we expect to commercially launch dialysate triferic in the second quarter of 2019. while the company was pursuing the earlier strategy of delaying commercialization until receipt of add-on reimbursement approval , we built up significant inventory of active pharmaceutical ingredient ( “ api ” ) and dialysate triferic finished goods . however , due to the delays in launching and feedback received from cmmi in march 2018 regarding near-term approval , our inventory reserves for triferic increased by a total of $ 8.1 million during 2018 from $ 3.5 million as of december 31 , 2017 to $ 11.6 million as of december 31 , 2018. net of inventory destroyed or used for samples during 2018 of $ 5.8 million , we had a total inventory reserve of $ 5.8 million as of december 31 , 2018. as of december 31 , 2018 , we had $ 3.9 million of dialysate triferic finished goods inventory that could expire within the next 12 months and against which we have reserved $ 3.4 million . as of december 31 , 2018 , we also had approximately $ 4.1 million of api against which we have reserved $ 2.4 million and classified $ 1.6 million of api as non-current inventory . depending on the timing and success of our commercial launch of dialysate triferic in 2019 , additional amounts or all of our current investment in dialysate triferic finished goods inventory and some or all of our api inventory will likely need 40 to be written off . additional inventory write-offs will not have a material negative impact on our cash flow , but would have a material adverse impact on our reported results of operations and financial position . i.v . triferic we are also developing an intravenous injection of triferic ( “ i.v . triferic ” ) for use by hemodialysis patients in the united states as well as international markets . a clinical equivalence study of i.v . triferic infusion presentation has been completed and , on the basis of the clinical and non-clinical data prepared by the company , we intend to submit a new drug application ( “ nda ” ) seeking fda approval to market i.v . triferic in the united states for the clinical indication of replacing iron and maintaining hemoglobin in adult hemodialysis patients in the second quarter of 2019. the november 2018 cms guidance provided interpretative guidance regarding the cms transitional drug add on pricing adjustment ( “ tdapa ” ) program and its potential application to i.v . triferic . based on the cms guidance , the company believes that , if approved by the fda on or after january 1 , 2020 , i.v . triferic may be eligible for separate sole source payment with a separate j-code for a two-year timeframe . in accordance with the current guidance , separate tdapa payments would last for two years following launch , after which i.v . triferic would be priced inside the bundle . upon filing of the nda , we will be required to pay a filing fee to the fda of approximately $ 1.3 million . while we intend to market and sell dialysate triferic and i.v . triferic directly in the united states , our international strategy is to partner with and license these products to established companies in other regions of the world to assist in the further development ( primarily clinical trials and regulatory activities ) , if necessary , and commercialize in those regions . we continue to pursue international licensing opportunities in a number of countries and specific regions . dialysis concentrates we manufacture , sell , deliver and distribute hemodialysis concentrates , along with a line of ancillary dialysis products abroad . we use baxter as our exclusive marketer and distributor in the united states and in select foreign markets . dialysate concentrates accounted for approximately 96 % of our revenues for the year ended december 31 , 2018 , with ancillary products accounting for most of the remainder . we receive a pre-defined gross profit margin on our concentrate products sold pursuant to the baxter agreement , subject to an annual true-up of costs . calcitriol ( active vitamin d ) injection calcitriol , an active vitamin d injection for the management of hypocalcemia in patients undergoing chronic hemodialysis , is fda approved under an abbreviated new drug application . to date , we have not commercially launched calcitriol . following a strategic review of this product , including pricing , commercial distribution and marketing , manufacturing efficiencies and capacity ( including potential capital investment ) , we have determined commercialization of calcitriol in the u.s. would not be viable at this time . the decision was based , in part , on the fact that prevailing market prices for similar vitamin d products are lower than our cost to produce calcitriol on a dose-equivalent basis , and as a result it would be difficult for us to market calcitriol profitably . as a result of this decision , we recorded an inventory reserve of $ 665,000 for the fourth quarter of 2018 , reflecting the remainder of our calcitriol inventory . clinical development although triferic is approved for commercial sale in the united states , it is not approved for sale in other major markets globally . we have received regulatory guidance from the european medicines agency ( “ ema ” ) regarding the clinical studies that are needed to file for approval of i.v . triferic in europe . at the present time , we do not intend to commence these clinical studies , absent finding a development partner in europe or raising additional capital . story_separator_special_tag shipping and handling costs associated with outbound freight related to contracts with customers are accounted for as a fulfillment cost and are included in cost of sales when control of the goods transfers to the customer . accounts receivable accounts receivable are stated at invoice amounts . the carrying amount of trade accounts receivable is reduced by an allowance for doubtful accounts that reflects our best estimate of accounts that may not be collected . we review outstanding trade accounts receivable balances and based on our assessment of expected collections , we estimate the portion , if any , of the balance that may not be collected as well as a general valuation allowance for other accounts receivable based primarily on historical experience . all accounts or portions thereof deemed to be uncollectible are written off to the allowance for doubtful accounts . inventory inventory is stated at the lower of cost or net realizable value . cost is determined on the first‑in first‑out ( fifo ) method . inventory that is not expected to be converted to cash over the next year is classified as non-current . our policy is to reserve for our drug product inventory that we determine is unlikely to be sold to , or if sold , unlikely to be utilized by our customers on or before its expiration date . property and equipment property and equipment are recorded at cost and are depreciated using the straight‑line method over the useful lives of the assets , which range from three to ten years . expenditures for routine maintenance and repairs are expense as incurred . leasehold improvements are amortized using the straight‑line method over the shorter of the useful lives or the related lease term . impairment of long-lived assets long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable . impairment losses on long-lived assets , such as real estate and equipment , are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and , accordingly , all or a portion of such carrying value may not be 45 recoverable . impairment losses are then measured by comparing the fair value of assets to their carrying amounts . for the years ended december 31 , 2018 and 2017 , there were no impairments of long-lived assets . goodwill and intangible assets goodwill is the excess of purchase price over the fair value of identified net assets of businesses acquired . intangible assets with indefinite useful lives are measured at their respective fair values as of the acquisition date . we do not amortize goodwill and intangible assets with indefinite useful lives . we review goodwill and indefinite-lived intangible assets at least annually for possible impairment . goodwill and indefinite-lived intangible assets are reviewed for possible impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit or the indefinite-lived intangible assets below their carrying values . intangible assets with definite lives are amortized over their estimated useful lives . intangible assets subject to amortization are reviewed for potential impairment whenever events or circumstances indicate that carrying amounts may not be recoverable . definite-lived intangible assets consist of our license fees related to the technology , intellectual property and marketing rights for triferic covered under certain issued patents have been capitalized and are being amortized over the life of the related patents which is generally 17 years . deferred revenue in october of 2014 , the company entered into a 10-year distribution agreement with baxter and received an upfront fee of $ 20 million . the upfront fee was recorded as deferred revenue and is being recognized based on the proportion of product shipments to baxter in each period , compared with total expected sales volume over the term of the distribution agreement . the company recognized revenue of approximately $ 2.1 million related to the baxter agreement during each of the years ended december 31 , 2018 and 2017 , respectively . during the year ended december 31 , 2016 , the company entered into a distribution agreement with wanbang and received an upfront fee of $ 4.0 million . the upfront fee was recorded as deferred revenue and is being recognized as revenue based on the agreement term . the company recognized revenue of approximately $ 0.3 million during the years ended december 31 , 2018 and 2017 , respectively . deferred revenue related to the wanbang agreement totaled $ 3.2 million and $ 3.5 million as of december 31 , 2018 and 2017 , respectively stock-based compensation the company expenses stock-based compensation to employees over the requisite service period based on the estimated grant-date fair value of the awards . for stock-based compensation awards to non-employees , the company re-measures the fair value of the non-employee awards at each reporting period prior to vesting and finally at the vesting date of the award . changes in the estimated fair value of these non-employee awards are recognized as compensation expense in the period of change . the company estimates the fair value of stock option grants using the black-scholes option pricing model , and the assumptions used in calculating the fair value of stock-based awards represent management 's best estimates and involve inherent uncertainties and the application of management 's judgement . for the years ended december 31 2018 and 2017 , the company recorded stock-based compensation expense on its options granted under the company 's equity compensation plans to its directors and officers , and its employees accounting for income taxes we estimate our income tax provision to recognize our tax expense and our deferred tax liabilities and assets for future tax consequences of events that have been recognized in our financial statements using current enacted tax laws . deferred

cash used in operating activities net cash used in operating activities was $ 20.4 million for the year ended december 31 , 2018. the net loss for this period was higher than net cash used in operating activities by $ 11.7 million , which was primarily attributable to non-cash expenses of $ 15.1 million , consisting of , $ 8.8 million of inventory reserves , $ 4.4 million of stock-based compensation , $ 1.1 million of research and development licenses acquired , $ 0.7 million of depreciation and amortization , and $ 0.2 million of realized losses on sale of investments available-for-sale , primarily offset by an increase of $ 0.8 million in inventory , a decrease of $ 2.4 million in deferred revenue related to the recognition of revenue from our licensing agreements , an increase of $ 0.6 million in accounts receivable related to increases in revenues related to our international sales and an increase of $ 0.4 million in settlement fees related to the settlement agreement between the company and its former directors and officers . net cash used in operating activities was $ 21.1 million for the year ended december 31 , 2017. the decrease in cash is primarily due to $ 6.3 million of research and development expenses , as well as substantial amounts for legal and professional fees related to litigation , the settlement with baxter and the contested 2017 director election .


 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 used in operating activities net cash used in operating activities was $ 20.4 million for the year ended december 31 , 2018. the net loss for this period was higher than net cash used in operating activities by $ 11.7 million , which was primarily attributable to non-cash expenses of $ 15.1 million , consisting of , $ 8.8 million of inventory reserves , $ 4.4 million of stock-based compensation , $ 1.1 million of research and development licenses acquired , $ 0.7 million of depreciation and amortization , and $ 0.2 million of realized losses on sale of investments available-for-sale , primarily offset by an increase of $ 0.8 million in inventory , a decrease of $ 2.4 million in deferred revenue related to the recognition of revenue from our licensing agreements , an increase of $ 0.6 million in accounts receivable related to increases in revenues related to our international sales and an increase of $ 0.4 million in settlement fees related to the settlement agreement between the company and its former directors and officers . net cash used in operating activities was $ 21.1 million for the year ended december 31 , 2017. the decrease in cash is primarily due to $ 6.3 million of research and development expenses , as well as substantial amounts for legal and professional fees related to litigation , the settlement with baxter and the contested 2017 director election .
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 Suspicious Activity Report : we expect to commercially launch dialysate triferic in the second quarter of 2019. while the company was pursuing the earlier strategy of delaying commercialization until receipt of add-on reimbursement approval , we built up significant inventory of active pharmaceutical ingredient ( “ api ” ) and dialysate triferic finished goods . however , due to the delays in launching and feedback received from cmmi in march 2018 regarding near-term approval , our inventory reserves for triferic increased by a total of $ 8.1 million during 2018 from $ 3.5 million as of december 31 , 2017 to $ 11.6 million as of december 31 , 2018. net of inventory destroyed or used for samples during 2018 of $ 5.8 million , we had a total inventory reserve of $ 5.8 million as of december 31 , 2018. as of december 31 , 2018 , we had $ 3.9 million of dialysate triferic finished goods inventory that could expire within the next 12 months and against which we have reserved $ 3.4 million . as of december 31 , 2018 , we also had approximately $ 4.1 million of api against which we have reserved $ 2.4 million and classified $ 1.6 million of api as non-current inventory . depending on the timing and success of our commercial launch of dialysate triferic in 2019 , additional amounts or all of our current investment in dialysate triferic finished goods inventory and some or all of our api inventory will likely need 40 to be written off . additional inventory write-offs will not have a material negative impact on our cash flow , but would have a material adverse impact on our reported results of operations and financial position . i.v . triferic we are also developing an intravenous injection of triferic ( “ i.v . triferic ” ) for use by hemodialysis patients in the united states as well as international markets . a clinical equivalence study of i.v . triferic infusion presentation has been completed and , on the basis of the clinical and non-clinical data prepared by the company , we intend to submit a new drug application ( “ nda ” ) seeking fda approval to market i.v . triferic in the united states for the clinical indication of replacing iron and maintaining hemoglobin in adult hemodialysis patients in the second quarter of 2019. the november 2018 cms guidance provided interpretative guidance regarding the cms transitional drug add on pricing adjustment ( “ tdapa ” ) program and its potential application to i.v . triferic . based on the cms guidance , the company believes that , if approved by the fda on or after january 1 , 2020 , i.v . triferic may be eligible for separate sole source payment with a separate j-code for a two-year timeframe . in accordance with the current guidance , separate tdapa payments would last for two years following launch , after which i.v . triferic would be priced inside the bundle . upon filing of the nda , we will be required to pay a filing fee to the fda of approximately $ 1.3 million . while we intend to market and sell dialysate triferic and i.v . triferic directly in the united states , our international strategy is to partner with and license these products to established companies in other regions of the world to assist in the further development ( primarily clinical trials and regulatory activities ) , if necessary , and commercialize in those regions . we continue to pursue international licensing opportunities in a number of countries and specific regions . dialysis concentrates we manufacture , sell , deliver and distribute hemodialysis concentrates , along with a line of ancillary dialysis products abroad . we use baxter as our exclusive marketer and distributor in the united states and in select foreign markets . dialysate concentrates accounted for approximately 96 % of our revenues for the year ended december 31 , 2018 , with ancillary products accounting for most of the remainder . we receive a pre-defined gross profit margin on our concentrate products sold pursuant to the baxter agreement , subject to an annual true-up of costs . calcitriol ( active vitamin d ) injection calcitriol , an active vitamin d injection for the management of hypocalcemia in patients undergoing chronic hemodialysis , is fda approved under an abbreviated new drug application . to date , we have not commercially launched calcitriol . following a strategic review of this product , including pricing , commercial distribution and marketing , manufacturing efficiencies and capacity ( including potential capital investment ) , we have determined commercialization of calcitriol in the u.s. would not be viable at this time . the decision was based , in part , on the fact that prevailing market prices for similar vitamin d products are lower than our cost to produce calcitriol on a dose-equivalent basis , and as a result it would be difficult for us to market calcitriol profitably . as a result of this decision , we recorded an inventory reserve of $ 665,000 for the fourth quarter of 2018 , reflecting the remainder of our calcitriol inventory . clinical development although triferic is approved for commercial sale in the united states , it is not approved for sale in other major markets globally . we have received regulatory guidance from the european medicines agency ( “ ema ” ) regarding the clinical studies that are needed to file for approval of i.v . triferic in europe . at the present time , we do not intend to commence these clinical studies , absent finding a development partner in europe or raising additional capital . story_separator_special_tag shipping and handling costs associated with outbound freight related to contracts with customers are accounted for as a fulfillment cost and are included in cost of sales when control of the goods transfers to the customer . accounts receivable accounts receivable are stated at invoice amounts . the carrying amount of trade accounts receivable is reduced by an allowance for doubtful accounts that reflects our best estimate of accounts that may not be collected . we review outstanding trade accounts receivable balances and based on our assessment of expected collections , we estimate the portion , if any , of the balance that may not be collected as well as a general valuation allowance for other accounts receivable based primarily on historical experience . all accounts or portions thereof deemed to be uncollectible are written off to the allowance for doubtful accounts . inventory inventory is stated at the lower of cost or net realizable value . cost is determined on the first‑in first‑out ( fifo ) method . inventory that is not expected to be converted to cash over the next year is classified as non-current . our policy is to reserve for our drug product inventory that we determine is unlikely to be sold to , or if sold , unlikely to be utilized by our customers on or before its expiration date . property and equipment property and equipment are recorded at cost and are depreciated using the straight‑line method over the useful lives of the assets , which range from three to ten years . expenditures for routine maintenance and repairs are expense as incurred . leasehold improvements are amortized using the straight‑line method over the shorter of the useful lives or the related lease term . impairment of long-lived assets long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable . impairment losses on long-lived assets , such as real estate and equipment , are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and , accordingly , all or a portion of such carrying value may not be 45 recoverable . impairment losses are then measured by comparing the fair value of assets to their carrying amounts . for the years ended december 31 , 2018 and 2017 , there were no impairments of long-lived assets . goodwill and intangible assets goodwill is the excess of purchase price over the fair value of identified net assets of businesses acquired . intangible assets with indefinite useful lives are measured at their respective fair values as of the acquisition date . we do not amortize goodwill and intangible assets with indefinite useful lives . we review goodwill and indefinite-lived intangible assets at least annually for possible impairment . goodwill and indefinite-lived intangible assets are reviewed for possible impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit or the indefinite-lived intangible assets below their carrying values . intangible assets with definite lives are amortized over their estimated useful lives . intangible assets subject to amortization are reviewed for potential impairment whenever events or circumstances indicate that carrying amounts may not be recoverable . definite-lived intangible assets consist of our license fees related to the technology , intellectual property and marketing rights for triferic covered under certain issued patents have been capitalized and are being amortized over the life of the related patents which is generally 17 years . deferred revenue in october of 2014 , the company entered into a 10-year distribution agreement with baxter and received an upfront fee of $ 20 million . the upfront fee was recorded as deferred revenue and is being recognized based on the proportion of product shipments to baxter in each period , compared with total expected sales volume over the term of the distribution agreement . the company recognized revenue of approximately $ 2.1 million related to the baxter agreement during each of the years ended december 31 , 2018 and 2017 , respectively . during the year ended december 31 , 2016 , the company entered into a distribution agreement with wanbang and received an upfront fee of $ 4.0 million . the upfront fee was recorded as deferred revenue and is being recognized as revenue based on the agreement term . the company recognized revenue of approximately $ 0.3 million during the years ended december 31 , 2018 and 2017 , respectively . deferred revenue related to the wanbang agreement totaled $ 3.2 million and $ 3.5 million as of december 31 , 2018 and 2017 , respectively stock-based compensation the company expenses stock-based compensation to employees over the requisite service period based on the estimated grant-date fair value of the awards . for stock-based compensation awards to non-employees , the company re-measures the fair value of the non-employee awards at each reporting period prior to vesting and finally at the vesting date of the award . changes in the estimated fair value of these non-employee awards are recognized as compensation expense in the period of change . the company estimates the fair value of stock option grants using the black-scholes option pricing model , and the assumptions used in calculating the fair value of stock-based awards represent management 's best estimates and involve inherent uncertainties and the application of management 's judgement . for the years ended december 31 2018 and 2017 , the company recorded stock-based compensation expense on its options granted under the company 's equity compensation plans to its directors and officers , and its employees accounting for income taxes we estimate our income tax provision to recognize our tax expense and our deferred tax liabilities and assets for future tax consequences of events that have been recognized in our financial statements using current enacted tax laws . deferred

