we do not expect to generate significant revenue from product sales unless and until we are able to fully commercialize one or more of our current or future product candidates , which may take a number of years and is subject to significant uncertainty . until such time that we can generate substantial revenues from sales of our product candidates , if ever , we expect to finance our operating activities through a combination of cash on hand , equity offerings , debt financings , government or other third-party funding , and licensing arrangements . however , we may be unable to raise additional funds or enter into such arrangements when needed on favorable terms , or at all , which would have a negative impact on our financial condition and could force us to delay , limit , reduce or terminate our development programs or commercialization efforts or grant to others rights to develop or market product candidates that we would otherwise prefer to develop and market ourselves . failure to receive additional funding could cause us to cease operations , in part or in full . comparability of our results and our relationship with cellectis we are a majority-owned subsidiary of cellectis . as a result , our historical financial information does not reflect the financial condition , results of operations or cash flows we would have achieved as a standalone company and not a subsidiary of cellectis during the periods presented or those we will achieve in the future . this is primarily the result of the following factors : our historical financial information reflects expense allocations for certain support functions that are provided on a centralized basis within cellectis , such as expenses for business technology , facilities , legal , finance , human resources and business development that may be higher or lower than the comparable expenses we would have actually incurred , or will incur in the future , as a standalone company and not a subsidiary of cellectis ; and significant increases in our cost structure as a result of becoming a public company , including costs related to public company reporting , investor relations and compliance with the sarbanes-oxley act , which expenses may increase at such time as we operate as a standalone company and not a subsidiary of cellectis . 50 in connection with our initial public offering in july 2017 , we and cellectis entered into certain agreements that relate to our relationship with cellectis and provide a framework for our ongoing relationship with cellectis . these agreements include a management services agreement , pursuant to which cellectis provides certain services to us , a stockholder 's agreement , which provides cellectis with certain contractual rights for so long as it maintains threshold beneficial ownership levels , and a license agreement , pursuant to which we have been granted exclusive , worldwide license to certain key intellectual property owned by cellectis . in the future , we expect to incur internal costs to implement certain new systems , including infrastructure and an enterprise resource planning system . results of operations for years ended december 31 , 2018 , 2017 and 2016 in 2018 we continued to develop our high oleic soybean for commercial launch . our revenues were from the licensing of our technology to others . we continued to incur costs associated with commercialization , including purchasing grain from farmers as r & d activity . upon achieving commercialization , we will capitalize purchases of grain as inventory . a summary of our results of operations for the years ended december 31 , 2018 , 2017 and 2016 follows : replace_table_token_2_th revenue in 2017 , we made a strategic decision to focus on in-house development of product candidates and to reduce the amount of subcontracted r & d that we were performing for third parties . as a result of the termination of certain agreements , all remaining deferred revenue was recognized resulting in the increase in revenue in 2017 compared to 2016 and the decline in 2018 compared to 2017. research and development expenses our r & d expenses consist primarily of : personnel costs , including salaries and related benefits , including non-cash stock option expense , for our employees engaged in scientific r & d functions ; cost of third-party contractors and third-party contractors who support our product candidate development ; seed costs for small-scale and large-scale testing of trait validation ; purchases and manufacturing of biological materials : costs for and to operate facilities including laboratories and greenhouses ; costs to acquire grains for r & d purposes prior to achieving commercial milestones ; and costs of in-licensing or acquiring technology from third parties . 51 the decrease in 2018 was primarily due to decreases in non-cash stock compensation expense of $ 5.5 million partially offset by increases in costs to acquire grain prior to commercialization of $ 2.8 million and employee-related costs . the 2017 increase was due to non-cash stock compensation expense of $ 6.1 million associated with accelerated vesting of awards from our ipo and an increase in sub-contracted r & d , including third-party germplasm breeding , third-party germplasm trials and meal and oil product testing . due to the number of ongoing projects and our ability to use resources across several projects , we do not record or maintain information regarding the costs incurred for our r & d programs on a program-specific basis . selling , general , and administrative expenses the 2018 increase was due to costs incurred to increase our headcount in advance of the anticipated commercialization of our first product and increases in professional services expenses associated with being a public company and turnover in our executive ranks , partially offset by a decrease in non-cash stock compensation expense of $ 2.2 million . story_separator_special_tag as of december 31 , 2018 , we had contractual obligations and commercial commitments as follows : replace_table_token_6_th ( a ) the commitment amounts in the table above are associated with contracts that are enforceable and legally binding and that specify all significant terms , including fixed or minimum services to be used , fixed , minimum or variable price provisions , and the approximate timing of the actions under the contracts . ( b ) we have $ 1.1 million available to finance future purchases of equipment under one of our capital lease agreements as of december 31 , 2018 . ( c ) forward purchase contracts consist of purchase commitments with growers to purchase grain at a future date . off balance sheet obligations we do not have any off-balance sheet arrangements as defined in item 303 ( a ) ( 4 ) ( ii ) of regulation s-k. critical accounting estimates the accompanying discussion and analysis of our financial condition and results of operations are based upon our financial statements and the related disclosures , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires us to make estimates , assumptions and judgments that affect the reported amounts in our financial statements and accompanying notes . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following policies to be the most critical to an understanding of our financial condition and results of operations because they require us to make estimates , assumptions and judgments about matters that are inherently uncertain . revenue recognition we previously entered into r & d agreements that consisted of nonrefundable up-front payments , milestone payments , royalties , and r & d services . 56 for agreements that contain multiple elements , each element within a multiple-element arrangement is accounted for as a separate unit of accounting provided the following criteria are met : the delivered products or services have value to the customer on a standalone basis and , for an arrangement that includes a general right of return relative to the delivered products or services , delivery , or performance of the undelivered product or service is considered probable and is substantially controlled by us . we consider a deliverable to have standalone value if the product or service is sold separately by us or another vendor or could be resold by the customer . forward purchase contracts we enter into purchase agreements for grain with settlement values based on commodity futures market prices . these agreements allow our counterparty to fix their sale prices to us at various times as defined in the contract . any realized and unrealized gains and losses from these contracts have been recorded as r & d expenses because we had yet to commercialize the associated product . the fair market value for these contracts is estimated based on commodity futures market prices . increases or decreases in these prices will impact the values of these contracts and could lead to significant changes in our financial condition , results of operations and cash flows from operating activities . stock-based compensation the valuation of stock options is a critical accounting estimate that requires us to use judgments and assumptions that are likely to have a material impact on our financial statements . as awards are granted we make predictive assumptions regarding future stock price volatility and employee exercise behavior . for more information on these assumptions , please see note 6 to the financial statements in item 8 of this report . the estimated fair values of stock options granted and the assumptions used for the black-scholes option-pricing model were as follows : replace_table_token_7_th the risk-free interest rate for periods during the expected term of the options is based on the u.s. treasury zero-coupon yield curve in effect at the time of grant . a one percentage point increase in the risk-free interest rate , leaving all other assumptions constant , would increase the grant date fair value by one percent . the expected term is determined using the simplified method or lattice method . an increase in the expected term by 1 year , leaving all other assumptions constant , would increase the grant date fair value by five percent . the volatility assumption is determined using the historical volatility of comparable public companies over the expected term of the option . if all other assumptions are held constant , a one percentage point increase in our volatility assumption , leaving all other assumptions constant , would increase the grant date fair value by one percent . we do not nor do we expect to pay dividends . to the extent that actual outcomes differ from our assumptions , we are not required to true up grant-date fair value-based expense to final intrinsic values . historical data has a significant bearing on our forward-looking assumptions . significant variances between actual and predicted experience could lead to prospective revisions in our assumptions , which could then significantly impact the year-over-year comparability of stock-based compensation expense . income tax valuation allowances we provide deferred taxes for deductible and taxable temporary differences . deferred tax assets are reduced by a valuation allowance when we believe it is more likely than not that some portion or all of the deferred tax assets will not be realized . 57 recently issued accounting pronouncements in august 2017 , the financial accounting standards board ( fasb ) issued new hedge accounting requirements . the new standard amends the hedge accounting recognition and presentation requirements to better align an entity 's risk management

liquidity and capital resources liquidity until the completion of our ipo in july 2017 , we funded our operations primarily through cash infusions provided by cellectis . on july 25 , 2017 , we completed our ipo of common stock . in the aggregate , we received net proceeds from the ipo of approximately $ 58.0 million , after deducting underwriting discounts and commissions of $ 3.1 million and offering expenses totaling approximately $ 3.3 million . on may 22 , 2018 , we completed a follow-on offering of our common stock . we sold an aggregate of 4,057,500 shares at a public offering price of $ 15.00 per share . in the aggregate , we received net proceeds from the follow-on offering of approximately $ 57.0 million , after deducting underwriting discounts and commissions of $ 3.2 million and offering expenses of $ 0.7 million . as of december 31 , 2018 , we had cash , cash equivalents and restricted cash of $ 95.3 million . we incurred losses from operations of $ 27.9 million for the year ended december 31 , 2018 , $ 26.0 million for the year ended december 31 , 2017 , and $ 12.1 million for the year ended december 31 , 2016. as of december 31 , 2018 , we had an accumulated deficit of $ 82.4 million and we expect to incur losses for the foreseeable future . 52 cash flows from operating activities replace_table_token_3_th net cash used by operating activities was $ 20.3 million in 2018 compared to net cash used by operating activities in 2017 of $ 12.8 million . the increase was due to expenses related to increased headcount and legal and professional fees associated with expanding our commercial infrastructure and investing in our r & d pipeline , including purchasing grain in advance of our commercialization of our first product candidate , high oleic soybean oil . net cash used in operating activities was $ 12.8 million in 2017 compared to net cash used in operating activities in 2016 of $ 9.2 million .


 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 liquidity until the completion of our ipo in july 2017 , we funded our operations primarily through cash infusions provided by cellectis . on july 25 , 2017 , we completed our ipo of common stock . in the aggregate , we received net proceeds from the ipo of approximately $ 58.0 million , after deducting underwriting discounts and commissions of $ 3.1 million and offering expenses totaling approximately $ 3.3 million . on may 22 , 2018 , we completed a follow-on offering of our common stock . we sold an aggregate of 4,057,500 shares at a public offering price of $ 15.00 per share . in the aggregate , we received net proceeds from the follow-on offering of approximately $ 57.0 million , after deducting underwriting discounts and commissions of $ 3.2 million and offering expenses of $ 0.7 million . as of december 31 , 2018 , we had cash , cash equivalents and restricted cash of $ 95.3 million . we incurred losses from operations of $ 27.9 million for the year ended december 31 , 2018 , $ 26.0 million for the year ended december 31 , 2017 , and $ 12.1 million for the year ended december 31 , 2016. as of december 31 , 2018 , we had an accumulated deficit of $ 82.4 million and we expect to incur losses for the foreseeable future . 52 cash flows from operating activities replace_table_token_3_th net cash used by operating activities was $ 20.3 million in 2018 compared to net cash used by operating activities in 2017 of $ 12.8 million . the increase was due to expenses related to increased headcount and legal and professional fees associated with expanding our commercial infrastructure and investing in our r & d pipeline , including purchasing grain in advance of our commercialization of our first product candidate , high oleic soybean oil . net cash used in operating activities was $ 12.8 million in 2017 compared to net cash used in operating activities in 2016 of $ 9.2 million .
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 Suspicious Activity Report : we do not expect to generate significant revenue from product sales unless and until we are able to fully commercialize one or more of our current or future product candidates , which may take a number of years and is subject to significant uncertainty . until such time that we can generate substantial revenues from sales of our product candidates , if ever , we expect to finance our operating activities through a combination of cash on hand , equity offerings , debt financings , government or other third-party funding , and licensing arrangements . however , we may be unable to raise additional funds or enter into such arrangements when needed on favorable terms , or at all , which would have a negative impact on our financial condition and could force us to delay , limit , reduce or terminate our development programs or commercialization efforts or grant to others rights to develop or market product candidates that we would otherwise prefer to develop and market ourselves . failure to receive additional funding could cause us to cease operations , in part or in full . comparability of our results and our relationship with cellectis we are a majority-owned subsidiary of cellectis . as a result , our historical financial information does not reflect the financial condition , results of operations or cash flows we would have achieved as a standalone company and not a subsidiary of cellectis during the periods presented or those we will achieve in the future . this is primarily the result of the following factors : our historical financial information reflects expense allocations for certain support functions that are provided on a centralized basis within cellectis , such as expenses for business technology , facilities , legal , finance , human resources and business development that may be higher or lower than the comparable expenses we would have actually incurred , or will incur in the future , as a standalone company and not a subsidiary of cellectis ; and significant increases in our cost structure as a result of becoming a public company , including costs related to public company reporting , investor relations and compliance with the sarbanes-oxley act , which expenses may increase at such time as we operate as a standalone company and not a subsidiary of cellectis . 50 in connection with our initial public offering in july 2017 , we and cellectis entered into certain agreements that relate to our relationship with cellectis and provide a framework for our ongoing relationship with cellectis . these agreements include a management services agreement , pursuant to which cellectis provides certain services to us , a stockholder 's agreement , which provides cellectis with certain contractual rights for so long as it maintains threshold beneficial ownership levels , and a license agreement , pursuant to which we have been granted exclusive , worldwide license to certain key intellectual property owned by cellectis . in the future , we expect to incur internal costs to implement certain new systems , including infrastructure and an enterprise resource planning system . results of operations for years ended december 31 , 2018 , 2017 and 2016 in 2018 we continued to develop our high oleic soybean for commercial launch . our revenues were from the licensing of our technology to others . we continued to incur costs associated with commercialization , including purchasing grain from farmers as r & d activity . upon achieving commercialization , we will capitalize purchases of grain as inventory . a summary of our results of operations for the years ended december 31 , 2018 , 2017 and 2016 follows : replace_table_token_2_th revenue in 2017 , we made a strategic decision to focus on in-house development of product candidates and to reduce the amount of subcontracted r & d that we were performing for third parties . as a result of the termination of certain agreements , all remaining deferred revenue was recognized resulting in the increase in revenue in 2017 compared to 2016 and the decline in 2018 compared to 2017. research and development expenses our r & d expenses consist primarily of : personnel costs , including salaries and related benefits , including non-cash stock option expense , for our employees engaged in scientific r & d functions ; cost of third-party contractors and third-party contractors who support our product candidate development ; seed costs for small-scale and large-scale testing of trait validation ; purchases and manufacturing of biological materials : costs for and to operate facilities including laboratories and greenhouses ; costs to acquire grains for r & d purposes prior to achieving commercial milestones ; and costs of in-licensing or acquiring technology from third parties . 51 the decrease in 2018 was primarily due to decreases in non-cash stock compensation expense of $ 5.5 million partially offset by increases in costs to acquire grain prior to commercialization of $ 2.8 million and employee-related costs . the 2017 increase was due to non-cash stock compensation expense of $ 6.1 million associated with accelerated vesting of awards from our ipo and an increase in sub-contracted r & d , including third-party germplasm breeding , third-party germplasm trials and meal and oil product testing . due to the number of ongoing projects and our ability to use resources across several projects , we do not record or maintain information regarding the costs incurred for our r & d programs on a program-specific basis . selling , general , and administrative expenses the 2018 increase was due to costs incurred to increase our headcount in advance of the anticipated commercialization of our first product and increases in professional services expenses associated with being a public company and turnover in our executive ranks , partially offset by a decrease in non-cash stock compensation expense of $ 2.2 million . story_separator_special_tag as of december 31 , 2018 , we had contractual obligations and commercial commitments as follows : replace_table_token_6_th ( a ) the commitment amounts in the table above are associated with contracts that are enforceable and legally binding and that specify all significant terms , including fixed or minimum services to be used , fixed , minimum or variable price provisions , and the approximate timing of the actions under the contracts . ( b ) we have $ 1.1 million available to finance future purchases of equipment under one of our capital lease agreements as of december 31 , 2018 . ( c ) forward purchase contracts consist of purchase commitments with growers to purchase grain at a future date . off balance sheet obligations we do not have any off-balance sheet arrangements as defined in item 303 ( a ) ( 4 ) ( ii ) of regulation s-k. critical accounting estimates the accompanying discussion and analysis of our financial condition and results of operations are based upon our financial statements and the related disclosures , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires us to make estimates , assumptions and judgments that affect the reported amounts in our financial statements and accompanying notes . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following policies to be the most critical to an understanding of our financial condition and results of operations because they require us to make estimates , assumptions and judgments about matters that are inherently uncertain . revenue recognition we previously entered into r & d agreements that consisted of nonrefundable up-front payments , milestone payments , royalties , and r & d services . 56 for agreements that contain multiple elements , each element within a multiple-element arrangement is accounted for as a separate unit of accounting provided the following criteria are met : the delivered products or services have value to the customer on a standalone basis and , for an arrangement that includes a general right of return relative to the delivered products or services , delivery , or performance of the undelivered product or service is considered probable and is substantially controlled by us . we consider a deliverable to have standalone value if the product or service is sold separately by us or another vendor or could be resold by the customer . forward purchase contracts we enter into purchase agreements for grain with settlement values based on commodity futures market prices . these agreements allow our counterparty to fix their sale prices to us at various times as defined in the contract . any realized and unrealized gains and losses from these contracts have been recorded as r & d expenses because we had yet to commercialize the associated product . the fair market value for these contracts is estimated based on commodity futures market prices . increases or decreases in these prices will impact the values of these contracts and could lead to significant changes in our financial condition , results of operations and cash flows from operating activities . stock-based compensation the valuation of stock options is a critical accounting estimate that requires us to use judgments and assumptions that are likely to have a material impact on our financial statements . as awards are granted we make predictive assumptions regarding future stock price volatility and employee exercise behavior . for more information on these assumptions , please see note 6 to the financial statements in item 8 of this report . the estimated fair values of stock options granted and the assumptions used for the black-scholes option-pricing model were as follows : replace_table_token_7_th the risk-free interest rate for periods during the expected term of the options is based on the u.s. treasury zero-coupon yield curve in effect at the time of grant . a one percentage point increase in the risk-free interest rate , leaving all other assumptions constant , would increase the grant date fair value by one percent . the expected term is determined using the simplified method or lattice method . an increase in the expected term by 1 year , leaving all other assumptions constant , would increase the grant date fair value by five percent . the volatility assumption is determined using the historical volatility of comparable public companies over the expected term of the option . if all other assumptions are held constant , a one percentage point increase in our volatility assumption , leaving all other assumptions constant , would increase the grant date fair value by one percent . we do not nor do we expect to pay dividends . to the extent that actual outcomes differ from our assumptions , we are not required to true up grant-date fair value-based expense to final intrinsic values . historical data has a significant bearing on our forward-looking assumptions . significant variances between actual and predicted experience could lead to prospective revisions in our assumptions , which could then significantly impact the year-over-year comparability of stock-based compensation expense . income tax valuation allowances we provide deferred taxes for deductible and taxable temporary differences . deferred tax assets are reduced by a valuation allowance when we believe it is more likely than not that some portion or all of the deferred tax assets will not be realized . 57 recently issued accounting pronouncements in august 2017 , the financial accounting standards board ( fasb ) issued new hedge accounting requirements . the new standard amends the hedge accounting recognition and presentation requirements to better align an entity 's risk management

