other than transactions recently concluded and described below under “ recent financing developments , ” we have no arrangements or plans currently in effect and any inability to raise additional funds could have an adverse effect on our ability to execute our business objectives . in addition , no assurance can be given that we will be able to obtain funds on favorable terms , if at all . recent financing developments in october of 2016 , we raised $ 1.47 million through a private placement of 452,314 shares of our common stock . in march of 2017 , we raised $ 9.2 million in gross proceeds through a private placement of 3,588,620 shares of our common stock and 3,588,620 common stock purchase warrants ( each , a “ warrant ” ) . each warrant entitles its holder to purchase one share of common stock ( each , a “ warrant share ” ) at an exercise price of $ 3.00 per warrant share , subject to adjustment . in april of 2017 , we raised approximately $ 2,700,000 in gross proceeds through a private placement of 1,069,603 shares of our common stock and 1,069,603 warrants . critical accounting policies and recent accounting pronouncements while our significant accounting policies are more fully described in note 2 to the consolidated financial statements appearing elsewhere in this form 10-k , we believe the following accounting policies are critical to the preparation of our financial statements . research and development expenses research and development costs are expensed as incurred and are primarily comprised of , but not limited to , external research and development expenses incurred under arrangements with third parties , such as contract research organizations ( “ cros ” ) , contract manufacturing organizations ( “ cmos ” ) and consultants that conduct clinical and preclinical studies , costs associated with preclinical and development activities , costs associated with regulatory operations , depreciation expense for assets used in research and development activities and employee related expenses , including salaries and benefits for research and development personnel . costs for certain development activities , such as clinical studies , are accrued , over the service period specified in the contract and recognized based on an evaluation of the progress to completion of specific tasks using data such as patient enrollment , clinical site activations or information provided to us by our vendors on their actual costs incurred . payments for these activities are based on the terms of the individual arrangements , which may differ from the patterns of costs incurred , and are reflected in the consolidated financial statements as prepaid or accrued expense , which are reported in prepaid assets or accounts payable and other current liabilities . - 71 - income taxes our income tax expense , deferred tax assets and liabilities , and liabilities for unrecognized tax benefits reflect management 's best estimate of current and future taxes to be paid . we are subject to income taxes in the united states , for federal and various state jurisdictions . significant judgments and estimates are required in the determination of the income tax expense . deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements , which will result in taxable or deductible amounts in the future . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . the assumptions about future taxable income require the use of significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses . in evaluating the objective evidence that historical results provide , we consider three years of cumulative operating income ( loss ) . a valuation allowance is provided when , after consideration of all positive and negative evidence that it is less likely than not that the benefit from federal and state net operating losses ( nols ) will be realizable . in recognition of this risk , we have provided a full valuation allowance on the deferred tax assets related to these nol carryforwards . the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in various jurisdictions . asc 740 “ income taxes ” states that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination , including resolutions of any related appeals or litigation processes , on the basis of the technical merits . we had unrecognized tax benefits of $ 617,233 and $ 331,545 at march 31 , 2017 and 2016 respectively and no unrecognized tax benefits at december 31 , 2015 and 2014. increases or decreases would not have an effect on the effective tax rate . the tax years , which currently remain subject to examination by major tax jurisdictions as of march 31 , 2017 are the period january 1 , 2016 through march 31 , 2016 , years ended december 31 , 2015 and 2014 and for the period july 26 , 2013 to december 31 , 2013. in addition , we had no income tax related penalties or interest for periods presented in these consolidated financial statements . when and if we were to recognize interest and penalties related to unrecognized tax benefits , they would be reported in tax expense . stock-based compensation we follow the authoritative guidance for accounting for stock-based compensation in asc 718 , “ compensation-stock compensation . story_separator_special_tag there were no such transaction costs incurred in the year ended december 31 , 2014. in addition , in the year ended december 31 , 2015 , we incurred costs of $ 1,468,991 for legal and accounting fees as we continue to implement our business plan . salary expense for non-research and development personnel was $ 944,561 for the year ended december 31 , 2015 , compared to $ 440,269 for the year ended december 31 , 2014 , representing a $ 504,292 increase between the comparable periods . this increase is primarily due to a higher salary in 2015 for the company 's chief operating officer and the addition of a chief financial officer in may 2015. we expect to incur further increases in salary expense for non-research and development personnel as we continue to implement our business plan . stock based compensation expense related to stock options granted was $ 485,859 for the year ended december 31 , 2015. no stock options were granted during the year ended december 31 , 2014. for the year ended december 31 , 2015 , we incurred compensation expense , half paid in common shares and half paid in cash , of $ 400,000 related to the three members of the board of directors and special advisor . there was no such expense for the year ended december 31 , 2014. other income ( expense ) interest charges for the year ended december 31 , 2015 was $ 3,503,301 , compared to $ 76,561 for the year ended december 31 , 2014. contemporaneous with the closing of the merger , the bridge note in the principal amount of $ 2,310,000 was converted into 2,310,000 shares of company common stock . on march 5 , 2015 , the mandatory conversion feature of the bridge note was amended to a set fixed conversion amount such that , upon conversion , the bridge note purchaser would receive one share of company common stock for each $ 1.00 of principal of the bridge note outstanding as of the date of the mandatory conversion . we evaluated the modification to the conversion rate as an inducement to convert the bridge note and concluded that it provided the purchaser of the bridge note an incremental value of $ 3,465,000 , which is included as interest expense on the consolidated statement of operations for year ended december 31 , 2015. we recorded interest expense of $ 38,301 on the bridge note during the year ended december 31 , 2015. other income for the year ended december 31 , 2015 was $ 376,255 , which primarily represents a gain recorded on the remeasurement of a derivative liability to $ 0 as of december 31 , 2015. the derivative was originally recorded during the quarter ended march 31 , 2015 and based on updated inputs to the valuation model used , we have determined that the derivative liability has no value at december 31 , 2015. changes in the fair value of the derivative are recognized in earnings in the current period . income tax our effective tax rate for the years ended december 31 , 2015 and 2014 was zero percent . our tax rate is affected primarily by state income taxes and changes in valuation allowance . - 76 - preparation of financial statements ; going concern our financial statements have been prepared in conformity with accounting principles generally accepted in the united states of america ( “ us gaap ” ) , which contemplates our continuation as a going concern . we have incurred losses and negative cash flows from operations since inception ( july 26 , 2013 ) and have an accumulated deficit of approximately $ 33,862,088 as of march 31 , 2017. we anticipate incurring additional losses until such time , if ever , that we can generate significant revenues from our products currently in development . our primary sources of liquidity to date have been the issuance of shares of our common stock , convertible promissory notes and contributed capital by our founders . substantial additional financing will be needed to fund our operations and to commercially develop our product candidates . there is no assurance that such financing will be available when needed or on acceptable terms . these factors raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued . the consolidated financial statements have been prepared on a going concern basis , which contemplates the realization of assets and satisfaction of liabilities in the normal course of business . the consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty . at march 31 , 2017 , we had cash and equivalents of $ 10,482,977 , and working capital and stockholders ' equity of $ 7,384,271 and $ 7,391,806 , respectively . liquidity and capital resources liquidity and capital requirements outlook we anticipate requiring additional capital in order to fund the development of our product candidates , as well as to engage in strategic transactions . the most significant funding needs are anticipated to be in connection with preparing for and conducting immediate phase ii clinical trials of our sm-88 drug candidate for prostate cancer and pancreatic cancer and additional or related studies and investigations . we are evaluating the expansion of our clinical program to other forms of cancer beyond those noted above . to meet our short and long-term liquidity needs , we currently expect to use existing cash balances and a variety of other means , including potential issuances of debt or equity securities in public or private financings , option exercises , and partnerships and or collaborations . the demand for the equity and debt of biopharmaceutical companies like ours is dependent upon many factors , including the general state

cash flows net cash used in or provided by operating , investing and financing activities from continuing operations were as follows : - 77 - replace_table_token_6_th operating activities our cash used in operating activities in the year ended march 31 , 2017 totaled $ 5,861,127 which is the sum of ( i ) our net loss of $ 15,206,781 , adjusted for non-cash expenses totaling $ 8,076,368 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ 1,269,286. our cash used in operating activities in the three months ended march 31 , 2016 totaled $ 1,373,257 which is the sum of ( i ) our net loss of $ 2,751,127 , adjusted for non-cash expenses totaling $ 1,138,497 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ 239,373. our cash used in operating activities in the three months ended march 31 , 2015 totaled $ 2,281,683 which is the sum of ( i ) our net loss of $ 5,601,438 , adjusted for non-cash expenses totaling $ 4,141,074 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ ( 821,319 ) .


 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 net cash used in or provided by operating , investing and financing activities from continuing operations were as follows : - 77 - replace_table_token_6_th operating activities our cash used in operating activities in the year ended march 31 , 2017 totaled $ 5,861,127 which is the sum of ( i ) our net loss of $ 15,206,781 , adjusted for non-cash expenses totaling $ 8,076,368 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ 1,269,286. our cash used in operating activities in the three months ended march 31 , 2016 totaled $ 1,373,257 which is the sum of ( i ) our net loss of $ 2,751,127 , adjusted for non-cash expenses totaling $ 1,138,497 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ 239,373. our cash used in operating activities in the three months ended march 31 , 2015 totaled $ 2,281,683 which is the sum of ( i ) our net loss of $ 5,601,438 , adjusted for non-cash expenses totaling $ 4,141,074 ( which includes adjustments for equity-based compensation , depreciation and amortization and the issuance of common stock for services ) , and ( ii ) changes in operating assets and liabilities of $ ( 821,319 ) .
```    
 Suspicious Activity Report : other than transactions recently concluded and described below under “ recent financing developments , ” we have no arrangements or plans currently in effect and any inability to raise additional funds could have an adverse effect on our ability to execute our business objectives . in addition , no assurance can be given that we will be able to obtain funds on favorable terms , if at all . recent financing developments in october of 2016 , we raised $ 1.47 million through a private placement of 452,314 shares of our common stock . in march of 2017 , we raised $ 9.2 million in gross proceeds through a private placement of 3,588,620 shares of our common stock and 3,588,620 common stock purchase warrants ( each , a “ warrant ” ) . each warrant entitles its holder to purchase one share of common stock ( each , a “ warrant share ” ) at an exercise price of $ 3.00 per warrant share , subject to adjustment . in april of 2017 , we raised approximately $ 2,700,000 in gross proceeds through a private placement of 1,069,603 shares of our common stock and 1,069,603 warrants . critical accounting policies and recent accounting pronouncements while our significant accounting policies are more fully described in note 2 to the consolidated financial statements appearing elsewhere in this form 10-k , we believe the following accounting policies are critical to the preparation of our financial statements . research and development expenses research and development costs are expensed as incurred and are primarily comprised of , but not limited to , external research and development expenses incurred under arrangements with third parties , such as contract research organizations ( “ cros ” ) , contract manufacturing organizations ( “ cmos ” ) and consultants that conduct clinical and preclinical studies , costs associated with preclinical and development activities , costs associated with regulatory operations , depreciation expense for assets used in research and development activities and employee related expenses , including salaries and benefits for research and development personnel . costs for certain development activities , such as clinical studies , are accrued , over the service period specified in the contract and recognized based on an evaluation of the progress to completion of specific tasks using data such as patient enrollment , clinical site activations or information provided to us by our vendors on their actual costs incurred . payments for these activities are based on the terms of the individual arrangements , which may differ from the patterns of costs incurred , and are reflected in the consolidated financial statements as prepaid or accrued expense , which are reported in prepaid assets or accounts payable and other current liabilities . - 71 - income taxes our income tax expense , deferred tax assets and liabilities , and liabilities for unrecognized tax benefits reflect management 's best estimate of current and future taxes to be paid . we are subject to income taxes in the united states , for federal and various state jurisdictions . significant judgments and estimates are required in the determination of the income tax expense . deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements , which will result in taxable or deductible amounts in the future . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . the assumptions about future taxable income require the use of significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses . in evaluating the objective evidence that historical results provide , we consider three years of cumulative operating income ( loss ) . a valuation allowance is provided when , after consideration of all positive and negative evidence that it is less likely than not that the benefit from federal and state net operating losses ( nols ) will be realizable . in recognition of this risk , we have provided a full valuation allowance on the deferred tax assets related to these nol carryforwards . the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in various jurisdictions . asc 740 “ income taxes ” states that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination , including resolutions of any related appeals or litigation processes , on the basis of the technical merits . we had unrecognized tax benefits of $ 617,233 and $ 331,545 at march 31 , 2017 and 2016 respectively and no unrecognized tax benefits at december 31 , 2015 and 2014. increases or decreases would not have an effect on the effective tax rate . the tax years , which currently remain subject to examination by major tax jurisdictions as of march 31 , 2017 are the period january 1 , 2016 through march 31 , 2016 , years ended december 31 , 2015 and 2014 and for the period july 26 , 2013 to december 31 , 2013. in addition , we had no income tax related penalties or interest for periods presented in these consolidated financial statements . when and if we were to recognize interest and penalties related to unrecognized tax benefits , they would be reported in tax expense . stock-based compensation we follow the authoritative guidance for accounting for stock-based compensation in asc 718 , “ compensation-stock compensation . story_separator_special_tag there were no such transaction costs incurred in the year ended december 31 , 2014. in addition , in the year ended december 31 , 2015 , we incurred costs of $ 1,468,991 for legal and accounting fees as we continue to implement our business plan . salary expense for non-research and development personnel was $ 944,561 for the year ended december 31 , 2015 , compared to $ 440,269 for the year ended december 31 , 2014 , representing a $ 504,292 increase between the comparable periods . this increase is primarily due to a higher salary in 2015 for the company 's chief operating officer and the addition of a chief financial officer in may 2015. we expect to incur further increases in salary expense for non-research and development personnel as we continue to implement our business plan . stock based compensation expense related to stock options granted was $ 485,859 for the year ended december 31 , 2015. no stock options were granted during the year ended december 31 , 2014. for the year ended december 31 , 2015 , we incurred compensation expense , half paid in common shares and half paid in cash , of $ 400,000 related to the three members of the board of directors and special advisor . there was no such expense for the year ended december 31 , 2014. other income ( expense ) interest charges for the year ended december 31 , 2015 was $ 3,503,301 , compared to $ 76,561 for the year ended december 31 , 2014. contemporaneous with the closing of the merger , the bridge note in the principal amount of $ 2,310,000 was converted into 2,310,000 shares of company common stock . on march 5 , 2015 , the mandatory conversion feature of the bridge note was amended to a set fixed conversion amount such that , upon conversion , the bridge note purchaser would receive one share of company common stock for each $ 1.00 of principal of the bridge note outstanding as of the date of the mandatory conversion . we evaluated the modification to the conversion rate as an inducement to convert the bridge note and concluded that it provided the purchaser of the bridge note an incremental value of $ 3,465,000 , which is included as interest expense on the consolidated statement of operations for year ended december 31 , 2015. we recorded interest expense of $ 38,301 on the bridge note during the year ended december 31 , 2015. other income for the year ended december 31 , 2015 was $ 376,255 , which primarily represents a gain recorded on the remeasurement of a derivative liability to $ 0 as of december 31 , 2015. the derivative was originally recorded during the quarter ended march 31 , 2015 and based on updated inputs to the valuation model used , we have determined that the derivative liability has no value at december 31 , 2015. changes in the fair value of the derivative are recognized in earnings in the current period . income tax our effective tax rate for the years ended december 31 , 2015 and 2014 was zero percent . our tax rate is affected primarily by state income taxes and changes in valuation allowance . - 76 - preparation of financial statements ; going concern our financial statements have been prepared in conformity with accounting principles generally accepted in the united states of america ( “ us gaap ” ) , which contemplates our continuation as a going concern . we have incurred losses and negative cash flows from operations since inception ( july 26 , 2013 ) and have an accumulated deficit of approximately $ 33,862,088 as of march 31 , 2017. we anticipate incurring additional losses until such time , if ever , that we can generate significant revenues from our products currently in development . our primary sources of liquidity to date have been the issuance of shares of our common stock , convertible promissory notes and contributed capital by our founders . substantial additional financing will be needed to fund our operations and to commercially develop our product candidates . there is no assurance that such financing will be available when needed or on acceptable terms . these factors raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued . the consolidated financial statements have been prepared on a going concern basis , which contemplates the realization of assets and satisfaction of liabilities in the normal course of business . the consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty . at march 31 , 2017 , we had cash and equivalents of $ 10,482,977 , and working capital and stockholders ' equity of $ 7,384,271 and $ 7,391,806 , respectively . liquidity and capital resources liquidity and capital requirements outlook we anticipate requiring additional capital in order to fund the development of our product candidates , as well as to engage in strategic transactions . the most significant funding needs are anticipated to be in connection with preparing for and conducting immediate phase ii clinical trials of our sm-88 drug candidate for prostate cancer and pancreatic cancer and additional or related studies and investigations . we are evaluating the expansion of our clinical program to other forms of cancer beyond those noted above . to meet our short and long-term liquidity needs , we currently expect to use existing cash balances and a variety of other means , including potential issuances of debt or equity securities in public or private financings , option exercises , and partnerships and or collaborations . the demand for the equity and debt of biopharmaceutical companies like ours is dependent upon many factors , including the general state

