we have incurred net losses in each year from our inception in 2006 through 2013. our net losses were $ 11.3 million , $ 20.4 million and $ 6.1 million for the years ended december 31 , 2011 , 2012 and 2013 , respectively . we do not expect to be profitable for the year ending december 31 , 2014. substantially all of our net losses have resulted from costs incurred in connection with our research and development programs and from general and administrative costs associated with our operations . we expect to continue to incur significant expenses and increasing operating losses for at least the next several years . we expect our expenses will increase substantially in connection with our ongoing activities , as we : continue to develop and conduct clinical trials and additional preclinical studies with respect to ctp-354 ; initiate and continue research , preclinical and clinical development efforts for our other product candidates and potential product candidates ; seek to identify additional product candidates ; seek marketing approvals for our product candidates that successfully complete clinical trials ; establish sales , marketing , distribution and other commercial infrastructure in the future to commercialize various products for which we may obtain marketing approval ; require the manufacture of larger quantities of product candidates for clinical development and potentially commercialization ; maintain , expand and protect our intellectual property portfolio ; hire additional personnel , such as clinical , quality control and scientific personnel ; add equipment and physical infrastructure to support our research and development ; and add operational , financial and management information systems and personnel , including personnel to support our product development and personnel and infrastructure necessary to help us comply with our obligations as a public company . we do not expect to generate revenue from product sales unless and until we , or our collaborators , successfully complete development and obtain marketing approval for one or more of our product candidates , which we expect will take a number of years and is subject to significant uncertainty . we have developed the internal capability to manufacture up to low kilogram quantities of deuterated active pharmaceutical ingredients for use in phase 1 clinical trials . however , to date , almost all of our manufacturing activities have been performed by third parties . additionally , we currently utilize third-party contract research organizations to carry out our clinical development activities and we do not yet have a sales organization . if we obtain or believe that we are likely to obtain , marketing approval for any of our product candidates for which we retain commercialization rights , we expect to incur significant commercialization expenses related to product sales , marketing , manufacturing and distribution . we expect to seek to fund our operations through a combination of equity offerings , debt financings and additional collaborations and licensing arrangements for at least the next several years . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all . our failure to raise capital or enter into such other arrangements as and when needed would force us to delay , limit , reduce or terminate our research and development programs and could have a material adverse effect on our financial condition and our ability to develop our products . we will need to generate significant revenues to achieve sustained profitability and we may never do so . collaborations we have entered into a number of collaborations for the research , development and commercialization of deuterated compounds . to date , our collaborations have provided us with significant funding for both our 89 specific development programs and our dce platform . they also have provided us with access to the considerable scientific , development , regulatory and commercial capabilities of our collaborators . in addition , in some instances , where we develop and seek to collaborate with respect to deuterated analogs of marketed drugs or of drug candidates that are more advanced in clinical trials , our collaborators may be eligible to seek an expedited development or regulatory pathway by relying on previous clinical data regarding their corresponding non-deuterated compound . for example , our collaborator avanir reported agreeing with the fda to an expedited development pathway for avp-786 . we believe that our collaborations have contributed to our ability to progress our product candidates and build our dce platform . we have established the following key collaborations : celgene . in april 2013 , we entered into a master development and license agreement with celgene , which is primarily focused on the research , development and commercialization of specified deuterated compounds targeting cancer or inflammation . the collaboration is initially focused on one program , but has the potential to encompass up to four programs . for the initial program , we granted celgene an exclusive worldwide license to develop , manufacture and commercialize deuterated analogs of a selected non-deuterated compound and several close chemical derivatives thereof . we further granted celgene licenses with respect to two additional programs and an option with respect to a third additional program . we and celgene have agreed on the non-deuterated compound for each of the two additional license programs . for the option program , celgene may select the non-deuterated compound at a later time , which , unless otherwise agreed by us , will be limited to a compound for which celgene possesses exclusive rights . with respect to the two additional license programs , we granted celgene an upfront exclusive worldwide license to develop , manufacture and commercialize deuterated products that contain deuterated analogs of the agreed upon non-deuterated compounds . story_separator_special_tag c-10068 , a novel oral deuterium-substituted analog of dextroethorphan , a compound with preclinical pharmacological activities qualitatively similar to those of dextromethorphan , that we are investigating for the potential treatment of pain and seizures . we are conducting further preclinical evaluation of c-10068 . we are also conducting a number of other preclinical programs , including deuterated ivacaftor for the potential treatment of cystic fibrosis and chronic obstructive pulmonary disease . we plan to continue to seek to identify compounds that can be improved through selective deuterium substitution and believe we are capable of identifying one to two novel deuterated compounds per year that we can advance into preclinical development while concurrently progressing our existing pipeline . a significant portion of our research and development costs have been external costs , which we track on a program-by-program basis . these external costs include fees paid to investigators , consultants , central laboratories and contract research organizations in connection with our clinical trials , and costs related to acquiring and manufacturing clinical trial materials . our internal research and development costs are primarily personnel-related costs , depreciation and other indirect costs . we do not track our internal research and development expenses on a program-by-program basis as they are deployed across multiple projects under development . the successful development of any of our product candidates is highly uncertain . as such , at this time , we can not reasonably predict with certainty the duration and completion costs of the current or future clinical trials of any of our product candidates or if , when , or to what extent we will generate revenues from the commercialization and sale of any of our product candidates that obtain marketing approval . we may never succeed in achieving regulatory approval for any of our product candidates . the duration , costs , and timing of clinical trials and development of our product candidates will depend on a variety of factors , including : the scope and rate of progress of our ongoing as well as any additional clinical trials and other research and development activities ; results from ongoing as well as any additional clinical trials and research and development activities ; significant and changing government regulation ; the terms and timing and receipt of any regulatory approvals ; 94 the performance of our collaborators ; our ability to manufacture , market , commercialize and achieve market acceptance for any of our product candidates that we are developing or may develop in the future ; and the expense and success of filing , prosecuting , defending and enforcing any patent claims and other intellectual property rights . a change in the outcome of any of these variables with respect to the development of a product candidate could mean a significant change in the costs and timing associated with the development of that product candidate . for example , if the fda or another regulatory authority were to require us to conduct clinical trials or other research and development activities beyond those that we currently anticipate will be required for the completion of clinical development of a product candidate , including as a result of the partial clinical hold on ctp-354 that prevents us from administering doses in excess of 6 mg per day in multiple dose clinical trials , or if we experience significant delays in enrollment in any of our clinical trials , we could be required to expend significant additional financial resources and time on the completion of clinical development . research and development activities are central to our business model . product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development , primarily due to the increased size and duration of later-stage clinical trials . we expect research and development costs to increase significantly for the foreseeable future as our product candidate development programs progress . however , we do not believe that it is possible at this time to accurately project total program-specific expenses through commercialization . there are numerous factors associated with the successful commercialization of any of our product candidates , including future trial design and various regulatory requirements , many of which can not be determined with accuracy at this time based on our stage of development . additionally , future commercial and regulatory factors beyond our control will impact our clinical development programs and plans . general and administrative expenses general and administrative expenses consist primarily of salaries and related costs for personnel , including stock-based compensation and travel expenses for our employees in executive , operational , finance , legal , business development and human resource functions . other general and administrative expenses include facility-related costs , depreciation and other expenses not allocated to research and development expense and professional fees for directors , accounting and legal services and expenses associated with obtaining and maintaining patents . we anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support our continued research and development of our product candidates . we also anticipate increased expenses associated with being a public company , including costs for audit , legal , regulatory and tax-related services , director and officer insurance premiums , and investor relations costs . additionally , if and when we believe a regulatory approval of the first product candidate that we intend to commercialize on our own appears likely , we anticipate an increase in payroll and related expenses as a result of our preparation for commercial operations , especially as it relates to the sales and marketing of our product candidates . investment income investment income consists of interest income earned on cash equivalents and short-term and long-term investments . interest and other expense interest and other expense consists primarily of interest expense on amounts outstanding under our debt facility with hercules , amortization of debt discount and the re-measurement gain or loss

liquidity and capital resources we have incurred cumulative losses and negative cash flows from operations since our inception in april 2006 , and as of december 31 , 2013 , we had an accumulated deficit of $ 113.6 million . we anticipate that we will continue to incur losses for at least the next several years . we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need additional capital to fund our operations , which we may raise through a combination of equity offerings , debt financings and additional collaborations and licensing arrangements . we have financed our operations to date primarily through the public offering and private placement of our equity , debt financing and funding from collaborations . as of december 31 , 2013 , we had cash and cash equivalents and investments of $ 32.7 million . we subsequently raised net proceeds of $ 83.1 million from the sale of 6,649,690 shares of common stock in our ipo in the first quarter of 2014. cash flows the following table sets forth the primary sources and uses of cash for each of the periods set forth below : replace_table_token_12_th operating activities . net cash provided by operating activities was $ 13.0 million during the year ended december 31 , 2013 compared to net cash used in operating activities of $ 26.4 million during the year ended december 31 , 2013. the increase in cash provided by operating activities was primarily due to receipt in the year ended december 31 , 2013 of a non-refundable upfront payment of $ 35.0 million related to our collaboration with celgene and a non-refundable upfront payment of $ 4.0 million related to our collaboration with jazz pharmaceuticals .


 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 we have incurred cumulative losses and negative cash flows from operations since our inception in april 2006 , and as of december 31 , 2013 , we had an accumulated deficit of $ 113.6 million . we anticipate that we will continue to incur losses for at least the next several years . we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need additional capital to fund our operations , which we may raise through a combination of equity offerings , debt financings and additional collaborations and licensing arrangements . we have financed our operations to date primarily through the public offering and private placement of our equity , debt financing and funding from collaborations . as of december 31 , 2013 , we had cash and cash equivalents and investments of $ 32.7 million . we subsequently raised net proceeds of $ 83.1 million from the sale of 6,649,690 shares of common stock in our ipo in the first quarter of 2014. cash flows the following table sets forth the primary sources and uses of cash for each of the periods set forth below : replace_table_token_12_th operating activities . net cash provided by operating activities was $ 13.0 million during the year ended december 31 , 2013 compared to net cash used in operating activities of $ 26.4 million during the year ended december 31 , 2013. the increase in cash provided by operating activities was primarily due to receipt in the year ended december 31 , 2013 of a non-refundable upfront payment of $ 35.0 million related to our collaboration with celgene and a non-refundable upfront payment of $ 4.0 million related to our collaboration with jazz pharmaceuticals .
```    
 Suspicious Activity Report : we have incurred net losses in each year from our inception in 2006 through 2013. our net losses were $ 11.3 million , $ 20.4 million and $ 6.1 million for the years ended december 31 , 2011 , 2012 and 2013 , respectively . we do not expect to be profitable for the year ending december 31 , 2014. substantially all of our net losses have resulted from costs incurred in connection with our research and development programs and from general and administrative costs associated with our operations . we expect to continue to incur significant expenses and increasing operating losses for at least the next several years . we expect our expenses will increase substantially in connection with our ongoing activities , as we : continue to develop and conduct clinical trials and additional preclinical studies with respect to ctp-354 ; initiate and continue research , preclinical and clinical development efforts for our other product candidates and potential product candidates ; seek to identify additional product candidates ; seek marketing approvals for our product candidates that successfully complete clinical trials ; establish sales , marketing , distribution and other commercial infrastructure in the future to commercialize various products for which we may obtain marketing approval ; require the manufacture of larger quantities of product candidates for clinical development and potentially commercialization ; maintain , expand and protect our intellectual property portfolio ; hire additional personnel , such as clinical , quality control and scientific personnel ; add equipment and physical infrastructure to support our research and development ; and add operational , financial and management information systems and personnel , including personnel to support our product development and personnel and infrastructure necessary to help us comply with our obligations as a public company . we do not expect to generate revenue from product sales unless and until we , or our collaborators , successfully complete development and obtain marketing approval for one or more of our product candidates , which we expect will take a number of years and is subject to significant uncertainty . we have developed the internal capability to manufacture up to low kilogram quantities of deuterated active pharmaceutical ingredients for use in phase 1 clinical trials . however , to date , almost all of our manufacturing activities have been performed by third parties . additionally , we currently utilize third-party contract research organizations to carry out our clinical development activities and we do not yet have a sales organization . if we obtain or believe that we are likely to obtain , marketing approval for any of our product candidates for which we retain commercialization rights , we expect to incur significant commercialization expenses related to product sales , marketing , manufacturing and distribution . we expect to seek to fund our operations through a combination of equity offerings , debt financings and additional collaborations and licensing arrangements for at least the next several years . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all . our failure to raise capital or enter into such other arrangements as and when needed would force us to delay , limit , reduce or terminate our research and development programs and could have a material adverse effect on our financial condition and our ability to develop our products . we will need to generate significant revenues to achieve sustained profitability and we may never do so . collaborations we have entered into a number of collaborations for the research , development and commercialization of deuterated compounds . to date , our collaborations have provided us with significant funding for both our 89 specific development programs and our dce platform . they also have provided us with access to the considerable scientific , development , regulatory and commercial capabilities of our collaborators . in addition , in some instances , where we develop and seek to collaborate with respect to deuterated analogs of marketed drugs or of drug candidates that are more advanced in clinical trials , our collaborators may be eligible to seek an expedited development or regulatory pathway by relying on previous clinical data regarding their corresponding non-deuterated compound . for example , our collaborator avanir reported agreeing with the fda to an expedited development pathway for avp-786 . we believe that our collaborations have contributed to our ability to progress our product candidates and build our dce platform . we have established the following key collaborations : celgene . in april 2013 , we entered into a master development and license agreement with celgene , which is primarily focused on the research , development and commercialization of specified deuterated compounds targeting cancer or inflammation . the collaboration is initially focused on one program , but has the potential to encompass up to four programs . for the initial program , we granted celgene an exclusive worldwide license to develop , manufacture and commercialize deuterated analogs of a selected non-deuterated compound and several close chemical derivatives thereof . we further granted celgene licenses with respect to two additional programs and an option with respect to a third additional program . we and celgene have agreed on the non-deuterated compound for each of the two additional license programs . for the option program , celgene may select the non-deuterated compound at a later time , which , unless otherwise agreed by us , will be limited to a compound for which celgene possesses exclusive rights . with respect to the two additional license programs , we granted celgene an upfront exclusive worldwide license to develop , manufacture and commercialize deuterated products that contain deuterated analogs of the agreed upon non-deuterated compounds . story_separator_special_tag c-10068 , a novel oral deuterium-substituted analog of dextroethorphan , a compound with preclinical pharmacological activities qualitatively similar to those of dextromethorphan , that we are investigating for the potential treatment of pain and seizures . we are conducting further preclinical evaluation of c-10068 . we are also conducting a number of other preclinical programs , including deuterated ivacaftor for the potential treatment of cystic fibrosis and chronic obstructive pulmonary disease . we plan to continue to seek to identify compounds that can be improved through selective deuterium substitution and believe we are capable of identifying one to two novel deuterated compounds per year that we can advance into preclinical development while concurrently progressing our existing pipeline . a significant portion of our research and development costs have been external costs , which we track on a program-by-program basis . these external costs include fees paid to investigators , consultants , central laboratories and contract research organizations in connection with our clinical trials , and costs related to acquiring and manufacturing clinical trial materials . our internal research and development costs are primarily personnel-related costs , depreciation and other indirect costs . we do not track our internal research and development expenses on a program-by-program basis as they are deployed across multiple projects under development . the successful development of any of our product candidates is highly uncertain . as such , at this time , we can not reasonably predict with certainty the duration and completion costs of the current or future clinical trials of any of our product candidates or if , when , or to what extent we will generate revenues from the commercialization and sale of any of our product candidates that obtain marketing approval . we may never succeed in achieving regulatory approval for any of our product candidates . the duration , costs , and timing of clinical trials and development of our product candidates will depend on a variety of factors , including : the scope and rate of progress of our ongoing as well as any additional clinical trials and other research and development activities ; results from ongoing as well as any additional clinical trials and research and development activities ; significant and changing government regulation ; the terms and timing and receipt of any regulatory approvals ; 94 the performance of our collaborators ; our ability to manufacture , market , commercialize and achieve market acceptance for any of our product candidates that we are developing or may develop in the future ; and the expense and success of filing , prosecuting , defending and enforcing any patent claims and other intellectual property rights . a change in the outcome of any of these variables with respect to the development of a product candidate could mean a significant change in the costs and timing associated with the development of that product candidate . for example , if the fda or another regulatory authority were to require us to conduct clinical trials or other research and development activities beyond those that we currently anticipate will be required for the completion of clinical development of a product candidate , including as a result of the partial clinical hold on ctp-354 that prevents us from administering doses in excess of 6 mg per day in multiple dose clinical trials , or if we experience significant delays in enrollment in any of our clinical trials , we could be required to expend significant additional financial resources and time on the completion of clinical development . research and development activities are central to our business model . product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development , primarily due to the increased size and duration of later-stage clinical trials . we expect research and development costs to increase significantly for the foreseeable future as our product candidate development programs progress . however , we do not believe that it is possible at this time to accurately project total program-specific expenses through commercialization . there are numerous factors associated with the successful commercialization of any of our product candidates , including future trial design and various regulatory requirements , many of which can not be determined with accuracy at this time based on our stage of development . additionally , future commercial and regulatory factors beyond our control will impact our clinical development programs and plans . general and administrative expenses general and administrative expenses consist primarily of salaries and related costs for personnel , including stock-based compensation and travel expenses for our employees in executive , operational , finance , legal , business development and human resource functions . other general and administrative expenses include facility-related costs , depreciation and other expenses not allocated to research and development expense and professional fees for directors , accounting and legal services and expenses associated with obtaining and maintaining patents . we anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support our continued research and development of our product candidates . we also anticipate increased expenses associated with being a public company , including costs for audit , legal , regulatory and tax-related services , director and officer insurance premiums , and investor relations costs . additionally , if and when we believe a regulatory approval of the first product candidate that we intend to commercialize on our own appears likely , we anticipate an increase in payroll and related expenses as a result of our preparation for commercial operations , especially as it relates to the sales and marketing of our product candidates . investment income investment income consists of interest income earned on cash equivalents and short-term and long-term investments . interest and other expense interest and other expense consists primarily of interest expense on amounts outstanding under our debt facility with hercules , amortization of debt discount and the re-measurement gain or loss

