we anticipate that our expenses will increase significantly as we continue our current research programs and development activities ; seek to identify additional research programs and additional product candidates , conduct initial drug application supporting preclinical studies and initiate clinical trials for our product candidates ; initiate preclinical testing and clinical trials for any other product candidates we identify and develop , maintain , expand and protect our intellectual property portfolio , further develop our gene editing platform ; hire additional research , clinical and scientific personnel ; and incur additional costs associated with operating as a public company . collaboration agreement and joint venture agreement in october 2015 , we entered into a strategic research collaboration agreement with vertex focused on the development of crispr/cas9-based therapies . under the terms of our agreement , we received an upfront , nonrefundable payment of $ 75.0 million and $ 30.0 million in convertible loan proceeds . in december 2015 , we entered into an agreement , the jv agreement , with bayer healthcare to create a joint venture , casebia therapeutics llp , ( “ casebia ” or “ the jv ” ) , to discover , develop and commercialize new breakthrough therapeutics to cure blood disorders , blindness and heart disease . we and bayer healthcare each have a 50 % interest in the jv . under the jv agreement , bayer healthcare is making available its protein engineering expertise and relevant disease know-how and we are contributing our proprietary crispr/cas9 gene editing technology and intellectual property . bayer healthcare will also provide up to $ 300.0 million in research and development investments to the jv over the first five years , subject to specified conditions . 79 in connection with the jv agreement , the jv was required to pay us an aggregate amount of $ 35.0 million technology access fee , consisting of an upfront payment of $ 20.0 million , which was paid at the closing of the jv agreement in march 2016 , and another payment of $ 15.0 million for specified intellectual property rights relating to our crispr/cas9 technology outside of the united states , which was paid in december 2016. in january 2016 , we also issued a convertible loan to bayer bv ( the “ bayer convertible loan ” ) for gross proceeds of $ 35.0 million which was immediately converted to series b preferred shares at a conversion price of $ 13.43 per share . concurrent with the ipo in october 2016 , we issued and sold 2,500,000 common shares to bayer bv , at the ipo price of $ 14.00 per share resulting in aggregate net proceeds of $ 35.0 million . financial overview revenue we have not generated any revenue to date from product sales and do not expect to do so in the near future . during the year ended december 31 , 2016 , and 2015 , we recognized $ 5.2 million and $ 0.2 million , respectively , of revenue related to our collaboration agreements with vertex and casebia . as of december 31 , 2016 , we had not received any milestone or royalty payments under the vertex collaboration agreement . for additional information about our revenue recognition policy , see the “ critical accounting policies and estimates— revenue . ” research and development expenses research and development expenses consist primarily of costs incurred for our research activities , including our product discovery efforts and the development of our product candidates , which include : employee-related expenses , including salaries , benefits and equity-based compensation expense ; costs of services performed by third parties that conduct research and development and preclinical activities on our behalf ; costs of purchasing lab supplies and non-capital equipment used in our preclinical activities and in manufacturing preclinical study materials ; consultant fees ; facility costs , including rent , depreciation and maintenance expenses ; and fees and other payments related to acquiring and maintaining licenses under our third-party licensing agreements . research and development costs are expensed as incurred . nonrefundable advance payments for research and development goods or services to be received in the future are deferred and capitalized . the capitalized amounts are expensed as the related goods are delivered or the services are performed . at this time , we can not reasonably estimate or know the nature , timing or estimated costs of the efforts that will be necessary to complete the development of any product candidates we may identify and develop . this is due to the numerous risks and uncertainties associated with developing such product candidates , including the uncertainty of : successful completion of preclinical studies and investigational new drug-enabling studies ; successful enrollment in , and completion of , clinical trials ; receipt of marketing approvals from applicable regulatory authorities ; establishing commercial manufacturing capabilities or making arrangements with third-party manufacturers ; obtaining and maintaining patent and trade secret protection and non-patent exclusivity ; launching commercial sales of the product , if and when approved , whether alone or in collaboration with others ; acceptance of the product , if and when approved , by patients , the medical community and third-party payors ; effectively competing with other therapies and treatment options ; a continued acceptable safety profile following approval ; enforcing and defending intellectual property and proprietary rights and claims ; and achieving desirable medicinal properties for the intended indications . a change in the outcome of any of these variables with respect to the development of any product candidates we may develop could significantly change the costs , timing and viability associated with the development of that product candidate . 80 except for activities we perform in connection with our collaborations with vertex and casebia , we do not track research and development costs on a program-by-program basis . story_separator_special_tag the terms of our collaboration and license agreements contain multiple deliverables , which include licenses to crispr/cas9-based therapeutic products directed to specific targets , referred to as exclusive licenses , as well as research and development activities to be performed by us on behalf of the collaboration partner related to the licensed targets . payments that we may receive under these agreements include nonrefundable technology access fees , payments for research activities , payments based upon the achievement of specified milestones and royalties on any resulting net product sales . multiple element arrangements we evaluate multiple-element arrangements to determine ( i ) the deliverables included in the arrangement and ( ii ) whether the individual deliverables represent separate units of accounting or whether they must be accounted for as a combined unit of accounting . when deliverables are separable , consideration received is allocated to the separate units of accounting based on the relative selling price method and the appropriate revenue recognition principles are applied to each unit . when we determine that an arrangement should be accounted for as a single unit of accounting , we must determine the period over which the performance obligations will be performed and revenue will be recognized . this evaluation requires us to make judgments about the individual deliverables and whether such deliverables are separable from the other aspects of the contractual relationship . deliverables are considered separate units of accounting provided that ( i ) the delivered item has value to the customer on a standalone basis and ( ii ) the arrangement includes a general right of return with respect to the delivered item , delivery or performance of the undelivered item is considered probable and substantially in our control . in assessing whether an item has standalone value , we consider factors such as the research , development , manufacturing and commercialization capabilities of the collaboration partner and the availability of the associated expertise in the general marketplace . in addition , we consider whether the collaboration partner can use any other deliverable for its intended purpose without the receipt of the remaining deliverable , whether the value of the deliverable is dependent on the undelivered item , and whether there are other vendors that can provide the undelivered items . the consideration received under an arrangement that is fixed or determinable is then allocated among the separate units of accounting based on the relative selling prices of the separate units of accounting . we determine the selling price of a unit of accounting within each arrangement using ( i ) vendor-specific objective evidence of selling price , if available ; ( ii ) third-party evidence of selling price if vendor-specific objective evidence is not available ; or ( iii ) best estimate of selling price , if neither vendor-specific objective evidence nor third-party evidence is available . determining the best estimate of selling price for a unit of accounting requires significant judgment . in developing the best estimate of selling price for a unit of accounting , we consider applicable market 86 conditions and relevant entity-specific factors , including factors that were contemplated in negotiating the agreement with the customer and estimated costs . we validate the best estimate of selling price for units of accounting by evaluating whether changes in the key assumptions used to determine the best estimate of selling price will have a significant effect on the allocation of arrangement consideration between multiple units of accounting . we recognize arrangement consideration allocated to each unit of accounting when all of the revenue recognition criteria are satisfied for that particular unit of accounting . in the event that a deliverable does not represent a separate unit of accounting , we recognize revenue from the combined unit of accounting over the contractual or estimated performance period for the undelivered items , which is typically the term of our research and development obligations . if there is no discernible pattern of performance or objectively measurable performance measures do not exist , then we recognize revenue under the arrangement on a straight-line basis over the period we are expected to complete our performance obligations . conversely , if the pattern of performance over which the service is provided to the customer can be determined and objectively measurable performance measures exist , then we recognize revenue under the arrangement using the proportional performance method . revenue recognized is limited to the lesser of the cumulative amount of payments received or the cumulative amount of revenue earned , as determined using the straight-line method or proportional performance method , as applicable , as of the period ending date . significant management judgment is required in determining the level of effort required under an arrangement and the period over which we are expected to complete our performance obligations under an arrangement . steering committee services that are not inconsequential or perfunctory and that are determined to be performance obligations are combined with other research services or performance obligations required under an arrangement , if any , in determining the level of effort required in an arrangement and the period over which we expect to complete our aggregate performance obligations . recognition of milestones and royalties our collaboration and license agreements include contingent milestone payments related to specific development , regulatory and sales-based milestones . development and regulatory milestones are typically payable when a product candidate initiates or advances in clinical trial phases , upon submission for marketing approval with regulatory authorities , and upon receipt of actual marketing approvals for a therapeutic or for additional indications . sales-based milestones are typically payable when annual sales reach specified levels . we evaluate whether each milestone is substantive and at risk to both parties on the basis of the contingent nature of the milestone . this evaluation includes an assessment of whether : ( i ) the consideration is commensurate with either our performance to achieve the milestone or the enhancement of the value of

cash flows the following table provides information regarding our cash flows for each of the period below : replace_table_token_5_th net cash ( used in ) provided by operating activities net cash used in operating activities was $ 55.3 million for the year ended december 31 , 2016 and primarily consisted of a net loss of $ 23.2 million adjusted for non-cash items ( including equity-based compensation expense of $ 10.8 million , non-cash interest expense of $ 8.1 million , depreciation and amortization expense of $ 0.9 million , loss from equity method investment of $ 36.4 million , other income of $ 78.6 million recognized in connection with the formation of our jv with bayer healthcare , and a gain on extinguishment of the vertex convertible loan of $ 11.5 million ) , an increase in prepaid expenses and other current assets of $ 1.1 million , and an increase in accounts receivable of $ 2.8 million , and an increase in restricted cash of $ 2.5 million , partially offset by an increase in accounts payable and accrued expenses of $ 3.9 million , deferred revenue of $ 1.9 million , and deferred rent of $ 2.4 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.
     ```cash flows the following table provides information regarding our cash flows for each of the period below : replace_table_token_5_th net cash ( used in ) provided by operating activities net cash used in operating activities was $ 55.3 million for the year ended december 31 , 2016 and primarily consisted of a net loss of $ 23.2 million adjusted for non-cash items ( including equity-based compensation expense of $ 10.8 million , non-cash interest expense of $ 8.1 million , depreciation and amortization expense of $ 0.9 million , loss from equity method investment of $ 36.4 million , other income of $ 78.6 million recognized in connection with the formation of our jv with bayer healthcare , and a gain on extinguishment of the vertex convertible loan of $ 11.5 million ) , an increase in prepaid expenses and other current assets of $ 1.1 million , and an increase in accounts receivable of $ 2.8 million , and an increase in restricted cash of $ 2.5 million , partially offset by an increase in accounts payable and accrued expenses of $ 3.9 million , deferred revenue of $ 1.9 million , and deferred rent of $ 2.4 million .
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 Suspicious Activity Report : we anticipate that our expenses will increase significantly as we continue our current research programs and development activities ; seek to identify additional research programs and additional product candidates , conduct initial drug application supporting preclinical studies and initiate clinical trials for our product candidates ; initiate preclinical testing and clinical trials for any other product candidates we identify and develop , maintain , expand and protect our intellectual property portfolio , further develop our gene editing platform ; hire additional research , clinical and scientific personnel ; and incur additional costs associated with operating as a public company . collaboration agreement and joint venture agreement in october 2015 , we entered into a strategic research collaboration agreement with vertex focused on the development of crispr/cas9-based therapies . under the terms of our agreement , we received an upfront , nonrefundable payment of $ 75.0 million and $ 30.0 million in convertible loan proceeds . in december 2015 , we entered into an agreement , the jv agreement , with bayer healthcare to create a joint venture , casebia therapeutics llp , ( “ casebia ” or “ the jv ” ) , to discover , develop and commercialize new breakthrough therapeutics to cure blood disorders , blindness and heart disease . we and bayer healthcare each have a 50 % interest in the jv . under the jv agreement , bayer healthcare is making available its protein engineering expertise and relevant disease know-how and we are contributing our proprietary crispr/cas9 gene editing technology and intellectual property . bayer healthcare will also provide up to $ 300.0 million in research and development investments to the jv over the first five years , subject to specified conditions . 79 in connection with the jv agreement , the jv was required to pay us an aggregate amount of $ 35.0 million technology access fee , consisting of an upfront payment of $ 20.0 million , which was paid at the closing of the jv agreement in march 2016 , and another payment of $ 15.0 million for specified intellectual property rights relating to our crispr/cas9 technology outside of the united states , which was paid in december 2016. in january 2016 , we also issued a convertible loan to bayer bv ( the “ bayer convertible loan ” ) for gross proceeds of $ 35.0 million which was immediately converted to series b preferred shares at a conversion price of $ 13.43 per share . concurrent with the ipo in october 2016 , we issued and sold 2,500,000 common shares to bayer bv , at the ipo price of $ 14.00 per share resulting in aggregate net proceeds of $ 35.0 million . financial overview revenue we have not generated any revenue to date from product sales and do not expect to do so in the near future . during the year ended december 31 , 2016 , and 2015 , we recognized $ 5.2 million and $ 0.2 million , respectively , of revenue related to our collaboration agreements with vertex and casebia . as of december 31 , 2016 , we had not received any milestone or royalty payments under the vertex collaboration agreement . for additional information about our revenue recognition policy , see the “ critical accounting policies and estimates— revenue . ” research and development expenses research and development expenses consist primarily of costs incurred for our research activities , including our product discovery efforts and the development of our product candidates , which include : employee-related expenses , including salaries , benefits and equity-based compensation expense ; costs of services performed by third parties that conduct research and development and preclinical activities on our behalf ; costs of purchasing lab supplies and non-capital equipment used in our preclinical activities and in manufacturing preclinical study materials ; consultant fees ; facility costs , including rent , depreciation and maintenance expenses ; and fees and other payments related to acquiring and maintaining licenses under our third-party licensing agreements . research and development costs are expensed as incurred . nonrefundable advance payments for research and development goods or services to be received in the future are deferred and capitalized . the capitalized amounts are expensed as the related goods are delivered or the services are performed . at this time , we can not reasonably estimate or know the nature , timing or estimated costs of the efforts that will be necessary to complete the development of any product candidates we may identify and develop . this is due to the numerous risks and uncertainties associated with developing such product candidates , including the uncertainty of : successful completion of preclinical studies and investigational new drug-enabling studies ; successful enrollment in , and completion of , clinical trials ; receipt of marketing approvals from applicable regulatory authorities ; establishing commercial manufacturing capabilities or making arrangements with third-party manufacturers ; obtaining and maintaining patent and trade secret protection and non-patent exclusivity ; launching commercial sales of the product , if and when approved , whether alone or in collaboration with others ; acceptance of the product , if and when approved , by patients , the medical community and third-party payors ; effectively competing with other therapies and treatment options ; a continued acceptable safety profile following approval ; enforcing and defending intellectual property and proprietary rights and claims ; and achieving desirable medicinal properties for the intended indications . a change in the outcome of any of these variables with respect to the development of any product candidates we may develop could significantly change the costs , timing and viability associated with the development of that product candidate . 80 except for activities we perform in connection with our collaborations with vertex and casebia , we do not track research and development costs on a program-by-program basis . story_separator_special_tag the terms of our collaboration and license agreements contain multiple deliverables , which include licenses to crispr/cas9-based therapeutic products directed to specific targets , referred to as exclusive licenses , as well as research and development activities to be performed by us on behalf of the collaboration partner related to the licensed targets . payments that we may receive under these agreements include nonrefundable technology access fees , payments for research activities , payments based upon the achievement of specified milestones and royalties on any resulting net product sales . multiple element arrangements we evaluate multiple-element arrangements to determine ( i ) the deliverables included in the arrangement and ( ii ) whether the individual deliverables represent separate units of accounting or whether they must be accounted for as a combined unit of accounting . when deliverables are separable , consideration received is allocated to the separate units of accounting based on the relative selling price method and the appropriate revenue recognition principles are applied to each unit . when we determine that an arrangement should be accounted for as a single unit of accounting , we must determine the period over which the performance obligations will be performed and revenue will be recognized . this evaluation requires us to make judgments about the individual deliverables and whether such deliverables are separable from the other aspects of the contractual relationship . deliverables are considered separate units of accounting provided that ( i ) the delivered item has value to the customer on a standalone basis and ( ii ) the arrangement includes a general right of return with respect to the delivered item , delivery or performance of the undelivered item is considered probable and substantially in our control . in assessing whether an item has standalone value , we consider factors such as the research , development , manufacturing and commercialization capabilities of the collaboration partner and the availability of the associated expertise in the general marketplace . in addition , we consider whether the collaboration partner can use any other deliverable for its intended purpose without the receipt of the remaining deliverable , whether the value of the deliverable is dependent on the undelivered item , and whether there are other vendors that can provide the undelivered items . the consideration received under an arrangement that is fixed or determinable is then allocated among the separate units of accounting based on the relative selling prices of the separate units of accounting . we determine the selling price of a unit of accounting within each arrangement using ( i ) vendor-specific objective evidence of selling price , if available ; ( ii ) third-party evidence of selling price if vendor-specific objective evidence is not available ; or ( iii ) best estimate of selling price , if neither vendor-specific objective evidence nor third-party evidence is available . determining the best estimate of selling price for a unit of accounting requires significant judgment . in developing the best estimate of selling price for a unit of accounting , we consider applicable market 86 conditions and relevant entity-specific factors , including factors that were contemplated in negotiating the agreement with the customer and estimated costs . we validate the best estimate of selling price for units of accounting by evaluating whether changes in the key assumptions used to determine the best estimate of selling price will have a significant effect on the allocation of arrangement consideration between multiple units of accounting . we recognize arrangement consideration allocated to each unit of accounting when all of the revenue recognition criteria are satisfied for that particular unit of accounting . in the event that a deliverable does not represent a separate unit of accounting , we recognize revenue from the combined unit of accounting over the contractual or estimated performance period for the undelivered items , which is typically the term of our research and development obligations . if there is no discernible pattern of performance or objectively measurable performance measures do not exist , then we recognize revenue under the arrangement on a straight-line basis over the period we are expected to complete our performance obligations . conversely , if the pattern of performance over which the service is provided to the customer can be determined and objectively measurable performance measures exist , then we recognize revenue under the arrangement using the proportional performance method . revenue recognized is limited to the lesser of the cumulative amount of payments received or the cumulative amount of revenue earned , as determined using the straight-line method or proportional performance method , as applicable , as of the period ending date . significant management judgment is required in determining the level of effort required under an arrangement and the period over which we are expected to complete our performance obligations under an arrangement . steering committee services that are not inconsequential or perfunctory and that are determined to be performance obligations are combined with other research services or performance obligations required under an arrangement , if any , in determining the level of effort required in an arrangement and the period over which we expect to complete our aggregate performance obligations . recognition of milestones and royalties our collaboration and license agreements include contingent milestone payments related to specific development , regulatory and sales-based milestones . development and regulatory milestones are typically payable when a product candidate initiates or advances in clinical trial phases , upon submission for marketing approval with regulatory authorities , and upon receipt of actual marketing approvals for a therapeutic or for additional indications . sales-based milestones are typically payable when annual sales reach specified levels . we evaluate whether each milestone is substantive and at risk to both parties on the basis of the contingent nature of the milestone . this evaluation includes an assessment of whether : ( i ) the consideration is commensurate with either our performance to achieve the milestone or the enhancement of the value of

