we launched iluvien in germany and the united kingdom , in the second quarter of 2013 and in the u.s. and portugal in the first quarter of 2015. our distributor in the middle east launched iluvien in the united arab emirates in the fourth quarter of 2016. in italy , our distributor plans to launch iluvien in 2017. we do not expect to have positive cash flow from operations until 2017 , if at all . due to the limited revenue generated by iluvien to date , we may have to raise additional capital to fund the continued commercialization of iluvien . if we are unable to raise additional financing , we will need to adjust our commercial plans so that we can continue to operate with our existing cash resources or there may be substantial doubt about our ability to continue as a going concern . 44 in october 2016 , we entered into the fourth loan amendment ( as defined below ) with hercules capital , inc. ( hercules ) in order to modify certain terms of the term loan agreement ( as defined below ) and obtained additional loan amounts . if there is an event of default , all amounts may become due under the term loan agreement and there would continue to be substantial doubt about our ability to continue as a going concern . our agreement with psivida us , inc. we entered into an agreement with psivida us , inc. ( psivida ) for the use of fluocinolone acetonide ( fac ) in psivida 's proprietary delivery device in february 2005 , which was subsequently amended and restated in 2008. psivida is a global drug delivery company committed to the biomedical sector and the development of drug delivery products . our agreement with psivida provides us with a worldwide exclusive license to develop and sell iluvien , which consists of a tiny polyimide tube with a permeable membrane cap on one end and an impermeable silicone cap on the other end that is filled with fac in a polyvinyl alcohol matrix for delivery to the back of the eye for the treatment and prevention of eye diseases in humans ( other than uveitis ) . this agreement also provides us with a worldwide non-exclusive license to develop and sell psivida 's proprietary delivery device to deliver other corticosteroids to the back of the eye for the treatment and prevention of eye diseases in humans ( other than uveitis ) or to treat dme by delivering a compound to the back of the eye through a direct delivery method through an incision required for a 25-gauge or larger needle . we do not have the right to develop and sell psivida 's proprietary delivery device in connection with indications for diseases outside of the eye or for the treatment of uveitis . further , our agreement with psivida permits psivida to grant to any other party the right to use its intellectual property ( i ) to treat dme through an incision smaller than that required for a 25-gauge needle , unless using a corticosteroid delivered to the back of the eye , ( ii ) to deliver any compound outside the back of the eye unless it is to treat dme through an incision required for a 25-gauge or larger needle , or ( iii ) to deliver non-corticosteroids to the back of the eye , unless it is to treat dme through an incision required for a 25-gauge or larger needle . we were not in breach of our agreement with psivida as of december 31 , 2016. the agreement provides that after commercialization of iluvien , psivida will be entitled to 20 % of the net profits and 33 % of any lump sum milestone payments received from a sub-licensee of iluvien , as defined in the amended and restated agreement . in connection with this arrangement we are entitled to recover 20 % of commercialization costs of iluvien , as defined in the agreement , incurred prior to product profitability out of psivida 's share of net profits . as of december 31 , 2016 and 2015 , we could offset future royalty payments to psivida in the amounts of $ 25.8 million and $ 21.6 million , respectively , due to the accumulation of commercialization costs . due to the uncertainty of future profits from iluvien , we have fully reserved these amounts in the accompanying consolidated financial statements . as of december 31 , 2016 we owed psivida approximately $ 240,000 for their portion of net profits on a cash basis , as defined in the amended and restated agreement , from the fourth quarter of 2016. as a result of the food and drug administration 's ( fda ) approval of iluvien in september 2014 , we paid psivida a milestone payment of $ 25.0 million ( the psivida milestone payment ) in october 2014. in the second quarter of 2016 , psivida disputed portions of our claimed commercialization costs for the year ended december 31 , 2014. as part of this dispute , psivida notified us that it disagreed with $ 1.3 million of the $ 13.0 million in commercialization costs receivable that we had reported as of december 31 , 2014 and claimed incremental profit sharing payments of $ 136,000 for the year ended december 31 , 2014. we are disputing psivida 's assertions using the alternative dispute resolution mechanism under the psivida agreement . story_separator_special_tag we expect to continue to develop stable formulations of iluvien or any future products or product candidates , test such formulations in preclinical studies for toxicology , safety and efficacy and to conduct clinical trials for each future product candidate . we anticipate funding clinical trials ourselves , but we may engage collaboration partners at certain stages of clinical development . as we obtain results from clinical trials , we may elect to discontinue or delay clinical trials for certain products or product candidates or programs in order to focus our resources on more promising products or product candidates or programs . completion of clinical trials by us or our future collaborators may take several years or more , the length of time generally varying with the type , complexity , novelty and intended use of a product candidate . our only commercial product is iluvien , which has received marketing authorization in the u.s. , austria , belgium , the czech republic , denmark , finland , germany , france , ireland , italy , luxembourg , the netherlands , norway , poland , portugal , spain , sweden and the united kingdom . in the u.s. , iluvien is indicated for the treatment of dme in patients who have been previously treated with a course of corticosteroids and did not have a clinically significant rise in iop . in the eea countries in which iluvien has received marketing authorization , it is indicated for the treatment of vision impairment 48 associated with chronic dme considered insufficiently responsive to available therapies . iluvien has not been approved in any jurisdiction other than as set forth above . in order to grant marketing approval , a health authority such as the fda or foreign regulatory agencies must conclude that clinical and preclinical data establish the safety and efficacy of iluvien or any future products or product candidates with an appropriate benefit to risk profile relevant to a particular indication and that the product can be manufactured under current good manufacturing practice ( cgmp ) in a reproducible manner to deliver the product 's intended performance in terms of its stability , quality , purity and potency . until our submissions are reviewed by health authorities , there is no way to predict the outcome of their review . even if the clinical studies meet their predetermined primary endpoints and a registration dossier is accepted for filing , a health authority could still determine that an appropriate benefit to risk relationship does not exist for the indication that we are seeking . we can not forecast with any degree of certainty whether iluvien or any future products or product candidates will be subject to future collaborations or how such arrangements would affect our development plan or capital requirements . as a result of the uncertainties discussed above , we are unable to determine the duration and completion costs of our development projects or when and to what extent we will receive cash inflows from the commercialization and sale of an approved product candidate . general and administrative expenses general and administrative expenses consist primarily of compensation for employees in executive and administrative functions , including finance , accounting , information technology and human resources . other significant costs include facilities costs and professional fees for accounting and legal services , including legal services associated with obtaining and maintaining patents . we expect to continue to incur significant costs to comply with the corporate governance , internal control and similar requirements applicable to public companies . sales and marketing expenses sales and marketing expenses consist primarily of professional fees and compensation for employees for the commercial promotion , the assessment of the commercial opportunity of , the development of market awareness for , the pursuit of market reimbursement and the execution of launch plans for iluvien . other costs include professional fees associated with developing plans for iluvien or any future products or product candidates and maintaining public relations . we launched iluvien in germany and the united kingdom , in the second quarter of 2013 and the u.s. and portugal in the first quarter of 2015. we expect significant increases in our sales and marketing expenses as we continue the commercialization of iluvien in these countries . in november 2012 , we entered into a master services agreement with quintiles commercial europe limited . under the agreement , quintiles commercial europe limited and its affiliates ( collectively , quintiles commercial ) provided certain services to us in relation to the commercialization of iluvien , in france , germany and the united kingdom . in december 2013 and january 2014 , respectively , we transitioned our german and united kingdom country manager positions in-house . in april 2015 , we terminated the project orders associated with france and germany and transitioned the persons employed by quintiles commercial to our payroll . in july 2015 , we terminated the remaining project orders associated with the united kingdom and transitioned the covered positions employed by quintiles commercial to our payroll . as of december 31 , 2015 the master services agreement with quintiles commercial had been terminated . as of december 31 , 2016 , we had a european management team , local management teams and commercial personnel in france , germany , portugal and the united kingdom totaling 31 persons , of which three are consultants . in the fourth quarter of 2016 , after unsuccessfully negotiating with the french government to obtain an appropriate price , we decided to close operations in france . we expect the closing of operations to be completed in early 2017. we are continuing to evaluate our options to enter the french market , including potential distributor relationships . in the fourth quarter of 2014 , following the fda approval of iluvien in the u.s. , we began establishing the infrastructure to support the anticipated commercial launch of iluvien in the u.s. in the first quarter of

liquidity and capital resources since inception , we have incurred recurring losses , negative cash flow from operations and have accumulated a deficit of $ 377.1 million from our inception through december 31 , 2016. we have funded our operations through the public and private placement of common stock , convertible preferred stock , warrants , the sale of certain assets of the non-prescription business in which we were previously engaged and certain debt facilities . in september 2014 , we entered into a sales agreement with cowen and company , llc ( cowen ) to offer shares of our common stock , $ 0.01 par value per share , from time to time through cowen , as our sales agent for the offer and sale of the shares up to an aggregate offering price of $ 35.0 million . we paid a commission equal to 3 % of the gross proceeds from the sales of shares of our common stock under the sales agreement . we intended to use the net proceeds from this offering for general corporate purposes , including capital expenditures , debt repayments and working capital . in 2016 , we sold a total of 662,779 shares of our common stock at a weighted average price of $ 1.83 per share through our at-the-market offering , for total gross proceeds of approximately $ 1.2 million , reduced by approximately $ 60,000 of related commissions , issuance costs and placement agent fees . in 2015 , we sold a total of 268,978 shares of our common stock at a weighted average price of $ 3.07 per share through our at-the-market offering , for total gross proceeds of approximately $ 825,000 , further reduced by approximately $ 100,000 of related commissions , issuance costs and placement agent fees . in august 2016 , we closed an underwritten public offering pursuant to which we sold and issued 18,900,000 shares of our common stock at a price to the public of $ 1.40 per share , resulting in gross proceeds of $ 26,460,000 , offset by payments of approximately $ 1.3 million of related issuance costs .


 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 since inception , we have incurred recurring losses , negative cash flow from operations and have accumulated a deficit of $ 377.1 million from our inception through december 31 , 2016. we have funded our operations through the public and private placement of common stock , convertible preferred stock , warrants , the sale of certain assets of the non-prescription business in which we were previously engaged and certain debt facilities . in september 2014 , we entered into a sales agreement with cowen and company , llc ( cowen ) to offer shares of our common stock , $ 0.01 par value per share , from time to time through cowen , as our sales agent for the offer and sale of the shares up to an aggregate offering price of $ 35.0 million . we paid a commission equal to 3 % of the gross proceeds from the sales of shares of our common stock under the sales agreement . we intended to use the net proceeds from this offering for general corporate purposes , including capital expenditures , debt repayments and working capital . in 2016 , we sold a total of 662,779 shares of our common stock at a weighted average price of $ 1.83 per share through our at-the-market offering , for total gross proceeds of approximately $ 1.2 million , reduced by approximately $ 60,000 of related commissions , issuance costs and placement agent fees . in 2015 , we sold a total of 268,978 shares of our common stock at a weighted average price of $ 3.07 per share through our at-the-market offering , for total gross proceeds of approximately $ 825,000 , further reduced by approximately $ 100,000 of related commissions , issuance costs and placement agent fees . in august 2016 , we closed an underwritten public offering pursuant to which we sold and issued 18,900,000 shares of our common stock at a price to the public of $ 1.40 per share , resulting in gross proceeds of $ 26,460,000 , offset by payments of approximately $ 1.3 million of related issuance costs .
```    
 Suspicious Activity Report : we launched iluvien in germany and the united kingdom , in the second quarter of 2013 and in the u.s. and portugal in the first quarter of 2015. our distributor in the middle east launched iluvien in the united arab emirates in the fourth quarter of 2016. in italy , our distributor plans to launch iluvien in 2017. we do not expect to have positive cash flow from operations until 2017 , if at all . due to the limited revenue generated by iluvien to date , we may have to raise additional capital to fund the continued commercialization of iluvien . if we are unable to raise additional financing , we will need to adjust our commercial plans so that we can continue to operate with our existing cash resources or there may be substantial doubt about our ability to continue as a going concern . 44 in october 2016 , we entered into the fourth loan amendment ( as defined below ) with hercules capital , inc. ( hercules ) in order to modify certain terms of the term loan agreement ( as defined below ) and obtained additional loan amounts . if there is an event of default , all amounts may become due under the term loan agreement and there would continue to be substantial doubt about our ability to continue as a going concern . our agreement with psivida us , inc. we entered into an agreement with psivida us , inc. ( psivida ) for the use of fluocinolone acetonide ( fac ) in psivida 's proprietary delivery device in february 2005 , which was subsequently amended and restated in 2008. psivida is a global drug delivery company committed to the biomedical sector and the development of drug delivery products . our agreement with psivida provides us with a worldwide exclusive license to develop and sell iluvien , which consists of a tiny polyimide tube with a permeable membrane cap on one end and an impermeable silicone cap on the other end that is filled with fac in a polyvinyl alcohol matrix for delivery to the back of the eye for the treatment and prevention of eye diseases in humans ( other than uveitis ) . this agreement also provides us with a worldwide non-exclusive license to develop and sell psivida 's proprietary delivery device to deliver other corticosteroids to the back of the eye for the treatment and prevention of eye diseases in humans ( other than uveitis ) or to treat dme by delivering a compound to the back of the eye through a direct delivery method through an incision required for a 25-gauge or larger needle . we do not have the right to develop and sell psivida 's proprietary delivery device in connection with indications for diseases outside of the eye or for the treatment of uveitis . further , our agreement with psivida permits psivida to grant to any other party the right to use its intellectual property ( i ) to treat dme through an incision smaller than that required for a 25-gauge needle , unless using a corticosteroid delivered to the back of the eye , ( ii ) to deliver any compound outside the back of the eye unless it is to treat dme through an incision required for a 25-gauge or larger needle , or ( iii ) to deliver non-corticosteroids to the back of the eye , unless it is to treat dme through an incision required for a 25-gauge or larger needle . we were not in breach of our agreement with psivida as of december 31 , 2016. the agreement provides that after commercialization of iluvien , psivida will be entitled to 20 % of the net profits and 33 % of any lump sum milestone payments received from a sub-licensee of iluvien , as defined in the amended and restated agreement . in connection with this arrangement we are entitled to recover 20 % of commercialization costs of iluvien , as defined in the agreement , incurred prior to product profitability out of psivida 's share of net profits . as of december 31 , 2016 and 2015 , we could offset future royalty payments to psivida in the amounts of $ 25.8 million and $ 21.6 million , respectively , due to the accumulation of commercialization costs . due to the uncertainty of future profits from iluvien , we have fully reserved these amounts in the accompanying consolidated financial statements . as of december 31 , 2016 we owed psivida approximately $ 240,000 for their portion of net profits on a cash basis , as defined in the amended and restated agreement , from the fourth quarter of 2016. as a result of the food and drug administration 's ( fda ) approval of iluvien in september 2014 , we paid psivida a milestone payment of $ 25.0 million ( the psivida milestone payment ) in october 2014. in the second quarter of 2016 , psivida disputed portions of our claimed commercialization costs for the year ended december 31 , 2014. as part of this dispute , psivida notified us that it disagreed with $ 1.3 million of the $ 13.0 million in commercialization costs receivable that we had reported as of december 31 , 2014 and claimed incremental profit sharing payments of $ 136,000 for the year ended december 31 , 2014. we are disputing psivida 's assertions using the alternative dispute resolution mechanism under the psivida agreement . story_separator_special_tag we expect to continue to develop stable formulations of iluvien or any future products or product candidates , test such formulations in preclinical studies for toxicology , safety and efficacy and to conduct clinical trials for each future product candidate . we anticipate funding clinical trials ourselves , but we may engage collaboration partners at certain stages of clinical development . as we obtain results from clinical trials , we may elect to discontinue or delay clinical trials for certain products or product candidates or programs in order to focus our resources on more promising products or product candidates or programs . completion of clinical trials by us or our future collaborators may take several years or more , the length of time generally varying with the type , complexity , novelty and intended use of a product candidate . our only commercial product is iluvien , which has received marketing authorization in the u.s. , austria , belgium , the czech republic , denmark , finland , germany , france , ireland , italy , luxembourg , the netherlands , norway , poland , portugal , spain , sweden and the united kingdom . in the u.s. , iluvien is indicated for the treatment of dme in patients who have been previously treated with a course of corticosteroids and did not have a clinically significant rise in iop . in the eea countries in which iluvien has received marketing authorization , it is indicated for the treatment of vision impairment 48 associated with chronic dme considered insufficiently responsive to available therapies . iluvien has not been approved in any jurisdiction other than as set forth above . in order to grant marketing approval , a health authority such as the fda or foreign regulatory agencies must conclude that clinical and preclinical data establish the safety and efficacy of iluvien or any future products or product candidates with an appropriate benefit to risk profile relevant to a particular indication and that the product can be manufactured under current good manufacturing practice ( cgmp ) in a reproducible manner to deliver the product 's intended performance in terms of its stability , quality , purity and potency . until our submissions are reviewed by health authorities , there is no way to predict the outcome of their review . even if the clinical studies meet their predetermined primary endpoints and a registration dossier is accepted for filing , a health authority could still determine that an appropriate benefit to risk relationship does not exist for the indication that we are seeking . we can not forecast with any degree of certainty whether iluvien or any future products or product candidates will be subject to future collaborations or how such arrangements would affect our development plan or capital requirements . as a result of the uncertainties discussed above , we are unable to determine the duration and completion costs of our development projects or when and to what extent we will receive cash inflows from the commercialization and sale of an approved product candidate . general and administrative expenses general and administrative expenses consist primarily of compensation for employees in executive and administrative functions , including finance , accounting , information technology and human resources . other significant costs include facilities costs and professional fees for accounting and legal services , including legal services associated with obtaining and maintaining patents . we expect to continue to incur significant costs to comply with the corporate governance , internal control and similar requirements applicable to public companies . sales and marketing expenses sales and marketing expenses consist primarily of professional fees and compensation for employees for the commercial promotion , the assessment of the commercial opportunity of , the development of market awareness for , the pursuit of market reimbursement and the execution of launch plans for iluvien . other costs include professional fees associated with developing plans for iluvien or any future products or product candidates and maintaining public relations . we launched iluvien in germany and the united kingdom , in the second quarter of 2013 and the u.s. and portugal in the first quarter of 2015. we expect significant increases in our sales and marketing expenses as we continue the commercialization of iluvien in these countries . in november 2012 , we entered into a master services agreement with quintiles commercial europe limited . under the agreement , quintiles commercial europe limited and its affiliates ( collectively , quintiles commercial ) provided certain services to us in relation to the commercialization of iluvien , in france , germany and the united kingdom . in december 2013 and january 2014 , respectively , we transitioned our german and united kingdom country manager positions in-house . in april 2015 , we terminated the project orders associated with france and germany and transitioned the persons employed by quintiles commercial to our payroll . in july 2015 , we terminated the remaining project orders associated with the united kingdom and transitioned the covered positions employed by quintiles commercial to our payroll . as of december 31 , 2015 the master services agreement with quintiles commercial had been terminated . as of december 31 , 2016 , we had a european management team , local management teams and commercial personnel in france , germany , portugal and the united kingdom totaling 31 persons , of which three are consultants . in the fourth quarter of 2016 , after unsuccessfully negotiating with the french government to obtain an appropriate price , we decided to close operations in france . we expect the closing of operations to be completed in early 2017. we are continuing to evaluate our options to enter the french market , including potential distributor relationships . in the fourth quarter of 2014 , following the fda approval of iluvien in the u.s. , we began establishing the infrastructure to support the anticipated commercial launch of iluvien in the u.s. in the first quarter of

