in addition , we retain the right to manufacture a portion of both companies ' global clinical and commercial supply needs of mga012 , through utilization of our commercial-scale gmp facility , which is expected to be fully operational in 2018. finally , incyte will fund our activities related to our ongoing monotherapy clinical study until such time as we can transfer the investigational new drug application ( ind ) to incyte . servier . in september 2012 , we entered into an agreement with les laboratoires servier and institut de recherches servier ( servier ) to develop and commercialize three dart® molecules in all countries other than 44 the united states , canada , mexico , japan , south korea and india . we received a $ 20.0 million upfront option fee . in addition , we will be eligible to receive up to approximately $ 700 million in additional license fees and clinical , development , regulatory and sales milestone payments if servier exercises its remaining options and successfully develops , obtains regulatory approval for , and commercializes a product under each license . additionally , assuming exercise of its options , servier may share phase 2 and phase 3 development costs and would be obligated to pay us low double-digit to mid-teen royalties on product sales in its territories . in february 2014 , servier exercised its option to develop and commercialize flotetuzumab , for which we received a $ 15.0 million license option fee . we also received two $ 5.0 million milestone payments from servier in 2014 in connection with the ind applications for flotetuzumab and mgd007 clearing the 30-day review period by the u.s. food and drug administration ( fda ) . as of december 31 , 2017 , servier still retains an option to obtain a license for mgd007 , but has notified us that they have terminated their rights to license the third dart molecule . in addition , we have sought to complement our internal expertise and capabilities with collaborators that may help us advance our programs . for example , in december 2017 , we entered into a research collaboration and license agreement with f. hoffmann-la roche ltd. and hoffmann-la roche inc. ( collectively , roche ) to jointly discover and develop novel bispecific molecules to undisclosed targets . during the research term , both companies will leverage their respective platforms , including our dart platform and roche 's crossmab and dutafab technologies , to select a bispecific format and lead product candidate . roche would then further develop and commercialize any such product candidate . financial operations overview revenue our revenue consists primarily of collaboration revenue , including amounts recognized relating to upfront nonrefundable payments for licenses or options to obtain future licenses , research and development funding and milestone payments earned under our collaboration and license agreements with our strategic collaborators . in addition , we have earned revenues through several grants and or contracts with the u.s. government and other research institutions on behalf of the u.s. government , primarily with respect to research and development activities related to infectious disease product candidates . research and development expense research and development expense consists of expenses incurred in performing research and development activities . these expenses include conducting preclinical experiments and studies , clinical trials , manufacturing efforts and regulatory filings for all product candidates , and other indirect expenses in support of our research and development activities . we capture research and development expense on a program-by-program basis for our product candidates that are in clinical development and recognize these expenses as they are incurred . the following are items we include in research and development expense : employee-related expenses , such as salaries and benefits ; employee-related overhead expenses , such as facilities and other allocated items ; stock-based compensation expense to employees engaged in research and development activities ; depreciation of laboratory equipment , computers and leasehold improvements ; fees paid to consultants , subcontractors , clinical research organizations ( cros ) and other third party vendors for work performed under our preclinical and clinical trials including , but not limited to , investigator grants , laboratory work and analysis , database management , statistical analysis , and other items ; amounts paid to vendors and suppliers for laboratory supplies ; costs related to manufacturing clinical trial materials , including vialing , packaging and testing ; license fees and other third party vendor payments related to in-licensed product candidates and technology ; and costs related to compliance with regulatory requirements . it is difficult to determine with certainty the duration and completion costs of our current or future preclinical programs and clinical trials of our product candidates , or if , when or to what extent we will generate revenues from the commercialization and sale of any of our product candidates that obtain regulatory approval . we may never succeed in 45 achieving regulatory approval for any of our product candidates . the duration , costs and timing of clinical trials and development of our product candidates will depend on a variety of factors , including the uncertainties of future clinical trials and preclinical studies , uncertainties in clinical trial enrollment rates and significant and changing government regulation . in addition , the probability of success for each product candidate will depend on numerous factors , including competition , manufacturing capability and commercial viability . we will determine which programs to pursue and how much to fund each program in response to the scientific and clinical success of each product candidate , as well as an assessment of each product candidate 's commercial potential . general and administrative expenses general and administrative expenses consist of salaries and related benefit costs for employees in our executive , finance , legal and intellectual property , business development , human resources and other support functions , travel expenses and other legal and professional fees . story_separator_special_tag if the tax position meets this threshold , the benefit to be recognized is measured as the largest amount that is more than 50 % likely to be realized upon ultimate settlement . our policy is to record interest and penalties related to uncertain tax positions as a component of income tax expense . we recorded net deferred tax assets of $ 0.8 million as of december 31 , 2017 , which have been fully offset by a valuation allowance due to uncertainties surrounding our ability to realize these tax benefits . the deferred tax assets are primarily comprised of federal and state tax net operating loss ( nol ) carryforwards and research and development tax credit carryforwards . as of december 31 , 2017 , we had federal and state nol carryforwards of $ 239.7 million and research and development tax credit carryforwards of $ 42.8 million available . the federal nol carryforwards will begin to expire at various dates starting in 2025 . we are already subject to section 382 limitations due to acquisitions we made in 2002 and 2008. future changes in stock ownership may also trigger an ownership change and , consequently , another section 382 limitation . any limitation may result in expiration of a portion of the net operating loss or tax credit carryforwards before utilization which would reduce our gross deferred income tax assets and corresponding valuation allowance . as a result , if we earn net taxable income , our ability to use our pre-change net operating loss carryforwards and tax credit carryforwards to reduce united states federal income tax may be subject to limitations , which could potentially result in increased future cash tax liability to us . on december 22 , 2017 , the tax cuts and jobs act of 2017 ( the tax act ) was signed into law making significant changes to the internal revenue code , which included how the u.s. imposes income tax on multinational corporations . key changes in the tax act which are relevant to us , and generally effective january 1 , 2018 , include a flat corporate income tax rate of 21 % to replace the marginal rates that range from 15 % to 35 % and the elimination of the corporate alternative minimum tax . the tax act also imposes limits on executive compensations and interest expense deductions , while permitting the immediate expensing for the cost of new investments in certain property acquired after september 27 , 2017. on december 22 , 2017 , the sec issued staff accounting bulletin no . 118 ( sab 118 ) to address the application of u.s. gaap in situations when a registrant does not have the necessary information available , prepared , or analyzed ( including computations ) in reasonable detail to complete the accounting for certain income tax effects of the tax act . sab 118 allows registrants to include a provisional amount to account for the implications of the tax act where a reasonable estimate can be made and requires the completion of the accounting no later than one year from the date of the enactment of the tax act , or december 22 , 2018. asc 740 requires changes in tax rates and tax laws to be accounted for in the period of enactment in continuing operations . accordingly , of significance , we recorded a provisional estimate for the re-measurement of our u.s. deferred tax assets and liabilities to 21 % . this change in value of these deferred tax assets and liabilities , which is provisional , was offset by a corresponding change in our valuation allowance , thus no tax expense or benefit was recorded . the ultimate impact may 49 differ from these provisional amounts , possibly materially , due to , among other things , additional information necessary to complete the computation and analysis thereof , additional regulatory guidance that may be issued , and actions we may take as a result of the tax act . the accounting is expected to be complete by december 22 , 2018. stock-based compensation we recognize stock-based compensation expense in accordance with the provisions of asc topic 718 , compensation—stock compensation . the fair value of stock-based payments is estimated , on the date of grant , using a black-scholes model . the resulting fair value is recognized on a straight-line basis over the requisite service period , which is generally the vesting period of the option . the use of a black-scholes model requires us to apply judgment and make assumptions and estimates that include the following : fair value of common stock – before our entry into the public market on october 10 , 2013 , our board of directors determined the fair value of the common stock . the board of directors made determinations of fair value based , in part , upon contemporaneous valuations to determine fair value . the contemporaneous valuations were performed in accordance with applicable methodologies , approaches and assumptions of the technical practice-aid issued by the american institute of certified public accountants practice aid entitled valuation of privately-held company equity securities issued as compensation . expected volatility – volatility is a measure of the amount by which a financial variable such as a share price has fluctuated ( historical volatility ) or is expected to fluctuate ( expected volatility ) during a period . as we do not yet have sufficient history of our own volatility , we have identified several public entities of similar size , complexity and stage of development and estimate volatility based on the volatility of these companies . expected dividend yield – we have never declared or paid dividends and have no plans to do so in the foreseeable future . risk-free interest rate – this is the u.s. treasury rate for the week of each option grant during the year , having a term that most closely resembles the expected life of the option

cash flows the following table represents a summary of our cash flows for the years ended december 31 , 2017 , 2016 and 2015 : 53 replace_table_token_9_th operating activities net cash provided by or used in operating activities reflects , among other things , the amounts used to run our clinical trials and preclinical activities . net cash provided by operating activities during the year ended december 31 , 2017 is primarily due to cash received under the incyte agreement partially offset by an increase in the number of ongoing clinical trials and the expenses associated with increased enrollment in clinical trials . the increase in net cash used in operating activities for the year ended december 31 , 2016 compared to 2015 is primarily due to an increase in the number of ongoing clinical trials , the expenses associated with increased enrollment in clinical trials and an increase in the number of employees . investing activities net cash provided by investing activities during the year ended december 31 , 2017 is primarily due to maturities of marketable securities , partially offset by purchases of marketable securities and making leasehold improvements to our facilities , including the build out of a manufacturing suite at our headquarters building in rockville , maryland . net cash used in investing activities during the years ended december 31 , 2016 and 2015 is primarily due to investing our cash in marketable securities and making leasehold improvements to our facilities .


 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 represents a summary of our cash flows for the years ended december 31 , 2017 , 2016 and 2015 : 53 replace_table_token_9_th operating activities net cash provided by or used in operating activities reflects , among other things , the amounts used to run our clinical trials and preclinical activities . net cash provided by operating activities during the year ended december 31 , 2017 is primarily due to cash received under the incyte agreement partially offset by an increase in the number of ongoing clinical trials and the expenses associated with increased enrollment in clinical trials . the increase in net cash used in operating activities for the year ended december 31 , 2016 compared to 2015 is primarily due to an increase in the number of ongoing clinical trials , the expenses associated with increased enrollment in clinical trials and an increase in the number of employees . investing activities net cash provided by investing activities during the year ended december 31 , 2017 is primarily due to maturities of marketable securities , partially offset by purchases of marketable securities and making leasehold improvements to our facilities , including the build out of a manufacturing suite at our headquarters building in rockville , maryland . net cash used in investing activities during the years ended december 31 , 2016 and 2015 is primarily due to investing our cash in marketable securities and making leasehold improvements to our facilities .
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 Suspicious Activity Report : in addition , we retain the right to manufacture a portion of both companies ' global clinical and commercial supply needs of mga012 , through utilization of our commercial-scale gmp facility , which is expected to be fully operational in 2018. finally , incyte will fund our activities related to our ongoing monotherapy clinical study until such time as we can transfer the investigational new drug application ( ind ) to incyte . servier . in september 2012 , we entered into an agreement with les laboratoires servier and institut de recherches servier ( servier ) to develop and commercialize three dart® molecules in all countries other than 44 the united states , canada , mexico , japan , south korea and india . we received a $ 20.0 million upfront option fee . in addition , we will be eligible to receive up to approximately $ 700 million in additional license fees and clinical , development , regulatory and sales milestone payments if servier exercises its remaining options and successfully develops , obtains regulatory approval for , and commercializes a product under each license . additionally , assuming exercise of its options , servier may share phase 2 and phase 3 development costs and would be obligated to pay us low double-digit to mid-teen royalties on product sales in its territories . in february 2014 , servier exercised its option to develop and commercialize flotetuzumab , for which we received a $ 15.0 million license option fee . we also received two $ 5.0 million milestone payments from servier in 2014 in connection with the ind applications for flotetuzumab and mgd007 clearing the 30-day review period by the u.s. food and drug administration ( fda ) . as of december 31 , 2017 , servier still retains an option to obtain a license for mgd007 , but has notified us that they have terminated their rights to license the third dart molecule . in addition , we have sought to complement our internal expertise and capabilities with collaborators that may help us advance our programs . for example , in december 2017 , we entered into a research collaboration and license agreement with f. hoffmann-la roche ltd. and hoffmann-la roche inc. ( collectively , roche ) to jointly discover and develop novel bispecific molecules to undisclosed targets . during the research term , both companies will leverage their respective platforms , including our dart platform and roche 's crossmab and dutafab technologies , to select a bispecific format and lead product candidate . roche would then further develop and commercialize any such product candidate . financial operations overview revenue our revenue consists primarily of collaboration revenue , including amounts recognized relating to upfront nonrefundable payments for licenses or options to obtain future licenses , research and development funding and milestone payments earned under our collaboration and license agreements with our strategic collaborators . in addition , we have earned revenues through several grants and or contracts with the u.s. government and other research institutions on behalf of the u.s. government , primarily with respect to research and development activities related to infectious disease product candidates . research and development expense research and development expense consists of expenses incurred in performing research and development activities . these expenses include conducting preclinical experiments and studies , clinical trials , manufacturing efforts and regulatory filings for all product candidates , and other indirect expenses in support of our research and development activities . we capture research and development expense on a program-by-program basis for our product candidates that are in clinical development and recognize these expenses as they are incurred . the following are items we include in research and development expense : employee-related expenses , such as salaries and benefits ; employee-related overhead expenses , such as facilities and other allocated items ; stock-based compensation expense to employees engaged in research and development activities ; depreciation of laboratory equipment , computers and leasehold improvements ; fees paid to consultants , subcontractors , clinical research organizations ( cros ) and other third party vendors for work performed under our preclinical and clinical trials including , but not limited to , investigator grants , laboratory work and analysis , database management , statistical analysis , and other items ; amounts paid to vendors and suppliers for laboratory supplies ; costs related to manufacturing clinical trial materials , including vialing , packaging and testing ; license fees and other third party vendor payments related to in-licensed product candidates and technology ; and costs related to compliance with regulatory requirements . it is difficult to determine with certainty the duration and completion costs of our current or future preclinical programs and clinical trials of our product candidates , or if , when or to what extent we will generate revenues from the commercialization and sale of any of our product candidates that obtain regulatory approval . we may never succeed in 45 achieving regulatory approval for any of our product candidates . the duration , costs and timing of clinical trials and development of our product candidates will depend on a variety of factors , including the uncertainties of future clinical trials and preclinical studies , uncertainties in clinical trial enrollment rates and significant and changing government regulation . in addition , the probability of success for each product candidate will depend on numerous factors , including competition , manufacturing capability and commercial viability . we will determine which programs to pursue and how much to fund each program in response to the scientific and clinical success of each product candidate , as well as an assessment of each product candidate 's commercial potential . general and administrative expenses general and administrative expenses consist of salaries and related benefit costs for employees in our executive , finance , legal and intellectual property , business development , human resources and other support functions , travel expenses and other legal and professional fees . story_separator_special_tag if the tax position meets this threshold , the benefit to be recognized is measured as the largest amount that is more than 50 % likely to be realized upon ultimate settlement . our policy is to record interest and penalties related to uncertain tax positions as a component of income tax expense . we recorded net deferred tax assets of $ 0.8 million as of december 31 , 2017 , which have been fully offset by a valuation allowance due to uncertainties surrounding our ability to realize these tax benefits . the deferred tax assets are primarily comprised of federal and state tax net operating loss ( nol ) carryforwards and research and development tax credit carryforwards . as of december 31 , 2017 , we had federal and state nol carryforwards of $ 239.7 million and research and development tax credit carryforwards of $ 42.8 million available . the federal nol carryforwards will begin to expire at various dates starting in 2025 . we are already subject to section 382 limitations due to acquisitions we made in 2002 and 2008. future changes in stock ownership may also trigger an ownership change and , consequently , another section 382 limitation . any limitation may result in expiration of a portion of the net operating loss or tax credit carryforwards before utilization which would reduce our gross deferred income tax assets and corresponding valuation allowance . as a result , if we earn net taxable income , our ability to use our pre-change net operating loss carryforwards and tax credit carryforwards to reduce united states federal income tax may be subject to limitations , which could potentially result in increased future cash tax liability to us . on december 22 , 2017 , the tax cuts and jobs act of 2017 ( the tax act ) was signed into law making significant changes to the internal revenue code , which included how the u.s. imposes income tax on multinational corporations . key changes in the tax act which are relevant to us , and generally effective january 1 , 2018 , include a flat corporate income tax rate of 21 % to replace the marginal rates that range from 15 % to 35 % and the elimination of the corporate alternative minimum tax . the tax act also imposes limits on executive compensations and interest expense deductions , while permitting the immediate expensing for the cost of new investments in certain property acquired after september 27 , 2017. on december 22 , 2017 , the sec issued staff accounting bulletin no . 118 ( sab 118 ) to address the application of u.s. gaap in situations when a registrant does not have the necessary information available , prepared , or analyzed ( including computations ) in reasonable detail to complete the accounting for certain income tax effects of the tax act . sab 118 allows registrants to include a provisional amount to account for the implications of the tax act where a reasonable estimate can be made and requires the completion of the accounting no later than one year from the date of the enactment of the tax act , or december 22 , 2018. asc 740 requires changes in tax rates and tax laws to be accounted for in the period of enactment in continuing operations . accordingly , of significance , we recorded a provisional estimate for the re-measurement of our u.s. deferred tax assets and liabilities to 21 % . this change in value of these deferred tax assets and liabilities , which is provisional , was offset by a corresponding change in our valuation allowance , thus no tax expense or benefit was recorded . the ultimate impact may 49 differ from these provisional amounts , possibly materially , due to , among other things , additional information necessary to complete the computation and analysis thereof , additional regulatory guidance that may be issued , and actions we may take as a result of the tax act . the accounting is expected to be complete by december 22 , 2018. stock-based compensation we recognize stock-based compensation expense in accordance with the provisions of asc topic 718 , compensation—stock compensation . the fair value of stock-based payments is estimated , on the date of grant , using a black-scholes model . the resulting fair value is recognized on a straight-line basis over the requisite service period , which is generally the vesting period of the option . the use of a black-scholes model requires us to apply judgment and make assumptions and estimates that include the following : fair value of common stock – before our entry into the public market on october 10 , 2013 , our board of directors determined the fair value of the common stock . the board of directors made determinations of fair value based , in part , upon contemporaneous valuations to determine fair value . the contemporaneous valuations were performed in accordance with applicable methodologies , approaches and assumptions of the technical practice-aid issued by the american institute of certified public accountants practice aid entitled valuation of privately-held company equity securities issued as compensation . expected volatility – volatility is a measure of the amount by which a financial variable such as a share price has fluctuated ( historical volatility ) or is expected to fluctuate ( expected volatility ) during a period . as we do not yet have sufficient history of our own volatility , we have identified several public entities of similar size , complexity and stage of development and estimate volatility based on the volatility of these companies . expected dividend yield – we have never declared or paid dividends and have no plans to do so in the foreseeable future . risk-free interest rate – this is the u.s. treasury rate for the week of each option grant during the year , having a term that most closely resembles the expected life of the option

