our obligation to pay such royalties will terminate upon the expiration of the last patent right covering evk-001 , which is expected to occur in 2030. initial public offering and related transactions on september 30 , 2013 , we completed our ipo , whereby we sold 2,100,000 shares of common stock at $ 12.00 per share . on october 8 , 2013 , the underwriters for our ipo exercised the over-allotment option to purchase an additional 315,000 shares of our common stock at $ 12.00 per share . net proceeds from the ipo , including the exercise of the over-allotment option , were determined as follows : gross proceeds ( including over-allotment ) $ 28,980,000 underwriting discounts and commissions and non-accountable expense allowance ( 2,344,875 ) total offering costs ( excluding value of warrants granted to underwriter of $ 470,000 ) ( 1,514,177 ) net proceeds $ 25,120,948 additionally , upon the closing of the ipo , certain related transactions occurred : the conversion of all outstanding shares of our convertible preferred stock into 2,439,002 shares of our common stock ; retention payments in the amount of $ 355,000 became payable to our executive officers . such amount was recorded as expense on a straight-line basis from may 22 , 2013 ( the date of the retention agreements entered into with the executive officers ) through december 24 , 2013 , the date at which the final payment was due based on continued employment . since the terms of the payment required the occurrence of either a change in control of the company or an equity financing , neither of which were considered probable to occur until they happen , a catch-up expense of $ 202,857 was recorded at the time of our ipo . the executive officers remained with the company through december 24 , 2013 and received the full retention payment ; 36 the issuance of warrants to purchase 84,000 shares of our common stock to the representative of the underwriters of our ipo and certain of its affiliates . the warrants will become exercisable at a price of $ 21.00 per share beginning on september 24 , 2014 and will expire on september 24 , 2018. the initial fair value of the warrants of $ 470,000 was determined using the black-scholes option pricing model on the date of the ipo and recorded as a cost of the issuance of common stock from our ipo and charged to additional paid-in capital ; the conversion of warrants to purchase 110,000 shares of convertible preferred stock into warrants to purchase 22,000 shares of our common stock and the resultant reclassification of the $ 187,000 warrant liability to additional paid-in capital ; and the filing of an amended and restated certificate of incorporation to authorize 50,000,000 shares of common stock and 5,000,000 shares of undesignated preferred stock . financial operations overview research and development expenses we expense all research and development expenses as they are incurred . research and development expenses primarily include : clinical trial and regulatory-related costs ; expenses incurred under agreements with contract research organizations , or cros , investigative sites and consultants that conduct our clinical trials ; manufacturing and stability testing costs and related supplies and materials ; and employee-related expenses , including salaries , benefits , travel and stock-based compensation expense . all of our research and development expenses to date have been incurred in connection with evk-001 . we expect our research and development expenses to increase for the foreseeable future as we advance evk-001 through clinical development , including the conduct of our planned phase 3 clinical trial . the process of conducting clinical trials necessary to obtain regulatory approval is costly and time consuming . we are unable to estimate with any certainty the costs we will incur in the continued development of evk-001 . however , we currently estimate the costs to complete our phase 3 clinical trial in women , our companion clinical trial in men and a thorough qt study of evk-001 will be approximately $ 15.0 million . clinical development timelines , the probability of success and development costs can differ materially from expectations . we may never succeed in achieving marketing approval for our product candidate . the costs of clinical trials may vary significantly over the life of a project owing to , but not limited to , the following : per patient trial costs ; the number of sites included in the trials ; the countries in which the trials are conducted ; the length of time required to enroll eligible patients ; the number of patients that participate in the trials ; the number of doses that patients receive ; the cost of comparative agents used in trials ; the drop-out or discontinuation rates of patients ; potential additional safety monitoring or other studies requested by regulatory agencies ; the duration of patient follow-up ; and the efficacy and safety profile of the product candidate . we do not expect evk-001 to be commercially available , if at all , for the next few years . general and administrative expenses general and administrative expenses consist primarily of salaries and related benefits , including stock-based compensation . other general and administrative expenses include professional fees for accounting , tax , patent costs , legal services , insurance and facility costs . we expect that general and administrative expenses will increase in the future as we expand our operating activities and incur additional costs associated with being a publicly-traded company and maintaining compliance with exchange listing and securities and exchange commission requirements . these increases will likely include higher consulting costs , legal fees , accounting fees , directors ' and officers ' liability insurance premiums and fees associated with investor relations . story_separator_special_tag results of operations comparison of years ended december 31 , 2013 and 2012 the following table summarizes the results of our operations for the fiscal years ended december 31 , 2013 and 2012 : replace_table_token_7_th research and development expenses . research and development expenses were approximately $ 957,000 for the year ended december 31 , 2013 , compared to approximately $ 1,165,000 for the year ended december 31 , 2012. the decrease of approximately $ 209,000 is primarily related to the decrease in executive compensation allocated to research and development as we worked to raise capital in 2013 and to the reversal of the 2012 bonus accrual due to the election by our board of directors in april 2013 to not pay 2012 bonuses in order to conserve cash . general and administrative expenses . general and administrative expenses were approximately $ 1,645,000 for the year ended december 31 , 2013 , compared to approximately $ 837,000 for the year ended december 31 , 2012. the increase of approximately $ 808,000 is primarily related to a larger portion of our labor costs being allocated to general and administrative activities in 2013 in preparation for our ipo and the payment for the executive team 's retention payments of $ 355,000 , offset by the reversal of the 2012 bonus accrual due to the election by our board of directors in april 2013 to not pay 2012 bonuses . 39 other income ( expense ) . other income ( expense ) was approximately $ ( 235,000 ) for the year ended december 31 , 2013 and primarily consisted of approximately $ ( 160,000 ) of interest expense and $ ( 82,000 ) related to the increase in the fair value of our outstanding warrant liability , and offset by approximately $ 7,000 of interest income . other income ( expense ) was approximately $ ( 15,000 ) for the year ended december 31 , 2012 and primarily consisted of approximately $ ( 24,000 ) of interest expense related to advances under our loan and security agreement , offset by approximately $ 2,000 of interest income and $ 7,000 of other income related to the decrease in fair value of our outstanding warrant liability . comparison of years ended december 31 , 2012 and 2011 the following table summarizes the results of our operations for the fiscal years ended december 31 , 2012 and 2011 : replace_table_token_8_th research and development expenses . research and development expenses were approximately $ 1,165,000 for the year ended december 31 , 2012 , compared to approximately $ 1,844,000 for the year ended december 31 , 2011. the decrease of approximately $ 679,000 is primarily related to the decrease in development-related costs as we finalized the phase 2 clinical trial for evk-001 and engaged with the fda for phase 3 planning . general and administrative expenses . general and administrative expenses were approximately $ 837,000 for the year ended december 31 , 2012 , compared to approximately $ 571,000 for the year ended december 31 , 2011. the increase of approximately $ 266,000 is primarily related to an increase in accruals for bonus payments to our officers in 2012. other income ( expense ) . other income ( expense ) was approximately $ ( 15,000 ) for the year ended december 31 , 2012 and primarily consisted of approximately $ ( 24,000 ) of interest expense related to advances under our loan and security agreement , offset by approximately $ 2,000 of interest income and $ 7,000 of other income related to the decrease in fair value of our outstanding warrant liability . other income ( expense ) was approximately $ 13,000 for the year ended december 31 , 2011 and primarily consisted of $ 11,000 of interest income and $ 5,000 related to the decrease in fair value of our outstanding warrant liability , offset by $ ( 3,000 ) of interest expense related to advances under our loan and security agreement . story_separator_special_tag the timing and costs associated with manufacturing evk-001 for clinical trials and other studies and , if approved , for commercial sale ; our need and ability to hire additional management , development and scientific personnel ; the cost to maintain , expand and defend the scope of our intellectual property portfolio , including the amount and timing of any payments we may be required to make , or that we may receive , in connection with licensing , filing , prosecution , defense and enforcement of any patents or other intellectual property rights ; the timing and costs associated with establishing sales and marketing capabilities ; market acceptance of evk-001 ; the extent to which we are required to pay milestone or other payments under our questcor asset purchase agreement and the timing of such payments ; the costs of acquiring , licensing or investing in additional businesses , products , product candidates and technologies ; and our need to implement additional internal systems and infrastructure , including financial and reporting systems . off-balance sheet arrangements through december 31 , 2013 , we have not entered into and did not have any relationships with unconsolidated entities or financial collaborations , such as entities often referred to as structured finance or special purpose entities , which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purpose . contractual obligations and commitments our most significant clinical trial expenditures are to cros . the contracts with cros generally are cancellable , with notice , at our option and do not have any cancellation penalties . our long-term debt obligation consists of amounts we are obligated to repay under our loan and security agreement with silicon valley bank , of which we have drawn the full amount of $ 3.0 million as of january 31 , 2013. in 2013 , we made interest-only payments of $ 128,875. in january 2014 we began making the first of 24

liquidity and capital resources since our inception in 2007 , we have funded our operations primarily from the sale of equity securities and borrowings under our loan and security agreements . prior to our ipo , we received $ 17.7 million in net proceeds from the sale of our series a convertible preferred stock and net proceeds of $ 3.0 million under our current loan and security agreement . during 2013 , we completed our ipo and raised approximately $ 25.1 million . we have incurred losses since inception and negative cash flows from operating activities . as of december 31 , 2013 , we had approximately $ 24.2 million in cash and cash equivalents , working capital of approximately $ 22.1 million and an accumulated deficit of approximately $ 22.7 million . in june 2012 , we entered into a $ 3.0 million loan and security agreement with silicon valley bank which is collateralized by our personal property . interest on advances under the agreement is at a fixed interest rate equal to 4.50 % . the loan and security agreement contains only non-financial covenants . advances under the loan and security agreement had an interest-only period through december 31 , 2013 and a 24-month payback period that commenced in january 2014. as of december 31 , 2013 , we had drawn down the entire $ 3.0 million available under the agreement to fund working capital and have no credit available for future borrowings . in connection with the loan and security agreement , we issued a warrant to silicon valley bank which is immediately exercisable for an aggregate of 12,000 shares of our common stock , at an exercise price of $ 7.50 per share . we expect to continue to incur significant expenses and increasing operating losses for at least the next several years .


 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 since our inception in 2007 , we have funded our operations primarily from the sale of equity securities and borrowings under our loan and security agreements . prior to our ipo , we received $ 17.7 million in net proceeds from the sale of our series a convertible preferred stock and net proceeds of $ 3.0 million under our current loan and security agreement . during 2013 , we completed our ipo and raised approximately $ 25.1 million . we have incurred losses since inception and negative cash flows from operating activities . as of december 31 , 2013 , we had approximately $ 24.2 million in cash and cash equivalents , working capital of approximately $ 22.1 million and an accumulated deficit of approximately $ 22.7 million . in june 2012 , we entered into a $ 3.0 million loan and security agreement with silicon valley bank which is collateralized by our personal property . interest on advances under the agreement is at a fixed interest rate equal to 4.50 % . the loan and security agreement contains only non-financial covenants . advances under the loan and security agreement had an interest-only period through december 31 , 2013 and a 24-month payback period that commenced in january 2014. as of december 31 , 2013 , we had drawn down the entire $ 3.0 million available under the agreement to fund working capital and have no credit available for future borrowings . in connection with the loan and security agreement , we issued a warrant to silicon valley bank which is immediately exercisable for an aggregate of 12,000 shares of our common stock , at an exercise price of $ 7.50 per share . we expect to continue to incur significant expenses and increasing operating losses for at least the next several years .
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 Suspicious Activity Report : our obligation to pay such royalties will terminate upon the expiration of the last patent right covering evk-001 , which is expected to occur in 2030. initial public offering and related transactions on september 30 , 2013 , we completed our ipo , whereby we sold 2,100,000 shares of common stock at $ 12.00 per share . on october 8 , 2013 , the underwriters for our ipo exercised the over-allotment option to purchase an additional 315,000 shares of our common stock at $ 12.00 per share . net proceeds from the ipo , including the exercise of the over-allotment option , were determined as follows : gross proceeds ( including over-allotment ) $ 28,980,000 underwriting discounts and commissions and non-accountable expense allowance ( 2,344,875 ) total offering costs ( excluding value of warrants granted to underwriter of $ 470,000 ) ( 1,514,177 ) net proceeds $ 25,120,948 additionally , upon the closing of the ipo , certain related transactions occurred : the conversion of all outstanding shares of our convertible preferred stock into 2,439,002 shares of our common stock ; retention payments in the amount of $ 355,000 became payable to our executive officers . such amount was recorded as expense on a straight-line basis from may 22 , 2013 ( the date of the retention agreements entered into with the executive officers ) through december 24 , 2013 , the date at which the final payment was due based on continued employment . since the terms of the payment required the occurrence of either a change in control of the company or an equity financing , neither of which were considered probable to occur until they happen , a catch-up expense of $ 202,857 was recorded at the time of our ipo . the executive officers remained with the company through december 24 , 2013 and received the full retention payment ; 36 the issuance of warrants to purchase 84,000 shares of our common stock to the representative of the underwriters of our ipo and certain of its affiliates . the warrants will become exercisable at a price of $ 21.00 per share beginning on september 24 , 2014 and will expire on september 24 , 2018. the initial fair value of the warrants of $ 470,000 was determined using the black-scholes option pricing model on the date of the ipo and recorded as a cost of the issuance of common stock from our ipo and charged to additional paid-in capital ; the conversion of warrants to purchase 110,000 shares of convertible preferred stock into warrants to purchase 22,000 shares of our common stock and the resultant reclassification of the $ 187,000 warrant liability to additional paid-in capital ; and the filing of an amended and restated certificate of incorporation to authorize 50,000,000 shares of common stock and 5,000,000 shares of undesignated preferred stock . financial operations overview research and development expenses we expense all research and development expenses as they are incurred . research and development expenses primarily include : clinical trial and regulatory-related costs ; expenses incurred under agreements with contract research organizations , or cros , investigative sites and consultants that conduct our clinical trials ; manufacturing and stability testing costs and related supplies and materials ; and employee-related expenses , including salaries , benefits , travel and stock-based compensation expense . all of our research and development expenses to date have been incurred in connection with evk-001 . we expect our research and development expenses to increase for the foreseeable future as we advance evk-001 through clinical development , including the conduct of our planned phase 3 clinical trial . the process of conducting clinical trials necessary to obtain regulatory approval is costly and time consuming . we are unable to estimate with any certainty the costs we will incur in the continued development of evk-001 . however , we currently estimate the costs to complete our phase 3 clinical trial in women , our companion clinical trial in men and a thorough qt study of evk-001 will be approximately $ 15.0 million . clinical development timelines , the probability of success and development costs can differ materially from expectations . we may never succeed in achieving marketing approval for our product candidate . the costs of clinical trials may vary significantly over the life of a project owing to , but not limited to , the following : per patient trial costs ; the number of sites included in the trials ; the countries in which the trials are conducted ; the length of time required to enroll eligible patients ; the number of patients that participate in the trials ; the number of doses that patients receive ; the cost of comparative agents used in trials ; the drop-out or discontinuation rates of patients ; potential additional safety monitoring or other studies requested by regulatory agencies ; the duration of patient follow-up ; and the efficacy and safety profile of the product candidate . we do not expect evk-001 to be commercially available , if at all , for the next few years . general and administrative expenses general and administrative expenses consist primarily of salaries and related benefits , including stock-based compensation . other general and administrative expenses include professional fees for accounting , tax , patent costs , legal services , insurance and facility costs . we expect that general and administrative expenses will increase in the future as we expand our operating activities and incur additional costs associated with being a publicly-traded company and maintaining compliance with exchange listing and securities and exchange commission requirements . these increases will likely include higher consulting costs , legal fees , accounting fees , directors ' and officers ' liability insurance premiums and fees associated with investor relations . story_separator_special_tag results of operations comparison of years ended december 31 , 2013 and 2012 the following table summarizes the results of our operations for the fiscal years ended december 31 , 2013 and 2012 : replace_table_token_7_th research and development expenses . research and development expenses were approximately $ 957,000 for the year ended december 31 , 2013 , compared to approximately $ 1,165,000 for the year ended december 31 , 2012. the decrease of approximately $ 209,000 is primarily related to the decrease in executive compensation allocated to research and development as we worked to raise capital in 2013 and to the reversal of the 2012 bonus accrual due to the election by our board of directors in april 2013 to not pay 2012 bonuses in order to conserve cash . general and administrative expenses . general and administrative expenses were approximately $ 1,645,000 for the year ended december 31 , 2013 , compared to approximately $ 837,000 for the year ended december 31 , 2012. the increase of approximately $ 808,000 is primarily related to a larger portion of our labor costs being allocated to general and administrative activities in 2013 in preparation for our ipo and the payment for the executive team 's retention payments of $ 355,000 , offset by the reversal of the 2012 bonus accrual due to the election by our board of directors in april 2013 to not pay 2012 bonuses . 39 other income ( expense ) . other income ( expense ) was approximately $ ( 235,000 ) for the year ended december 31 , 2013 and primarily consisted of approximately $ ( 160,000 ) of interest expense and $ ( 82,000 ) related to the increase in the fair value of our outstanding warrant liability , and offset by approximately $ 7,000 of interest income . other income ( expense ) was approximately $ ( 15,000 ) for the year ended december 31 , 2012 and primarily consisted of approximately $ ( 24,000 ) of interest expense related to advances under our loan and security agreement , offset by approximately $ 2,000 of interest income and $ 7,000 of other income related to the decrease in fair value of our outstanding warrant liability . comparison of years ended december 31 , 2012 and 2011 the following table summarizes the results of our operations for the fiscal years ended december 31 , 2012 and 2011 : replace_table_token_8_th research and development expenses . research and development expenses were approximately $ 1,165,000 for the year ended december 31 , 2012 , compared to approximately $ 1,844,000 for the year ended december 31 , 2011. the decrease of approximately $ 679,000 is primarily related to the decrease in development-related costs as we finalized the phase 2 clinical trial for evk-001 and engaged with the fda for phase 3 planning . general and administrative expenses . general and administrative expenses were approximately $ 837,000 for the year ended december 31 , 2012 , compared to approximately $ 571,000 for the year ended december 31 , 2011. the increase of approximately $ 266,000 is primarily related to an increase in accruals for bonus payments to our officers in 2012. other income ( expense ) . other income ( expense ) was approximately $ ( 15,000 ) for the year ended december 31 , 2012 and primarily consisted of approximately $ ( 24,000 ) of interest expense related to advances under our loan and security agreement , offset by approximately $ 2,000 of interest income and $ 7,000 of other income related to the decrease in fair value of our outstanding warrant liability . other income ( expense ) was approximately $ 13,000 for the year ended december 31 , 2011 and primarily consisted of $ 11,000 of interest income and $ 5,000 related to the decrease in fair value of our outstanding warrant liability , offset by $ ( 3,000 ) of interest expense related to advances under our loan and security agreement . story_separator_special_tag the timing and costs associated with manufacturing evk-001 for clinical trials and other studies and , if approved , for commercial sale ; our need and ability to hire additional management , development and scientific personnel ; the cost to maintain , expand and defend the scope of our intellectual property portfolio , including the amount and timing of any payments we may be required to make , or that we may receive , in connection with licensing , filing , prosecution , defense and enforcement of any patents or other intellectual property rights ; the timing and costs associated with establishing sales and marketing capabilities ; market acceptance of evk-001 ; the extent to which we are required to pay milestone or other payments under our questcor asset purchase agreement and the timing of such payments ; the costs of acquiring , licensing or investing in additional businesses , products , product candidates and technologies ; and our need to implement additional internal systems and infrastructure , including financial and reporting systems . off-balance sheet arrangements through december 31 , 2013 , we have not entered into and did not have any relationships with unconsolidated entities or financial collaborations , such as entities often referred to as structured finance or special purpose entities , which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purpose . contractual obligations and commitments our most significant clinical trial expenditures are to cros . the contracts with cros generally are cancellable , with notice , at our option and do not have any cancellation penalties . our long-term debt obligation consists of amounts we are obligated to repay under our loan and security agreement with silicon valley bank , of which we have drawn the full amount of $ 3.0 million as of january 31 , 2013. in 2013 , we made interest-only payments of $ 128,875. in january 2014 we began making the first of 24

