in addition , we have agreed to indemnify rsi and rsg , respectively , and their respective affiliates and officers , employees and directors against all losses arising out of , due to or in connection with the receipt of services under the applicable services agreement , subject to certain limitations set forth in the applicable services agreement . such indemnification obligations will not exceed the payments made by us under the applicable services agreement for the specific service that allegedly caused or was related to the losses during the period in which such alleged losses were incurred . the term of each of the services agreements will continue until terminated upon 90 days ' written notice by any party with respect to the services such party provides or receives thereunder . for the years ended march 31 , 2019 and 2018 , we incurred expenses of $ 5.1 million and $ 8.5 million , respectively , under the services agreements , inclusive of the mark-up , which includes a portion of the expenses incurred by rsi and rsl on behalf of us that have been treated as capital contributions . we have recorded these charges as research and development expense and general and administrative expense in our consolidated statements of operations . 81 financial operations overview revenue we have not generated any revenue from the sale of any products , and we do not expect to generate any revenue unless and until we obtain regulatory approval of and begin to commercialize one of our gene therapy product candidates in development . research and development expense since our inception , our operations have primarily been focused on organizing and staffing our company , raising capital , and acquiring , preparing for and advancing our product candidates into clinical development . our research and development expenses include program-specific costs as well as unallocated internal costs . program-specific costs include : direct third-party costs , which include expenses incurred under agreements with cros and contract manufacturing organizations , the cost of consultants who assist with the development of our product candidates on a program-specific basis , investigator grants , sponsored research , manufacturing costs in connection with producing materials for use in conducting nonclinical and clinical studies , and any other third-party expenses directly attributable to the development of our product candidates ; and upfront payments for the purchase of in-process research and development , which include costs incurred under our agreements with oxford biomedica and umms , as well as costs incurred for our discontinued axo-aav-opmd , intepirdine and nelotanserin programs . unallocated internal costs include : share-based compensation expense for research and development personnel , including expense related to rsl common share awards and rsl options issued by rsl to rsi and rsg employees ; personnel-related expenses , which include employee-related expenses , such as salaries , benefits and travel expenses , for research and development personnel ; costs allocated to us under our services agreements with rsi and rsg ; and other expenses , which includes the cost of consultants who assist with our research and development but are not allocated to a specific program . research and development activities will continue to be central to our business model . we expect our research and development expense to increase as we advance our current gene therapy product candidate programs and additional product candidates we may in-license or acquire as we pursue our updated business plan . for the year ended march 31 , 2019 , the majority of our research and development expenses have been associated with our gene therapy product candidates . for the year ended march 31 , 2018 , the majority of our research and development expenses were associated with advancing intepirdine . product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development , primarily due to the increased size and duration of later-stage clinical trials . the duration , costs and timing of clinical trials of our products in development and any other product candidates will depend on a variety of factors that include , but are not limited to , the following : the number of trials required for approval ; the per patient trial costs ; the number of patients who participate in the trials ; 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 dose that patients receive ; 82 the drop-out or discontinuation rates of patients ; the potential additional safety monitoring or other studies requested by regulatory agencies ; the duration of patient follow-up ; the timing and receipt of regulatory approvals ; and the efficacy and safety profile of the product candidates . in addition , the probability of success of our gene therapy products in development and any other product candidate will depend on numerous factors , including competition , manufacturing capability and commercial viability . we may never succeed in achieving regulatory approval of our gene therapy product candidates for any indication in any country . as a result of the uncertainties discussed above , we are unable to determine in advance the duration and completion costs of any clinical trial we conduct , or when and to what extent we will generate revenue from the commercialization and sale of our products in development or other product candidates , if at all . general and administrative expense general and administrative expenses consist primarily of share-based compensation , legal and accounting fees , consulting services , services received under the services agreements with rsi and rsg and employee-related expenses , such as salaries , benefits and travel expenses , for general and administrative personnel . story_separator_special_tag upon the occurrence of an event of default , a default interest rate of an additional 5.0 % may be applied to the outstanding principal balance , and hercules may declare all outstanding obligations immediately due and payable and take such other actions as set forth in the loan agreement . in addition , for so long as the term loan remains outstanding , we are required to use commercially reasonable efforts to afford hercules the opportunity to participate in future underwritten equity offerings of our common shares up to a total of $ 3.0 million . in connection with the entry into the loan agreement , we issued a warrant to hercules which was exercisable for an aggregate of 34,260 of our common shares at an exercise price of $ 96.32 per share . in august 2017 , hercules exercised the warrant on a cashless basis and received a net issuance of 16,228 of our common shares . story_separator_special_tag style= `` line-height:120 % ; padding-bottom:8px ; text-align : left ; font-size:10pt ; `` > milestone and royalty payments in addition to the amounts shown in the above table , we are contractually obligated to make up to $ 55.0 million in payments to oxford biomedica upon the achievement of specified development milestones and $ 757.5 million upon the achievement of specified regulatory and sales milestones for axo-lenti-pd , as well as a tiered royalty from 7 % to 10 % of the yearly aggregate net sales of the underlying gene therapy products . we could also be obligated to make payments to umms totaling up to $ 24.5 million upon the achievement of specified development and regulatory milestones and $ 39.8 million upon the achievement of specified commercial milestones for axo-aav-gm1 and axo-aav-gm2 . we are also obligated to pay umms tiered mid-single digit royalties based on yearly net sales of the licensed products , subject to a specified annual minimum amount . additionally , we will pay umms a percent of any revenues we receive from any third-party sublicenses to licensed products at rates ranging in the mid-single digits to mid-teens . on june 5 , 2019 , we , through our wholly owned subsidiary , asg , notified benitec of our intention to terminate the license and collaboration agreement with benitec in its entirety , which will be effective on september 3 , 2019 , and therefore we will not be obligated to make milestone or royalty payments under this agreement . these payments are contingent upon the occurrence of certain future events and , given the nature of those events , it is unclear when , if ever , we may be required to make sure payments , and with respect to royalty payments , what the total amount of such payments will be . further , the timing of any of the foregoing future payments is not reasonably estimable . for those reasons , these contingent payments have not been included in the table above . 88 debt obligations debt obligations reflect our obligations to pay interest on the outstanding principal amount of $ 45.3 million as of march 31 , 2019 under the loan agreement with hercules and to make periodic principal repayments . our debt obligation under the hercules loan agreement bears interest at a variable per annum rate calculated for any day as the greater of either ( i ) the prime rate plus 6.80 % , and ( ii ) 10.55 % . the related interest on the aggregate principal amounts outstanding to hercules included in the above table was estimated using the interest rate in effect as of march 31 , 2019. see note 6 , “ long-term debt , ” in the accompanying consolidated financial statements included elsewhere in this annual report on form 10-k for further discussion of the loan agreement with hercules . real property leases in june 2017 , we entered into a lease with a third-party for approximately 19,554 square feet of office space in new york , new york . this license agreement was originally set to expire in january 2019 and was extended to january 2021 in august 2018. asa leases 955 square feet of office space in princeton , new jersey under a lease agreement expiring in august 2020. for the year ended march 31 , 2019 , we incurred $ 1.7 million in rent expense under these agreements . during the year ended march 31 , 2016 , we entered into two subleases with rsi for office space in new york , new york . under the terms of the subleases , rsi paid rent obligations directly pursuant to a master lease , and then invoiced us based on our proportionate share of the space and overhead expenses , calculated based upon the relative numbers of full-time equivalent employees located on the premises . as a result , our rent obligations were not fixed . we ceased incurring rent expense under this arrangement with rsi after entering into the lease for office space in new york , new york in june 2017. for the year ended march 31 , 2018 , we incurred $ 0.9 million in rent expense under this arrangement with rsi . recent accounting pronouncements for detailed information regarding recently issued accounting pronouncements and the expected impact on our financial statements , refer to note 2 `` summary of significant accounting policies , `` in the accompanying notes to our audited consolidated financial statements included elsewhere in this annual report on form 10-k. critical accounting policies and significant judgments and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles ( `` gaap `` ) . the preparation of these consolidated financial statements requires us to make estimates , judgments and assumptions that affect the reported amounts of assets and liabilities , disclosure

cash flows the following table sets forth a summary of our cash flows for each of the periods shown ( in thousands ) : replace_table_token_3_th operating activities cash flows from operating activities consist of net loss adjusted for non-cash items , including depreciation and share-based compensation expense , as well as the effect of changes in working capital and other activities . for the year ended march 31 , 2019 , net cash used in operating activities was $ 134.2 million and was primarily attributable to a net loss of $ 129.1 million , which includes costs incurred for research and development activities , including upfront license fees , cro fees , manufacturing , regulatory and other clinical trial costs and our general and administrative expenses , a decrease of $ 11.2 million in accrued expenses , a realized noncash gain of $ 5.9 million associated with an investment in convertible preferred stock and an increase of $ 3.7 million in prepaid assets and other current assets , partially offset by $ 16.4 million of non-cash share-based compensation expense . for the year ended march 31 , 2018 , net cash used in operating activities was $ 190.3 million and was primarily attributable to a net loss of $ 221.6 million , partially offset by $ 31.9 million of non-cash share-based compensation expense .


 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 the following table sets forth a summary of our cash flows for each of the periods shown ( in thousands ) : replace_table_token_3_th operating activities cash flows from operating activities consist of net loss adjusted for non-cash items , including depreciation and share-based compensation expense , as well as the effect of changes in working capital and other activities . for the year ended march 31 , 2019 , net cash used in operating activities was $ 134.2 million and was primarily attributable to a net loss of $ 129.1 million , which includes costs incurred for research and development activities , including upfront license fees , cro fees , manufacturing , regulatory and other clinical trial costs and our general and administrative expenses , a decrease of $ 11.2 million in accrued expenses , a realized noncash gain of $ 5.9 million associated with an investment in convertible preferred stock and an increase of $ 3.7 million in prepaid assets and other current assets , partially offset by $ 16.4 million of non-cash share-based compensation expense . for the year ended march 31 , 2018 , net cash used in operating activities was $ 190.3 million and was primarily attributable to a net loss of $ 221.6 million , partially offset by $ 31.9 million of non-cash share-based compensation expense .
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 Suspicious Activity Report : in addition , we have agreed to indemnify rsi and rsg , respectively , and their respective affiliates and officers , employees and directors against all losses arising out of , due to or in connection with the receipt of services under the applicable services agreement , subject to certain limitations set forth in the applicable services agreement . such indemnification obligations will not exceed the payments made by us under the applicable services agreement for the specific service that allegedly caused or was related to the losses during the period in which such alleged losses were incurred . the term of each of the services agreements will continue until terminated upon 90 days ' written notice by any party with respect to the services such party provides or receives thereunder . for the years ended march 31 , 2019 and 2018 , we incurred expenses of $ 5.1 million and $ 8.5 million , respectively , under the services agreements , inclusive of the mark-up , which includes a portion of the expenses incurred by rsi and rsl on behalf of us that have been treated as capital contributions . we have recorded these charges as research and development expense and general and administrative expense in our consolidated statements of operations . 81 financial operations overview revenue we have not generated any revenue from the sale of any products , and we do not expect to generate any revenue unless and until we obtain regulatory approval of and begin to commercialize one of our gene therapy product candidates in development . research and development expense since our inception , our operations have primarily been focused on organizing and staffing our company , raising capital , and acquiring , preparing for and advancing our product candidates into clinical development . our research and development expenses include program-specific costs as well as unallocated internal costs . program-specific costs include : direct third-party costs , which include expenses incurred under agreements with cros and contract manufacturing organizations , the cost of consultants who assist with the development of our product candidates on a program-specific basis , investigator grants , sponsored research , manufacturing costs in connection with producing materials for use in conducting nonclinical and clinical studies , and any other third-party expenses directly attributable to the development of our product candidates ; and upfront payments for the purchase of in-process research and development , which include costs incurred under our agreements with oxford biomedica and umms , as well as costs incurred for our discontinued axo-aav-opmd , intepirdine and nelotanserin programs . unallocated internal costs include : share-based compensation expense for research and development personnel , including expense related to rsl common share awards and rsl options issued by rsl to rsi and rsg employees ; personnel-related expenses , which include employee-related expenses , such as salaries , benefits and travel expenses , for research and development personnel ; costs allocated to us under our services agreements with rsi and rsg ; and other expenses , which includes the cost of consultants who assist with our research and development but are not allocated to a specific program . research and development activities will continue to be central to our business model . we expect our research and development expense to increase as we advance our current gene therapy product candidate programs and additional product candidates we may in-license or acquire as we pursue our updated business plan . for the year ended march 31 , 2019 , the majority of our research and development expenses have been associated with our gene therapy product candidates . for the year ended march 31 , 2018 , the majority of our research and development expenses were associated with advancing intepirdine . product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development , primarily due to the increased size and duration of later-stage clinical trials . the duration , costs and timing of clinical trials of our products in development and any other product candidates will depend on a variety of factors that include , but are not limited to , the following : the number of trials required for approval ; the per patient trial costs ; the number of patients who participate in the trials ; 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 dose that patients receive ; 82 the drop-out or discontinuation rates of patients ; the potential additional safety monitoring or other studies requested by regulatory agencies ; the duration of patient follow-up ; the timing and receipt of regulatory approvals ; and the efficacy and safety profile of the product candidates . in addition , the probability of success of our gene therapy products in development and any other product candidate will depend on numerous factors , including competition , manufacturing capability and commercial viability . we may never succeed in achieving regulatory approval of our gene therapy product candidates for any indication in any country . as a result of the uncertainties discussed above , we are unable to determine in advance the duration and completion costs of any clinical trial we conduct , or when and to what extent we will generate revenue from the commercialization and sale of our products in development or other product candidates , if at all . general and administrative expense general and administrative expenses consist primarily of share-based compensation , legal and accounting fees , consulting services , services received under the services agreements with rsi and rsg and employee-related expenses , such as salaries , benefits and travel expenses , for general and administrative personnel . story_separator_special_tag upon the occurrence of an event of default , a default interest rate of an additional 5.0 % may be applied to the outstanding principal balance , and hercules may declare all outstanding obligations immediately due and payable and take such other actions as set forth in the loan agreement . in addition , for so long as the term loan remains outstanding , we are required to use commercially reasonable efforts to afford hercules the opportunity to participate in future underwritten equity offerings of our common shares up to a total of $ 3.0 million . in connection with the entry into the loan agreement , we issued a warrant to hercules which was exercisable for an aggregate of 34,260 of our common shares at an exercise price of $ 96.32 per share . in august 2017 , hercules exercised the warrant on a cashless basis and received a net issuance of 16,228 of our common shares . story_separator_special_tag style= `` line-height:120 % ; padding-bottom:8px ; text-align : left ; font-size:10pt ; `` > milestone and royalty payments in addition to the amounts shown in the above table , we are contractually obligated to make up to $ 55.0 million in payments to oxford biomedica upon the achievement of specified development milestones and $ 757.5 million upon the achievement of specified regulatory and sales milestones for axo-lenti-pd , as well as a tiered royalty from 7 % to 10 % of the yearly aggregate net sales of the underlying gene therapy products . we could also be obligated to make payments to umms totaling up to $ 24.5 million upon the achievement of specified development and regulatory milestones and $ 39.8 million upon the achievement of specified commercial milestones for axo-aav-gm1 and axo-aav-gm2 . we are also obligated to pay umms tiered mid-single digit royalties based on yearly net sales of the licensed products , subject to a specified annual minimum amount . additionally , we will pay umms a percent of any revenues we receive from any third-party sublicenses to licensed products at rates ranging in the mid-single digits to mid-teens . on june 5 , 2019 , we , through our wholly owned subsidiary , asg , notified benitec of our intention to terminate the license and collaboration agreement with benitec in its entirety , which will be effective on september 3 , 2019 , and therefore we will not be obligated to make milestone or royalty payments under this agreement . these payments are contingent upon the occurrence of certain future events and , given the nature of those events , it is unclear when , if ever , we may be required to make sure payments , and with respect to royalty payments , what the total amount of such payments will be . further , the timing of any of the foregoing future payments is not reasonably estimable . for those reasons , these contingent payments have not been included in the table above . 88 debt obligations debt obligations reflect our obligations to pay interest on the outstanding principal amount of $ 45.3 million as of march 31 , 2019 under the loan agreement with hercules and to make periodic principal repayments . our debt obligation under the hercules loan agreement bears interest at a variable per annum rate calculated for any day as the greater of either ( i ) the prime rate plus 6.80 % , and ( ii ) 10.55 % . the related interest on the aggregate principal amounts outstanding to hercules included in the above table was estimated using the interest rate in effect as of march 31 , 2019. see note 6 , “ long-term debt , ” in the accompanying consolidated financial statements included elsewhere in this annual report on form 10-k for further discussion of the loan agreement with hercules . real property leases in june 2017 , we entered into a lease with a third-party for approximately 19,554 square feet of office space in new york , new york . this license agreement was originally set to expire in january 2019 and was extended to january 2021 in august 2018. asa leases 955 square feet of office space in princeton , new jersey under a lease agreement expiring in august 2020. for the year ended march 31 , 2019 , we incurred $ 1.7 million in rent expense under these agreements . during the year ended march 31 , 2016 , we entered into two subleases with rsi for office space in new york , new york . under the terms of the subleases , rsi paid rent obligations directly pursuant to a master lease , and then invoiced us based on our proportionate share of the space and overhead expenses , calculated based upon the relative numbers of full-time equivalent employees located on the premises . as a result , our rent obligations were not fixed . we ceased incurring rent expense under this arrangement with rsi after entering into the lease for office space in new york , new york in june 2017. for the year ended march 31 , 2018 , we incurred $ 0.9 million in rent expense under this arrangement with rsi . recent accounting pronouncements for detailed information regarding recently issued accounting pronouncements and the expected impact on our financial statements , refer to note 2 `` summary of significant accounting policies , `` in the accompanying notes to our audited consolidated financial statements included elsewhere in this annual report on form 10-k. critical accounting policies and significant judgments and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles ( `` gaap `` ) . the preparation of these consolidated financial statements requires us to make estimates , judgments and assumptions that affect the reported amounts of assets and liabilities , disclosure

