when used in this section , words such as “ anticipate , ” “ believe , ” “ estimate , ” “ expect , ” “ intend ” and similar expressions , as they relate to our management , identify forward-looking statements . such forward-looking statements are based on the beliefs of management , as well as assumptions made by , and information currently available to , our management . actual results could differ materially from those contemplated by the forward- looking statements as a result of certain factors detailed herein . all subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph . some of the information contained in this discussion and analysis or set forth elsewhere , including information with respect to our plans and strategy for our business include forward-looking statements that involve risks , uncertainties and assumptions . you should read the sections titled “ cautionary note regarding forward-looking statements ” and “ risk factors ” for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis . company overview we are a clinical-stage biopharmaceutical company that discovers , develops and seeks to commercialize next-generation therapeutics for diseases representing significant unmet medical needs and burden to society , patients , and their families . our current pipeline focuses on the central nervous system , respiratory , and metabolic diseases . we use a chemical genomics driven technology platform and proprietary chemistry to develop new medicines . our pipeline currently has two drug candidates , rp5063 ( brilaroxazine ) and rp1208 . both are new chemical entities discovered in-house . we have been granted composition of matter patents for both rp5063 and r1208 in the united states ( u.s. ) , europe , and several other countries . our lead drug candidate , rp5063 , is ready for continued clinical development for multiple neuropsychiatric indications . these include schizophrenia , bipolar disorder ( bd ) , major depressive disorder ( mdd ) , behavioral and psychotic symptoms , dementia or alzheimer 's disease ( bpsd ) , parkinson 's disease psychosis ( pdp ) , and attention deficit hyperactivity disorder ( adhd ) . furthermore , rp5063 is also ready for clinical development for two respiratory indications — pulmonary arterial hypertension ( pah ) and idiopathic pulmonary fibrosis ( ipf ) . the u.s. food and drug administration ( fda ) has granted orphan drug designation to rp5063 for the treatment of pah in november 2016 and ipf in april 2018 . 60 our primary focus is to complete the clinical development of rp5063 for the treatment of acute and maintenance schizophrenia . subject to the receipt of additional financing , we may also continue the clinical development of rp5063 for the treatment of bd , mdd , bpsd , pdp , adhd , pah and ipf . moreover , subject to the receipt of additional financing , we may also advance the development of our second drug candidate , rp1208 , for the treatment of depression and obesity . impact of covid-19 in response to the spread of covid-19 , we have taken temporary precautionary measures intended to help minimize the risk of the virus to our employees and community , including temporarily requiring employees to work remotely and suspending all non-essential travel for our employees . as a result of the covid-19 pandemic , we may experience disruptions that could adversely impact our business . the covid-19 pandemic may negatively affect clinical site initiation , patient recruitment and enrollment , patient dosing , distribution of drug to clinical sites and clinical trial monitoring for our clinical trials . the covid-19 pandemic may also negatively affect the operations of the third-party contract research organizations that we intend to rely upon to assist us in conducting our clinical trials and the contract manufacturers who manufacture our drug candidates . we are continuing to assess the potential impact of the covid-19 pandemic on our business and operations . for additional information on the various risks posed by the covid-19 pandemic , refer to part i—item 1a—risk factors of this annual report on form 10-k. business combination and domestication on december 14 , 2020 , our predecessor company , formerly known as tenzing acquisition corp. , a british virgin islands exempted company ( “ tenzing ” ) , and reviva pharmaceuticals , inc. , a delaware corporation ( together with its consolidated subsidiaries , “ old reviva ” ) , consummated the transactions contemplated by the agreement and plan of merger , dated as of july 20 , 2020 ( as amended , the “ merger agreement ” ) , by and among tenzing , tenzing merger subsidiary inc. , a delaware corporation and wholly-owned subsidiary of tenzing ( “ merger sub ” ) , old reviva , and the other parties thereto . pursuant to the merger agreement , merger sub merged with and into old reviva , with old reviva surviving as our wholly owned subsidiary . we refer to this transaction as the business combination . in connection with and one day prior to the completion of the business combination , tenzing re-domiciled out of the british virgin islands and continued as a company incorporated in the state of delaware , and changed its name to reviva pharmaceuticals holdings , inc. prior to the completion of the business combination , the company was a shell company . following the business combination , the business of old reviva is the business of the company . story_separator_special_tag the company provides a valuation allowance , if necessary , to reduce deferred tax assets to their estimated realizable value . in evaluating the ability recover its deferred income tax assets , the company considers all available positive and negative evidence , including its opening results , ongoing tax planning , and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis . the company generated a deferred tax asset through net operating loss carry-forward . however , a valuation allowance of 100 % has been established due to the uncertainty of the company 's realization of the net operating loss carry forward prior to its expiration . in the event the company determines that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount , it would make an adjustment to the valuation allowance that would reduce the provision for income taxes . conversely , in the event that all or part of the net deferred tax assets are determined not to be realizable in the future , an adjustment to the valuation allowance would be charged to earnings in the period such determination is made . 65 fair value measurements of warrants asc 820 “ fair value measurements ” defines fair value , establishes a framework for measuring fair value in gaap and expands disclosures about fair value measurements . asc 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . asc 820 establishes a fair value hierarchy that distinguishes between ( 1 ) market participant assumptions developed based on market data obtained from independent sources ( observable inputs ) and ( 2 ) an entity 's own assumptions about market participant assumptions developed based on the best information available in the circumstances ( unobservable inputs ) . the fair value hierarchy consists of three broad levels , which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ( level 1 ) and the lowest priority to unobservable inputs ( level 3 ) . the three levels of the fair value hierarchy under asc 820 are described below : ● level 1 — quoted prices ( unadjusted ) in active markets that are accessible at the measurement date for assets or liabilities . the fair value hierarchy gives the highest priority to level 1 inputs . ● level 2 — directly or indirectly observable inputs as of the reporting date through correlation with market data , including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active . level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models , such as interest rates and volatility factors , are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument . ● level 3 — unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment . these values are generally determined using pricing models for which the assumptions utilize management 's estimates of market participant assumptions . in determining the fair value of warrants , the company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value . beneficial conversion features in accordance with fasb asc 470-20 , “ debt with conversion and other options ” the company records a beneficial conversion feature ( “ bcf ” ) related to the issuance of convertible debt or preferred stock instruments that have conversion features at fixed rates that are in-the-money when issued . the bcf for the convertible instruments is recognized and measured by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital . the intrinsic value is generally calculated at the commitment date as the difference between the conversion price and the fair value of the common stock or other securities into which the security is convertible , multiplied by the number of shares into which the security is convertible . if certain other securities are issued with the convertible security , the proceeds are allocated among the different components . the portion of the proceeds allocated to the convertible security is divided by the contractual number of the conversion shares to determine the effective conversion price , which is used to measure the bcf . the effective conversion price is used to compute the intrinsic value . the value of the bcf is limited to the basis that is initially allocated to the convertible security . results of operations comparison of the years ended december 31 , 2020 and 2019 : the following table summarizes our results of operation for the years ended december 31 , 2020 and 2019 : replace_table_token_1_th research & development expenses we incurred approximately $ 295,000 and $ 196,000 in research and development expenses for the years ended december 31 , 2020 and 2019 , respectively . the primary reason for the increase or $ 99,000 , or 51 % , was due to higher salary expenditures and increased consulting and drug development costs . our research and development expenses are expected to increase for the foreseeable future as we continue to advance our platform and product candidates . general administrative expenses for the years ended december 31 , 2020 and 2019 , we incurred approximately $ 2.1 million and $ 181,000 in general and administrative expenses . the increase of $ 2.0 million , or 1,081 % , was due to warrant expense of approximately $ 1,125,000 , $ 345,000 attributable to the increased use

liquidity and capital resources as of december 31 , 2020 , we had cash and cash equivalents of approximately $ 8.8 million . we expect to continue to incur significant expenses and operating losses for the foreseeable future as we continue our research and preclinical and clinical development of our product candidates ; expand the scope of our current studies for our product candidates ; initiate additional preclinical , clinical or other studies for our product candidates ; change or add additional manufacturers or suppliers ; seek regulatory and marketing approvals for any of our product candidates that successfully complete clinical studies ; seek to identify , evaluate and validate additional product candidates ; acquire or in-license other product candidates and technologies ; maintain , protect and expand our intellectual property portfolio ; attract and retain skilled personnel ; and experience any delays or encounter issues with any of the above . until such time as we can generate substantial product revenue , if ever , we expect to finance our cash needs through a combination of equity or debt financings and collaboration agreements . we do not currently have any committed external sources of capital . to the extent that we raise additional capital through the future sale of equity or debt , the ownership interest of our stockholders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our existing stockholders .


 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 as of december 31 , 2020 , we had cash and cash equivalents of approximately $ 8.8 million . we expect to continue to incur significant expenses and operating losses for the foreseeable future as we continue our research and preclinical and clinical development of our product candidates ; expand the scope of our current studies for our product candidates ; initiate additional preclinical , clinical or other studies for our product candidates ; change or add additional manufacturers or suppliers ; seek regulatory and marketing approvals for any of our product candidates that successfully complete clinical studies ; seek to identify , evaluate and validate additional product candidates ; acquire or in-license other product candidates and technologies ; maintain , protect and expand our intellectual property portfolio ; attract and retain skilled personnel ; and experience any delays or encounter issues with any of the above . until such time as we can generate substantial product revenue , if ever , we expect to finance our cash needs through a combination of equity or debt financings and collaboration agreements . we do not currently have any committed external sources of capital . to the extent that we raise additional capital through the future sale of equity or debt , the ownership interest of our stockholders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our existing stockholders .
```    
 Suspicious Activity Report : when used in this section , words such as “ anticipate , ” “ believe , ” “ estimate , ” “ expect , ” “ intend ” and similar expressions , as they relate to our management , identify forward-looking statements . such forward-looking statements are based on the beliefs of management , as well as assumptions made by , and information currently available to , our management . actual results could differ materially from those contemplated by the forward- looking statements as a result of certain factors detailed herein . all subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph . some of the information contained in this discussion and analysis or set forth elsewhere , including information with respect to our plans and strategy for our business include forward-looking statements that involve risks , uncertainties and assumptions . you should read the sections titled “ cautionary note regarding forward-looking statements ” and “ risk factors ” for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis . company overview we are a clinical-stage biopharmaceutical company that discovers , develops and seeks to commercialize next-generation therapeutics for diseases representing significant unmet medical needs and burden to society , patients , and their families . our current pipeline focuses on the central nervous system , respiratory , and metabolic diseases . we use a chemical genomics driven technology platform and proprietary chemistry to develop new medicines . our pipeline currently has two drug candidates , rp5063 ( brilaroxazine ) and rp1208 . both are new chemical entities discovered in-house . we have been granted composition of matter patents for both rp5063 and r1208 in the united states ( u.s. ) , europe , and several other countries . our lead drug candidate , rp5063 , is ready for continued clinical development for multiple neuropsychiatric indications . these include schizophrenia , bipolar disorder ( bd ) , major depressive disorder ( mdd ) , behavioral and psychotic symptoms , dementia or alzheimer 's disease ( bpsd ) , parkinson 's disease psychosis ( pdp ) , and attention deficit hyperactivity disorder ( adhd ) . furthermore , rp5063 is also ready for clinical development for two respiratory indications — pulmonary arterial hypertension ( pah ) and idiopathic pulmonary fibrosis ( ipf ) . the u.s. food and drug administration ( fda ) has granted orphan drug designation to rp5063 for the treatment of pah in november 2016 and ipf in april 2018 . 60 our primary focus is to complete the clinical development of rp5063 for the treatment of acute and maintenance schizophrenia . subject to the receipt of additional financing , we may also continue the clinical development of rp5063 for the treatment of bd , mdd , bpsd , pdp , adhd , pah and ipf . moreover , subject to the receipt of additional financing , we may also advance the development of our second drug candidate , rp1208 , for the treatment of depression and obesity . impact of covid-19 in response to the spread of covid-19 , we have taken temporary precautionary measures intended to help minimize the risk of the virus to our employees and community , including temporarily requiring employees to work remotely and suspending all non-essential travel for our employees . as a result of the covid-19 pandemic , we may experience disruptions that could adversely impact our business . the covid-19 pandemic may negatively affect clinical site initiation , patient recruitment and enrollment , patient dosing , distribution of drug to clinical sites and clinical trial monitoring for our clinical trials . the covid-19 pandemic may also negatively affect the operations of the third-party contract research organizations that we intend to rely upon to assist us in conducting our clinical trials and the contract manufacturers who manufacture our drug candidates . we are continuing to assess the potential impact of the covid-19 pandemic on our business and operations . for additional information on the various risks posed by the covid-19 pandemic , refer to part i—item 1a—risk factors of this annual report on form 10-k. business combination and domestication on december 14 , 2020 , our predecessor company , formerly known as tenzing acquisition corp. , a british virgin islands exempted company ( “ tenzing ” ) , and reviva pharmaceuticals , inc. , a delaware corporation ( together with its consolidated subsidiaries , “ old reviva ” ) , consummated the transactions contemplated by the agreement and plan of merger , dated as of july 20 , 2020 ( as amended , the “ merger agreement ” ) , by and among tenzing , tenzing merger subsidiary inc. , a delaware corporation and wholly-owned subsidiary of tenzing ( “ merger sub ” ) , old reviva , and the other parties thereto . pursuant to the merger agreement , merger sub merged with and into old reviva , with old reviva surviving as our wholly owned subsidiary . we refer to this transaction as the business combination . in connection with and one day prior to the completion of the business combination , tenzing re-domiciled out of the british virgin islands and continued as a company incorporated in the state of delaware , and changed its name to reviva pharmaceuticals holdings , inc. prior to the completion of the business combination , the company was a shell company . following the business combination , the business of old reviva is the business of the company . story_separator_special_tag the company provides a valuation allowance , if necessary , to reduce deferred tax assets to their estimated realizable value . in evaluating the ability recover its deferred income tax assets , the company considers all available positive and negative evidence , including its opening results , ongoing tax planning , and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis . the company generated a deferred tax asset through net operating loss carry-forward . however , a valuation allowance of 100 % has been established due to the uncertainty of the company 's realization of the net operating loss carry forward prior to its expiration . in the event the company determines that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount , it would make an adjustment to the valuation allowance that would reduce the provision for income taxes . conversely , in the event that all or part of the net deferred tax assets are determined not to be realizable in the future , an adjustment to the valuation allowance would be charged to earnings in the period such determination is made . 65 fair value measurements of warrants asc 820 “ fair value measurements ” defines fair value , establishes a framework for measuring fair value in gaap and expands disclosures about fair value measurements . asc 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . asc 820 establishes a fair value hierarchy that distinguishes between ( 1 ) market participant assumptions developed based on market data obtained from independent sources ( observable inputs ) and ( 2 ) an entity 's own assumptions about market participant assumptions developed based on the best information available in the circumstances ( unobservable inputs ) . the fair value hierarchy consists of three broad levels , which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ( level 1 ) and the lowest priority to unobservable inputs ( level 3 ) . the three levels of the fair value hierarchy under asc 820 are described below : ● level 1 — quoted prices ( unadjusted ) in active markets that are accessible at the measurement date for assets or liabilities . the fair value hierarchy gives the highest priority to level 1 inputs . ● level 2 — directly or indirectly observable inputs as of the reporting date through correlation with market data , including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active . level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models , such as interest rates and volatility factors , are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument . ● level 3 — unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment . these values are generally determined using pricing models for which the assumptions utilize management 's estimates of market participant assumptions . in determining the fair value of warrants , the company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value . beneficial conversion features in accordance with fasb asc 470-20 , “ debt with conversion and other options ” the company records a beneficial conversion feature ( “ bcf ” ) related to the issuance of convertible debt or preferred stock instruments that have conversion features at fixed rates that are in-the-money when issued . the bcf for the convertible instruments is recognized and measured by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital . the intrinsic value is generally calculated at the commitment date as the difference between the conversion price and the fair value of the common stock or other securities into which the security is convertible , multiplied by the number of shares into which the security is convertible . if certain other securities are issued with the convertible security , the proceeds are allocated among the different components . the portion of the proceeds allocated to the convertible security is divided by the contractual number of the conversion shares to determine the effective conversion price , which is used to measure the bcf . the effective conversion price is used to compute the intrinsic value . the value of the bcf is limited to the basis that is initially allocated to the convertible security . results of operations comparison of the years ended december 31 , 2020 and 2019 : the following table summarizes our results of operation for the years ended december 31 , 2020 and 2019 : replace_table_token_1_th research & development expenses we incurred approximately $ 295,000 and $ 196,000 in research and development expenses for the years ended december 31 , 2020 and 2019 , respectively . the primary reason for the increase or $ 99,000 , or 51 % , was due to higher salary expenditures and increased consulting and drug development costs . our research and development expenses are expected to increase for the foreseeable future as we continue to advance our platform and product candidates . general administrative expenses for the years ended december 31 , 2020 and 2019 , we incurred approximately $ 2.1 million and $ 181,000 in general and administrative expenses . the increase of $ 2.0 million , or 1,081 % , was due to warrant expense of approximately $ 1,125,000 , $ 345,000 attributable to the increased use

