we believe that the properties of our lysins will make them suitable for targeting antibiotic-resistant organisms , such as staphylococcus aureus (  staph aureus ) which causes serious infections such as bacteremia , endocarditis , pneumonia and osteomyelitis . in addition , our lysins have demonstrated the ability to clear biofilms in animal models , and we believe they may be useful for the treatment of biofilm-related infections in prosthetic joints , indwelling devices and catheters . beyond our lysin programs , we are exploring therapies using monoclonal antibodies ( mabs ) designed to bind to viral targets . our approach to antibody therapy employs a combination of multiple mabs to either achieve greater efficacy or provide broader coverage across pathogenic strains . we have not generated any revenues and , to date , have funded our operations primarily through our ipo , our follow-on public offering , and the private placements of convertible preferred stock and convertible debt to our investors . in august 2014 , we completed our ipo , raising net proceeds of $ 35.0 million after underwriting discounts , commissions and offering expenses payable by us , through the issuance and sale of our units , which consisted of one share of common stock , one class a warrant to purchase one share of common stock at an exercise price of $ 4.80 per share and one class b warrant to purchase one-half share of common stock at an exercise price of $ 4.00 per full share ( units ) . as of november 2 , 2015 , the date of expiration of the class b warrants , holders of the class b warrants had exercised 4,812,328 class b warrants , resulting in the issuance of 2,406,164 shares of the company 's common stock and the receipt by the company of approximately $ 9.6 million in gross proceeds . the class a warrants expired on february 1 , 2017. as none of the class a warrants were exercised prior to expiration , the class a warrants have been terminated and are no longer exercisable . in june 2015 , we completed a private placement of securities to institutional investors whereby the investors received an aggregate of 4,728,128 shares of our common stock and warrants to purchase an additional 2,364,066 shares of common stock at an exercise price of $ 8.00 per share , generating net proceeds of $ 18.3 million . in july 2016 , we sold 14,000,000 shares of our common stock and warrants to purchase an additional 14,000,000 shares of our common stock at a exercise price of $ 3.00 per share in an underwritten follow-on offering , generating net proceeds of approximately $ 32.0 million after underwriting discounts , commissions and offering expenses payable by us . we have never been profitable and our net losses were $ 28.5 million , $ 25.1 million and $ 30.1 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . we expect to incur significant expenses and increasing operating losses for the foreseeable future . we expect our expenses to increase in connection with our ongoing activities , particularly as we advance our product candidates through preclinical activities and clinical trials to seek regulatory approval and , if approved , commercialize such product candidates . additionally , we expect to incur additional costs associated with operating as a public company . accordingly , we will need additional financing to support our continuing operations . we expect to seek to fund our operations through public or private equity , debt financings , equity-linked financings , collaborations , strategic alliances , licensing arrangements , research grants or other sources . adequate additional financing may not be available to us on acceptable terms , or at all . our failure to raise capital as and when needed would have a negative impact on our financial condition and our ability to pursue our business strategy . we will need to generate significant revenues to achieve profitability , and we may never do so . financial operations overview revenue we have not generated any revenues to date . in the future , we may generate revenues from product sales . in addition , to the extent we enter into licensing or collaboration arrangements , we may have additional sources of revenue . we expect that any revenue we generate will fluctuate from quarter to quarter as a result of the amount 63 and timing of payments that we may recognize upon the sale of our products , to the extent that any products are successfully commercialized , and the amount and timing of fees , reimbursements , milestone and other payments received under any future licensing or collaboration arrangements . if we fail to complete the development of our product candidates in a timely manner or obtain regulatory approval for them , our ability to generate future revenue , and our results of operations and financial position , would be materially adversely affected . research and development expenses research and development expenses consist primarily of costs incurred for our research activities , including our drug discovery efforts , and the development of our product candidates , which include : employee-related expenses , including salaries , benefits , travel and non-cash share-based compensation expense ; external research and development expenses incurred under arrangements with third parties such as contract research organizations , or cros , contract manufacturers , consultants and academic institutions ; and facilities and laboratory and other supplies . we expense research and development costs to operations as incurred . story_separator_special_tag comparison of years ended december 31 , 2015 and 2014 the following table summarizes our results of operations for the years ended december 31 , 2015 and 2014 : replace_table_token_7_th research and development expenses research and development expense was $ 15.0 million for the year ended december 31 , 2015 , compared with $ 8.9 million for the year ended december 31 , 2014 , an increase of $ 6.1 million . this increase was primarily attributable to a $ 4.7 million increase in expenditures on our product candidates as we initiated and concluded our phase 1 clinical study of cf-301 and continued to progress cf-404 through ind-enabling studies and manufacturing activities . the increase was also due to a $ 1.4 million increase in our research headcount and related salaries , benefits and laboratory costs in support of the discovery and study of additional product candidates . general and administrative expenses general and administrative expense was $ 10.1 million for the year ended december 31 , 2015 , compared with $ 8.1 million for the year ended december 31 , 2014 , an increase of $ 2.0 million . this increase was primarily 69 attributable to an increase in our administrative and board of directors headcount , resulting in an $ 1.0 million increase in expenses , a $ 0.7 million increase in costs related to being a public company , including listing fees , filing fees , insurance and investor relations expenses , $ 0.6 million in severance costs that did not occur in 2014 , and a $ 0.2 million increase in expenses related to business development activities . these increases were partially offset by a $ 0.5 million decrease in our legal expenses . other income ( expense ) other expense was $ 0.1 million for the year ended december 31 , 2015 compared with $ 13.2 million for the year ended december 31 , 2014 , a decrease of $ 13.1 million . in 2015 , we had non-cash expense of more than $ 0.1 million related to the change in fair value of our warrant liability , which was partially offset by interest income of less than $ 0.1 million from our marketable securities . in 2014 , we had non-cash interest charges of $ 12.4 million related to our convertible notes and non-cash expense of $ 1.2 million related to the change in fair value of our warrant and embedded derivatives liabilities , which were partially offset by $ 0.4 million of income from the receipt of refundable state tax credits . story_separator_special_tag interest thereon , will be sufficient to fund our operations into the second quarter of 2018. we have based this estimate on assumptions that may prove to be wrong , and we could use our available capital resources sooner than we currently expect . because of the numerous risks and uncertainties associated with the development and commercialization of our product candidates , and the extent to which we may enter into collaborations with third parties for development and commercialization of our product candidates , we are unable to estimate the amounts of increased capital outlays and operating expenses associated with completing the development of our current product candidates . our future capital requirements will depend on many factors , including : the progress and results of the clinical trials of our lead product candidates ; the scope , progress , results and costs of compound discovery , preclinical development , laboratory testing and clinical trials for our other product candidates ; the extent to which we acquire or in-license other products and technologies ; 71 the costs , timing and outcome of regulatory review of our product candidates ; the costs of future commercialization activities , including product sales , marketing , manufacturing and distribution , for any of our product candidates for which we receive marketing approval ; revenue , if any , received from commercial sales of our product candidates , should any of our product candidates receive marketing approval ; the costs of preparing , filing and prosecuting patent applications , maintaining and enforcing our intellectual property rights and defending intellectual property-related claims ; and our ability to establish any future collaboration arrangements on favorable terms , if at all . until such time , if ever , as we can generate substantial product revenues , we expect to finance our cash needs through a combination of equity and debt offerings , collaborations , strategic alliances and licensing arrangements . we do not have any committed external source of funds . to the extent that we raise additional capital through the sale of equity or other securities , the ownership interest of our stockholders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect your rights as a common stockholder . debt financing , if available , may involve agreements that include covenants limiting or restricting our ability to take specific actions , such as incurring additional debt , making capital expenditures or declaring dividends . if we raise additional funds through collaborations , strategic alliances or licensing arrangements with third parties , we may have to relinquish valuable rights to our technologies , future revenue streams , research programs or product candidates or grant licenses on terms that may not be favorable to us . if we are unable to raise additional funds through equity or debt financings when needed , we may be required to delay , limit , reduce or terminate our product development or future commercialization efforts or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves . we incur significant increased costs as a public company that we have not previously incurred , including , but not limited to , increased personnel costs , increased directors fees , increased directors and officers insurance premiums , audit and legal fees , investor relations and external

liquidity and capital resources sources of liquidity we have financed our operations to date primarily through proceeds from sales of common stock , common stock and warrants , convertible preferred stock and convertible debt . to date , we have not generated any revenue from the sale of products . we have incurred losses and generated negative cash flows from operations since inception . since the date of our initial public offering , we have received gross proceeds of $ 76.3 million from the sale of registered securities , $ 9.6 million from the exercise of the class b warrants issued in our ipo and $ 20.0 million from the sale of securities in a private placement . as of december 31 , 2016 , we had approximately $ 35.2 million in cash , cash equivalents and marketable securities . we primarily invest our cash and cash equivalents in commercial money market accounts and our marketable securities in highly rated corporate debt securities . cash flows the following table shows a summary of our cash flows for the years ended december 31 , 2016 , 2015 and 2014 : replace_table_token_8_th net cash used in operating activities net cash used in operating activities resulted primarily from our net losses adjusted for non-cash charges and changes in the components of working capital .


 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 sources of liquidity we have financed our operations to date primarily through proceeds from sales of common stock , common stock and warrants , convertible preferred stock and convertible debt . to date , we have not generated any revenue from the sale of products . we have incurred losses and generated negative cash flows from operations since inception . since the date of our initial public offering , we have received gross proceeds of $ 76.3 million from the sale of registered securities , $ 9.6 million from the exercise of the class b warrants issued in our ipo and $ 20.0 million from the sale of securities in a private placement . as of december 31 , 2016 , we had approximately $ 35.2 million in cash , cash equivalents and marketable securities . we primarily invest our cash and cash equivalents in commercial money market accounts and our marketable securities in highly rated corporate debt securities . cash flows the following table shows a summary of our cash flows for the years ended december 31 , 2016 , 2015 and 2014 : replace_table_token_8_th net cash used in operating activities net cash used in operating activities resulted primarily from our net losses adjusted for non-cash charges and changes in the components of working capital .
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 Suspicious Activity Report : we believe that the properties of our lysins will make them suitable for targeting antibiotic-resistant organisms , such as staphylococcus aureus (  staph aureus ) which causes serious infections such as bacteremia , endocarditis , pneumonia and osteomyelitis . in addition , our lysins have demonstrated the ability to clear biofilms in animal models , and we believe they may be useful for the treatment of biofilm-related infections in prosthetic joints , indwelling devices and catheters . beyond our lysin programs , we are exploring therapies using monoclonal antibodies ( mabs ) designed to bind to viral targets . our approach to antibody therapy employs a combination of multiple mabs to either achieve greater efficacy or provide broader coverage across pathogenic strains . we have not generated any revenues and , to date , have funded our operations primarily through our ipo , our follow-on public offering , and the private placements of convertible preferred stock and convertible debt to our investors . in august 2014 , we completed our ipo , raising net proceeds of $ 35.0 million after underwriting discounts , commissions and offering expenses payable by us , through the issuance and sale of our units , which consisted of one share of common stock , one class a warrant to purchase one share of common stock at an exercise price of $ 4.80 per share and one class b warrant to purchase one-half share of common stock at an exercise price of $ 4.00 per full share ( units ) . as of november 2 , 2015 , the date of expiration of the class b warrants , holders of the class b warrants had exercised 4,812,328 class b warrants , resulting in the issuance of 2,406,164 shares of the company 's common stock and the receipt by the company of approximately $ 9.6 million in gross proceeds . the class a warrants expired on february 1 , 2017. as none of the class a warrants were exercised prior to expiration , the class a warrants have been terminated and are no longer exercisable . in june 2015 , we completed a private placement of securities to institutional investors whereby the investors received an aggregate of 4,728,128 shares of our common stock and warrants to purchase an additional 2,364,066 shares of common stock at an exercise price of $ 8.00 per share , generating net proceeds of $ 18.3 million . in july 2016 , we sold 14,000,000 shares of our common stock and warrants to purchase an additional 14,000,000 shares of our common stock at a exercise price of $ 3.00 per share in an underwritten follow-on offering , generating net proceeds of approximately $ 32.0 million after underwriting discounts , commissions and offering expenses payable by us . we have never been profitable and our net losses were $ 28.5 million , $ 25.1 million and $ 30.1 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . we expect to incur significant expenses and increasing operating losses for the foreseeable future . we expect our expenses to increase in connection with our ongoing activities , particularly as we advance our product candidates through preclinical activities and clinical trials to seek regulatory approval and , if approved , commercialize such product candidates . additionally , we expect to incur additional costs associated with operating as a public company . accordingly , we will need additional financing to support our continuing operations . we expect to seek to fund our operations through public or private equity , debt financings , equity-linked financings , collaborations , strategic alliances , licensing arrangements , research grants or other sources . adequate additional financing may not be available to us on acceptable terms , or at all . our failure to raise capital as and when needed would have a negative impact on our financial condition and our ability to pursue our business strategy . we will need to generate significant revenues to achieve profitability , and we may never do so . financial operations overview revenue we have not generated any revenues to date . in the future , we may generate revenues from product sales . in addition , to the extent we enter into licensing or collaboration arrangements , we may have additional sources of revenue . we expect that any revenue we generate will fluctuate from quarter to quarter as a result of the amount 63 and timing of payments that we may recognize upon the sale of our products , to the extent that any products are successfully commercialized , and the amount and timing of fees , reimbursements , milestone and other payments received under any future licensing or collaboration arrangements . if we fail to complete the development of our product candidates in a timely manner or obtain regulatory approval for them , our ability to generate future revenue , and our results of operations and financial position , would be materially adversely affected . research and development expenses research and development expenses consist primarily of costs incurred for our research activities , including our drug discovery efforts , and the development of our product candidates , which include : employee-related expenses , including salaries , benefits , travel and non-cash share-based compensation expense ; external research and development expenses incurred under arrangements with third parties such as contract research organizations , or cros , contract manufacturers , consultants and academic institutions ; and facilities and laboratory and other supplies . we expense research and development costs to operations as incurred . story_separator_special_tag comparison of years ended december 31 , 2015 and 2014 the following table summarizes our results of operations for the years ended december 31 , 2015 and 2014 : replace_table_token_7_th research and development expenses research and development expense was $ 15.0 million for the year ended december 31 , 2015 , compared with $ 8.9 million for the year ended december 31 , 2014 , an increase of $ 6.1 million . this increase was primarily attributable to a $ 4.7 million increase in expenditures on our product candidates as we initiated and concluded our phase 1 clinical study of cf-301 and continued to progress cf-404 through ind-enabling studies and manufacturing activities . the increase was also due to a $ 1.4 million increase in our research headcount and related salaries , benefits and laboratory costs in support of the discovery and study of additional product candidates . general and administrative expenses general and administrative expense was $ 10.1 million for the year ended december 31 , 2015 , compared with $ 8.1 million for the year ended december 31 , 2014 , an increase of $ 2.0 million . this increase was primarily 69 attributable to an increase in our administrative and board of directors headcount , resulting in an $ 1.0 million increase in expenses , a $ 0.7 million increase in costs related to being a public company , including listing fees , filing fees , insurance and investor relations expenses , $ 0.6 million in severance costs that did not occur in 2014 , and a $ 0.2 million increase in expenses related to business development activities . these increases were partially offset by a $ 0.5 million decrease in our legal expenses . other income ( expense ) other expense was $ 0.1 million for the year ended december 31 , 2015 compared with $ 13.2 million for the year ended december 31 , 2014 , a decrease of $ 13.1 million . in 2015 , we had non-cash expense of more than $ 0.1 million related to the change in fair value of our warrant liability , which was partially offset by interest income of less than $ 0.1 million from our marketable securities . in 2014 , we had non-cash interest charges of $ 12.4 million related to our convertible notes and non-cash expense of $ 1.2 million related to the change in fair value of our warrant and embedded derivatives liabilities , which were partially offset by $ 0.4 million of income from the receipt of refundable state tax credits . story_separator_special_tag interest thereon , will be sufficient to fund our operations into the second quarter of 2018. we have based this estimate on assumptions that may prove to be wrong , and we could use our available capital resources sooner than we currently expect . because of the numerous risks and uncertainties associated with the development and commercialization of our product candidates , and the extent to which we may enter into collaborations with third parties for development and commercialization of our product candidates , we are unable to estimate the amounts of increased capital outlays and operating expenses associated with completing the development of our current product candidates . our future capital requirements will depend on many factors , including : the progress and results of the clinical trials of our lead product candidates ; the scope , progress , results and costs of compound discovery , preclinical development , laboratory testing and clinical trials for our other product candidates ; the extent to which we acquire or in-license other products and technologies ; 71 the costs , timing and outcome of regulatory review of our product candidates ; the costs of future commercialization activities , including product sales , marketing , manufacturing and distribution , for any of our product candidates for which we receive marketing approval ; revenue , if any , received from commercial sales of our product candidates , should any of our product candidates receive marketing approval ; the costs of preparing , filing and prosecuting patent applications , maintaining and enforcing our intellectual property rights and defending intellectual property-related claims ; and our ability to establish any future collaboration arrangements on favorable terms , if at all . until such time , if ever , as we can generate substantial product revenues , we expect to finance our cash needs through a combination of equity and debt offerings , collaborations , strategic alliances and licensing arrangements . we do not have any committed external source of funds . to the extent that we raise additional capital through the sale of equity or other securities , the ownership interest of our stockholders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect your rights as a common stockholder . debt financing , if available , may involve agreements that include covenants limiting or restricting our ability to take specific actions , such as incurring additional debt , making capital expenditures or declaring dividends . if we raise additional funds through collaborations , strategic alliances or licensing arrangements with third parties , we may have to relinquish valuable rights to our technologies , future revenue streams , research programs or product candidates or grant licenses on terms that may not be favorable to us . if we are unable to raise additional funds through equity or debt financings when needed , we may be required to delay , limit , reduce or terminate our product development or future commercialization efforts or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves . we incur significant increased costs as a public company that we have not previously incurred , including , but not limited to , increased personnel costs , increased directors fees , increased directors and officers insurance premiums , audit and legal fees , investor relations and external

