these risks include , but are not limited to , intense competition , whether we can be successful in obtaining fda and other governmental clearance or approval for the sale of our product for all desired indications and whether there will be a demand for the viveve system , given that the cost of the procedure will likely not be reimbursed by the government or private health insurers . in addition , we will continue to require substantial funds to support our clinical trials and fund our efforts to expand regulatory clearance or approval for our products , including in the u.s. we can not be certain that any additional required financing will be available when needed or on terms which are favorable to us . as noted above , our operations to date have been primarily funded through the sales of our securities , bank term loans and loans from related parties . various factors , including our limited operating history with limited revenues to date and our limited ability to market and sell our products have resulted in limited working capital available to fund our operations . there are no assurances that we will be successful in securing additional financing in the future to fund our operations going forward . failure to generate sufficient cash flows from operations , raise additional capital or reduce certain discretionary spending could have a material adverse effect on our ability to achieve our intended business objectives . 39 recent events 2019 public offering and debt conversion in november 2019 , the company closed an underwritten public offering of units ( the “ november 2019 offering ” ) for gross proceeds of approximately $ 11,500,000 , which included the full exercise of the underwriter 's overallotment option to purchase additional shares and warrants . the net proceeds to the company , after deducting underwriting discounts and commissions and other offering expenses and payable by the company , were approximately $ 9,952,000. the offering comprised of : ( 1 ) class a units , priced at a public offering price of $ 1.55 per unit , with each unit consisting of one share of common stock , a series a warrant to purchase one share of common stock at an exercise price of $ 1.55 per share that expires on the first anniversary of the date of issuance and a series b warrant to purchase one share of common stock at an exercise price of $ 1.55 per share that expires on the fifth anniversary of the issuance ; and ( 2 ) class b units , priced at a public offering price of $ 1.55 per unit , with each unit consisting of one share of series a convertible preferred stock , convertible into one share of common stock , a series a warrant to purchase one share of common stock at an exercise price of $ 1.55 per share that expires on the first anniversary of the date of issuance and a series b warrant to purchase one share of common stock at an exercise price of $ 1.55 per share that expires on the fifth anniversary of the issuance . the securities comprising the units were immediately separable and were issued separately . a total of 1,945,943 shares of common stock , 5,497,593 shares of series a convertible preferred stock , series a warrants to purchase up to 7,419,353 shares of common stock , and series b warrants to purchase up to 7,419,353 shares of common stock were issued in the offering , including the full exercise of the over-allotment option . in november and december 2019 , the holders of series a preferred stock converted 600,000 shares and 3,021,237 shares into common stock , respectively . as of december 31 , 2019 , 1,852,173 remaining shares of series a convertible preferred stock were outstanding . in connection with the closing of the november 2019 offering , the company 's secured lender , affiliates of crg lp ( “ crg ” ) , converted approximately $ 28,981,000 of the outstanding principal amount under its term loan with crg ( plus accrued interest , the prepayment premium and the back-end fee applicable thereto ) , for an aggregate amount of converted debt obligations of approximately $ 31,300,000. the amounts converted into 31,300 shares of the newly authorized series b convertible preferred stock convertible into 20,457,516 shares of common stock following an increase in the company 's authorized stock . crg was also issued and warrants to purchase up to 9,893,776 shares of common stock exercisable following an increase in the company 's authorized stock at an exercise price of $ 1.836 per share . crg entered into a one year lock up agreement on all securities that it holds . reverse stock split the company effected a 1-for-100 reverse stock split of its common stock that became effective after the nasdaq capital market trading closed on september 18 , 2019. the reverse stock split uniformly affected all issued and outstanding shares of the company 's common stock . the reverse stock split did not alter any stockholder 's percentage ownership interest in the company , except to the extent that the reverse stock split results in fractional shares . no fractional shares were issued in connection with the reverse stock split . any fractional share that resulted from the reverse stock split was rounded down and stockholders were issued cash in lieu of such fractional share interest . the par value of the company 's common stock remained unchanged at $ 0.0001 per share after the reverse stock split . the number of authorized shares of common stock remained at 75 million . the reverse stock split proportionately affected the number of shares of common stock available for issuance under the company 's equity incentive plans . story_separator_special_tag the new u.s. commercial sales model is intended to lower up-front costs for customers and thus lower hurdles to adoption , increase placement rates , and improve profitability by significantly reducing selling time per unit . the new commercial sales model successfully increased physician adoption rates in the months following its implementation and is continuing to gain traction in the u.s. market . in december 2019 , viveve systems placed with new customers represented a higher monthly productivity rate per sales representative than any prior month in the company 's history . sale of viveve products outside of the u.s. will continue to be supported by the company 's current distributors without significant change to the international business model . 43 under the recurring revenue rental model , customers may lease the viveve system for a set initial term . after the initial term , the customer may purchase the viveve system , continue to pay a monthly rental amount or terminate the contract . the rental program is accounted for under the financial accounting standards board 's ( “ fasb ” ) accounting standards codification ( “ asc ” ) no . 2016-02 , leases ( topic 842 ) and meets the classification criteria for an operating lease . revenue from the rental program is included in revenue and is currently not a material amount . the viveve systems that are being leased are included in property and equipment , net and depreciated over their expected useful lives of 5 years . when other products ( “ non-lease components ” ) , such as single-use treatment tips or ancillary consumables , are included in the offering , the company follows the relevant guidance in asc topic 606 , revenue from contracts with customers , to determine how to allocate contractual consideration between the lease and non-lease components . strategic organizational realignment in january 2019 , the company implemented a strategic and organizational realignment plan ( the “ strategic organizational realignment ” ) to reduce operating expenses and prepare the company for expanded indications for its cmrf technology platform for improved sexual function and stress urinary incontinence in women . the strategic organizational realignment included a reduction in total headcount of approximately 40 full-time employees . it also included a nearly two-thirds reduction in the company 's direct sales organization , which has been repositioned to provide targeted market development activities to further expand awareness and adoption of viveve 's cmrf technology in the gynecology , urogynecology , and female sexual medicine specialties . the company 's current and prospective aesthetic medicine customers in the u.s. will be supported by a network of distributor partners under viveve 's direction . international commercial distribution will remain unchanged through viveve 's global network of distributor partners . the total restructuring costs for employee severance and other related termination benefits were approximately $ 742,000 and it was recorded in the quarter ended march 31 , 2019. this restructuring contributed to a reduction in our total operating expenses in the first quarter of 2019 as planned and additional operating cost savings occurred through the remainder of 2019. adoption of new accounting standard - leases the company adopted the fasb 's asc topic 842 , as of january 1 , 2019 , using the modified retrospective approach . the modified retrospective approach provides a method for recording existing leases at the beginning of the period of adoption . in addition , the company elected the package of practical expedients permitted under the transition guidance within the new standard , which among other things , allowed us to carry forward the historical lease classification and we elected the hindsight practical expedient to determine the lease term for existing leases . we determined that the renewal options for the facilities lease would be reasonably certain to be renewed and as such , included that renewal period in determining the expected lease term of that lease . the comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods . adoption of the new standard resulted in the recording of operating lease right-of-use assets of $ 629,000 and operating lease liabilities of $ 629,000 , as of january 1 , 2019. impact of the novel coronavirus as of the filing of this annual report on form 10-k , china , south korea , the united states and most other countries face the outbreak of a novel highly transmissible and pathogenic coronavirus , which has resulted in a widespread global health crisis , adversely affected general commercial activity and the economies and financial markets of many countries , and is likely to also adversely affect our business , financial condition and results of operations . the extent to which the novel coronavirus impacts us will depend on future developments , which are highly uncertain and can not be accurately predicted , including new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact , among others . plan of operation we intend to increase our sales both internationally and in the u.s. market by seeking additional regulatory clearances or approvals for the sale and distribution of our products , identifying and training qualified distributors and expanding the scope of physicians who offer the viveve system to include plastic surgeons , general surgeons , urologists , and urogynecologists . in june 2019 , we transitioned from a capital equipment sales model to a recurring revenue rental model in the u.s. market . the new u.s. commercial sales model is intended to lower up-front costs for customers and thus lower hurdles to adoption , increase placement rates , and improve profitability by significantly reducing selling time per unit . sale of viveve products outside of the u.s. will continue to be supported by our international distributors . in addition , we intend to use the strategic relationships that we have developed

liquidity and capital resources comparison of the year ended december 31 , 2019 and 2018 at december 31 , 2019 , we had accumulated deficit of $ 197.9 million , $ 13.3 million in cash and cash equivalents and working capital of $ 15.9 million . during 2019 , we raised $ 16.3 million from the sale of common stock and convertible preferred stock and warrants . however , we used $ 31.2 million in cash for operations during the year ended december 31 , 2019. as of the date our financial statements for the year ended december 31 , 2019 are issued , we did not have sufficient cash to fund our operation through march 31 , 2021 , without additional financing and , therefore , we concluded there was substantial doubt about our ability to continue as a going concern within one year after the date the financial statements are issued . management currently believes that it will be necessary for us to raise additional funding . we may obtain additional funding in the future through the issuance of our common stock , or through other equity or debt financing . the failure to raise additional funding when needed could have a material adverse effect on our business and financial condition . we may not be able to obtain additional financing as needed on acceptable terms , or at all , which may require us to reduce our operating costs and other expenditures , including reductions of personnel , salaries and capital expenditures . alternatively , or in addition to such potential measures , we may elect to implement additional cost reduction actions as we may determine are necessary and in our best interests . any such actions undertaken might limit the company 's ability to achieve its strategic objectives .


 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 comparison of the year ended december 31 , 2019 and 2018 at december 31 , 2019 , we had accumulated deficit of $ 197.9 million , $ 13.3 million in cash and cash equivalents and working capital of $ 15.9 million . during 2019 , we raised $ 16.3 million from the sale of common stock and convertible preferred stock and warrants . however , we used $ 31.2 million in cash for operations during the year ended december 31 , 2019. as of the date our financial statements for the year ended december 31 , 2019 are issued , we did not have sufficient cash to fund our operation through march 31 , 2021 , without additional financing and , therefore , we concluded there was substantial doubt about our ability to continue as a going concern within one year after the date the financial statements are issued . management currently believes that it will be necessary for us to raise additional funding . we may obtain additional funding in the future through the issuance of our common stock , or through other equity or debt financing . the failure to raise additional funding when needed could have a material adverse effect on our business and financial condition . we may not be able to obtain additional financing as needed on acceptable terms , or at all , which may require us to reduce our operating costs and other expenditures , including reductions of personnel , salaries and capital expenditures . alternatively , or in addition to such potential measures , we may elect to implement additional cost reduction actions as we may determine are necessary and in our best interests . any such actions undertaken might limit the company 's ability to achieve its strategic objectives .
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 Suspicious Activity Report : these risks include , but are not limited to , intense competition , whether we can be successful in obtaining fda and other governmental clearance or approval for the sale of our product for all desired indications and whether there will be a demand for the viveve system , given that the cost of the procedure will likely not be reimbursed by the government or private health insurers . in addition , we will continue to require substantial funds to support our clinical trials and fund our efforts to expand regulatory clearance or approval for our products , including in the u.s. we can not be certain that any additional required financing will be available when needed or on terms which are favorable to us . as noted above , our operations to date have been primarily funded through the sales of our securities , bank term loans and loans from related parties . various factors , including our limited operating history with limited revenues to date and our limited ability to market and sell our products have resulted in limited working capital available to fund our operations . there are no assurances that we will be successful in securing additional financing in the future to fund our operations going forward . failure to generate sufficient cash flows from operations , raise additional capital or reduce certain discretionary spending could have a material adverse effect on our ability to achieve our intended business objectives . 39 recent events 2019 public offering and debt conversion in november 2019 , the company closed an underwritten public offering of units ( the “ november 2019 offering ” ) for gross proceeds of approximately $ 11,500,000 , which included the full exercise of the underwriter 's overallotment option to purchase additional shares and warrants . the net proceeds to the company , after deducting underwriting discounts and commissions and other offering expenses and payable by the company , were approximately $ 9,952,000. the offering comprised of : ( 1 ) class a units , priced at a public offering price of $ 1.55 per unit , with each unit consisting of one share of common stock , a series a warrant to purchase one share of common stock at an exercise price of $ 1.55 per share that expires on the first anniversary of the date of issuance and a series b warrant to purchase one share of common stock at an exercise price of $ 1.55 per share that expires on the fifth anniversary of the issuance ; and ( 2 ) class b units , priced at a public offering price of $ 1.55 per unit , with each unit consisting of one share of series a convertible preferred stock , convertible into one share of common stock , a series a warrant to purchase one share of common stock at an exercise price of $ 1.55 per share that expires on the first anniversary of the date of issuance and a series b warrant to purchase one share of common stock at an exercise price of $ 1.55 per share that expires on the fifth anniversary of the issuance . the securities comprising the units were immediately separable and were issued separately . a total of 1,945,943 shares of common stock , 5,497,593 shares of series a convertible preferred stock , series a warrants to purchase up to 7,419,353 shares of common stock , and series b warrants to purchase up to 7,419,353 shares of common stock were issued in the offering , including the full exercise of the over-allotment option . in november and december 2019 , the holders of series a preferred stock converted 600,000 shares and 3,021,237 shares into common stock , respectively . as of december 31 , 2019 , 1,852,173 remaining shares of series a convertible preferred stock were outstanding . in connection with the closing of the november 2019 offering , the company 's secured lender , affiliates of crg lp ( “ crg ” ) , converted approximately $ 28,981,000 of the outstanding principal amount under its term loan with crg ( plus accrued interest , the prepayment premium and the back-end fee applicable thereto ) , for an aggregate amount of converted debt obligations of approximately $ 31,300,000. the amounts converted into 31,300 shares of the newly authorized series b convertible preferred stock convertible into 20,457,516 shares of common stock following an increase in the company 's authorized stock . crg was also issued and warrants to purchase up to 9,893,776 shares of common stock exercisable following an increase in the company 's authorized stock at an exercise price of $ 1.836 per share . crg entered into a one year lock up agreement on all securities that it holds . reverse stock split the company effected a 1-for-100 reverse stock split of its common stock that became effective after the nasdaq capital market trading closed on september 18 , 2019. the reverse stock split uniformly affected all issued and outstanding shares of the company 's common stock . the reverse stock split did not alter any stockholder 's percentage ownership interest in the company , except to the extent that the reverse stock split results in fractional shares . no fractional shares were issued in connection with the reverse stock split . any fractional share that resulted from the reverse stock split was rounded down and stockholders were issued cash in lieu of such fractional share interest . the par value of the company 's common stock remained unchanged at $ 0.0001 per share after the reverse stock split . the number of authorized shares of common stock remained at 75 million . the reverse stock split proportionately affected the number of shares of common stock available for issuance under the company 's equity incentive plans . story_separator_special_tag the new u.s. commercial sales model is intended to lower up-front costs for customers and thus lower hurdles to adoption , increase placement rates , and improve profitability by significantly reducing selling time per unit . the new commercial sales model successfully increased physician adoption rates in the months following its implementation and is continuing to gain traction in the u.s. market . in december 2019 , viveve systems placed with new customers represented a higher monthly productivity rate per sales representative than any prior month in the company 's history . sale of viveve products outside of the u.s. will continue to be supported by the company 's current distributors without significant change to the international business model . 43 under the recurring revenue rental model , customers may lease the viveve system for a set initial term . after the initial term , the customer may purchase the viveve system , continue to pay a monthly rental amount or terminate the contract . the rental program is accounted for under the financial accounting standards board 's ( “ fasb ” ) accounting standards codification ( “ asc ” ) no . 2016-02 , leases ( topic 842 ) and meets the classification criteria for an operating lease . revenue from the rental program is included in revenue and is currently not a material amount . the viveve systems that are being leased are included in property and equipment , net and depreciated over their expected useful lives of 5 years . when other products ( “ non-lease components ” ) , such as single-use treatment tips or ancillary consumables , are included in the offering , the company follows the relevant guidance in asc topic 606 , revenue from contracts with customers , to determine how to allocate contractual consideration between the lease and non-lease components . strategic organizational realignment in january 2019 , the company implemented a strategic and organizational realignment plan ( the “ strategic organizational realignment ” ) to reduce operating expenses and prepare the company for expanded indications for its cmrf technology platform for improved sexual function and stress urinary incontinence in women . the strategic organizational realignment included a reduction in total headcount of approximately 40 full-time employees . it also included a nearly two-thirds reduction in the company 's direct sales organization , which has been repositioned to provide targeted market development activities to further expand awareness and adoption of viveve 's cmrf technology in the gynecology , urogynecology , and female sexual medicine specialties . the company 's current and prospective aesthetic medicine customers in the u.s. will be supported by a network of distributor partners under viveve 's direction . international commercial distribution will remain unchanged through viveve 's global network of distributor partners . the total restructuring costs for employee severance and other related termination benefits were approximately $ 742,000 and it was recorded in the quarter ended march 31 , 2019. this restructuring contributed to a reduction in our total operating expenses in the first quarter of 2019 as planned and additional operating cost savings occurred through the remainder of 2019. adoption of new accounting standard - leases the company adopted the fasb 's asc topic 842 , as of january 1 , 2019 , using the modified retrospective approach . the modified retrospective approach provides a method for recording existing leases at the beginning of the period of adoption . in addition , the company elected the package of practical expedients permitted under the transition guidance within the new standard , which among other things , allowed us to carry forward the historical lease classification and we elected the hindsight practical expedient to determine the lease term for existing leases . we determined that the renewal options for the facilities lease would be reasonably certain to be renewed and as such , included that renewal period in determining the expected lease term of that lease . the comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods . adoption of the new standard resulted in the recording of operating lease right-of-use assets of $ 629,000 and operating lease liabilities of $ 629,000 , as of january 1 , 2019. impact of the novel coronavirus as of the filing of this annual report on form 10-k , china , south korea , the united states and most other countries face the outbreak of a novel highly transmissible and pathogenic coronavirus , which has resulted in a widespread global health crisis , adversely affected general commercial activity and the economies and financial markets of many countries , and is likely to also adversely affect our business , financial condition and results of operations . the extent to which the novel coronavirus impacts us will depend on future developments , which are highly uncertain and can not be accurately predicted , including new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact , among others . plan of operation we intend to increase our sales both internationally and in the u.s. market by seeking additional regulatory clearances or approvals for the sale and distribution of our products , identifying and training qualified distributors and expanding the scope of physicians who offer the viveve system to include plastic surgeons , general surgeons , urologists , and urogynecologists . in june 2019 , we transitioned from a capital equipment sales model to a recurring revenue rental model in the u.s. market . the new u.s. commercial sales model is intended to lower up-front costs for customers and thus lower hurdles to adoption , increase placement rates , and improve profitability by significantly reducing selling time per unit . sale of viveve products outside of the u.s. will continue to be supported by our international distributors . in addition , we intend to use the strategic relationships that we have developed

