the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported expenses incurred during the reporting periods . our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe that the following accounting policies are the most critical to aid in fully understanding and evaluating our reported financial results , and they require our most difficult , subjective or complex judgments , resulting from the need to make estimates about the effect of matters that are inherently uncertain . 78 research and development costs we record accrued expenses for costs invoiced from research and development activities conducted , on our behalf , by third-party service providers , which include the conduct of pre-clinical studies and clinical trials and use of contract research and manufacturing activities . we record the costs of research and development activities based upon the amount of services provided , and we include these costs in accrued liabilities in the balance sheets and within research and development expense in the statement of operations . these costs are a significant component of our research and development expenses . we estimate the amount of work completed through discussions with internal personnel and external service providers as to the progress or stage of completion of the services and the agreed-upon fee to be paid for such services . we make significant judgments and estimates in determining the accrued balance in each reporting period . as actual costs become known , we adjust our accrued estimates . although we do not expect our estimates to be materially different from amounts actually incurred , our understanding of the status and timing of services performed , the number of patients enrolled and the rate of patient enrollment may vary from our estimates and could result in us reporting amounts that are too high or too low in any particular period . our accrued expenses are dependent , in part , upon the receipt of timely and accurate reporting from clinical research organizations and other third-party service providers . to date , there have been no material differences from our accrued expenses to actual expenses . income taxes deferred tax assets or liabilities are recorded for temporary differences between financial statement and tax basis of assets and liabilities , using enacted rates in effect for the year in which the differences are expected to reverse . a valuation allowance is recorded if it is more likely than not that a deferred tax asset will not be realized . we have provided a full valuation allowance on our deferred tax assets , which primarily consist of cumulative net operating losses from april 1 , 2009 ( inception ) to december 31 , 2017. due to our history of operating losses since inception and losses expected to be incurred in the foreseeable future , a full valuation allowance was considered necessary . impairment of long-lived assets management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be realizable or at a minimum annually during the fourth quarter of the year . if an evaluation is required , the estimated future undiscounted cash flows associated with the asset are compared to the asset 's carrying value to determine if an impairment of such asset is necessary . the effect of any impairment would be to expense the difference between the fair value of such asset and its carrying value . components of our results of operations and financial condition operating expenses we classify our operating expenses into three categories : research and development , general and administrative , and depreciation . research and development . research and development expenses consist primarily of : costs incurred to conduct research , such as the discovery and development of our current and potential product candidates ; costs related to production and storage of clinical supplies , including fees paid to contract manufacturers , manufacturing consultants , and cold-storage facilities ; fees paid to clinical consultants , clinical trial sites and vendors , including clinical research organizations in conjunction with implementing and monitoring our clinical trials and acquiring and evaluating clinical trial data , including all related fees , such as patient screening fees , laboratory work , and statistical compilation and analysis ; and costs related to compliance with drug development regulatory requirements . we recognize all research and development costs as they are incurred . clinical trial costs , contract manufacturing and other development costs incurred by third parties are expensed as the contracted work is performed . we expect our research and development expenses to increase in the future as we advance our current and potential product candidates into and through clinical trials and pursue regulatory approval of our current and potential product candidates in the united states and europe . the process of conducting the necessary clinical research to obtain regulatory approval is costly and time-consuming . the actual probability of success for our current and potential product candidates may be affected by a variety of factors 79 including the quality of our current and potential product candidates , early clinical d ata , investment in our clinical program , competition , manufacturing capability and commercial viability . we may never succeed in achieving regulatory approval for any of our current and potential product candidates . story_separator_special_tag 85 our amended and restated certificate of incorporation and amended and restated bylaws provide that the authorized number of directors may be changed only by resolution of the board of directors . any additional directorships resulting from an increase in the number of directors will be distributed among the three classes so that , as nearly as possible , each class will consis t of one-third of the directors . the division of our board of directors into three classes with staggered three-year terms may delay or prevent a change of our management or a change in control of our company . our directors may be removed only for cause by the affirmative vote of the holders of at least two-thirds of our outstanding voting stock entitled to vote in the election of directors . director independence our common stock is listed on the nasdaq capital market . under the listing requirements and rules of the nasdaq capital market , independent directors must constitute a majority of a listed company 's board of directors within 12 months after its initial public offering . in addition , the rules of the nasdaq capital market require that , subject to specified exceptions and phase-in periods following its initial public offering , each member of a listed company 's audit , compensation and nominating and governance committee be independent , and that a listed company 's audit committee must have at least three members and a listed company 's compensation committee must have at least two members . under the rules of the nasdaq capital market , a director will only qualify as an “ independent director ” if , in the opinion of that company 's board of directors , that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director . we intend to rely on the phase-in rules of the nasdaq capital market with respect to the independence of our board of directors and the audit committee . in accordance with these phase-in provisions , our board of directors and the audit , compensation , and nominating and corporate governance committees have at least two independent members , and all members will be independent within one year of the effective date of the registration statement relating to the recently completed initial public offering of our common stock . audit committee members must also satisfy independence criteria set forth in rule 10a-3 under the exchange act , or rule 10a-3 . to be considered to be independent for purposes of rule 10a-3 , a member of an audit committee of a listed company may not , other than in his or her capacity as a member of a company 's audit committee , the company 's board of directors or any other board committee : ( 1 ) accept , directly or indirectly , any consulting , advisory , or other compensatory fee from the listed company or any of its subsidiaries ; or ( 2 ) be an affiliated person of the listed company or any of its subsidiaries . our board of directors has undertaken a review of its composition , the composition of its committees and the independence of each director . based upon information requested from and provided by each director concerning his or her background , employment and affiliations , including family relationships , our board of directors has determined that other than rodney varner , our president and ceo who serves on the board of directors as the chairman , each of our directors does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these directors is “ independent ” as that term is defined under the applicable rules and regulations of the listing requirements and rules of the nasdaq capital market and under the applicable rules and regulations of the sec . in making this determination , our board of directors considered the current and prior relationships that each non-employee director has with us and all other facts and circumstances our board of directors deemed relevant in determining their independence , including the beneficial ownership of our capital stock by each non-employee director . board committees our board of directors has established an audit committee , a compensation committee and a nominating and corporate governance committee . our board of directors may establish other committees to facilitate the management of our business . the composition and functions of each committee are described below . members serve on these committees until their resignation or until otherwise determined by our board of directors . audit committee our audit committee consists of david friedman and robert pearson . the chair of our audit committee is mr. friedman , who our board of directors has determined is an “ audit committee financial expert ” as that term is defined by the sec rules implementing section 407 of the sarbanes-oxley act , and possesses financial sophistication , as defined under the listing standards of the nasdaq capital market . our board of directors has also determined that each member of our audit committee can read and understand fundamental financial statements in accordance with applicable requirements . in arriving at these determinations , the board of directors has examined each audit committee member 's scope of experience and the nature of their experience in the corporate finance sector . 86 the responsibilities of our audit committee include : appointing , approving the compensation of , and assessing the independence of our registered public accounting firm ; overseeing the work of our registered public accounting firm , including through the receipt and consideration of reports from such firm ; reviewing and discussing with management and the registered public accounting firm our annual and quarterly financial statements and related disclosures ; monitoring our internal control over financial reporting , disclosure controls and procedures

iquidity and capital resources from our inception through december 31 , 2017 , we have never generated revenue from product sales and have incurred net losses in each year since inception . as of december 31 , 2017 , we had an accumulated deficit of $ 17,452,352. we have funded our operations primarily through the sale and issuance of preferred stock . in connection with our initial public offering , we converted all preferred stock to common stock and forward-split the common stock on a 6.6841954-to-1 basis . during 2016 , we sold 76,577 shares of series g preferred stock at $ 35.33 per share , or 511,852 shares of common stock at $ 5.29 per share taking into account the conversion and forward-split , to various investment funds for a total of $ 2,705,872. during 2017 , we sold 22,473 shares of series g preferred stock at $ 35.33 per share or 150,211 shares of common stock at $ 5.29 per share taking into account the conversion and forward-split , for a total of $ 793,971. as of december 31 , 2017 , we had $ 161,251 in cash . we believe the net proceeds of our recent public offering , together with the cash at december 31 , 2017 , will be sufficient to meet our cash , operational and liquidity requirements for at least 10 months . we do not expect to generate revenue from product sales unless and until we successfully complete development of , obtain regulatory approval for and begin to commercialize one or more of our current and potential product candidates , which we expect will take a number of years and which is subject to significant uncertainty . accordingly , we anticipate that we will need to raise additional capital to fund our future operations .


 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.
     ```iquidity and capital resources from our inception through december 31 , 2017 , we have never generated revenue from product sales and have incurred net losses in each year since inception . as of december 31 , 2017 , we had an accumulated deficit of $ 17,452,352. we have funded our operations primarily through the sale and issuance of preferred stock . in connection with our initial public offering , we converted all preferred stock to common stock and forward-split the common stock on a 6.6841954-to-1 basis . during 2016 , we sold 76,577 shares of series g preferred stock at $ 35.33 per share , or 511,852 shares of common stock at $ 5.29 per share taking into account the conversion and forward-split , to various investment funds for a total of $ 2,705,872. during 2017 , we sold 22,473 shares of series g preferred stock at $ 35.33 per share or 150,211 shares of common stock at $ 5.29 per share taking into account the conversion and forward-split , for a total of $ 793,971. as of december 31 , 2017 , we had $ 161,251 in cash . we believe the net proceeds of our recent public offering , together with the cash at december 31 , 2017 , will be sufficient to meet our cash , operational and liquidity requirements for at least 10 months . we do not expect to generate revenue from product sales unless and until we successfully complete development of , obtain regulatory approval for and begin to commercialize one or more of our current and potential product candidates , which we expect will take a number of years and which is subject to significant uncertainty . accordingly , we anticipate that we will need to raise additional capital to fund our future operations .
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 Suspicious Activity Report : the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported expenses incurred during the reporting periods . our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe that the following accounting policies are the most critical to aid in fully understanding and evaluating our reported financial results , and they require our most difficult , subjective or complex judgments , resulting from the need to make estimates about the effect of matters that are inherently uncertain . 78 research and development costs we record accrued expenses for costs invoiced from research and development activities conducted , on our behalf , by third-party service providers , which include the conduct of pre-clinical studies and clinical trials and use of contract research and manufacturing activities . we record the costs of research and development activities based upon the amount of services provided , and we include these costs in accrued liabilities in the balance sheets and within research and development expense in the statement of operations . these costs are a significant component of our research and development expenses . we estimate the amount of work completed through discussions with internal personnel and external service providers as to the progress or stage of completion of the services and the agreed-upon fee to be paid for such services . we make significant judgments and estimates in determining the accrued balance in each reporting period . as actual costs become known , we adjust our accrued estimates . although we do not expect our estimates to be materially different from amounts actually incurred , our understanding of the status and timing of services performed , the number of patients enrolled and the rate of patient enrollment may vary from our estimates and could result in us reporting amounts that are too high or too low in any particular period . our accrued expenses are dependent , in part , upon the receipt of timely and accurate reporting from clinical research organizations and other third-party service providers . to date , there have been no material differences from our accrued expenses to actual expenses . income taxes deferred tax assets or liabilities are recorded for temporary differences between financial statement and tax basis of assets and liabilities , using enacted rates in effect for the year in which the differences are expected to reverse . a valuation allowance is recorded if it is more likely than not that a deferred tax asset will not be realized . we have provided a full valuation allowance on our deferred tax assets , which primarily consist of cumulative net operating losses from april 1 , 2009 ( inception ) to december 31 , 2017. due to our history of operating losses since inception and losses expected to be incurred in the foreseeable future , a full valuation allowance was considered necessary . impairment of long-lived assets management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be realizable or at a minimum annually during the fourth quarter of the year . if an evaluation is required , the estimated future undiscounted cash flows associated with the asset are compared to the asset 's carrying value to determine if an impairment of such asset is necessary . the effect of any impairment would be to expense the difference between the fair value of such asset and its carrying value . components of our results of operations and financial condition operating expenses we classify our operating expenses into three categories : research and development , general and administrative , and depreciation . research and development . research and development expenses consist primarily of : costs incurred to conduct research , such as the discovery and development of our current and potential product candidates ; costs related to production and storage of clinical supplies , including fees paid to contract manufacturers , manufacturing consultants , and cold-storage facilities ; fees paid to clinical consultants , clinical trial sites and vendors , including clinical research organizations in conjunction with implementing and monitoring our clinical trials and acquiring and evaluating clinical trial data , including all related fees , such as patient screening fees , laboratory work , and statistical compilation and analysis ; and costs related to compliance with drug development regulatory requirements . we recognize all research and development costs as they are incurred . clinical trial costs , contract manufacturing and other development costs incurred by third parties are expensed as the contracted work is performed . we expect our research and development expenses to increase in the future as we advance our current and potential product candidates into and through clinical trials and pursue regulatory approval of our current and potential product candidates in the united states and europe . the process of conducting the necessary clinical research to obtain regulatory approval is costly and time-consuming . the actual probability of success for our current and potential product candidates may be affected by a variety of factors 79 including the quality of our current and potential product candidates , early clinical d ata , investment in our clinical program , competition , manufacturing capability and commercial viability . we may never succeed in achieving regulatory approval for any of our current and potential product candidates . story_separator_special_tag 85 our amended and restated certificate of incorporation and amended and restated bylaws provide that the authorized number of directors may be changed only by resolution of the board of directors . any additional directorships resulting from an increase in the number of directors will be distributed among the three classes so that , as nearly as possible , each class will consis t of one-third of the directors . the division of our board of directors into three classes with staggered three-year terms may delay or prevent a change of our management or a change in control of our company . our directors may be removed only for cause by the affirmative vote of the holders of at least two-thirds of our outstanding voting stock entitled to vote in the election of directors . director independence our common stock is listed on the nasdaq capital market . under the listing requirements and rules of the nasdaq capital market , independent directors must constitute a majority of a listed company 's board of directors within 12 months after its initial public offering . in addition , the rules of the nasdaq capital market require that , subject to specified exceptions and phase-in periods following its initial public offering , each member of a listed company 's audit , compensation and nominating and governance committee be independent , and that a listed company 's audit committee must have at least three members and a listed company 's compensation committee must have at least two members . under the rules of the nasdaq capital market , a director will only qualify as an “ independent director ” if , in the opinion of that company 's board of directors , that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director . we intend to rely on the phase-in rules of the nasdaq capital market with respect to the independence of our board of directors and the audit committee . in accordance with these phase-in provisions , our board of directors and the audit , compensation , and nominating and corporate governance committees have at least two independent members , and all members will be independent within one year of the effective date of the registration statement relating to the recently completed initial public offering of our common stock . audit committee members must also satisfy independence criteria set forth in rule 10a-3 under the exchange act , or rule 10a-3 . to be considered to be independent for purposes of rule 10a-3 , a member of an audit committee of a listed company may not , other than in his or her capacity as a member of a company 's audit committee , the company 's board of directors or any other board committee : ( 1 ) accept , directly or indirectly , any consulting , advisory , or other compensatory fee from the listed company or any of its subsidiaries ; or ( 2 ) be an affiliated person of the listed company or any of its subsidiaries . our board of directors has undertaken a review of its composition , the composition of its committees and the independence of each director . based upon information requested from and provided by each director concerning his or her background , employment and affiliations , including family relationships , our board of directors has determined that other than rodney varner , our president and ceo who serves on the board of directors as the chairman , each of our directors does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these directors is “ independent ” as that term is defined under the applicable rules and regulations of the listing requirements and rules of the nasdaq capital market and under the applicable rules and regulations of the sec . in making this determination , our board of directors considered the current and prior relationships that each non-employee director has with us and all other facts and circumstances our board of directors deemed relevant in determining their independence , including the beneficial ownership of our capital stock by each non-employee director . board committees our board of directors has established an audit committee , a compensation committee and a nominating and corporate governance committee . our board of directors may establish other committees to facilitate the management of our business . the composition and functions of each committee are described below . members serve on these committees until their resignation or until otherwise determined by our board of directors . audit committee our audit committee consists of david friedman and robert pearson . the chair of our audit committee is mr. friedman , who our board of directors has determined is an “ audit committee financial expert ” as that term is defined by the sec rules implementing section 407 of the sarbanes-oxley act , and possesses financial sophistication , as defined under the listing standards of the nasdaq capital market . our board of directors has also determined that each member of our audit committee can read and understand fundamental financial statements in accordance with applicable requirements . in arriving at these determinations , the board of directors has examined each audit committee member 's scope of experience and the nature of their experience in the corporate finance sector . 86 the responsibilities of our audit committee include : appointing , approving the compensation of , and assessing the independence of our registered public accounting firm ; overseeing the work of our registered public accounting firm , including through the receipt and consideration of reports from such firm ; reviewing and discussing with management and the registered public accounting firm our annual and quarterly financial statements and related disclosures ; monitoring our internal control over financial reporting , disclosure controls and procedures

