since our inception in 2005 , we have devoted substantially all of our resources to research and development initiatives , undertaking preclinical studies of our product candidates , conducting clinical trials of our most advanced product candidates , organizing and staffing our company and raising capital . we do not have any products approved for sale and have not generated any revenue from product sales . we have funded our operations to date primarily with proceeds from the sale of preferred and common stock , bank financings and grant awards received from the national institutes of health , or nih , and other philanthropic organizations . in particular , we have received cash proceeds of $ 104.9 million from sales of our preferred stock , $ 35.0 million from drawdowns of the loan and security agreement , $ 10.6 million from grant awards from the nih and other philanthropic organizations , and $ 98.3 million from our june 2018 initial public offering , or ipo , of our common stock pursuant to a registration statement on form s-1 , as amended . in the ipo , we sold an aggregate of 6,555,000 shares of our common stock under the registration statement at a public offering price of $ 15.00 per share , including 855,000 shares of our common stock pursuant to the exercise of the underwriters ' option to purchase additional shares . net proceeds were $ 88.9 million after deducting underwriting discounts and commissions as well as other offering expenses . the loan and security agreement includes an additional $ 10.0 million that will be available beginning upon approval of our gvoke hypopen nda by the fda until the earlier of september 30 , 2019 or the 30th day following nda approval by the fda . for the years ended december 31 , 2018 and 2017 , our net loss was $ 60.1 million and $ 26.6 million , respectively . we have not been profitable since inception , and , as of december 31 , 2018 , our accumulated deficit was $ 120.7 million . in the near term , we expect to continue to incur significant expenses , operating losses and net losses as we : < prepare for a potential commercial launch of our gvoke hypopen , including hiring our sales force ; < continue our research and development efforts ; < seek regulatory approval for new product candidates and product enhancements ; < hire and retain additional personnel and add operational , financial and management information systems ; and < continue to operate as a public company . we do not expect to generate significant product revenue unless or until we obtain marketing approval of , and begin to sell , our product candidates . we expect to continue to seek public equity and debt financing to meet our capital requirements . there can be no assurance 90 that such funding may be available to us on acceptable terms , or at all , or that we will be able to commercialize our product candidates . in addition , we may not be profitable even if we commercialize any of our product candidates . components of our results of operations revenue and cost of revenue grant income is derived from grants that we received from the nih and other philanthropic organizations to help bring necessary drugs to the marketplace where there are currently unmet needs . as of december 31 , 2018 , we are eligible to receive $ 1.4 million in grants from the nih and other philanthropic organizations that will help fund our ongoing clinical development for intermittent and chronic glucagon programs as well as our auto-injectable diazepam program for the treatment of epileptic seizures . these awards will be recognized as grant income when we have performed the services as outlined in the grant agreements . service revenue is derived from the feasibility studies we perform for third parties to determine whether our xerisol and xeriject technologies may enhance the formulation of such parties ' proprietary drugs . cost of revenue includes employees ' time , materials and overhead applied to the feasibility studies . research and development expenses research and development expenses consist of expenses incurred in connection with the discovery and development of our product candidates . we expense research and development expenses as incurred . research and development expenses that are paid in advance of performance are capitalized until services are provided or goods are delivered . research and development expenses include : < expenses incurred under agreements with contract research organizations , or cros , as well as investigative sites and consultants that conduct our preclinical studies and clinical trials ; < manufacturing scale-up expenses , the cost of acquiring and manufacturing preclinical and clinical trial materials , including manufacturing validation batches , and the cost of manufacturing commercial supplies in advance of regulatory approval ; < outsourced professional scientific development services ; < employee-related expenses , which include salaries , benefits and stock-based compensation ; < expenses relating to regulatory activities , including filing fees paid to regulatory agencies ; < laboratory materials and supplies used to support our research activities ; and < allocated expenses for facility-related costs . research and development activities are central to our business model . we expect our research and development expenses to increase as we conduct new clinical trials , prepare regulatory filings for our product candidates , and add headcount to support these efforts . story_separator_special_tag stock-based compensation expense the following table summarizes the reporting of total stock-based compensation expense resulting from employee stock options and restricted stock awards : replace_table_token_11_th the company accounts for our stock-based compensation awards in accordance with accounting standards codification topic 718 , compensation-stock compensation , or asc 718. asc 718 requires all stock-based payments to employees , including grants of employee stock options , to be recognized in the statements of operations based on their grant date fair values . we estimate the grant date fair value of each option award using the black-scholes option-pricing model . we recognize stock-based compensation expense , net of estimated forfeitures , equal to the grant date fair value of stock options on a straight-line basis over the requisite service period . estimating the fair value of options requires the input of subjective assumptions , including the estimated fair value of our common stock , the expected life of the option , stock price volatility , the risk-free interest rate and expected dividends . the assumptions used in our black-scholes option-pricing model represent management 's best estimates and involve a number of variables , uncertainties and assumptions and the application of management 's judgment , as they are inherently subjective . if any assumptions change , our stock-based compensation expense could be materially different in the future . these assumptions used in our black-scholes option-pricing model are estimated as follows : < expected term . we do not believe we are able to rely on our historical exercise and post-vesting termination activity to provide accurate data for estimating the expected term for use in determining the fair value-based measurement of our options . therefore , we have opted to use the “ simplified method ” for estimating the expected term of options , which is the average of the weighted-average vesting period and contractual term of the option . ∎ expected volatility . as we have limited trading history for our common stock , the expected stock price volatility assumption is determined based on the historical volatilities of a peer group of publicly traded companies as well as the historical volatility of our own common stock since we began trading subsequent to our ipo in june 2018. in evaluating similarity , we consider factors such as stage of development , risk profile , enterprise value and position within the industry . we intend to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of our own common stock share price becomes available , or unless circumstances change such that the identified companies are no longer similar to us , in which case more suitable companies whose share prices are publicly available would be utilized in the calculation . ∎ risk-free interest rate . the risk-free interest rate is based on the u.s. treasury yield in effect at the time of the grant for zero-coupon u.s. treasury notes with remaining terms similar to the expected term of the options . ∎ expected dividends . the expected dividend yield is 0 % because we have not historically paid , and do not expect for the foreseeable future to pay , a dividend on our common stock . prior to our ipo in june 2018 , our valuations were performed by a third-party valuation company using a discounted cash flow , or dcf , analysis . this method was chosen based on our sources of historical capital and potential future capital needs . for the december 31 , 2017 valuation , we went from the dcf valuation technique to a hybrid method , which uses market approaches to estimate our enterprise value . the hybrid method is a probability-weighted expected return method , or pwerm , where the equity value in one or more of the scenarios is calculated using an option-pricing method , or opm . the opm treats common stock and preferred stock as call options on the total equity value of a company , with exercise prices based on the value thresholds at which the allocation among the various holders of a company 's securities changes . the pwerm is a scenario-based methodology that estimates the fair value of common stock based upon an analysis of future values for the company , assuming various outcomes . the common stock value is based on the probability-weighted present value of expected future investment returns considering each of the possible outcomes available as well as the rights of each class 96 of stock . the future value of the common stock under each outcome is discounted back to the valuation date at an appropriate risk-adjusted discount rate and probability weighted to arrive at an indication of value for the common stock . the assumptions underlying these valuations represent management 's best estimates , which involve inherent uncertainties and the application of management judgment . as a result , if factors or expected outcomes change and we use significantly different assumptions or estimates , our stock-based compensation expense could be materially different . if there are any modifications or cancellations of the underlying unvested securities , we may be required to accelerate , increase or cancel any remaining unearned stock-based compensation expense . income taxes income taxes are recorded in accordance with asc 740 , income taxes ( “ asc 740 ” ) , which provides for deferred taxes using an asset and liability approach . we recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns . we determine our deferred tax assets and liabilities based on differences between financial reporting and tax bases of assets and liabilities , which are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse . valuation allowances are provided if , based upon the weight of available evidence , it is

liquidity and capital resources our primary uses of cash are to fund the development of our products , operating expenses and working capital requirements . historically , we have funded our operations primarily through private placements of convertible preferred stock , issuance of debt , and grants awarded from the nih and other philanthropic organizations . on june 25 , 2018 , we completed our ipo of 6,555,000 shares of our common stock at a price of $ 15.00 per share for aggregate gross proceeds of approximately $ 98.3 million , including 855,000 shares of our common stock pursuant to the exercise of the underwriters ' option to purchase additional shares . we received aggregate net proceeds from the ipo of $ 88.9 million after deducting underwriting discounts and commissions as well as other offering expenses . in addition , on february 19 , 2019 , we completed a public offering and sold an aggregate of 5,996,775 shares of common stock at a price of $ 10.00 per share , including the underwriters ' partial exercise of their option to purchase additional shares of common stock . net proceeds from the offering were approximately $ 55.6 million after deducting underwriting discounts and commissions as well as other offering expenses . as of december 31 , 2018 , we had $ 1.4 million in awarded unused grants that can be utilized to offset program costs for several of our intermittent and chronic glucagon programs as well as our diazepam program , in accordance with the grant agreements .


 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 our primary uses of cash are to fund the development of our products , operating expenses and working capital requirements . historically , we have funded our operations primarily through private placements of convertible preferred stock , issuance of debt , and grants awarded from the nih and other philanthropic organizations . on june 25 , 2018 , we completed our ipo of 6,555,000 shares of our common stock at a price of $ 15.00 per share for aggregate gross proceeds of approximately $ 98.3 million , including 855,000 shares of our common stock pursuant to the exercise of the underwriters ' option to purchase additional shares . we received aggregate net proceeds from the ipo of $ 88.9 million after deducting underwriting discounts and commissions as well as other offering expenses . in addition , on february 19 , 2019 , we completed a public offering and sold an aggregate of 5,996,775 shares of common stock at a price of $ 10.00 per share , including the underwriters ' partial exercise of their option to purchase additional shares of common stock . net proceeds from the offering were approximately $ 55.6 million after deducting underwriting discounts and commissions as well as other offering expenses . as of december 31 , 2018 , we had $ 1.4 million in awarded unused grants that can be utilized to offset program costs for several of our intermittent and chronic glucagon programs as well as our diazepam program , in accordance with the grant agreements .
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 Suspicious Activity Report : since our inception in 2005 , we have devoted substantially all of our resources to research and development initiatives , undertaking preclinical studies of our product candidates , conducting clinical trials of our most advanced product candidates , organizing and staffing our company and raising capital . we do not have any products approved for sale and have not generated any revenue from product sales . we have funded our operations to date primarily with proceeds from the sale of preferred and common stock , bank financings and grant awards received from the national institutes of health , or nih , and other philanthropic organizations . in particular , we have received cash proceeds of $ 104.9 million from sales of our preferred stock , $ 35.0 million from drawdowns of the loan and security agreement , $ 10.6 million from grant awards from the nih and other philanthropic organizations , and $ 98.3 million from our june 2018 initial public offering , or ipo , of our common stock pursuant to a registration statement on form s-1 , as amended . in the ipo , we sold an aggregate of 6,555,000 shares of our common stock under the registration statement at a public offering price of $ 15.00 per share , including 855,000 shares of our common stock pursuant to the exercise of the underwriters ' option to purchase additional shares . net proceeds were $ 88.9 million after deducting underwriting discounts and commissions as well as other offering expenses . the loan and security agreement includes an additional $ 10.0 million that will be available beginning upon approval of our gvoke hypopen nda by the fda until the earlier of september 30 , 2019 or the 30th day following nda approval by the fda . for the years ended december 31 , 2018 and 2017 , our net loss was $ 60.1 million and $ 26.6 million , respectively . we have not been profitable since inception , and , as of december 31 , 2018 , our accumulated deficit was $ 120.7 million . in the near term , we expect to continue to incur significant expenses , operating losses and net losses as we : < prepare for a potential commercial launch of our gvoke hypopen , including hiring our sales force ; < continue our research and development efforts ; < seek regulatory approval for new product candidates and product enhancements ; < hire and retain additional personnel and add operational , financial and management information systems ; and < continue to operate as a public company . we do not expect to generate significant product revenue unless or until we obtain marketing approval of , and begin to sell , our product candidates . we expect to continue to seek public equity and debt financing to meet our capital requirements . there can be no assurance 90 that such funding may be available to us on acceptable terms , or at all , or that we will be able to commercialize our product candidates . in addition , we may not be profitable even if we commercialize any of our product candidates . components of our results of operations revenue and cost of revenue grant income is derived from grants that we received from the nih and other philanthropic organizations to help bring necessary drugs to the marketplace where there are currently unmet needs . as of december 31 , 2018 , we are eligible to receive $ 1.4 million in grants from the nih and other philanthropic organizations that will help fund our ongoing clinical development for intermittent and chronic glucagon programs as well as our auto-injectable diazepam program for the treatment of epileptic seizures . these awards will be recognized as grant income when we have performed the services as outlined in the grant agreements . service revenue is derived from the feasibility studies we perform for third parties to determine whether our xerisol and xeriject technologies may enhance the formulation of such parties ' proprietary drugs . cost of revenue includes employees ' time , materials and overhead applied to the feasibility studies . research and development expenses research and development expenses consist of expenses incurred in connection with the discovery and development of our product candidates . we expense research and development expenses as incurred . research and development expenses that are paid in advance of performance are capitalized until services are provided or goods are delivered . research and development expenses include : < expenses incurred under agreements with contract research organizations , or cros , as well as investigative sites and consultants that conduct our preclinical studies and clinical trials ; < manufacturing scale-up expenses , the cost of acquiring and manufacturing preclinical and clinical trial materials , including manufacturing validation batches , and the cost of manufacturing commercial supplies in advance of regulatory approval ; < outsourced professional scientific development services ; < employee-related expenses , which include salaries , benefits and stock-based compensation ; < expenses relating to regulatory activities , including filing fees paid to regulatory agencies ; < laboratory materials and supplies used to support our research activities ; and < allocated expenses for facility-related costs . research and development activities are central to our business model . we expect our research and development expenses to increase as we conduct new clinical trials , prepare regulatory filings for our product candidates , and add headcount to support these efforts . story_separator_special_tag stock-based compensation expense the following table summarizes the reporting of total stock-based compensation expense resulting from employee stock options and restricted stock awards : replace_table_token_11_th the company accounts for our stock-based compensation awards in accordance with accounting standards codification topic 718 , compensation-stock compensation , or asc 718. asc 718 requires all stock-based payments to employees , including grants of employee stock options , to be recognized in the statements of operations based on their grant date fair values . we estimate the grant date fair value of each option award using the black-scholes option-pricing model . we recognize stock-based compensation expense , net of estimated forfeitures , equal to the grant date fair value of stock options on a straight-line basis over the requisite service period . estimating the fair value of options requires the input of subjective assumptions , including the estimated fair value of our common stock , the expected life of the option , stock price volatility , the risk-free interest rate and expected dividends . the assumptions used in our black-scholes option-pricing model represent management 's best estimates and involve a number of variables , uncertainties and assumptions and the application of management 's judgment , as they are inherently subjective . if any assumptions change , our stock-based compensation expense could be materially different in the future . these assumptions used in our black-scholes option-pricing model are estimated as follows : < expected term . we do not believe we are able to rely on our historical exercise and post-vesting termination activity to provide accurate data for estimating the expected term for use in determining the fair value-based measurement of our options . therefore , we have opted to use the “ simplified method ” for estimating the expected term of options , which is the average of the weighted-average vesting period and contractual term of the option . ∎ expected volatility . as we have limited trading history for our common stock , the expected stock price volatility assumption is determined based on the historical volatilities of a peer group of publicly traded companies as well as the historical volatility of our own common stock since we began trading subsequent to our ipo in june 2018. in evaluating similarity , we consider factors such as stage of development , risk profile , enterprise value and position within the industry . we intend to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of our own common stock share price becomes available , or unless circumstances change such that the identified companies are no longer similar to us , in which case more suitable companies whose share prices are publicly available would be utilized in the calculation . ∎ risk-free interest rate . the risk-free interest rate is based on the u.s. treasury yield in effect at the time of the grant for zero-coupon u.s. treasury notes with remaining terms similar to the expected term of the options . ∎ expected dividends . the expected dividend yield is 0 % because we have not historically paid , and do not expect for the foreseeable future to pay , a dividend on our common stock . prior to our ipo in june 2018 , our valuations were performed by a third-party valuation company using a discounted cash flow , or dcf , analysis . this method was chosen based on our sources of historical capital and potential future capital needs . for the december 31 , 2017 valuation , we went from the dcf valuation technique to a hybrid method , which uses market approaches to estimate our enterprise value . the hybrid method is a probability-weighted expected return method , or pwerm , where the equity value in one or more of the scenarios is calculated using an option-pricing method , or opm . the opm treats common stock and preferred stock as call options on the total equity value of a company , with exercise prices based on the value thresholds at which the allocation among the various holders of a company 's securities changes . the pwerm is a scenario-based methodology that estimates the fair value of common stock based upon an analysis of future values for the company , assuming various outcomes . the common stock value is based on the probability-weighted present value of expected future investment returns considering each of the possible outcomes available as well as the rights of each class 96 of stock . the future value of the common stock under each outcome is discounted back to the valuation date at an appropriate risk-adjusted discount rate and probability weighted to arrive at an indication of value for the common stock . the assumptions underlying these valuations represent management 's best estimates , which involve inherent uncertainties and the application of management judgment . as a result , if factors or expected outcomes change and we use significantly different assumptions or estimates , our stock-based compensation expense could be materially different . if there are any modifications or cancellations of the underlying unvested securities , we may be required to accelerate , increase or cancel any remaining unearned stock-based compensation expense . income taxes income taxes are recorded in accordance with asc 740 , income taxes ( “ asc 740 ” ) , which provides for deferred taxes using an asset and liability approach . we recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns . we determine our deferred tax assets and liabilities based on differences between financial reporting and tax bases of assets and liabilities , which are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse . valuation allowances are provided if , based upon the weight of available evidence , it is

