you can identify forward-looking statements by the use of words such as “ expect , ” “ anticipate , ” “ estimate , ” “ may , ” “ will , ” “ should , ” “ intend , ” “ believe , ” and similar expressions . although we believe the expectations reflected in these forward-looking statements are reasonable , such statements are inherently subject to risk and we can give no assurances that our expectations will prove to be correct . actual results could differ from those described in this report because of numerous factors , many of which are beyond our control . these factors include , without limitation , those described under item 1a “ risk factors . ” we undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this report or to reflect actual outcomes . please see “ note regarding forward-looking statements ” at the beginning of this annual report on form 10-k. the following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes thereto and other financial information appearing elsewhere in this annual report on form 10-k. overview we are a pharmaceutical company developing proprietary therapeutics for the treatment of serious medical disorders . our product development programs utilize our proprietary long-term drug delivery platform , proneura , and focus primarily on innovative treatments for select chronic diseases for which steady state delivery of a drug provides an efficacy and or safety benefit . probuphine® , our first product candidate based on the proneura platform , was approved by the fda on may 26 , 2016 for the maintenance treatment of opioid dependence in patients who are stable on low to moderate doses of daily sublingual buprenorphine treatment . we have licensed development and commercialization rights of probuphine for the u.s. and canadian markets to braeburn and pursuant to the license agreement as amended to date , we received a $ 15 million milestone payment upon fda approval of the probuphine nda , and are entitled to receive royalties on net sales of probuphine ranging in percentage from the mid-teens to the low twenties based on a tiered structure . the agreement also provides for up to an additional $ 165 million in sales milestones and $ 35 million in regulatory milestones on probuphine . additionally , in certain circumstances the agreement entitles us to a low single digit royalty , up to an aggregate of $ 50 million , on net sales by braeburn , if any , of other future competing products in the addiction market , e.g . a monthly depot injection . braeburn commenced commercialization activities in support of probuphine product launch immediately following fda approval starting with implementation at the end of may 2016 of the rems directed training program for qualified health care providers . during the second half of 2016 , braeburn was engaged in training qualified health care providers in the implant insertion and removal procedures , physician outreach , payment and reimbursement discussions with third party payors and sales and marketing efforts associated with the launch including hiring personnel for a field sales force . in 2016 , more than 2,500 health care providers from all 50 states and puerto rico were certified to provide probuphine to their patients . however , as previously indicated , the adoption of the product by health care providers has been gradual resulting in limited sales . in january 2017 , braeburn announced that the centers for medicare & medicaid services ( cms ) had granted a healthcare common procedure coding system ( hcpcs ) code , or permanent j-code , for probuphine , as the first six-month buprenorphine implant for the maintenance treatment of opioid addiction . the new j-code ( j0570 ) became effective january 1 , 2017 and coincided with the activation of a braeburn field force . braeburn continues to work to obtain additional codes to further facilitate reimbursement of probuphine insertion and removal procedures . 35 we believe that our proneura long term drug delivery platform has the potential to be used in the treatment of other chronic conditions where maintaining stable , around the clock blood levels of a medication may benefit the patient and improve medical outcomes . we have two products in early development using the proneura platform , an implant designed to provide long-term delivery of ropinirole , a dopamine agonist approved as a daily dosed oral formulation for the treatment of parkinson 's disease , and an implant designed to provide long-term delivery of t3 , a synthetic thyroid hormone approved as a daily dosed oral formulation for the treatment of hypothyroidism . the non-clinical development work related to the ropinirole implant , including the toxicology studies , was completed in the fourth quarter of 2016 and the ind was submitted to the fda in january 2017. in late february 2017 , in a telephone conversation , we received comments from the fda following its initial review of the ind requesting additional information related to final test results for the ropinirole implant and the applicator , as well as the name of the principal investigator . we have been asked to hold the initiation of the clinical study and we expect to receive the fda 's written comments by late march . story_separator_special_tag we estimate the volatility of our common stock at the date of grant based on the historical volatility of our common stock . the assumptions used in calculating the fair value of stock-based awards represent our best estimates , but these estimates involve inherent uncertainties and the application of management judgment . as a result , if factors change and we use different assumptions , our stock-based compensation expense could be materially different in the future . in addition , we are required to estimate the expected pre-vesting forfeiture rate and only recognize expense for those shares expected to vest . we estimate the pre-vesting forfeiture rate based on historical experience . if our actual forfeiture rate is materially different from our estimate , our stock-based compensation expense could be significantly different from what we have recorded in the current period . income taxes we make certain estimates and judgments in determining income tax expense for financial statement purposes . these estimates and judgments occur in the calculation of certain tax assets and liabilities , which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes . as part of the process of preparing our financial statements , we are required to estimate our income taxes in each of the jurisdictions in which we operate . this process involves us estimating our current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and accounting purposes . we assess the likelihood that we will be able to recover our deferred tax assets . we consider all available evidence , both positive and negative , expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance . if it is not more likely than not that we will recover our deferred tax assets , we will increase our provision for taxes by recording a valuation allowance against the deferred tax assets that we estimate will not ultimately be recoverable . clinical trial accruals we also record accruals for estimated ongoing clinical trial costs . clinical trial costs represent costs incurred by cros and clinical sites . these costs are recorded as a component of research and development expenses . under our agreements , progress payments are typically made to investigators , clinical sites and cros . we analyze the progress of the clinical trials , including levels of patient enrollment , invoices received and contracted costs when evaluating the adequacy of accrued liabilities . significant judgments and estimates must be made and used in determining the accrued balance in any accounting period . actual results could differ from those estimates under different assumptions . revisions are charged to expense in the period in which the facts that give rise to the revision become known . the actual clinical trial costs for the probuphine studies conducted in the past three years have not differed materially from the estimated projection of expenses . 37 warrants issued in connection with equity financing we generally account for warrants issued in connection with equity financings as a component of equity , unless there is a deemed possibility that we may have to settle warrants in cash . for warrants issued with deemed possibility of cash settlement , we record the fair value of the issued warrants as a liability at each reporting period and record changes in the estimated fair value as a non-cash gain or loss in the statements of operations and comprehensive income ( loss ) . story_separator_special_tag 10pt times new roman , times , serif ; margin : 0 ; text-indent : 0.25in `` > our net income applicable to common stockholders for the year ended december 31 , 2016 was approximately $ 5.1 million , or approximately $ 0.25 per share , compared to our net loss applicable to common stockholders of approximately $ 11.3 million , or approximately $ 0.56 per share , for the comparable period in 2015 . 39 year ended december 31 , 2015 compared to year ended december 31 , 2014 license revenues of approximately $ 1.7 million and $ 3.6 million for the years ended december 31 , 2015 and 2014 , respectively , reflect the amortization of the upfront license fee received from braeburn in december 2012. research and development expenses for 2015 were approximately $ 4.7 million compared to approximately $ 4.1 million in 2014 , an increase of approximately $ 0.6 million , or 15 % . the increase in research and development costs was primarily associated with increases in external research and development expenses related to the support of our probuphine and proneura-ropinirole product development programs , employee related expenses and other research and development expenses . external research and development expenses include direct expenses such as cro charges , investigator and review board fees , patient expense reimbursements , expenses for nda preparation and contract manufacturing expenses . during 2015 , external research and development expenses relating to our product development programs were approximately $ 1.5 million compared to approximately $ 0.9 million in 2014. other research and development expenses include internal operating costs such as clinical research and development personnel-related expenses , clinical trials related travel expenses , and allocation of facility and corporate costs . general and administrative expenses for 2015 were approximately $ 3.8 million compared to approximately $ 3.0 million in 2014 , an increase of approximately $ 0.8 million , or 27 % . the increase in general and administrative expenses was primarily related to increases in non-cash stock-based compensation and employee-related costs of approximately $ 0.4 million , legal and professional fees of approximately $ 0.2 million , board fees of approximately $ 0.1 million and travel related expenses of approximately $ 0.1 million . net other expense for the year ended december 31 , 2015 was approximately $ 4.5 million ,

liquidity and capital resources replace_table_token_3_th we have funded our operations since inception primarily through the sale of our securities and the issuance of debt , as well as with proceeds from warrant and option exercises , corporate licensing and collaborative agreements , the sale of royalty rights and government-sponsored research grants . at december 31 , 2016 , we had working capital of approximately $ 13.0 million compared to working capital of approximately $ 7.4 million at december 31 , 2015. our operating activities provided approximately $ 6.3 million of cash during the year ended december 31 , 2016. this consisted primarily of the net income for the period of approximately $ 5.1 million , approximately $ 0.4 million related to depreciation and amortization , non-cash charges of approximately $ 1.0 million related to share-based compensation expenses and approximately $ 0.6 million related to net changes in other operating assets and liabilities . this was offset in part by approximately $ 0.8 million related to non-cash gains resulting from changes in the fair value of warrants . uses of cash in operating activities were primarily to fund product development programs and administrative expenses . net cash used in investing activities of approximately $ 171,000 during the year ended december 31 , 2016 was primarily related to purchases of equipment . our financing activities provided approximately $ 27,000 during the year ended december 31 , 2016 which was primarily related to proceeds from the exercise of stock options . in may 2016 , the fda approved our probuphine nda and pursuant to our license agreement with braeburn , as amended to date , we received a $ 15 million milestone payment and subsequently transferred the nda to braeburn . in september 2016 , we entered into an agreement with cantor fitzgerald & co. to enable us to sell up to $ 20 million of shares in an at-the-market offering ( the “ atm ” ) .


 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 replace_table_token_3_th we have funded our operations since inception primarily through the sale of our securities and the issuance of debt , as well as with proceeds from warrant and option exercises , corporate licensing and collaborative agreements , the sale of royalty rights and government-sponsored research grants . at december 31 , 2016 , we had working capital of approximately $ 13.0 million compared to working capital of approximately $ 7.4 million at december 31 , 2015. our operating activities provided approximately $ 6.3 million of cash during the year ended december 31 , 2016. this consisted primarily of the net income for the period of approximately $ 5.1 million , approximately $ 0.4 million related to depreciation and amortization , non-cash charges of approximately $ 1.0 million related to share-based compensation expenses and approximately $ 0.6 million related to net changes in other operating assets and liabilities . this was offset in part by approximately $ 0.8 million related to non-cash gains resulting from changes in the fair value of warrants . uses of cash in operating activities were primarily to fund product development programs and administrative expenses . net cash used in investing activities of approximately $ 171,000 during the year ended december 31 , 2016 was primarily related to purchases of equipment . our financing activities provided approximately $ 27,000 during the year ended december 31 , 2016 which was primarily related to proceeds from the exercise of stock options . in may 2016 , the fda approved our probuphine nda and pursuant to our license agreement with braeburn , as amended to date , we received a $ 15 million milestone payment and subsequently transferred the nda to braeburn . in september 2016 , we entered into an agreement with cantor fitzgerald & co. to enable us to sell up to $ 20 million of shares in an at-the-market offering ( the “ atm ” ) .
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 Suspicious Activity Report : you can identify forward-looking statements by the use of words such as “ expect , ” “ anticipate , ” “ estimate , ” “ may , ” “ will , ” “ should , ” “ intend , ” “ believe , ” and similar expressions . although we believe the expectations reflected in these forward-looking statements are reasonable , such statements are inherently subject to risk and we can give no assurances that our expectations will prove to be correct . actual results could differ from those described in this report because of numerous factors , many of which are beyond our control . these factors include , without limitation , those described under item 1a “ risk factors . ” we undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this report or to reflect actual outcomes . please see “ note regarding forward-looking statements ” at the beginning of this annual report on form 10-k. the following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes thereto and other financial information appearing elsewhere in this annual report on form 10-k. overview we are a pharmaceutical company developing proprietary therapeutics for the treatment of serious medical disorders . our product development programs utilize our proprietary long-term drug delivery platform , proneura , and focus primarily on innovative treatments for select chronic diseases for which steady state delivery of a drug provides an efficacy and or safety benefit . probuphine® , our first product candidate based on the proneura platform , was approved by the fda on may 26 , 2016 for the maintenance treatment of opioid dependence in patients who are stable on low to moderate doses of daily sublingual buprenorphine treatment . we have licensed development and commercialization rights of probuphine for the u.s. and canadian markets to braeburn and pursuant to the license agreement as amended to date , we received a $ 15 million milestone payment upon fda approval of the probuphine nda , and are entitled to receive royalties on net sales of probuphine ranging in percentage from the mid-teens to the low twenties based on a tiered structure . the agreement also provides for up to an additional $ 165 million in sales milestones and $ 35 million in regulatory milestones on probuphine . additionally , in certain circumstances the agreement entitles us to a low single digit royalty , up to an aggregate of $ 50 million , on net sales by braeburn , if any , of other future competing products in the addiction market , e.g . a monthly depot injection . braeburn commenced commercialization activities in support of probuphine product launch immediately following fda approval starting with implementation at the end of may 2016 of the rems directed training program for qualified health care providers . during the second half of 2016 , braeburn was engaged in training qualified health care providers in the implant insertion and removal procedures , physician outreach , payment and reimbursement discussions with third party payors and sales and marketing efforts associated with the launch including hiring personnel for a field sales force . in 2016 , more than 2,500 health care providers from all 50 states and puerto rico were certified to provide probuphine to their patients . however , as previously indicated , the adoption of the product by health care providers has been gradual resulting in limited sales . in january 2017 , braeburn announced that the centers for medicare & medicaid services ( cms ) had granted a healthcare common procedure coding system ( hcpcs ) code , or permanent j-code , for probuphine , as the first six-month buprenorphine implant for the maintenance treatment of opioid addiction . the new j-code ( j0570 ) became effective january 1 , 2017 and coincided with the activation of a braeburn field force . braeburn continues to work to obtain additional codes to further facilitate reimbursement of probuphine insertion and removal procedures . 35 we believe that our proneura long term drug delivery platform has the potential to be used in the treatment of other chronic conditions where maintaining stable , around the clock blood levels of a medication may benefit the patient and improve medical outcomes . we have two products in early development using the proneura platform , an implant designed to provide long-term delivery of ropinirole , a dopamine agonist approved as a daily dosed oral formulation for the treatment of parkinson 's disease , and an implant designed to provide long-term delivery of t3 , a synthetic thyroid hormone approved as a daily dosed oral formulation for the treatment of hypothyroidism . the non-clinical development work related to the ropinirole implant , including the toxicology studies , was completed in the fourth quarter of 2016 and the ind was submitted to the fda in january 2017. in late february 2017 , in a telephone conversation , we received comments from the fda following its initial review of the ind requesting additional information related to final test results for the ropinirole implant and the applicator , as well as the name of the principal investigator . we have been asked to hold the initiation of the clinical study and we expect to receive the fda 's written comments by late march . story_separator_special_tag we estimate the volatility of our common stock at the date of grant based on the historical volatility of our common stock . the assumptions used in calculating the fair value of stock-based awards represent our best estimates , but these estimates involve inherent uncertainties and the application of management judgment . as a result , if factors change and we use different assumptions , our stock-based compensation expense could be materially different in the future . in addition , we are required to estimate the expected pre-vesting forfeiture rate and only recognize expense for those shares expected to vest . we estimate the pre-vesting forfeiture rate based on historical experience . if our actual forfeiture rate is materially different from our estimate , our stock-based compensation expense could be significantly different from what we have recorded in the current period . income taxes we make certain estimates and judgments in determining income tax expense for financial statement purposes . these estimates and judgments occur in the calculation of certain tax assets and liabilities , which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes . as part of the process of preparing our financial statements , we are required to estimate our income taxes in each of the jurisdictions in which we operate . this process involves us estimating our current tax exposure under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and accounting purposes . we assess the likelihood that we will be able to recover our deferred tax assets . we consider all available evidence , both positive and negative , expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance . if it is not more likely than not that we will recover our deferred tax assets , we will increase our provision for taxes by recording a valuation allowance against the deferred tax assets that we estimate will not ultimately be recoverable . clinical trial accruals we also record accruals for estimated ongoing clinical trial costs . clinical trial costs represent costs incurred by cros and clinical sites . these costs are recorded as a component of research and development expenses . under our agreements , progress payments are typically made to investigators , clinical sites and cros . we analyze the progress of the clinical trials , including levels of patient enrollment , invoices received and contracted costs when evaluating the adequacy of accrued liabilities . significant judgments and estimates must be made and used in determining the accrued balance in any accounting period . actual results could differ from those estimates under different assumptions . revisions are charged to expense in the period in which the facts that give rise to the revision become known . the actual clinical trial costs for the probuphine studies conducted in the past three years have not differed materially from the estimated projection of expenses . 37 warrants issued in connection with equity financing we generally account for warrants issued in connection with equity financings as a component of equity , unless there is a deemed possibility that we may have to settle warrants in cash . for warrants issued with deemed possibility of cash settlement , we record the fair value of the issued warrants as a liability at each reporting period and record changes in the estimated fair value as a non-cash gain or loss in the statements of operations and comprehensive income ( loss ) . story_separator_special_tag 10pt times new roman , times , serif ; margin : 0 ; text-indent : 0.25in `` > our net income applicable to common stockholders for the year ended december 31 , 2016 was approximately $ 5.1 million , or approximately $ 0.25 per share , compared to our net loss applicable to common stockholders of approximately $ 11.3 million , or approximately $ 0.56 per share , for the comparable period in 2015 . 39 year ended december 31 , 2015 compared to year ended december 31 , 2014 license revenues of approximately $ 1.7 million and $ 3.6 million for the years ended december 31 , 2015 and 2014 , respectively , reflect the amortization of the upfront license fee received from braeburn in december 2012. research and development expenses for 2015 were approximately $ 4.7 million compared to approximately $ 4.1 million in 2014 , an increase of approximately $ 0.6 million , or 15 % . the increase in research and development costs was primarily associated with increases in external research and development expenses related to the support of our probuphine and proneura-ropinirole product development programs , employee related expenses and other research and development expenses . external research and development expenses include direct expenses such as cro charges , investigator and review board fees , patient expense reimbursements , expenses for nda preparation and contract manufacturing expenses . during 2015 , external research and development expenses relating to our product development programs were approximately $ 1.5 million compared to approximately $ 0.9 million in 2014. other research and development expenses include internal operating costs such as clinical research and development personnel-related expenses , clinical trials related travel expenses , and allocation of facility and corporate costs . general and administrative expenses for 2015 were approximately $ 3.8 million compared to approximately $ 3.0 million in 2014 , an increase of approximately $ 0.8 million , or 27 % . the increase in general and administrative expenses was primarily related to increases in non-cash stock-based compensation and employee-related costs of approximately $ 0.4 million , legal and professional fees of approximately $ 0.2 million , board fees of approximately $ 0.1 million and travel related expenses of approximately $ 0.1 million . net other expense for the year ended december 31 , 2015 was approximately $ 4.5 million ,

