we completed the phase 1 program for relday in 2015 , and efforts to secure a global strategic development and commercialization partner for relday are ongoing . sale of sumavel dosepro business and contract manufacturing supply agreement divestiture on may 16 , 2014 , the company completed the sale of its sumavel dosepro business to endo international plc , or endo , which included registered trademarks , regulatory and all rights to market , sell and distribute sumavel dosepro under the trademark and commercialization rights under a specified subset of our technology patents . we retained all rights to the dosepro technology patents and know-how for use with other products . we received $ 85.0 million in cash , subject to an escrow holdback of $ 8.5 million , and $ 4.6 million in cash for the purchase of sumavel dosepro finished goods inventory on hand at our standard cost . the escrow period expired in may 2015 . 57 as part of the transaction , we entered into a supply agreement with endo ventures limited for the exclusive right , and contractual obligation , to manufacture and supply sumavel dosepro to endo . endo agreed to purchase all sumavel dosepro from the company at cost , plus a 2.5 % mark-up and reimburse us for the royalty obligations due aradigm corporation on sales of sumavel dosepro . the agreement provides for an initial term of eight years . to support our sumavel dosepro manufacturing operations , endo provided us with an interest-free working capital advance of $ 7.0 million under a promissory note ( see note 9 ) . the working capital advance is collateralized by liens on materials and unreleased finished sumavel dosepro inventory and matures upon termination of the supply agreement . pending termination of contract manufacturing supply agreement we and endo have recently entered into a letter agreement acknowledging endo 's decision to have us discontinue the manufacturing and supply of the sumavel dosepro product under the supply agreement while the parties finalize termination of the supply agreement . we expect to fulfill current open orders during the first half of 2017 and not to supply endo with additional sumavel dosepro following such time . sale of zohydro er business on march 10 , 2015 , we entered into an asset purchase agreement with pernix ireland limited and pernix therapeutics , or collectively , pernix , whereby we agreed to sell our zohydro er business to pernix , and on april 24 , 2015 , we completed the sale to ferrimill , an irish corporation and subsidiary of pernix , as a substitute purchaser . the divested zohydro er business included the registered patents and trademarks , certain contracts , the new drug application , or nda , and other regulatory approvals , documentation and authorizations , the books and records , marketing materials and product data relating to zohydro er . we received consideration of $ 80.0 million in cash , $ 10.0 million of which has been deposited in escrow to fund potential indemnification claims for a period of 12 months , and $ 10.6 million in pernix therapeutics common stock . further , ferrimill purchased $ 0.9 million of zohydro er inventory from us . we agreed to indemnify the purchaser for certain intellectual property matters up to an aggregate amount of $ 5.0 million . in addition to the cash payment paid at closing , we are eligible to receive cash payments of up to $ 283.5 million based on the achievement of certain regulatory and sales milestones . as of december 31 , 2016 , we have not received and do not expect to receive any additional cash payments . critical accounting policies 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 conformity with generally accepted accounting principles in the united states , or gaap . the preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , expenses and related disclosures . we evaluate our estimates and assumptions on an ongoing basis . our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances . actual results could differ from those estimates . we believe that the assumptions and estimates associated with revenue recognition , the impairment assessments related to goodwill , indefinite-lived intangible assets and other long-lived assets , business combinations , discontinued operations , fair value measurements , clinical trials expense accrual and stock-based compensation have the greatest potential impact on our consolidated financial statements . therefore , we consider these to be our critical accounting policies and estimates . for further information on all of our significant accounting policies , see note 2 to our consolidated financial statements included in this form 10-k. revenue recognition we historically generated revenue from contract manufacturing , service fees earned on collaborative arrangements and product revenue related to sumavel dosepro prior to the sale of the business in may 2014. we also generate revenue from the sale of zohydro er , which is included in net income ( loss ) from discontinued operations in the consolidated statement of operations and comprehensive income ( loss ) . revenue is recognized when ( i ) persuasive evidence of an arrangement exists , ( ii ) delivery has occurred and title has passed , ( iii ) the price is fixed or determinable and ( iv ) collectability is reasonably assured . story_separator_special_tag payments under some of the contracts we have with such parties depend on factors such as the milestones accomplished , successful enrollment of certain numbers of patients , site initiation and the completion of clinical trial milestones . in accruing service fees , we estimate the time period over which services will be performed and the level of effort to be expended in each period . if possible , we obtain information regarding unbilled services directly from these service providers . however , we may be required to estimate these services based on information available to our product development or administrative staff . if we underestimate or overestimate the activity associated with a study or service at a given point in time , adjustments to research and development expenses may be necessary in future periods . historically , our estimated accrued liabilities have approximated actual expense incurred . subsequent changes in estimates may result in a material change in our accruals . stock-based compensation stock-based compensation expense is measured at the grant date , based on the estimated fair value of the award , and is recognized as expense over the employee 's requisite service period or estimated time to satisfy the performance criteria , or vesting period , on a straight-line basis . equity awards issued to non-employees are recorded at their fair value on the grant date 61 and are periodically remeasured as the underlying awards vest unless the instruments are fully vested , immediately exercisable and nonforfeitable on the date of grant . results of operations comparison of years ended december 31 , 2016 , 2015 and 2014 revenue replace_table_token_3_th we recognize contract manufacturing revenue in connection with the supply agreement with endo . contract manufacturing revenue includes a portion of deferred revenue recognized under the “ proportional performance ” method . prior to the divestiture of our sumavel dosepro business to endo , we recognized net product sales upon the shipment of product to wholesale pharmaceutical distributors and retail pharmacies . the increase in contract manufacturing revenue in 2016 as compared to 2015 was primarily due to a change in estimate in the performance period under the proportional performance method . as a result of the impending termination of our contract manufacturing supply agreement with endo , the performance period and the total expected products to be delivered under the arrangement were revised , which resulted in an increase to 2016 revenue by $ 4.9 million . once the termination agreement is finalized , we will no longer have a source of recurring revenue and expect to have limited revenue in the foreseeable future . the increase in contract manufacturing revenue in 2015 as compared to 2014 was primarily due to the inclusion of a full year of contract manufacturing revenue in 2015 , while 2014 only included a partial year 's contract manufacturing revenue as the agreement was executed in may 2014. net product revenue in 2014 consisted of sale of sumavel dosepro products , which we divested in may 2014. service and other product revenue was comprised primarily of co-promotion fees earned for our migranal ® nasal spray sales efforts under our agreement with valeant pharmaceuticals north america llc until it was terminated in june 2015 , as well as adjustments to sumavel dosepro returns reserves subsequent to the sale of the business in may 2014. for 2016 , service and other product revenue resulted from the true-up of reserves to reflect actual sumavel dosepro returns . for 2015 , service and other product revenue were comprised of migranal co-promotion fees earned through june 2015 , $ 0.5 million received for a contract termination payment and $ 2.0 million from true-up of reserves to reflect actual returns for product whose return period had lapsed . service and other product revenue in 2014 was comprised primarily of fees generated by migranal co-promotion activity . cost of contract manufacturing and cost of goods sold replace_table_token_4_th costs of contract manufacturing consists primarily of materials , third-party manufacturing costs , freight in and indirect personnel and other overhead costs associated with sumavel dosepro based on units sold to endo , as well as the effect of changes in reserves for excess , dated or obsolete commercial inventories and production manufacturing variances . it represents the cost of units recognized as contract manufacturing revenues in the period and the impact of underutilized production capacity and other manufacturing variances . cost of contract manufacturing in 2016 was flat compared to 2015 while the corresponding contract manufacturing revenue increased . this resulted from a change in estimate under the proportional performance method of revenue recognition , which had no impact to cost of contract manufacturing . the increase in cost of contract manufacturing in 2015 compared to 2014 corresponds to the increase in units delivered . cost of goods sold consisted primarily of materials , third-party manufacturing costs , freight in and indirect personnel and other overhead costs associated with sales of sumavel dosepro based on product dispensed to units sold to patients until the 62 sale of the business to endo in may 2014. subsequent to the divestiture , we no longer sold the sumavel dosepro commercially and manufacturing costs under the supply agreement were recorded as cost of contract manufacturing . royalty expense replace_table_token_5_th prior to our divestiture of the sumavel dosepro business in may 2014 , we incurred royalty expense on product sales of sumavel dosepro , either by us or one of our licensees . royalty expense incurred subsequent to our divestiture represent the amortization of a royalty prepayment over the contractual term to supply sumavel dosepro to endo . in the fourth quarter of 2016 , approximately $ 2.0 million of unamortized prepaid royalties were written off as a result of the impending termination of our supply agreement and were included in impairment charges in operating expense . research and development expenses replace_table_token_6_th research and development expenses consist of expenses incurred in developing , testing and

net cash used in operating activities of $ 72.9 million in 2016 primarily reflects a net loss of $ 69.7 million , adjusted for non-cash charges including a $ 8.4 million impairment charge related to long-lived assets associated with the production of sumavel dosepro and the write-down of prepaid royalties ( see note 6 ) , $ 7.4 million of stock based compensation and $ 1.8 million increase in the fair value of contingent consideration offset by $ 5.4 million change in fair value of warrant liabilities . the primary use of cash from changes in working capital was attributable to an $ 11.2 million increase in trade accounts receivable due to the timing of shipments and collections . other uses of cash in operating activities include personnel-related costs , research and development costs for zx008 , other professional services , including legal and accounting , and increases in our accounts payable and accrued expenses due to the timing of payments . cash provided by changes in working capital items was primarily attributable to lower inventory purchases of sumavel dosepro raw materials due to the anticipated wind down of our manufacturing supply agreement with endo ( see note 6 ) . net cash used in operating activities of $ 64.6 million in 2015 primarily reflects the use of cash for operations , adjusted for non-cash charges including the $ 89.5 million pre-tax gain on the sale of our zohydro er business , a $ 5.7 million loss on our short-term investments , recognition of $ 8.5 million of deferred revenue and $ 7.7 million in stock-based compensation .


 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.
     ```net cash used in operating activities of $ 72.9 million in 2016 primarily reflects a net loss of $ 69.7 million , adjusted for non-cash charges including a $ 8.4 million impairment charge related to long-lived assets associated with the production of sumavel dosepro and the write-down of prepaid royalties ( see note 6 ) , $ 7.4 million of stock based compensation and $ 1.8 million increase in the fair value of contingent consideration offset by $ 5.4 million change in fair value of warrant liabilities . the primary use of cash from changes in working capital was attributable to an $ 11.2 million increase in trade accounts receivable due to the timing of shipments and collections . other uses of cash in operating activities include personnel-related costs , research and development costs for zx008 , other professional services , including legal and accounting , and increases in our accounts payable and accrued expenses due to the timing of payments . cash provided by changes in working capital items was primarily attributable to lower inventory purchases of sumavel dosepro raw materials due to the anticipated wind down of our manufacturing supply agreement with endo ( see note 6 ) . net cash used in operating activities of $ 64.6 million in 2015 primarily reflects the use of cash for operations , adjusted for non-cash charges including the $ 89.5 million pre-tax gain on the sale of our zohydro er business , a $ 5.7 million loss on our short-term investments , recognition of $ 8.5 million of deferred revenue and $ 7.7 million in stock-based compensation .
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 Suspicious Activity Report : we completed the phase 1 program for relday in 2015 , and efforts to secure a global strategic development and commercialization partner for relday are ongoing . sale of sumavel dosepro business and contract manufacturing supply agreement divestiture on may 16 , 2014 , the company completed the sale of its sumavel dosepro business to endo international plc , or endo , which included registered trademarks , regulatory and all rights to market , sell and distribute sumavel dosepro under the trademark and commercialization rights under a specified subset of our technology patents . we retained all rights to the dosepro technology patents and know-how for use with other products . we received $ 85.0 million in cash , subject to an escrow holdback of $ 8.5 million , and $ 4.6 million in cash for the purchase of sumavel dosepro finished goods inventory on hand at our standard cost . the escrow period expired in may 2015 . 57 as part of the transaction , we entered into a supply agreement with endo ventures limited for the exclusive right , and contractual obligation , to manufacture and supply sumavel dosepro to endo . endo agreed to purchase all sumavel dosepro from the company at cost , plus a 2.5 % mark-up and reimburse us for the royalty obligations due aradigm corporation on sales of sumavel dosepro . the agreement provides for an initial term of eight years . to support our sumavel dosepro manufacturing operations , endo provided us with an interest-free working capital advance of $ 7.0 million under a promissory note ( see note 9 ) . the working capital advance is collateralized by liens on materials and unreleased finished sumavel dosepro inventory and matures upon termination of the supply agreement . pending termination of contract manufacturing supply agreement we and endo have recently entered into a letter agreement acknowledging endo 's decision to have us discontinue the manufacturing and supply of the sumavel dosepro product under the supply agreement while the parties finalize termination of the supply agreement . we expect to fulfill current open orders during the first half of 2017 and not to supply endo with additional sumavel dosepro following such time . sale of zohydro er business on march 10 , 2015 , we entered into an asset purchase agreement with pernix ireland limited and pernix therapeutics , or collectively , pernix , whereby we agreed to sell our zohydro er business to pernix , and on april 24 , 2015 , we completed the sale to ferrimill , an irish corporation and subsidiary of pernix , as a substitute purchaser . the divested zohydro er business included the registered patents and trademarks , certain contracts , the new drug application , or nda , and other regulatory approvals , documentation and authorizations , the books and records , marketing materials and product data relating to zohydro er . we received consideration of $ 80.0 million in cash , $ 10.0 million of which has been deposited in escrow to fund potential indemnification claims for a period of 12 months , and $ 10.6 million in pernix therapeutics common stock . further , ferrimill purchased $ 0.9 million of zohydro er inventory from us . we agreed to indemnify the purchaser for certain intellectual property matters up to an aggregate amount of $ 5.0 million . in addition to the cash payment paid at closing , we are eligible to receive cash payments of up to $ 283.5 million based on the achievement of certain regulatory and sales milestones . as of december 31 , 2016 , we have not received and do not expect to receive any additional cash payments . critical accounting policies 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 conformity with generally accepted accounting principles in the united states , or gaap . the preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , expenses and related disclosures . we evaluate our estimates and assumptions on an ongoing basis . our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances . actual results could differ from those estimates . we believe that the assumptions and estimates associated with revenue recognition , the impairment assessments related to goodwill , indefinite-lived intangible assets and other long-lived assets , business combinations , discontinued operations , fair value measurements , clinical trials expense accrual and stock-based compensation have the greatest potential impact on our consolidated financial statements . therefore , we consider these to be our critical accounting policies and estimates . for further information on all of our significant accounting policies , see note 2 to our consolidated financial statements included in this form 10-k. revenue recognition we historically generated revenue from contract manufacturing , service fees earned on collaborative arrangements and product revenue related to sumavel dosepro prior to the sale of the business in may 2014. we also generate revenue from the sale of zohydro er , which is included in net income ( loss ) from discontinued operations in the consolidated statement of operations and comprehensive income ( loss ) . revenue is recognized when ( i ) persuasive evidence of an arrangement exists , ( ii ) delivery has occurred and title has passed , ( iii ) the price is fixed or determinable and ( iv ) collectability is reasonably assured . story_separator_special_tag payments under some of the contracts we have with such parties depend on factors such as the milestones accomplished , successful enrollment of certain numbers of patients , site initiation and the completion of clinical trial milestones . in accruing service fees , we estimate the time period over which services will be performed and the level of effort to be expended in each period . if possible , we obtain information regarding unbilled services directly from these service providers . however , we may be required to estimate these services based on information available to our product development or administrative staff . if we underestimate or overestimate the activity associated with a study or service at a given point in time , adjustments to research and development expenses may be necessary in future periods . historically , our estimated accrued liabilities have approximated actual expense incurred . subsequent changes in estimates may result in a material change in our accruals . stock-based compensation stock-based compensation expense is measured at the grant date , based on the estimated fair value of the award , and is recognized as expense over the employee 's requisite service period or estimated time to satisfy the performance criteria , or vesting period , on a straight-line basis . equity awards issued to non-employees are recorded at their fair value on the grant date 61 and are periodically remeasured as the underlying awards vest unless the instruments are fully vested , immediately exercisable and nonforfeitable on the date of grant . results of operations comparison of years ended december 31 , 2016 , 2015 and 2014 revenue replace_table_token_3_th we recognize contract manufacturing revenue in connection with the supply agreement with endo . contract manufacturing revenue includes a portion of deferred revenue recognized under the “ proportional performance ” method . prior to the divestiture of our sumavel dosepro business to endo , we recognized net product sales upon the shipment of product to wholesale pharmaceutical distributors and retail pharmacies . the increase in contract manufacturing revenue in 2016 as compared to 2015 was primarily due to a change in estimate in the performance period under the proportional performance method . as a result of the impending termination of our contract manufacturing supply agreement with endo , the performance period and the total expected products to be delivered under the arrangement were revised , which resulted in an increase to 2016 revenue by $ 4.9 million . once the termination agreement is finalized , we will no longer have a source of recurring revenue and expect to have limited revenue in the foreseeable future . the increase in contract manufacturing revenue in 2015 as compared to 2014 was primarily due to the inclusion of a full year of contract manufacturing revenue in 2015 , while 2014 only included a partial year 's contract manufacturing revenue as the agreement was executed in may 2014. net product revenue in 2014 consisted of sale of sumavel dosepro products , which we divested in may 2014. service and other product revenue was comprised primarily of co-promotion fees earned for our migranal ® nasal spray sales efforts under our agreement with valeant pharmaceuticals north america llc until it was terminated in june 2015 , as well as adjustments to sumavel dosepro returns reserves subsequent to the sale of the business in may 2014. for 2016 , service and other product revenue resulted from the true-up of reserves to reflect actual sumavel dosepro returns . for 2015 , service and other product revenue were comprised of migranal co-promotion fees earned through june 2015 , $ 0.5 million received for a contract termination payment and $ 2.0 million from true-up of reserves to reflect actual returns for product whose return period had lapsed . service and other product revenue in 2014 was comprised primarily of fees generated by migranal co-promotion activity . cost of contract manufacturing and cost of goods sold replace_table_token_4_th costs of contract manufacturing consists primarily of materials , third-party manufacturing costs , freight in and indirect personnel and other overhead costs associated with sumavel dosepro based on units sold to endo , as well as the effect of changes in reserves for excess , dated or obsolete commercial inventories and production manufacturing variances . it represents the cost of units recognized as contract manufacturing revenues in the period and the impact of underutilized production capacity and other manufacturing variances . cost of contract manufacturing in 2016 was flat compared to 2015 while the corresponding contract manufacturing revenue increased . this resulted from a change in estimate under the proportional performance method of revenue recognition , which had no impact to cost of contract manufacturing . the increase in cost of contract manufacturing in 2015 compared to 2014 corresponds to the increase in units delivered . cost of goods sold consisted primarily of materials , third-party manufacturing costs , freight in and indirect personnel and other overhead costs associated with sales of sumavel dosepro based on product dispensed to units sold to patients until the 62 sale of the business to endo in may 2014. subsequent to the divestiture , we no longer sold the sumavel dosepro commercially and manufacturing costs under the supply agreement were recorded as cost of contract manufacturing . royalty expense replace_table_token_5_th prior to our divestiture of the sumavel dosepro business in may 2014 , we incurred royalty expense on product sales of sumavel dosepro , either by us or one of our licensees . royalty expense incurred subsequent to our divestiture represent the amortization of a royalty prepayment over the contractual term to supply sumavel dosepro to endo . in the fourth quarter of 2016 , approximately $ 2.0 million of unamortized prepaid royalties were written off as a result of the impending termination of our supply agreement and were included in impairment charges in operating expense . research and development expenses replace_table_token_6_th research and development expenses consist of expenses incurred in developing , testing and

