we expect that our expenses and capital requirements will increase substantially in connection with our ongoing activities , particularly if and as we :  conduct clinical trials for our product candidates ;  further develop our red platform ;  continue to discover and develop additional product candidates ;  maintain , expand and protect our intellectual property portfolio ; 131  hire additional clinical , scientific manufacturing and commercial personnel ;  expand in-house manufacturing capabilities , including through the renovation , customization and operation of our recently purchased manufacturing facility ;  establish a commercial manufacturing source and secure supply chain capacity sufficient to provide commercial quantities of any product candidates for which we may obtain regulatory approval ;  acquire or in-license other product candidates and technologies ;  seek regulatory approvals for any product candidates that successfully complete clinical trials ;  establish a sales , marketing and distribution infrastructure to commercialize any products for which we may obtain regulatory approval ; and  add operational , financial and management information systems and personnel , including personnel to support our product development and planned future commercialization efforts , as well as to support our transition to a public company . we will not generate revenue from product sales unless and until we successfully complete clinical development and obtain regulatory approval for our product candidates . if we obtain regulatory approval for any of our product candidates , we expect to incur significant expenses related to developing our commercialization capability to support product sales , marketing and distribution . further , we expect to incur additional costs associated with operating as a public company . as a result , we will need substantial additional funding to support our continuing operations and pursue our growth strategy . until such time as we can generate significant revenue from product sales , if ever , we expect to finance our operations through a combination of equity offerings , debt financings , collaborations , strategic alliances and marketing , distribution or licensing arrangements . we may be unable to raise additional funds or enter into such other agreements or arrangements when needed on favorable terms , or at all . if we fail to raise capital or enter into such agreements as , and when , needed , we may have to significantly delay , scale back or discontinue the development and commercialization of one or more of our product candidates . because of the numerous risks and uncertainties associated with pharmaceutical product development , we are unable to accurately predict the timing or amount of increased expenses or when , or if , we will be able to achieve or maintain profitability . even if we are able to generate product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , then we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . as of december 31 , 2018 , we had cash , cash equivalents and investments of $ 404.1 million . we believe that our existing cash , cash equivalents and investments will enable us to fund our operating expenses , capital expenditure requirements , including the renovation and customization of our recently purchased manufacturing facility , and debt service payments into 2021. see “ —liquidity and capital resources . ” components of our results of operations revenue to date , we have not generated any revenue from product sales and do not expect to generate any revenue from the sale of products in the near future . if our development efforts for our product candidates are successful and result in regulatory approval or license or collaboration agreements with third parties , we may generate revenue in the future from product sales , payments from collaboration or license agreements that we may enter into with third parties , or any combination thereof . 132 operating expenses research and development expenses research and development expenses consist primarily of costs incurred for our research activities , including our drug discovery efforts , and the development of our product candidates , which include : employee‑related expenses , including salaries , related benefits and stock‑based compensation expense for employees engaged in research and development functions ; expenses incurred in connection with the preclinical and clinical development of our product candidates and research programs , including under agreements with third parties , such as consultants , contractors and contract research organizations , or cros ; the cost of developing and scaling our manufacturing process and manufacturing drug products for use in our preclinical studies and clinical trials , including under agreements with third parties , such as consultants , contractors and contract manufacturing organizations , or cmos ; laboratory supplies and research materials ; facilities , depreciation and other expenses , which include direct and allocated expenses for rent and maintenance of facilities and insurance ; and payments made under third‑party licensing agreements . we expense research and development costs as incurred . advance payments that we make for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses . the prepaid amounts are expensed as the related goods are delivered or the services are performed . our direct external research and development expenses are tracked on a program‑by‑program basis for clinical candidates and consist of costs that include fees , reimbursed materials and other costs paid to consultants , contractors , cmos and cros in connection with our preclinical and clinical development and manufacturing activities . story_separator_special_tag we did not invest our cash balances during the year ended december 31 , 2016. other expense was not significant for the years ended december 31 , 2017 and 2016. liquidity and capital resources since our inception , we have incurred significant operating losses . we have not yet commercialized any of our product candidates and we do not expect to generate revenue from sales of any product candidates for several years , if at all . to date , we have funded our operations with proceeds from the sale of preferred stock and issuance of debt and , most 139 recently , with proceeds from our initial public offering , or ipo . as of december 31 , 2018 , we had cash , cash equivalents and investments of $ 404.1 million . in july 2018 , we completed our ipo , pursuant to which we issued and sold 12,055,450 shares of common stock , inclusive of 1,572,450 shares pursuant to the full exercise of the underwriters ' option to purchase additional shares . we received proceeds of $ 254.3 million , after deducting underwriting discounts and commissions and other offering costs . in december 2018 , the company repaid all borrowings under its 2015 loan and security agreement and entered into a new loan and security agreement for an aggregate principal amount of $ 75.0 million , of which $ 25.0 million was drawn as of december 31 , 2018. story_separator_special_tag will be funded in three tranches of term loans of $ 25.0 million each . on the closing date , we made an initial draw of $ 25.0 million . the second tranche will be available to us through june 30 , 2019 , subject to certain conditions including the satisfaction of certain financial covenants . the third tranche will be available to us through june 30 , 2020 , subject to certain conditions including the food and drug administration 's acceptance of at least one of our investigational new drug applications and the satisfaction of certain financial covenants . interest on the outstanding loan balance will accrue at a rate of the one-month u.s. libor rate plus 5.50 % . monthly principal payments will commence 36 months after the closing date and will be amortized over the following 24 months . the term loans are subject to a prepayment fee of 1.00 % in the first year , 0.50 % in the second year and 0.25 % in the third year . in conjunction with 2018 credit facility , the company incurred issuance costs of $ 0.8 million . the loan agreement contains financial covenants that require us to maintain either a certain minimum cash balance or a minimum market capitalization threshold . we were in compliance with all such covenants as of december 31 , 2018. the loan agreement contains customary representations , warranties and covenants and also includes customary events of default , including payment defaults , breaches of covenants , change of control and a material adverse change default . upon the occurrence of an event of default , a default interest rate of an additional 4.00 % per annum may be applied to the outstanding loan balances , and the lenders may declare all outstanding obligations immediately due and payable . borrowings under the loan agreement are collateralized by substantially all of the company 's assets , other than its intellectual property . 141 funding requirements we expect our expenses to increase substantially in connection with our ongoing activities , particularly as we advance the preclinical activities and clinical trials for our product candidates in development . in addition , upon the closing of this offering , we expect to incur additional costs associated with operating as a public company . the timing and amount of our operating and capital expenditures will depend largely on : the timing and progress of preclinical and clinical development activities ; the commencement , enrollment or results of the planned clinical trials of our product candidates or any future clinical trials we may conduct , or changes in the development status of our product candidates ; the timing and outcome of regulatory review of our product candidates ; our decision to initiate a clinical trial , not to initiate a clinical trial or to terminate an existing clinical trial ; changes in laws or regulations applicable to our product candidates , including but not limited to clinical trial requirements for approvals ; developments concerning our cmos ; our ability to obtain materials to produce adequate product supply for any approved product or inability to do so at acceptable prices ; the costs and timing associated with the renovation , customization and operation of our planned multi‑suite manufacturing facility that we purchased in july 2018 ; our ability to establish collaborations if needed ; the costs and timing of future commercialization activities , including product manufacturing , marketing , sales and distribution , for any of our product candidates for which we obtain marketing approval ; the legal patent costs involved in prosecuting patent applications and enforcing patent claims and other intellectual property claims ; additions or departures of key scientific or management personnel ; unanticipated serious safety concerns related to the use of our product candidates ; and the terms and timing of any collaboration , license or other arrangement , including the terms and timing of any milestone payments thereunder . we believe that our existing cash , cash equivalents and investments , will enable us to fund our operating expenses , capital expenditure requirements , including the renovation and customization of the manufacturing facility we purchased in july 2018 , and debt service payments into 2021. we have based this estimate on assumptions that may prove to be wrong , and we could utilize our available capital resources sooner than we expect . until such time , if ever , as we can generate substantial product revenue , we expect to finance our operations

cash flows the following table summarizes our sources and uses of cash for each of the periods presented : replace_table_token_8_th operating activities during the year ended december 31 , 2018 , operating activities used $ 58.3 million of cash , primarily resulting from our net loss of $ 89.2 million , partially offset by net non‑cash charges of $ 30.7 million , primarily consisting of stock‑based compensation expense . changes in our operating assets and liabilities for the year ended december 31 , 2018 provided net cash of $ 0.1 million , which consisted primarily of a $ 9.2 million increase in accounts payable and accrued expenses and other current liabilities , offset by a $ 9.1 million increase in prepaid expenses and other current assets and others assets . during the year ended december 31 , 2017 , operating activities used $ 21.9 million of cash , primarily resulting from our net loss of $ 43.8 million , partially offset by net non‑cash charges of $ 19.2 million , primarily consisting of stock‑based compensation expense , and net cash provided by changes in our operating assets and liabilities of $ 2.7 million . net cash provided by changes in our operating assets and liabilities for the year ended december 31 , 2017 consisted primarily of a $ 3.4 million increase in accounts payable and accrued expenses and other current liabilities , partially offset by a $ 0.6 million increase in prepaid expenses and other current assets . during the year ended december 31 , 2016 , operating activities used $ 9.5 million of cash , primarily resulting from our net loss of $ 11.0 million , partially offset by net non-cash charges of $ 0.4 million and net cash provided by changes in our operating assets and liabilities of $ 1.1 million .


 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.
     ```cash flows the following table summarizes our sources and uses of cash for each of the periods presented : replace_table_token_8_th operating activities during the year ended december 31 , 2018 , operating activities used $ 58.3 million of cash , primarily resulting from our net loss of $ 89.2 million , partially offset by net non‑cash charges of $ 30.7 million , primarily consisting of stock‑based compensation expense . changes in our operating assets and liabilities for the year ended december 31 , 2018 provided net cash of $ 0.1 million , which consisted primarily of a $ 9.2 million increase in accounts payable and accrued expenses and other current liabilities , offset by a $ 9.1 million increase in prepaid expenses and other current assets and others assets . during the year ended december 31 , 2017 , operating activities used $ 21.9 million of cash , primarily resulting from our net loss of $ 43.8 million , partially offset by net non‑cash charges of $ 19.2 million , primarily consisting of stock‑based compensation expense , and net cash provided by changes in our operating assets and liabilities of $ 2.7 million . net cash provided by changes in our operating assets and liabilities for the year ended december 31 , 2017 consisted primarily of a $ 3.4 million increase in accounts payable and accrued expenses and other current liabilities , partially offset by a $ 0.6 million increase in prepaid expenses and other current assets . during the year ended december 31 , 2016 , operating activities used $ 9.5 million of cash , primarily resulting from our net loss of $ 11.0 million , partially offset by net non-cash charges of $ 0.4 million and net cash provided by changes in our operating assets and liabilities of $ 1.1 million .
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 Suspicious Activity Report : we expect that our expenses and capital requirements will increase substantially in connection with our ongoing activities , particularly if and as we :  conduct clinical trials for our product candidates ;  further develop our red platform ;  continue to discover and develop additional product candidates ;  maintain , expand and protect our intellectual property portfolio ; 131  hire additional clinical , scientific manufacturing and commercial personnel ;  expand in-house manufacturing capabilities , including through the renovation , customization and operation of our recently purchased manufacturing facility ;  establish a commercial manufacturing source and secure supply chain capacity sufficient to provide commercial quantities of any product candidates for which we may obtain regulatory approval ;  acquire or in-license other product candidates and technologies ;  seek regulatory approvals for any product candidates that successfully complete clinical trials ;  establish a sales , marketing and distribution infrastructure to commercialize any products for which we may obtain regulatory approval ; and  add operational , financial and management information systems and personnel , including personnel to support our product development and planned future commercialization efforts , as well as to support our transition to a public company . we will not generate revenue from product sales unless and until we successfully complete clinical development and obtain regulatory approval for our product candidates . if we obtain regulatory approval for any of our product candidates , we expect to incur significant expenses related to developing our commercialization capability to support product sales , marketing and distribution . further , we expect to incur additional costs associated with operating as a public company . as a result , we will need substantial additional funding to support our continuing operations and pursue our growth strategy . until such time as we can generate significant revenue from product sales , if ever , we expect to finance our operations through a combination of equity offerings , debt financings , collaborations , strategic alliances and marketing , distribution or licensing arrangements . we may be unable to raise additional funds or enter into such other agreements or arrangements when needed on favorable terms , or at all . if we fail to raise capital or enter into such agreements as , and when , needed , we may have to significantly delay , scale back or discontinue the development and commercialization of one or more of our product candidates . because of the numerous risks and uncertainties associated with pharmaceutical product development , we are unable to accurately predict the timing or amount of increased expenses or when , or if , we will be able to achieve or maintain profitability . even if we are able to generate product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , then we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . as of december 31 , 2018 , we had cash , cash equivalents and investments of $ 404.1 million . we believe that our existing cash , cash equivalents and investments will enable us to fund our operating expenses , capital expenditure requirements , including the renovation and customization of our recently purchased manufacturing facility , and debt service payments into 2021. see “ —liquidity and capital resources . ” components of our results of operations revenue to date , we have not generated any revenue from product sales and do not expect to generate any revenue from the sale of products in the near future . if our development efforts for our product candidates are successful and result in regulatory approval or license or collaboration agreements with third parties , we may generate revenue in the future from product sales , payments from collaboration or license agreements that we may enter into with third parties , or any combination thereof . 132 operating expenses research and development expenses research and development expenses consist primarily of costs incurred for our research activities , including our drug discovery efforts , and the development of our product candidates , which include : employee‑related expenses , including salaries , related benefits and stock‑based compensation expense for employees engaged in research and development functions ; expenses incurred in connection with the preclinical and clinical development of our product candidates and research programs , including under agreements with third parties , such as consultants , contractors and contract research organizations , or cros ; the cost of developing and scaling our manufacturing process and manufacturing drug products for use in our preclinical studies and clinical trials , including under agreements with third parties , such as consultants , contractors and contract manufacturing organizations , or cmos ; laboratory supplies and research materials ; facilities , depreciation and other expenses , which include direct and allocated expenses for rent and maintenance of facilities and insurance ; and payments made under third‑party licensing agreements . we expense research and development costs as incurred . advance payments that we make for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses . the prepaid amounts are expensed as the related goods are delivered or the services are performed . our direct external research and development expenses are tracked on a program‑by‑program basis for clinical candidates and consist of costs that include fees , reimbursed materials and other costs paid to consultants , contractors , cmos and cros in connection with our preclinical and clinical development and manufacturing activities . story_separator_special_tag we did not invest our cash balances during the year ended december 31 , 2016. other expense was not significant for the years ended december 31 , 2017 and 2016. liquidity and capital resources since our inception , we have incurred significant operating losses . we have not yet commercialized any of our product candidates and we do not expect to generate revenue from sales of any product candidates for several years , if at all . to date , we have funded our operations with proceeds from the sale of preferred stock and issuance of debt and , most 139 recently , with proceeds from our initial public offering , or ipo . as of december 31 , 2018 , we had cash , cash equivalents and investments of $ 404.1 million . in july 2018 , we completed our ipo , pursuant to which we issued and sold 12,055,450 shares of common stock , inclusive of 1,572,450 shares pursuant to the full exercise of the underwriters ' option to purchase additional shares . we received proceeds of $ 254.3 million , after deducting underwriting discounts and commissions and other offering costs . in december 2018 , the company repaid all borrowings under its 2015 loan and security agreement and entered into a new loan and security agreement for an aggregate principal amount of $ 75.0 million , of which $ 25.0 million was drawn as of december 31 , 2018. story_separator_special_tag will be funded in three tranches of term loans of $ 25.0 million each . on the closing date , we made an initial draw of $ 25.0 million . the second tranche will be available to us through june 30 , 2019 , subject to certain conditions including the satisfaction of certain financial covenants . the third tranche will be available to us through june 30 , 2020 , subject to certain conditions including the food and drug administration 's acceptance of at least one of our investigational new drug applications and the satisfaction of certain financial covenants . interest on the outstanding loan balance will accrue at a rate of the one-month u.s. libor rate plus 5.50 % . monthly principal payments will commence 36 months after the closing date and will be amortized over the following 24 months . the term loans are subject to a prepayment fee of 1.00 % in the first year , 0.50 % in the second year and 0.25 % in the third year . in conjunction with 2018 credit facility , the company incurred issuance costs of $ 0.8 million . the loan agreement contains financial covenants that require us to maintain either a certain minimum cash balance or a minimum market capitalization threshold . we were in compliance with all such covenants as of december 31 , 2018. the loan agreement contains customary representations , warranties and covenants and also includes customary events of default , including payment defaults , breaches of covenants , change of control and a material adverse change default . upon the occurrence of an event of default , a default interest rate of an additional 4.00 % per annum may be applied to the outstanding loan balances , and the lenders may declare all outstanding obligations immediately due and payable . borrowings under the loan agreement are collateralized by substantially all of the company 's assets , other than its intellectual property . 141 funding requirements we expect our expenses to increase substantially in connection with our ongoing activities , particularly as we advance the preclinical activities and clinical trials for our product candidates in development . in addition , upon the closing of this offering , we expect to incur additional costs associated with operating as a public company . the timing and amount of our operating and capital expenditures will depend largely on : the timing and progress of preclinical and clinical development activities ; the commencement , enrollment or results of the planned clinical trials of our product candidates or any future clinical trials we may conduct , or changes in the development status of our product candidates ; the timing and outcome of regulatory review of our product candidates ; our decision to initiate a clinical trial , not to initiate a clinical trial or to terminate an existing clinical trial ; changes in laws or regulations applicable to our product candidates , including but not limited to clinical trial requirements for approvals ; developments concerning our cmos ; our ability to obtain materials to produce adequate product supply for any approved product or inability to do so at acceptable prices ; the costs and timing associated with the renovation , customization and operation of our planned multi‑suite manufacturing facility that we purchased in july 2018 ; our ability to establish collaborations if needed ; the costs and timing of future commercialization activities , including product manufacturing , marketing , sales and distribution , for any of our product candidates for which we obtain marketing approval ; the legal patent costs involved in prosecuting patent applications and enforcing patent claims and other intellectual property claims ; additions or departures of key scientific or management personnel ; unanticipated serious safety concerns related to the use of our product candidates ; and the terms and timing of any collaboration , license or other arrangement , including the terms and timing of any milestone payments thereunder . we believe that our existing cash , cash equivalents and investments , will enable us to fund our operating expenses , capital expenditure requirements , including the renovation and customization of the manufacturing facility we purchased in july 2018 , and debt service payments into 2021. we have based this estimate on assumptions that may prove to be wrong , and we could utilize our available capital resources sooner than we expect . until such time , if ever , as we can generate substantial product revenue , we expect to finance our operations

