mylan has the right to reject products that do not comply with product , packaging , or regulatory specifications . defective product must be identified by mylan within 10 days after inspection at mylan 's distribution site . we bill mylan immediately upon receipt by mylan of product ( fob manufacturer ) . on a quarterly basis , a reconciliation is prepared that reflects the difference between actual net sales by mylan multiplied by the royalty percentage , and the actual royalty payments made during the quarter ( which is based on a transfer price at the time we invoice mylan ) . the parties true-up the differences within 45 days of each quarter-end . cost of sales cost of sales includes direct costs attributable to the production of belbuca , bunavail , breakyl and painkyl . cost of sales also includes royalty expenses owed to third parties . for belbuca and bunavail , cost of sales includes raw materials , production costs at our contract manufacturing sites , quality testing directly related to the product , lower of cost of market and depreciation on equipment that we have purchased to produce belbuca and bunavail . it also includes any batches not meeting specifications and raw material yield loss . beginning january 1 , 2017 , cost of sales for belbuca and bunavail were recognized when sold to the wholesaler from our distribution center . there was no deferred cost of sales for the years ended december 31 , 2017 nor 2018. yield losses and batches not meeting specifications are expensed as incurred . for breakyl and painkyl , we do not take ownership of the subject product as we do not have inventory . accordingly , raw material

