our most advanced investigational clinical programs include : etrasimod , which we are evaluating in a phase 3 program for ulcerative colitis , or uc , a phase 2b/3 program for crohn 's disease , or cd , and a phase 2b program in atopic dermatitis , or ad . we also plan to evaluate etrasimod in a phase 2b program for eosinophilic esophagitis , or eoe , and a phase 2 program in alopecia areata , or aa . olorinab , which we are evaluating for a broad range of visceral pain conditions associated with gastrointestinal diseases and is currently in a phase 2b trial for treatment of abdominal pain associated with irritable bowel syndrome , or ibs . apd418 , which we are evaluating in a phase 1 trial for acute heart failure , or ahf . we continue to leverage our two decades of world-class g-protein-coupled receptor , or gpcr , target discovery research to develop breakthrough drugs and ultimately deliver these to patients with large unmet needs . our long-term pipeline prospects include an enhanced collaboration with beacon discovery across a broad range of immune-mediated inflammatory targets and compounds and the buildout of arena neuroscience to focus on treating neurological conditions with microglial neuroinflammation . we have license agreements or collaborations with various companies , including : united therapeutics ( ralinepag in a phase 3 program for pulmonary arterial hypertension ) , everest medicines limited ( etrasimod in greater china and select countries in asia ) , beacon discovery ( early research platform for gpcr targets ) , boehringer ingelheim international gmbh ( undisclosed orphan gpcr program for central nervous system – preclinical ) , and eisai co. , ltd. and eisai inc. , collectively , eisai ( belviq®/belviq xr® ) . program development update . in january 2020 , we announced acceptance of our investigational new drug application and were granted fast track designation for apd418 . we have initiated a phase 1 clinical trial . in december 2019 , we initiated our phase 2/3 program to evaluate etrasimod in crohn 's disease . the program consists of a phase 2 dose ranging trial that is intended to provide an operationally seamless transition into the phase 3. cultivate is a phase 2b dose-ranging multicenter , randomized , double-blinded , placebo-controlled study to assess the safety and efficacy of once-daily etrasimod in subjects with moderate to severely active crohn 's disease . the primary efficacy endpoint in the cultivate trial will be endoscopic response at week 14 , in addition to a variety of scales of crohn 's disease activity , including abdominal pain and stool 48 frequency . the cultivate trial aims to enroll approximately 225 patients in study sites globally . the phase 3 will include two induction trials with re-randomization of clinical responders into a single maintenanc e trial . in october 2019 , we announced that the first subject has been dosed in the phase 2 advise trial evaluating two dose levels etrasimod in development for the treatment of ad . advise is a multicenter , randomized , double-blinded , placebo-controlled 16-week study ( with a 52-week open-label extension ) to assess the safety and efficacy of once-daily etrasimod in approximately 120 subjects with moderate-to-severe ad . in july 2019 , we announced the first subject dosed in the phase 2 captivate trial evaluating olorinab in development for the treatment of visceral pain associated with ibs . the trial will evaluate the efficacy and safety of three dose levels of olorinab for 12-weeks in approximately 240 subjects experiencing abdominal pain associated with ibs , including ibs with constipation or ibs with diarrhea . captivate is a phase 2 , multi-center , randomized , double-blind , placebo-controlled , 12-week study . we expect data in the second half of 2020. in june 2019 , we announced that the first subject has been dosed in elevate uc 52 , the first of two planned pivotal trials within the phase 3 elevate uc registrational program evaluating etrasimod 2 mg in subjects with moderately to severely active ulcerative colitis . elevate uc 52 is a treat-through trial with a 12-week induction period followed by 40 weeks of maintenance . collaborations and license agreement update . in october 2019 , everest announced that the first subject has been dosed in a phase 3 trial evaluating etrasimod in development for the treatment of ulcerative colitis in greater china and south korea . everest paid us a $ 5.0 million milestone payment earned from this achievement . other corporate events . in january 2019 , we announced that steven spector , our executive vice president , general counsel and secretary , will retire from his positions with arena in march 2020. joan schmidt was appointed as executive vice president , general counsel and secretary and will join arena in march 2020. in general , developing drugs and obtaining marketing approval is a long , uncertain and expensive process , and our ability to execute on our plans and achieve our goals depends on numerous factors , many of which we do not control . to date , we have generated limited revenues . we expect to continue to incur substantial net losses for at least the short term as we advance our clinical development programs and support our collaborators . see the above “ business ” section for a more complete discussion of our business . results of operations we are providing the following summary of our revenues , research and development expenses and general and administrative expenses to supplement the more detailed discussion below . story_separator_special_tag iv ) allocate the transaction price to performance obligations in the contract . if the contract contains a single performance obligation , the entire transaction price is allocated to that performance obligation . contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price . v ) recognize revenue when or as we satisfy a performance obligation . revenue is recognized at the time the related performance obligation is satisfied by transferring the promised goods or services to a customer . we recognize revenue when we transfer control of the goods or services to our customers for an amount that reflects the consideration that we expect to receive in exchange for those services . performance obligations . the following is a description of principal goods and services from which we generate revenue . intellectual property licenses we generate revenue from licensing our intellectual property including know-how and development and commercialization rights . these licenses provide customers with a term-based license to further research , develop and commercialize our internally- 54 discovered drug candidates . the consideration we receive in the form of nonrefundable upfront consideration related to the functional intellectual property licenses is recognized when we transfer such license to the customer unless the license is combined with other goods or services into one performance obligation , in which case the revenue is recognized over a period of tim e based on our estimated pattern in which we satisfy the combined performance obligation . our licensing agreements are generally cancelable . customers have the right to terminate their contracts upon notice . we have the right to terminate the contracts gen erally only if the customer is in breach of the contract and fails to remedy the breach in accordance with the contractual terms . intellectual property sales we generate royalty revenue from sales of our intellectual property . we estimate the future royalty payments and recognize revenue with a corresponding contract asset at a point in time when we transfer the intellectual property to the customer . we periodically reassess our estimate of the future royalty payments and recognize any estimate adjustments as revenue in the current period . research , development and regulatory services we generate revenue from research , development and regulatory services we provide to our customers in connection with the licensed intellectual property . the services we provide to our customers primarily include scientific research activities , preparation for and management of clinical trials , and assistance during the regulatory approval application process . revenue associated with these services is recognized based on our estimate of total consideration to be received for such services and the pattern in which we perform the services . the pattern of performance is generally determined to be the amount of incurred expenses reimbursed by the customer as a percentage of total expected reimbursable expenses associated with the contract . clinical trial expenses . we accrue clinical trial expenses based on work performed . in determining the amount to accrue , we rely on estimates of total costs incurred based on enrollment , the completion of trials and other events . we follow this method because we believe reasonably dependable estimates of the costs applicable to various stages of a clinical trial can be made . however , the actual costs and timing of clinical trials are uncertain , subject to risks and may change depending on a number of factors . differences between the actual clinical trial costs and the estimated clinical trial costs that we have accrued in any prior period are recognized in the subsequent period in which the actual costs become known . historically , these differences have not been material ; however , material differences could occur in the future . share-based compensation . our share-based awards are measured at fair value and recognized over the requisite service or performance period . we estimate the fair value of each stock option on the date of grant using the black-scholes option pricing model which requires the input of subjective assumptions , including price volatility of the underlying stock , risk-free interest rate , dividend yield , and expected life of the option . expected volatility is computed using historical volatility for a period equal to the expected term . the expected term of options is determined based on historical experience of similar awards , giving consideration to the contractual terms of the share-based awards , vesting schedules and post-vesting terminations . the risk-free interest rates are based on the us treasury yield curve , with a remaining term approximately equal to the expected term used in the option pricing model . we account for the forfeitures in the period they occur . the fair value of each restricted stock unit award is determined based on the market price of the underlying common stock on the date of the grant . we estimate the fair value of restricted stock unit awards that include market-based performance conditions on the date of grant using a monte carlo simulation model , based on the market price of the underlying common stock , expected performance measurement period , expected stock price volatility and expected risk-free interest rate . income taxes . significant judgment is required by management to determine our provision for income taxes , our deferred tax assets and liabilities , and the valuation allowance to record against our net deferred tax assets , which are based on complex and evolving tax regulations throughout the world . our tax calculation is impacted by tax rates in the jurisdictions in which we are subject to tax and the relative amount of income earned in each jurisdiction . our deferred tax assets and liabilities are determined using the enacted tax rates expected to be in effect for the years in which those tax assets are expected to be realized . the effect of an uncertain income tax position is

short term liquidity at december 31 , 2019 , we had $ 1.1 billion in cash and cash equivalents , and available-for-sale investments . our potential sources of liquidity in the short term include ( i ) milestone and other payments from collaborators , ( ii ) entering into new collaboration , licensing or commercial agreements for one or more of our drug candidates or programs , ( iii ) the lease of our facilities or sale of other assets and ( iv ) sale of equity , issuance of debt or other transactions . long term liquidity it will require substantial cash to achieve our objectives of discovering , developing and commercializing drugs , and this process typically takes many years and potentially several hundreds of millions of dollars for an individual drug . we may not have adequate available cash , or assets that could be readily turned into cash , to meet these objectives in the long term . we will need to obtain significant funds under our existing collaborations , under new collaboration , licensing or other commercial agreements for one or more of our drug candidates and programs or patent portfolios , or from other potential sources of liquidity , which may include the sale of equity , issuance of debt or other transactions . in addition to potential payments from our current collaborators , as well as funds from public and private financial markets , potential sources of liquidity in the long term include ( i ) upfront , milestone , royalty and other payments from any future collaborators or licensees and ( ii ) revenues from sales of any drugs we obtain regulatory approval to commercialize on our own .


 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.
     ```short term liquidity at december 31 , 2019 , we had $ 1.1 billion in cash and cash equivalents , and available-for-sale investments . our potential sources of liquidity in the short term include ( i ) milestone and other payments from collaborators , ( ii ) entering into new collaboration , licensing or commercial agreements for one or more of our drug candidates or programs , ( iii ) the lease of our facilities or sale of other assets and ( iv ) sale of equity , issuance of debt or other transactions . long term liquidity it will require substantial cash to achieve our objectives of discovering , developing and commercializing drugs , and this process typically takes many years and potentially several hundreds of millions of dollars for an individual drug . we may not have adequate available cash , or assets that could be readily turned into cash , to meet these objectives in the long term . we will need to obtain significant funds under our existing collaborations , under new collaboration , licensing or other commercial agreements for one or more of our drug candidates and programs or patent portfolios , or from other potential sources of liquidity , which may include the sale of equity , issuance of debt or other transactions . in addition to potential payments from our current collaborators , as well as funds from public and private financial markets , potential sources of liquidity in the long term include ( i ) upfront , milestone , royalty and other payments from any future collaborators or licensees and ( ii ) revenues from sales of any drugs we obtain regulatory approval to commercialize on our own .
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 Suspicious Activity Report : our most advanced investigational clinical programs include : etrasimod , which we are evaluating in a phase 3 program for ulcerative colitis , or uc , a phase 2b/3 program for crohn 's disease , or cd , and a phase 2b program in atopic dermatitis , or ad . we also plan to evaluate etrasimod in a phase 2b program for eosinophilic esophagitis , or eoe , and a phase 2 program in alopecia areata , or aa . olorinab , which we are evaluating for a broad range of visceral pain conditions associated with gastrointestinal diseases and is currently in a phase 2b trial for treatment of abdominal pain associated with irritable bowel syndrome , or ibs . apd418 , which we are evaluating in a phase 1 trial for acute heart failure , or ahf . we continue to leverage our two decades of world-class g-protein-coupled receptor , or gpcr , target discovery research to develop breakthrough drugs and ultimately deliver these to patients with large unmet needs . our long-term pipeline prospects include an enhanced collaboration with beacon discovery across a broad range of immune-mediated inflammatory targets and compounds and the buildout of arena neuroscience to focus on treating neurological conditions with microglial neuroinflammation . we have license agreements or collaborations with various companies , including : united therapeutics ( ralinepag in a phase 3 program for pulmonary arterial hypertension ) , everest medicines limited ( etrasimod in greater china and select countries in asia ) , beacon discovery ( early research platform for gpcr targets ) , boehringer ingelheim international gmbh ( undisclosed orphan gpcr program for central nervous system – preclinical ) , and eisai co. , ltd. and eisai inc. , collectively , eisai ( belviq®/belviq xr® ) . program development update . in january 2020 , we announced acceptance of our investigational new drug application and were granted fast track designation for apd418 . we have initiated a phase 1 clinical trial . in december 2019 , we initiated our phase 2/3 program to evaluate etrasimod in crohn 's disease . the program consists of a phase 2 dose ranging trial that is intended to provide an operationally seamless transition into the phase 3. cultivate is a phase 2b dose-ranging multicenter , randomized , double-blinded , placebo-controlled study to assess the safety and efficacy of once-daily etrasimod in subjects with moderate to severely active crohn 's disease . the primary efficacy endpoint in the cultivate trial will be endoscopic response at week 14 , in addition to a variety of scales of crohn 's disease activity , including abdominal pain and stool 48 frequency . the cultivate trial aims to enroll approximately 225 patients in study sites globally . the phase 3 will include two induction trials with re-randomization of clinical responders into a single maintenanc e trial . in october 2019 , we announced that the first subject has been dosed in the phase 2 advise trial evaluating two dose levels etrasimod in development for the treatment of ad . advise is a multicenter , randomized , double-blinded , placebo-controlled 16-week study ( with a 52-week open-label extension ) to assess the safety and efficacy of once-daily etrasimod in approximately 120 subjects with moderate-to-severe ad . in july 2019 , we announced the first subject dosed in the phase 2 captivate trial evaluating olorinab in development for the treatment of visceral pain associated with ibs . the trial will evaluate the efficacy and safety of three dose levels of olorinab for 12-weeks in approximately 240 subjects experiencing abdominal pain associated with ibs , including ibs with constipation or ibs with diarrhea . captivate is a phase 2 , multi-center , randomized , double-blind , placebo-controlled , 12-week study . we expect data in the second half of 2020. in june 2019 , we announced that the first subject has been dosed in elevate uc 52 , the first of two planned pivotal trials within the phase 3 elevate uc registrational program evaluating etrasimod 2 mg in subjects with moderately to severely active ulcerative colitis . elevate uc 52 is a treat-through trial with a 12-week induction period followed by 40 weeks of maintenance . collaborations and license agreement update . in october 2019 , everest announced that the first subject has been dosed in a phase 3 trial evaluating etrasimod in development for the treatment of ulcerative colitis in greater china and south korea . everest paid us a $ 5.0 million milestone payment earned from this achievement . other corporate events . in january 2019 , we announced that steven spector , our executive vice president , general counsel and secretary , will retire from his positions with arena in march 2020. joan schmidt was appointed as executive vice president , general counsel and secretary and will join arena in march 2020. in general , developing drugs and obtaining marketing approval is a long , uncertain and expensive process , and our ability to execute on our plans and achieve our goals depends on numerous factors , many of which we do not control . to date , we have generated limited revenues . we expect to continue to incur substantial net losses for at least the short term as we advance our clinical development programs and support our collaborators . see the above “ business ” section for a more complete discussion of our business . results of operations we are providing the following summary of our revenues , research and development expenses and general and administrative expenses to supplement the more detailed discussion below . story_separator_special_tag iv ) allocate the transaction price to performance obligations in the contract . if the contract contains a single performance obligation , the entire transaction price is allocated to that performance obligation . contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price . v ) recognize revenue when or as we satisfy a performance obligation . revenue is recognized at the time the related performance obligation is satisfied by transferring the promised goods or services to a customer . we recognize revenue when we transfer control of the goods or services to our customers for an amount that reflects the consideration that we expect to receive in exchange for those services . performance obligations . the following is a description of principal goods and services from which we generate revenue . intellectual property licenses we generate revenue from licensing our intellectual property including know-how and development and commercialization rights . these licenses provide customers with a term-based license to further research , develop and commercialize our internally- 54 discovered drug candidates . the consideration we receive in the form of nonrefundable upfront consideration related to the functional intellectual property licenses is recognized when we transfer such license to the customer unless the license is combined with other goods or services into one performance obligation , in which case the revenue is recognized over a period of tim e based on our estimated pattern in which we satisfy the combined performance obligation . our licensing agreements are generally cancelable . customers have the right to terminate their contracts upon notice . we have the right to terminate the contracts gen erally only if the customer is in breach of the contract and fails to remedy the breach in accordance with the contractual terms . intellectual property sales we generate royalty revenue from sales of our intellectual property . we estimate the future royalty payments and recognize revenue with a corresponding contract asset at a point in time when we transfer the intellectual property to the customer . we periodically reassess our estimate of the future royalty payments and recognize any estimate adjustments as revenue in the current period . research , development and regulatory services we generate revenue from research , development and regulatory services we provide to our customers in connection with the licensed intellectual property . the services we provide to our customers primarily include scientific research activities , preparation for and management of clinical trials , and assistance during the regulatory approval application process . revenue associated with these services is recognized based on our estimate of total consideration to be received for such services and the pattern in which we perform the services . the pattern of performance is generally determined to be the amount of incurred expenses reimbursed by the customer as a percentage of total expected reimbursable expenses associated with the contract . clinical trial expenses . we accrue clinical trial expenses based on work performed . in determining the amount to accrue , we rely on estimates of total costs incurred based on enrollment , the completion of trials and other events . we follow this method because we believe reasonably dependable estimates of the costs applicable to various stages of a clinical trial can be made . however , the actual costs and timing of clinical trials are uncertain , subject to risks and may change depending on a number of factors . differences between the actual clinical trial costs and the estimated clinical trial costs that we have accrued in any prior period are recognized in the subsequent period in which the actual costs become known . historically , these differences have not been material ; however , material differences could occur in the future . share-based compensation . our share-based awards are measured at fair value and recognized over the requisite service or performance period . we estimate the fair value of each stock option on the date of grant using the black-scholes option pricing model which requires the input of subjective assumptions , including price volatility of the underlying stock , risk-free interest rate , dividend yield , and expected life of the option . expected volatility is computed using historical volatility for a period equal to the expected term . the expected term of options is determined based on historical experience of similar awards , giving consideration to the contractual terms of the share-based awards , vesting schedules and post-vesting terminations . the risk-free interest rates are based on the us treasury yield curve , with a remaining term approximately equal to the expected term used in the option pricing model . we account for the forfeitures in the period they occur . the fair value of each restricted stock unit award is determined based on the market price of the underlying common stock on the date of the grant . we estimate the fair value of restricted stock unit awards that include market-based performance conditions on the date of grant using a monte carlo simulation model , based on the market price of the underlying common stock , expected performance measurement period , expected stock price volatility and expected risk-free interest rate . income taxes . significant judgment is required by management to determine our provision for income taxes , our deferred tax assets and liabilities , and the valuation allowance to record against our net deferred tax assets , which are based on complex and evolving tax regulations throughout the world . our tax calculation is impacted by tax rates in the jurisdictions in which we are subject to tax and the relative amount of income earned in each jurisdiction . our deferred tax assets and liabilities are determined using the enacted tax rates expected to be in effect for the years in which those tax assets are expected to be realized . the effect of an uncertain income tax position is

