on january 9 , 2020 , in connection with , and prior to the completion of , the merger , the company effected a 1-for-40 reverse stock split of its common stock ( the “ reverse stock split ” ) , private artara changed its name from “ artara therapeutics , inc. ” to “ artara subsidiary , inc. ” , and the company changed its name from “ proteon therapeutics , inc. ” to “ artara therapeutics , inc. ” in addition , immediately following the closing of the private placement ( defined below ) , all of the outstanding shares of the company 's series a preferred stock were converted into shares of the company 's common stock . under the terms of the merger agreement , the company issued shares of its common stock ( “ common stock ” ) to private artara 's stockholders , at an exchange ratio of 0.190756 shares of common stock , after taking into account the reverse stock split , for each share of private artara common stock outstanding immediately prior to the merger . the company assumed all of the outstanding and unexercised stock options of private artara , with such stock options now representing the right to purchase a number of shares of common stock equal to 0.190756 multiplied by the number of shares of private artara common stock previously represented by such private artara stock options . the company also assumed all of the unvested private artara restricted stock awards , which were exchanged for a number of shares of common stock equal to 0.190756 multiplied by the number of shares of private artara common stock previously represented by such private artara restricted stock awards and unvested to the same extent as such private artara restricted stock awards and subject to the same restrictions as such private artara restricted stock awards . the shares of common stock issued to the former stockholders of private artara were registered with the u.s. securities and exchange commission ( the “ sec ” ) on a registration statement on form s-4 ( reg . no . 333-234549 ) ( the “ registration statement ” ) . the shares of common stock listed on the nasdaq capital market , previously trading through the close of business on thursday , january 9 , 2020 under the ticker symbol “ prto , ” commenced trading on the nasdaq capital market , on a post-reverse stock split adjusted basis , under the ticker symbol “ tara , ” on friday , january 10 , 2020. the financial information included in this management 's discussion and analysis of financial condition and results of operations is that of the company ( referred to in this management 's discussion and analysis of financial condition and results of operations as “ proteon ” in order to avoid confusion ) prior to the merger because the merger was consummated after the period covered by the financial statements included in this annual report . accordingly , the historical financial information included in this annual report , unless otherwise indicated or as the context otherwise requires , is that of proteon prior to the merger . proteon overview as a result of the merger , our historic business operations ceased and our going forward operations will be those of private artara . accordingly , the results of operations reported for the years ended december 31 , 2019 and 2018 , in this management 's discussion and analysis are not indicative of the results of operations expected in 2020 and future years due to the termination of our historic business operations . 58 prior to the merger , we were a late-stage biopharmaceutical company focused on the development of novel , first-in-class pharmaceuticals to address the needs of patients with renal and vascular disease . we have never been profitable and , as of december 31 , 2019 , we had an accumulated deficit of $ 225.5 million . we incurred net losses of $ 15.0 million and $ 20.7 million for the years ended december 31 , 2019 and 2018 , respectively . prior to the merger , proteon was a biopharmaceutical company that has historically focused on the development of novel , first-in-class pharmaceuticals to address the medical needs of patients with kidney and vascular disease . proteon 's product candidate , vonapanitase , is a recombinant human elastase that proteon developed to improve vascular access outcomes in patients with chronic kidney disease , or ckd , undergoing or preparing for hemodialysis , a lifesaving treatment that can not be conducted without a functioning vascular access . prior to the merger , on march 28 , 2019 , proteon announced that its second phase 3 trial , patency-2 , for vonapanitase in radiocephalic fistulas did not meet its co-primary endpoints of fistula use for hemodialysis ( p=0.328 ) and secondary patency ( p=0.932 ) . the patency-2 clinical trial was the second of two randomized , double-blind phase 3 trials , comparing a 30 microgram dose of investigational vonapanitase to placebo . proteon reported top-line results for the first phase 3 clinical trial , patency-1 , in december 2016 and published these results in the journal of vascular surgery in january 2019. as in patency-1 , the patency-2 clinical trial enrolled patients with chronic kidney disease undergoing surgical creation of a radiocephalic fistula for hemodialysis . patients were randomized 2:1 , vonapanitase to placebo , and were followed for a period of twelve months . in march 2018 , proteon completed enrollment of a total of 603 treated patients at 39 centers in the u.s. and canada . story_separator_special_tag other general and administrative expenses also include professional fees for legal , patent review , consulting and accounting services as well as facility related costs , as well as expenses related to audit , legal , regulatory and tax-related services associated with maintaining compliance with proteon 's nasdaq listing and sec requirements , director and officer liability insurance premiums and investor relations costs associated with being a public company . investment income investment income consists of interest income earned on proteon 's cash , cash equivalents and marketable securities . other income ( expense ) , net other income ( expense ) , net consists of the gain realized from non-cash gains and losses from currency exchange rate fluctuations on transactions or balances denominated in a foreign currency . 60 critical accounting policies and significant judgments and estimates management 's discussion and analysis of proteon 's financial position and results of operations is based on its financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states of america , or gaap . the preparation of financial statements in conformity with gaap requires proteon to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . on an ongoing basis , proteon evaluates estimates , which include estimates related to clinical trial accruals , stock-based compensation expense , and reported amounts of revenues and expenses during the reported period . proteon bases its estimates on historical experience and other market-specific or other relevant assumptions that proteon believes to be reasonable under the circumstances . actual results may differ materially from those estimates or assumptions . while our significant accounting policies are described in more detail in the notes to our consolidated financial statements and related notes appearing elsewhere in this annual report , we believe the following accounting policies to be most critical to the judgments and estimates used in the preparation of our financial statements . stock-based compensation we issue stock-based awards to employees and non-employees . we account for our stock-based awards in accordance with fasb asc topic 718 , compensation—stock compensation , ( “ asc 718 ” ) . asc 718 requires all stock-based payments to employees , including grants of employee stock options and modifications to existing stock options , to be recognized in the consolidated statements of operations and comprehensive loss based on their fair values . we account for stock-based awards to non-employees in accordance with asc 718 , which requires the fair value of the award to be remeasured at fair value as the award vests . our stock-based awards are subject to service-based vesting conditions . compensation expense related to awards to employees and directors with service-based vesting conditions is recognized on a straight-line basis based on the grant date fair value over the associated service period of the award , which is generally the vesting term . compensation expense related to awards to non-employees with service-based vesting conditions is recognized on the then-current fair value at each financial reporting date prior to the measurement date over the associated service period of the award , which is generally the vesting term , using the accelerated attribution method . described below is the methodology we have utilized in measuring stock-based compensation expense . following the consummation of our ipo , stock option values have been determined based on the quoted market price of our common stock . we estimate the fair value of our stock-based awards to employees and non-employees using the black-scholes option pricing model , which requires the input of highly subjective assumptions , including ( i ) the expected volatility of our stock , ( ii ) the expected term of the award , ( iii ) the risk-free interest rate and ( iv ) expected dividends . during 2018 we began to estimate our volatility by using a blend of our stock price history , for the length of time we have market data for our stock and the historical volatility of similar public companies for the expected term of each grant . for these analyses , we select companies with comparable characteristics to ours including enterprise value , risk profiles , position within the industry , and with historical share price information sufficient to meet the expected life of the stock-based awards . we compute the historical volatility data using the daily closing prices for the selected companies ' shares during the equivalent period of the calculated expected term of our stock-based awards . we account for forfeitures as they occur . we estimate the expected life of our employee stock options using the “ simplified ” method , whereby , the expected life equals the average of the vesting term and the original contractual term of the option . the risk-free interest rates for periods within the expected life of the option were based on the u.s. treasury yield curve in effect during the period the options were granted . 61 results of operations comparison of the years ended december 31 , 2019 and 2018 the following table summarizes proteon 's results of operations for the years ended december 31 , 2019 and 2018 ( in thousands ) : replace_table_token_0_th research and development expenses . the following table identifies research and development expenses on both an external and internal basis for the years ended december 31 , 2019 and 2018 ( in thousands ) : replace_table_token_1_th during the year ended december 31 , 2019 , our total research and development expense decreased by $ 5.4 million compared to the year ended december 31 , 2018 primarily due to $ 3.6 million in decreased external expenses . the decrease of $ 3.6 million in external expenses was primarily driven by $ 2.5 million in decreased expenses for our completed clinical trials and $ 1.1 million in decreased expenses for our manufacturing expenses . our internal research and development expenses decreased by $ 1.8 million in

liquidity and capital resources overview since our inception and through the year ended december 31 , 2019 , we had received $ 200.1 million in net proceeds comprised of $ 115.5 million from the issuance of private equity securities , $ 7.7 million from the issuance of convertible notes , $ 10.0 million from business development activities , $ 0.2 million from government grants , $ 62.5 million from our ipo and $ 4.2 million from the sale of common stock under our now-terminated atm program with cowen and company , llc . 62 liquidity as of december 31 , 2019 , the company had cash and cash equivalents of $ 6.2 million . the company had an accumulated deficit of $ 225.5 million as of december 31 , 2019. in connection with the merger , the company consummated the private placements , raising gross proceeds of $ 42.5 million . upon the consummation of the merger and the private placements , the post-merger combined company is expected to have cash of approximately $ 40.7 million . the company expects there will be no further material near term cash expenditures to fund the company 's vonapanitase clinical trials . from the date of the merger , the activities of the company will become those of private artara . the company is in the business of developing biopharmaceuticals , has no current or near term revenues . the company is incurring substantial clinical and other costs in its drug development efforts .


 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 overview since our inception and through the year ended december 31 , 2019 , we had received $ 200.1 million in net proceeds comprised of $ 115.5 million from the issuance of private equity securities , $ 7.7 million from the issuance of convertible notes , $ 10.0 million from business development activities , $ 0.2 million from government grants , $ 62.5 million from our ipo and $ 4.2 million from the sale of common stock under our now-terminated atm program with cowen and company , llc . 62 liquidity as of december 31 , 2019 , the company had cash and cash equivalents of $ 6.2 million . the company had an accumulated deficit of $ 225.5 million as of december 31 , 2019. in connection with the merger , the company consummated the private placements , raising gross proceeds of $ 42.5 million . upon the consummation of the merger and the private placements , the post-merger combined company is expected to have cash of approximately $ 40.7 million . the company expects there will be no further material near term cash expenditures to fund the company 's vonapanitase clinical trials . from the date of the merger , the activities of the company will become those of private artara . the company is in the business of developing biopharmaceuticals , has no current or near term revenues . the company is incurring substantial clinical and other costs in its drug development efforts .
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 Suspicious Activity Report : on january 9 , 2020 , in connection with , and prior to the completion of , the merger , the company effected a 1-for-40 reverse stock split of its common stock ( the “ reverse stock split ” ) , private artara changed its name from “ artara therapeutics , inc. ” to “ artara subsidiary , inc. ” , and the company changed its name from “ proteon therapeutics , inc. ” to “ artara therapeutics , inc. ” in addition , immediately following the closing of the private placement ( defined below ) , all of the outstanding shares of the company 's series a preferred stock were converted into shares of the company 's common stock . under the terms of the merger agreement , the company issued shares of its common stock ( “ common stock ” ) to private artara 's stockholders , at an exchange ratio of 0.190756 shares of common stock , after taking into account the reverse stock split , for each share of private artara common stock outstanding immediately prior to the merger . the company assumed all of the outstanding and unexercised stock options of private artara , with such stock options now representing the right to purchase a number of shares of common stock equal to 0.190756 multiplied by the number of shares of private artara common stock previously represented by such private artara stock options . the company also assumed all of the unvested private artara restricted stock awards , which were exchanged for a number of shares of common stock equal to 0.190756 multiplied by the number of shares of private artara common stock previously represented by such private artara restricted stock awards and unvested to the same extent as such private artara restricted stock awards and subject to the same restrictions as such private artara restricted stock awards . the shares of common stock issued to the former stockholders of private artara were registered with the u.s. securities and exchange commission ( the “ sec ” ) on a registration statement on form s-4 ( reg . no . 333-234549 ) ( the “ registration statement ” ) . the shares of common stock listed on the nasdaq capital market , previously trading through the close of business on thursday , january 9 , 2020 under the ticker symbol “ prto , ” commenced trading on the nasdaq capital market , on a post-reverse stock split adjusted basis , under the ticker symbol “ tara , ” on friday , january 10 , 2020. the financial information included in this management 's discussion and analysis of financial condition and results of operations is that of the company ( referred to in this management 's discussion and analysis of financial condition and results of operations as “ proteon ” in order to avoid confusion ) prior to the merger because the merger was consummated after the period covered by the financial statements included in this annual report . accordingly , the historical financial information included in this annual report , unless otherwise indicated or as the context otherwise requires , is that of proteon prior to the merger . proteon overview as a result of the merger , our historic business operations ceased and our going forward operations will be those of private artara . accordingly , the results of operations reported for the years ended december 31 , 2019 and 2018 , in this management 's discussion and analysis are not indicative of the results of operations expected in 2020 and future years due to the termination of our historic business operations . 58 prior to the merger , we were a late-stage biopharmaceutical company focused on the development of novel , first-in-class pharmaceuticals to address the needs of patients with renal and vascular disease . we have never been profitable and , as of december 31 , 2019 , we had an accumulated deficit of $ 225.5 million . we incurred net losses of $ 15.0 million and $ 20.7 million for the years ended december 31 , 2019 and 2018 , respectively . prior to the merger , proteon was a biopharmaceutical company that has historically focused on the development of novel , first-in-class pharmaceuticals to address the medical needs of patients with kidney and vascular disease . proteon 's product candidate , vonapanitase , is a recombinant human elastase that proteon developed to improve vascular access outcomes in patients with chronic kidney disease , or ckd , undergoing or preparing for hemodialysis , a lifesaving treatment that can not be conducted without a functioning vascular access . prior to the merger , on march 28 , 2019 , proteon announced that its second phase 3 trial , patency-2 , for vonapanitase in radiocephalic fistulas did not meet its co-primary endpoints of fistula use for hemodialysis ( p=0.328 ) and secondary patency ( p=0.932 ) . the patency-2 clinical trial was the second of two randomized , double-blind phase 3 trials , comparing a 30 microgram dose of investigational vonapanitase to placebo . proteon reported top-line results for the first phase 3 clinical trial , patency-1 , in december 2016 and published these results in the journal of vascular surgery in january 2019. as in patency-1 , the patency-2 clinical trial enrolled patients with chronic kidney disease undergoing surgical creation of a radiocephalic fistula for hemodialysis . patients were randomized 2:1 , vonapanitase to placebo , and were followed for a period of twelve months . in march 2018 , proteon completed enrollment of a total of 603 treated patients at 39 centers in the u.s. and canada . story_separator_special_tag other general and administrative expenses also include professional fees for legal , patent review , consulting and accounting services as well as facility related costs , as well as expenses related to audit , legal , regulatory and tax-related services associated with maintaining compliance with proteon 's nasdaq listing and sec requirements , director and officer liability insurance premiums and investor relations costs associated with being a public company . investment income investment income consists of interest income earned on proteon 's cash , cash equivalents and marketable securities . other income ( expense ) , net other income ( expense ) , net consists of the gain realized from non-cash gains and losses from currency exchange rate fluctuations on transactions or balances denominated in a foreign currency . 60 critical accounting policies and significant judgments and estimates management 's discussion and analysis of proteon 's financial position and results of operations is based on its financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states of america , or gaap . the preparation of financial statements in conformity with gaap requires proteon to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes . on an ongoing basis , proteon evaluates estimates , which include estimates related to clinical trial accruals , stock-based compensation expense , and reported amounts of revenues and expenses during the reported period . proteon bases its estimates on historical experience and other market-specific or other relevant assumptions that proteon believes to be reasonable under the circumstances . actual results may differ materially from those estimates or assumptions . while our significant accounting policies are described in more detail in the notes to our consolidated financial statements and related notes appearing elsewhere in this annual report , we believe the following accounting policies to be most critical to the judgments and estimates used in the preparation of our financial statements . stock-based compensation we issue stock-based awards to employees and non-employees . we account for our stock-based awards in accordance with fasb asc topic 718 , compensation—stock compensation , ( “ asc 718 ” ) . asc 718 requires all stock-based payments to employees , including grants of employee stock options and modifications to existing stock options , to be recognized in the consolidated statements of operations and comprehensive loss based on their fair values . we account for stock-based awards to non-employees in accordance with asc 718 , which requires the fair value of the award to be remeasured at fair value as the award vests . our stock-based awards are subject to service-based vesting conditions . compensation expense related to awards to employees and directors with service-based vesting conditions is recognized on a straight-line basis based on the grant date fair value over the associated service period of the award , which is generally the vesting term . compensation expense related to awards to non-employees with service-based vesting conditions is recognized on the then-current fair value at each financial reporting date prior to the measurement date over the associated service period of the award , which is generally the vesting term , using the accelerated attribution method . described below is the methodology we have utilized in measuring stock-based compensation expense . following the consummation of our ipo , stock option values have been determined based on the quoted market price of our common stock . we estimate the fair value of our stock-based awards to employees and non-employees using the black-scholes option pricing model , which requires the input of highly subjective assumptions , including ( i ) the expected volatility of our stock , ( ii ) the expected term of the award , ( iii ) the risk-free interest rate and ( iv ) expected dividends . during 2018 we began to estimate our volatility by using a blend of our stock price history , for the length of time we have market data for our stock and the historical volatility of similar public companies for the expected term of each grant . for these analyses , we select companies with comparable characteristics to ours including enterprise value , risk profiles , position within the industry , and with historical share price information sufficient to meet the expected life of the stock-based awards . we compute the historical volatility data using the daily closing prices for the selected companies ' shares during the equivalent period of the calculated expected term of our stock-based awards . we account for forfeitures as they occur . we estimate the expected life of our employee stock options using the “ simplified ” method , whereby , the expected life equals the average of the vesting term and the original contractual term of the option . the risk-free interest rates for periods within the expected life of the option were based on the u.s. treasury yield curve in effect during the period the options were granted . 61 results of operations comparison of the years ended december 31 , 2019 and 2018 the following table summarizes proteon 's results of operations for the years ended december 31 , 2019 and 2018 ( in thousands ) : replace_table_token_0_th research and development expenses . the following table identifies research and development expenses on both an external and internal basis for the years ended december 31 , 2019 and 2018 ( in thousands ) : replace_table_token_1_th during the year ended december 31 , 2019 , our total research and development expense decreased by $ 5.4 million compared to the year ended december 31 , 2018 primarily due to $ 3.6 million in decreased external expenses . the decrease of $ 3.6 million in external expenses was primarily driven by $ 2.5 million in decreased expenses for our completed clinical trials and $ 1.1 million in decreased expenses for our manufacturing expenses . our internal research and development expenses decreased by $ 1.8 million in

