we incurred net losses of $ 16,647,687 and $ 8,065,072 for the years ended december 31 , 2018 and december 31 , 2017 , respectively . these losses have resulted principally from costs incurred in connection with investigating and developing our product candidates , research and development activities and general and administrative costs associated with our operations . as of december 31 , 2018 , we had an accumulated deficit of $ 32,273,787 and cash and cash equivalents of $ 1,940,265. for the foreseeable future , we expect to continue to incur losses , which will increase significantly from historical levels as we expand our product development activities , commercialize them if they do not require u.s. food and drug administration 's center for veterinary medicine , or fda-cvm , pre-market approval , seek regulatory approvals for our product candidates where required from the fda-cvm or the united states department of agriculture center for veterinary biologics , or the usda-cvb . for further information on the regulatory , business and product pipeline , please see the “ business ” section of this annual report on form 10-k. for further information on the risk factors , please see the “ risk factors ” section of this annual report on form 10-k. - 36 - revenue we do not have any products approved for sale , have not generated any revenue from product sales since our inception and do not expect to generate any revenue from the sale of products in the near future . if our development efforts result in clinical success and regulatory approval or collaboration agreements with third parties for any of our product candidates , we may generate revenue from those product candidates . operating expenses the majority of our operating expenses to date have been for the general and administrative activities related to general business activities , capital market activities and stock-based compensation , and research and development activities related to our lead product candidates . research and development expense all costs of research and development are expensed in the period in which they are incurred . research and development costs primarily consist of salaries and related expenses for personnel , stock-based compensation expense , fees paid to consultants , outside service providers , professional services , travel costs and materials used in clinical trials and research and development . we have a point-of-care biosensor platform , zm-024 , we are developing for diagnosis and treatment management of disorders such as thyroid and adrenal disorders , a point-of-care diagnostic platform , zm-020 , for the detection of pathogens in urine and fecal samples , and a non-invasive diagnostic assay or blood test , zm-017 , that we are developing as an aid for veterinarians in diagnosing cancer in canines . we have four drug product candidates in development . our lead drug product candidate is zm-007 , an oral suspension formulation of metronidazole targeting the treatment of acute diarrhea in small dog breeds and puppies under nine pounds or four kilograms . our second drug product candidate is zm-012 , a novel tablet formulation of metronidazole , most commonly known as flagyl® , its human pharmaceutical brand name , and a complementary formulation to zm-007 , targeting the treatment of acute diarrhea in larger dogs . our third drug product candidate is zm-006 , a transdermal gel formulation of methimazole , most commonly known as tapazole® , its human pharmaceutical brand name , and felimazole® , its feline pharmaceutical brand name , targeting hyperthyroidism in cats . our fourth drug product candidate is zm-011 , a transdermal gel formulation of fluoxetine , most commonly known as prozac® , its human pharmaceutical brand name . general and administrative expense general and administrative expense consists primarily of personnel costs , including salaries , related benefits and stock-based compensation for employees , consultants and directors . general and administrative expenses also include rent and other facilities costs and professional and consulting fees for legal , accounting , tax services and other general business services . professional fees professional fees include attorney 's fees , accounting fees and consulting fees incurred in connection with product investigation and analysis , regulatory analysis , government relations , audit , securities offerings , investor relations , and general corporate and intellectual property advice . income taxes as of december 31 , 2018 , we had net operating loss carryforwards for federal and state income tax purposes of $ 11,522,620 and non-capital loss carryforwards for canada of approximately $ 13,353,870 , which will begin to expire in fiscal year 2036. we have evaluated the factors bearing upon the realizability of our deferred tax assets , which are comprised principally of net operating loss carryforwards and non-capital loss carryforwards . we concluded that , due to the uncertainty of realizing any tax benefits as of december 31 , 2018 , a valuation allowance was necessary to fully offset our deferred tax assets . critical accounting policies and significant judgments and estimates our management 's discussion and analysis of financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states , or u.s. gaap . the preparation of our consolidated financial statements and related disclosures requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , and revenue , costs and expenses and related disclosures during the reporting periods . on an ongoing basis , we evaluate our estimates and judgments , including those described below . we base our estimates on 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 . story_separator_special_tag stock options and warrants to purchase our common shares issued during the period were not included in the computation of diluted eps , as the effect would be anti-dilutive . comprehensive loss we follow asc topic 220. this statement establishes standards for reporting and display of comprehensive ( loss ) income and its components . comprehensive loss is net loss plus certain items that are recorded directly to shareholders ' equity . we currently have no other comprehensive loss items . results of operations year ended december 31 , 2018 compared to year ended december 31 , 2017 our results of operations for the year ended december 31 , 2018 and december 31 , 2017 are as follows : replace_table_token_1_th - 39 - revenue we did not generate any revenue during the years ended december 31 , 2018 and december 31 , 2017. research and development research and development expense for the year ended december 31 , 2018 was $ 10,317,153 compared to $ 2,751,326 for the year ended december 31 , 2017 , an increase of $ 7,565,827 or 275 % . the increase was primarily due to the licensing fees of $ 5,413,158 paid pursuant to a development and supply agreement with qorvo biotechnologies , llc as part of our development of zm-024 , and licensing fees of $ 1,738,513 paid pursuant to our development , commercialization and exclusive distribution agreement with seraph biosciences , inc. as part of our development of zm-020 . in 2017 we paid licensing fees of $ 480,131 pursuant to our license and supply agreement with celsee , inc. as part of our development of zm-017 . research and development expenses also increased in 2018 as a result of a higher level of third-party expenses relating to the development of our product candidate developments and the addition of full-time employees . as a result , year over year license fees increased $ 6,671,540 , contracted outsourced activities increased $ 923,084 , and salaries increased $ 72,219 , while consulting expenses decreased $ 111,375. we expect that our r & d expenditures in 2019 will be significantly higher than in 2018 , due to work related to verification and validation of zm-024 , zm-020 and zm-017 , the initiation of pilot and pivotal studies related to our four inads , as well as additional diagnostic developments and technologies . general and administrative general and administrative expense for the year ended december 31 , 2018 was $ 4,521,349 , compared to $ 3,946,270 for the year ended december 31 , 2017 , an increase of $ 575,079 or 15 % . the increase in general and administrative expense was primarily due to increased regulatory expense of $ 297,607 as we incurred additional costs as part of our nyse american listing and related sec filings , and an increase in office expense of $ 165,551 due to the relocation of offices . salaries , bonus and benefits decreased $ 110,179 , but after adjusting for the decrease in share-based compensation expense of $ 842,391 , salaries , bonus and benefits increased $ 732,212 due to the addition of personnel including a chief commercial officer , a vice president of sales and severance to a former officer of the company . we expect that general and administrative expense will increase in 2019 and future periods as we increase our level of activity . professional fees professional fees for the year ended december 31 , 2018 were $ 1,534,977 compared to $ 1,294,044 for the year ended december 31 , 2017 , an increase of $ 240,933 or 19 % . the increase was primarily due to increased expenses resulting from our company being subject to u.s. securities law reporting for a full year and the filing of several registration statements . professional fees for the 2017 period consisted primarily of consulting fees incurred in connection with our initial u.s registration statement and expenses incurred to list our common shares on the nyse american and fundraising efforts . net loss our net loss for the year ended december 31 , 2018 was $ 16,647,687 , or $ 0.18 per share , compared with a net loss of $ 8,065,072 , or $ 0.09 per share , for the year ended december 31 , 2017 , an increase of $ 8,582,615 or 106 % . the net loss in each period was attributed to the matters described above . we expect to continue to record net losses in future periods until such time as we have sufficient revenue from our product candidates to offset our operating expenses . story_separator_special_tag on terms or in amounts sufficient to meet our needs or at all . the availability of equity or debt financing will be affected by , among other things , the results of our research and development activities , our ability to obtain regulatory approvals , market acceptance of any products for which we receive marketing approval , conditions in the capital markets generally and in the veterinary products industry , strategic alliance agreements and other relevant commercial considerations . we also entered into an at-the-market equity offering sales agreement with cantor fitzgerald & co. , effective as of december 20 , 2018 , under which zomedica may sell pursuant to the universal shelf registration statement common shares in the united states only , from time to time , for up to $ 50.0 million in aggregate sales proceeds in `` at the market `` transactions . if we raise additional funds by issuing equity securities , our existing security holders will likely experience dilution , and the incurring of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that could restrict operations . in the event that we are unable to obtain sufficient capital to meet our working capital requirements , we may be required to change or curtail current or planned operations in order to conserve cash until

cash flows year ended december 31 , 2018 compared to year ended december 31 , 2017 the following table shows a summary of our cash flows for the periods set forth below : replace_table_token_2_th - 40 - operating activities net cash used in operating activities for the year ended december 31 , 2018 was $ 11,147,528 , compared to $ 7,093,017 for the year ended december 31 , 2017 , an increase of $ 4,054,511 or 57 % . the increase resulted primarily from our net loss of $ 16,647,687 for the year ended december 31 , 2018 , compared to our net loss of $ 8,065,072 for the year ended december 31 , 2017. the largest uses of cash resulted primarily from an increase in salaries , bonus and benefits as we had 27 employees at december 31 , 2018 compared to 20 employees at december 31 , 2017. other increases include prepaid expenses and deposits which increased by $ 1,956,344 resulting primarily from the prepayment of rent in an amount of $ 1,269,073 for additional office space , and an increase in licensing fees of $ 1,000,000. the increase was also partially due to increased regulatory costs , insurance and professional fees , and reporting costs associated with being subject to u.s. securities law reporting obligations for a full year . net cash used in operating activities for the year ended december 31 , 2017 was $ 7,093,017 , which resulted primarily from our net loss of $ 8,065,072. the largest uses of cash resulted primarily from increases in employee salaries , bonus and benefits , as well as licensing fees of $ 500,000 , professional fees and consulting expenses related to the preparation of our initial u.s registration statement , work on our application to list our common shares on the nyse american , and an increase in the current portion of the prepaid expenses and deposits .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flows year ended december 31 , 2018 compared to year ended december 31 , 2017 the following table shows a summary of our cash flows for the periods set forth below : replace_table_token_2_th - 40 - operating activities net cash used in operating activities for the year ended december 31 , 2018 was $ 11,147,528 , compared to $ 7,093,017 for the year ended december 31 , 2017 , an increase of $ 4,054,511 or 57 % . the increase resulted primarily from our net loss of $ 16,647,687 for the year ended december 31 , 2018 , compared to our net loss of $ 8,065,072 for the year ended december 31 , 2017. the largest uses of cash resulted primarily from an increase in salaries , bonus and benefits as we had 27 employees at december 31 , 2018 compared to 20 employees at december 31 , 2017. other increases include prepaid expenses and deposits which increased by $ 1,956,344 resulting primarily from the prepayment of rent in an amount of $ 1,269,073 for additional office space , and an increase in licensing fees of $ 1,000,000. the increase was also partially due to increased regulatory costs , insurance and professional fees , and reporting costs associated with being subject to u.s. securities law reporting obligations for a full year . net cash used in operating activities for the year ended december 31 , 2017 was $ 7,093,017 , which resulted primarily from our net loss of $ 8,065,072. the largest uses of cash resulted primarily from increases in employee salaries , bonus and benefits , as well as licensing fees of $ 500,000 , professional fees and consulting expenses related to the preparation of our initial u.s registration statement , work on our application to list our common shares on the nyse american , and an increase in the current portion of the prepaid expenses and deposits .
```    
 Suspicious Activity Report : we incurred net losses of $ 16,647,687 and $ 8,065,072 for the years ended december 31 , 2018 and december 31 , 2017 , respectively . these losses have resulted principally from costs incurred in connection with investigating and developing our product candidates , research and development activities and general and administrative costs associated with our operations . as of december 31 , 2018 , we had an accumulated deficit of $ 32,273,787 and cash and cash equivalents of $ 1,940,265. for the foreseeable future , we expect to continue to incur losses , which will increase significantly from historical levels as we expand our product development activities , commercialize them if they do not require u.s. food and drug administration 's center for veterinary medicine , or fda-cvm , pre-market approval , seek regulatory approvals for our product candidates where required from the fda-cvm or the united states department of agriculture center for veterinary biologics , or the usda-cvb . for further information on the regulatory , business and product pipeline , please see the “ business ” section of this annual report on form 10-k. for further information on the risk factors , please see the “ risk factors ” section of this annual report on form 10-k. - 36 - revenue we do not have any products approved for sale , have not generated any revenue from product sales since our inception and do not expect to generate any revenue from the sale of products in the near future . if our development efforts result in clinical success and regulatory approval or collaboration agreements with third parties for any of our product candidates , we may generate revenue from those product candidates . operating expenses the majority of our operating expenses to date have been for the general and administrative activities related to general business activities , capital market activities and stock-based compensation , and research and development activities related to our lead product candidates . research and development expense all costs of research and development are expensed in the period in which they are incurred . research and development costs primarily consist of salaries and related expenses for personnel , stock-based compensation expense , fees paid to consultants , outside service providers , professional services , travel costs and materials used in clinical trials and research and development . we have a point-of-care biosensor platform , zm-024 , we are developing for diagnosis and treatment management of disorders such as thyroid and adrenal disorders , a point-of-care diagnostic platform , zm-020 , for the detection of pathogens in urine and fecal samples , and a non-invasive diagnostic assay or blood test , zm-017 , that we are developing as an aid for veterinarians in diagnosing cancer in canines . we have four drug product candidates in development . our lead drug product candidate is zm-007 , an oral suspension formulation of metronidazole targeting the treatment of acute diarrhea in small dog breeds and puppies under nine pounds or four kilograms . our second drug product candidate is zm-012 , a novel tablet formulation of metronidazole , most commonly known as flagyl® , its human pharmaceutical brand name , and a complementary formulation to zm-007 , targeting the treatment of acute diarrhea in larger dogs . our third drug product candidate is zm-006 , a transdermal gel formulation of methimazole , most commonly known as tapazole® , its human pharmaceutical brand name , and felimazole® , its feline pharmaceutical brand name , targeting hyperthyroidism in cats . our fourth drug product candidate is zm-011 , a transdermal gel formulation of fluoxetine , most commonly known as prozac® , its human pharmaceutical brand name . general and administrative expense general and administrative expense consists primarily of personnel costs , including salaries , related benefits and stock-based compensation for employees , consultants and directors . general and administrative expenses also include rent and other facilities costs and professional and consulting fees for legal , accounting , tax services and other general business services . professional fees professional fees include attorney 's fees , accounting fees and consulting fees incurred in connection with product investigation and analysis , regulatory analysis , government relations , audit , securities offerings , investor relations , and general corporate and intellectual property advice . income taxes as of december 31 , 2018 , we had net operating loss carryforwards for federal and state income tax purposes of $ 11,522,620 and non-capital loss carryforwards for canada of approximately $ 13,353,870 , which will begin to expire in fiscal year 2036. we have evaluated the factors bearing upon the realizability of our deferred tax assets , which are comprised principally of net operating loss carryforwards and non-capital loss carryforwards . we concluded that , due to the uncertainty of realizing any tax benefits as of december 31 , 2018 , a valuation allowance was necessary to fully offset our deferred tax assets . critical accounting policies and significant judgments and estimates our management 's discussion and analysis of financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states , or u.s. gaap . the preparation of our consolidated financial statements and related disclosures requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , and revenue , costs and expenses and related disclosures during the reporting periods . on an ongoing basis , we evaluate our estimates and judgments , including those described below . we base our estimates on 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 . story_separator_special_tag stock options and warrants to purchase our common shares issued during the period were not included in the computation of diluted eps , as the effect would be anti-dilutive . comprehensive loss we follow asc topic 220. this statement establishes standards for reporting and display of comprehensive ( loss ) income and its components . comprehensive loss is net loss plus certain items that are recorded directly to shareholders ' equity . we currently have no other comprehensive loss items . results of operations year ended december 31 , 2018 compared to year ended december 31 , 2017 our results of operations for the year ended december 31 , 2018 and december 31 , 2017 are as follows : replace_table_token_1_th - 39 - revenue we did not generate any revenue during the years ended december 31 , 2018 and december 31 , 2017. research and development research and development expense for the year ended december 31 , 2018 was $ 10,317,153 compared to $ 2,751,326 for the year ended december 31 , 2017 , an increase of $ 7,565,827 or 275 % . the increase was primarily due to the licensing fees of $ 5,413,158 paid pursuant to a development and supply agreement with qorvo biotechnologies , llc as part of our development of zm-024 , and licensing fees of $ 1,738,513 paid pursuant to our development , commercialization and exclusive distribution agreement with seraph biosciences , inc. as part of our development of zm-020 . in 2017 we paid licensing fees of $ 480,131 pursuant to our license and supply agreement with celsee , inc. as part of our development of zm-017 . research and development expenses also increased in 2018 as a result of a higher level of third-party expenses relating to the development of our product candidate developments and the addition of full-time employees . as a result , year over year license fees increased $ 6,671,540 , contracted outsourced activities increased $ 923,084 , and salaries increased $ 72,219 , while consulting expenses decreased $ 111,375. we expect that our r & d expenditures in 2019 will be significantly higher than in 2018 , due to work related to verification and validation of zm-024 , zm-020 and zm-017 , the initiation of pilot and pivotal studies related to our four inads , as well as additional diagnostic developments and technologies . general and administrative general and administrative expense for the year ended december 31 , 2018 was $ 4,521,349 , compared to $ 3,946,270 for the year ended december 31 , 2017 , an increase of $ 575,079 or 15 % . the increase in general and administrative expense was primarily due to increased regulatory expense of $ 297,607 as we incurred additional costs as part of our nyse american listing and related sec filings , and an increase in office expense of $ 165,551 due to the relocation of offices . salaries , bonus and benefits decreased $ 110,179 , but after adjusting for the decrease in share-based compensation expense of $ 842,391 , salaries , bonus and benefits increased $ 732,212 due to the addition of personnel including a chief commercial officer , a vice president of sales and severance to a former officer of the company . we expect that general and administrative expense will increase in 2019 and future periods as we increase our level of activity . professional fees professional fees for the year ended december 31 , 2018 were $ 1,534,977 compared to $ 1,294,044 for the year ended december 31 , 2017 , an increase of $ 240,933 or 19 % . the increase was primarily due to increased expenses resulting from our company being subject to u.s. securities law reporting for a full year and the filing of several registration statements . professional fees for the 2017 period consisted primarily of consulting fees incurred in connection with our initial u.s registration statement and expenses incurred to list our common shares on the nyse american and fundraising efforts . net loss our net loss for the year ended december 31 , 2018 was $ 16,647,687 , or $ 0.18 per share , compared with a net loss of $ 8,065,072 , or $ 0.09 per share , for the year ended december 31 , 2017 , an increase of $ 8,582,615 or 106 % . the net loss in each period was attributed to the matters described above . we expect to continue to record net losses in future periods until such time as we have sufficient revenue from our product candidates to offset our operating expenses . story_separator_special_tag on terms or in amounts sufficient to meet our needs or at all . the availability of equity or debt financing will be affected by , among other things , the results of our research and development activities , our ability to obtain regulatory approvals , market acceptance of any products for which we receive marketing approval , conditions in the capital markets generally and in the veterinary products industry , strategic alliance agreements and other relevant commercial considerations . we also entered into an at-the-market equity offering sales agreement with cantor fitzgerald & co. , effective as of december 20 , 2018 , under which zomedica may sell pursuant to the universal shelf registration statement common shares in the united states only , from time to time , for up to $ 50.0 million in aggregate sales proceeds in `` at the market `` transactions . if we raise additional funds by issuing equity securities , our existing security holders will likely experience dilution , and the incurring of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that could restrict operations . in the event that we are unable to obtain sufficient capital to meet our working capital requirements , we may be required to change or curtail current or planned operations in order to conserve cash until

