the net proceeds of the offering , including the full exercise of the option , were approximately $ 10.6 million , after deducting the underwriting discounts and commissions and the other estimated offering expenses payable by us . in june 2017 , we entered into a controlled equity offering sm sales agreement ( sales agreement ) with cantor fitzgerald & co. ( cantor ) , as sales agent , pursuant to which we may offer and sell , from time to time through cantor , shares of our common stock , par value $ 0.001 per share , providing for aggregate sales proceeds of up to $ 20,000,000. under the sales agreement , cantor may sell such shares of common stock in sales deemed to be an at the market offering ( atm ) as defined in rule 415 ( a ) ( 4 ) promulgated under the securities act of 1933 , as amended , with us setting the parameters for the sale of shares thereunder , including the number of shares to be issued , the time period during which sales are requested to be made , any limits on the number of shares that may be sold in any one trading day , 63 and any minimum price below which sales may not be made . the sales agreement provides that cantor will be entitled to compensation for its services equal to 3.0 % of the gross proceeds from the sale of shares sold pursuant to the sales agreement . we have no obligation to sell any shares under the sales agreement , and may at any time suspend solicitations and offers under the sales agreement . from january 1 , 2018 through march 29 , 2018 , we sold an aggregate of 527,000 shares of our common stock and received $ 4.1 million after deducting commissions related to the sales agreement . in september 2017 , we closed an underwritten public offering in which we sold an aggregate of 3,967,500 shares of common stock , including 517,500 shares sold in connection with the exercise in full by the underwriters of their option to purchase additional shares . the net proceeds of the offering , including the full exercise of the option , were approximately $ 26.9 million , after deducting underwriting discounts , commissions , and other offering expenses payable by us . we will need to raise additional capital in the form of debt or equity or through partnerships to fund additional development of our product candidates , and we may in-license , acquire , or invest in complementary businesses or products . in addition , as capital resources permit , we may augment or otherwise modify the clinical development plans described herein . research and development expenses we expense all of our research and development expenses as they are incurred . research and development costs that are paid in advance of performance are capitalized as a prepaid expense until incurred . research and development expenses primarily include : non-clinical development , preclinical research , and clinical trial and regulatory-related costs ; expenses incurred under agreements with sites and consultants that conduct our clinical trials ; and employee-related expenses , including salaries , benefits , travel , and stock-based compensation expense . substantially all of our research and development expenses to date have been incurred in connection with reproxalap . we expect our research and development expenses to increase for the foreseeable future as we advance reproxalap and other compounds through preclinical and clinical development . the process of conducting clinical trials necessary to obtain regulatory approval is costly and time consuming . we are unable to estimate with any certainty the costs we will incur in the continued development of reproxalap and our other product candidates . clinical development timelines , the probability of success , and development costs can differ materially from expectations . we may never succeed in achieving marketing approval for our product candidates . the costs of clinical trials may vary significantly over the life of a project owing to , but not limited to , the following : per patient trial costs ; the number of sites included in the trials ; the countries in which the trials are conducted ; the length of time required to enroll eligible patients ; the design of the trials ; the cost of manufacturing the drug ; the number of patients that participate in the trials ; the number of doses that patients receive ; the cost of vehicle or active comparative agents used in trials ; the drop-out or discontinuation rates of patients ; potential additional safety monitoring or other studies requested by regulatory agencies ; the duration of patient follow-up ; and the efficacy and safety profile of the product candidate . 64 we do not expect reproxalap and our other product candidates to be commercially available , if at all , for the next several years . general and administrative expenses general and administrative expenses consist primarily of salaries and related benefits , including stock-based compensation . our general and administrative expenses consisted primarily of payroll expenses for our full-time employees during the years ended december 31 , 2017 and 2016. other general and administrative expenses include professional fees for auditing , tax , and legal services , including patent related costs . we expect that general and administrative expenses will increase in the future as we expand our operating activities , continue to incur additional costs associated with being a publicly-traded company , and maintain compliance with exchange listing and sec requirements . these increases will likely include higher consulting costs , legal fees , accounting fees , directors ' and officers ' liability insurance premiums , and fees associated with investor relations . story_separator_special_tag losses have resulted principally from costs incurred in our clinical trials and other research and development programs , as well as from our general and administrative expenses . research and development expenses . research and development expenses were $ 16.3 million for the year ended december 31 , 2017 compared to $ 13.2 million for the same period in 2016. the increase of $ 3.1 million is primarily related to the increase in our external research and development expenditures , including clinical and manufacturing costs , and a decrease in personnel and preclinical costs . general and administrative expenses . general and administrative expenses were $ 6.2 million for the year ended december 31 , 2017 , compared to $ 5.5 million for the year ended 2016. the increase of approximately $ 0.7 million is primarily related to an increase in personnel , legal , and professional service costs . other income ( expense ) . total other income ( expense ) was approximately $ 148,000 for the year ended december 31 , 2017 compared to $ ( 3,000 ) for the year ended december 31 , 2015 , and consisted of interest income partially offset by interest expense related to our credit facility . story_separator_special_tag the outcome , costs , and timing of seeking and obtaining regulatory approvals from the fda , and any similar regulatory agencies ; the timing and costs associated with manufacturing reproxalap and our other product candidates for clinical trials and other studies and , if approved , for commercial sale ; our need and ability to hire additional management , development , and scientific personnel ; the cost to maintain , expand and defend the scope of our intellectual property portfolio , including the amount and timing of any payments we may be required to make , or that we may receive , in connection with licensing , filing , prosecuting , defending , and enforcing of any patents or other intellectual property rights ; the timing and costs associated with establishing sales and marketing capabilities ; market acceptance of reproxalap and our other product candidates ; the costs of acquiring , licensing , or investing in additional businesses , products , product candidates , and technologies ; and our need to remediate any material weaknesses and implement additional internal systems and infrastructure , including financial and reporting systems . we may need or desire to obtain additional capital to finance our operations through debt , equity , or alternative financing arrangements . we may also seek capital through collaborations or partnerships with other companies . the issuance of debt could require us to grant additional liens on certain of our assets that may limit our flexibility . if we raise additional capital by issuing equity securities , the terms and prices for these financings may be much more favorable to the new investors than the terms obtained by our existing stockholders . these financings also may significantly dilute the ownership of our existing stockholders . if we are unable to obtain additional financing , we may be required to reduce the scope of our future activities , which could harm our business , financial condition , and operating results . there can be no assurance that any additional financing required in the future will be available on acceptable terms , if at all . 71 we will continue to incur costs as a public company including , but not limited to , costs and expenses for directors fees ; increased directors and officers insurance ; investor relations fees ; expenses for compliance with the sarbanes-oxley act of 2002 and rules implemented by the sec and nasdaq , on which our common stock is listed ; and various other costs . the sarbanes-oxley act of 2002 requires that we maintain effective disclosure controls and procedures and internal controls . the following table summarizes our cash flows for the years ended december 31 , 2017 and 2016 : replace_table_token_3_th operating activities . net cash used in operating activities was $ 19.2 million in 2017 , compared to net cash used in operating activities of $ 15.1 million in 2016. the primary use of cash was to fund our operations . the increase in the amount of cash used in operating activities for 2017 as compared to 2016 was due to an increase in research and development expenses , in addition to general and administrative expenses . investing activities . net cash used in investing activities in 2017 were $ 10.2 million , related primarily to the purchase of marketable securities partially offset by sales and maturities of marketable securities , compared to net cash used in investing activities in 2016 of $ 0.2 million , related primarily to the purchase of marketable securities partially offset by sales and maturities of marketable securities . financing activities . net cash provided by financing activities was $ 37.4 million for the year ended december 31 , 2017 , related to our underwritten public offerings , compared to net cash provided by financing activities of $ 12.7 million for year ended 2016 , related to our underwritten public offerings . off-balance sheet arrangements through december 31 , 2017 , we have not entered into and did not have any relationships with unconsolidated entities or financial collaborations , such as entities often referred to as structured finance or special purpose entities , which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purpose . contractual obligations and commitments in september 2017 , we executed a lease agreement ( the office lease ) , which was amended in november 2017. the amended lease as of december 31 , 2017 , consisted of approximately 9,351 square feet of office space of office space located in lexington , massachusetts ( the premises ) . we intend to use the premises as our corporate headquarters . the term of the office lease is through december

liquidity and capital resources we have funded our operations primarily from the sale of equity securities and convertible equity securities and borrowings under our credit facility , discussed below . we have incurred operating losses since inception and negative cash flows from operating activities in devoting substantially all of our efforts towards research and development . at december 31 , 2017 , we had total stockholders ' equity of approximately $ 39.6 million , and cash , cash equivalents , and marketable securities of $ 42.9 million . during the year ended december 31 , 2017 , we had net loss of approximately $ 22.3 million . we expect to generate operating losses for the foreseeable future . we are a party to a loan and security agreement ( the credit facility ) with pacific western bank ( pacific western , formerly square 1 bank ) , which was originally entered into in april 2012 and has been subsequently amended . pursuant to the credit facility , pacific western agreed to make term loans in a principal amount of up to $ 5.0 million available to us to fund expenses related to our clinical trials and general working capital purposes . the term loans were made available to us upon the following terms : ( i ) $ 2.0 million was made available in 69 november 2014 ( which was used in part to refinance then outstanding loans from pacific western ) ; and ( ii ) $ 3.0 million became available to us in may 2016 following the satisfaction of certain conditions , including receipt of positive phase 2 clinical trial results in noninfectious anterior uveitis . in november 2017 , we amended our credit facility such that any term loan we draw is payable as interest only prior to october 2018 and thereafter is payable in monthly installments of principal plus accrued interest over 36 months . each term loan accrues interest from its date of issue at a variable annual interest rate equal to the greater of 2.0 % plus prime or 5.25 % per annum . the annualized interest rate as of december 31 , 2017 was 6.56 % .


 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 we have funded our operations primarily from the sale of equity securities and convertible equity securities and borrowings under our credit facility , discussed below . we have incurred operating losses since inception and negative cash flows from operating activities in devoting substantially all of our efforts towards research and development . at december 31 , 2017 , we had total stockholders ' equity of approximately $ 39.6 million , and cash , cash equivalents , and marketable securities of $ 42.9 million . during the year ended december 31 , 2017 , we had net loss of approximately $ 22.3 million . we expect to generate operating losses for the foreseeable future . we are a party to a loan and security agreement ( the credit facility ) with pacific western bank ( pacific western , formerly square 1 bank ) , which was originally entered into in april 2012 and has been subsequently amended . pursuant to the credit facility , pacific western agreed to make term loans in a principal amount of up to $ 5.0 million available to us to fund expenses related to our clinical trials and general working capital purposes . the term loans were made available to us upon the following terms : ( i ) $ 2.0 million was made available in 69 november 2014 ( which was used in part to refinance then outstanding loans from pacific western ) ; and ( ii ) $ 3.0 million became available to us in may 2016 following the satisfaction of certain conditions , including receipt of positive phase 2 clinical trial results in noninfectious anterior uveitis . in november 2017 , we amended our credit facility such that any term loan we draw is payable as interest only prior to october 2018 and thereafter is payable in monthly installments of principal plus accrued interest over 36 months . each term loan accrues interest from its date of issue at a variable annual interest rate equal to the greater of 2.0 % plus prime or 5.25 % per annum . the annualized interest rate as of december 31 , 2017 was 6.56 % .
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 Suspicious Activity Report : the net proceeds of the offering , including the full exercise of the option , were approximately $ 10.6 million , after deducting the underwriting discounts and commissions and the other estimated offering expenses payable by us . in june 2017 , we entered into a controlled equity offering sm sales agreement ( sales agreement ) with cantor fitzgerald & co. ( cantor ) , as sales agent , pursuant to which we may offer and sell , from time to time through cantor , shares of our common stock , par value $ 0.001 per share , providing for aggregate sales proceeds of up to $ 20,000,000. under the sales agreement , cantor may sell such shares of common stock in sales deemed to be an at the market offering ( atm ) as defined in rule 415 ( a ) ( 4 ) promulgated under the securities act of 1933 , as amended , with us setting the parameters for the sale of shares thereunder , including the number of shares to be issued , the time period during which sales are requested to be made , any limits on the number of shares that may be sold in any one trading day , 63 and any minimum price below which sales may not be made . the sales agreement provides that cantor will be entitled to compensation for its services equal to 3.0 % of the gross proceeds from the sale of shares sold pursuant to the sales agreement . we have no obligation to sell any shares under the sales agreement , and may at any time suspend solicitations and offers under the sales agreement . from january 1 , 2018 through march 29 , 2018 , we sold an aggregate of 527,000 shares of our common stock and received $ 4.1 million after deducting commissions related to the sales agreement . in september 2017 , we closed an underwritten public offering in which we sold an aggregate of 3,967,500 shares of common stock , including 517,500 shares sold in connection with the exercise in full by the underwriters of their option to purchase additional shares . the net proceeds of the offering , including the full exercise of the option , were approximately $ 26.9 million , after deducting underwriting discounts , commissions , and other offering expenses payable by us . we will need to raise additional capital in the form of debt or equity or through partnerships to fund additional development of our product candidates , and we may in-license , acquire , or invest in complementary businesses or products . in addition , as capital resources permit , we may augment or otherwise modify the clinical development plans described herein . research and development expenses we expense all of our research and development expenses as they are incurred . research and development costs that are paid in advance of performance are capitalized as a prepaid expense until incurred . research and development expenses primarily include : non-clinical development , preclinical research , and clinical trial and regulatory-related costs ; expenses incurred under agreements with sites and consultants that conduct our clinical trials ; and employee-related expenses , including salaries , benefits , travel , and stock-based compensation expense . substantially all of our research and development expenses to date have been incurred in connection with reproxalap . we expect our research and development expenses to increase for the foreseeable future as we advance reproxalap and other compounds through preclinical and clinical development . the process of conducting clinical trials necessary to obtain regulatory approval is costly and time consuming . we are unable to estimate with any certainty the costs we will incur in the continued development of reproxalap and our other product candidates . clinical development timelines , the probability of success , and development costs can differ materially from expectations . we may never succeed in achieving marketing approval for our product candidates . the costs of clinical trials may vary significantly over the life of a project owing to , but not limited to , the following : per patient trial costs ; the number of sites included in the trials ; the countries in which the trials are conducted ; the length of time required to enroll eligible patients ; the design of the trials ; the cost of manufacturing the drug ; the number of patients that participate in the trials ; the number of doses that patients receive ; the cost of vehicle or active comparative agents used in trials ; the drop-out or discontinuation rates of patients ; potential additional safety monitoring or other studies requested by regulatory agencies ; the duration of patient follow-up ; and the efficacy and safety profile of the product candidate . 64 we do not expect reproxalap and our other product candidates to be commercially available , if at all , for the next several years . general and administrative expenses general and administrative expenses consist primarily of salaries and related benefits , including stock-based compensation . our general and administrative expenses consisted primarily of payroll expenses for our full-time employees during the years ended december 31 , 2017 and 2016. other general and administrative expenses include professional fees for auditing , tax , and legal services , including patent related costs . we expect that general and administrative expenses will increase in the future as we expand our operating activities , continue to incur additional costs associated with being a publicly-traded company , and maintain compliance with exchange listing and sec requirements . these increases will likely include higher consulting costs , legal fees , accounting fees , directors ' and officers ' liability insurance premiums , and fees associated with investor relations . story_separator_special_tag losses have resulted principally from costs incurred in our clinical trials and other research and development programs , as well as from our general and administrative expenses . research and development expenses . research and development expenses were $ 16.3 million for the year ended december 31 , 2017 compared to $ 13.2 million for the same period in 2016. the increase of $ 3.1 million is primarily related to the increase in our external research and development expenditures , including clinical and manufacturing costs , and a decrease in personnel and preclinical costs . general and administrative expenses . general and administrative expenses were $ 6.2 million for the year ended december 31 , 2017 , compared to $ 5.5 million for the year ended 2016. the increase of approximately $ 0.7 million is primarily related to an increase in personnel , legal , and professional service costs . other income ( expense ) . total other income ( expense ) was approximately $ 148,000 for the year ended december 31 , 2017 compared to $ ( 3,000 ) for the year ended december 31 , 2015 , and consisted of interest income partially offset by interest expense related to our credit facility . story_separator_special_tag the outcome , costs , and timing of seeking and obtaining regulatory approvals from the fda , and any similar regulatory agencies ; the timing and costs associated with manufacturing reproxalap and our other product candidates for clinical trials and other studies and , if approved , for commercial sale ; our need and ability to hire additional management , development , and scientific personnel ; the cost to maintain , expand and defend the scope of our intellectual property portfolio , including the amount and timing of any payments we may be required to make , or that we may receive , in connection with licensing , filing , prosecuting , defending , and enforcing of any patents or other intellectual property rights ; the timing and costs associated with establishing sales and marketing capabilities ; market acceptance of reproxalap and our other product candidates ; the costs of acquiring , licensing , or investing in additional businesses , products , product candidates , and technologies ; and our need to remediate any material weaknesses and implement additional internal systems and infrastructure , including financial and reporting systems . we may need or desire to obtain additional capital to finance our operations through debt , equity , or alternative financing arrangements . we may also seek capital through collaborations or partnerships with other companies . the issuance of debt could require us to grant additional liens on certain of our assets that may limit our flexibility . if we raise additional capital by issuing equity securities , the terms and prices for these financings may be much more favorable to the new investors than the terms obtained by our existing stockholders . these financings also may significantly dilute the ownership of our existing stockholders . if we are unable to obtain additional financing , we may be required to reduce the scope of our future activities , which could harm our business , financial condition , and operating results . there can be no assurance that any additional financing required in the future will be available on acceptable terms , if at all . 71 we will continue to incur costs as a public company including , but not limited to , costs and expenses for directors fees ; increased directors and officers insurance ; investor relations fees ; expenses for compliance with the sarbanes-oxley act of 2002 and rules implemented by the sec and nasdaq , on which our common stock is listed ; and various other costs . the sarbanes-oxley act of 2002 requires that we maintain effective disclosure controls and procedures and internal controls . the following table summarizes our cash flows for the years ended december 31 , 2017 and 2016 : replace_table_token_3_th operating activities . net cash used in operating activities was $ 19.2 million in 2017 , compared to net cash used in operating activities of $ 15.1 million in 2016. the primary use of cash was to fund our operations . the increase in the amount of cash used in operating activities for 2017 as compared to 2016 was due to an increase in research and development expenses , in addition to general and administrative expenses . investing activities . net cash used in investing activities in 2017 were $ 10.2 million , related primarily to the purchase of marketable securities partially offset by sales and maturities of marketable securities , compared to net cash used in investing activities in 2016 of $ 0.2 million , related primarily to the purchase of marketable securities partially offset by sales and maturities of marketable securities . financing activities . net cash provided by financing activities was $ 37.4 million for the year ended december 31 , 2017 , related to our underwritten public offerings , compared to net cash provided by financing activities of $ 12.7 million for year ended 2016 , related to our underwritten public offerings . off-balance sheet arrangements through december 31 , 2017 , we have not entered into and did not have any relationships with unconsolidated entities or financial collaborations , such as entities often referred to as structured finance or special purpose entities , which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purpose . contractual obligations and commitments in september 2017 , we executed a lease agreement ( the office lease ) , which was amended in november 2017. the amended lease as of december 31 , 2017 , consisted of approximately 9,351 square feet of office space of office space located in lexington , massachusetts ( the premises ) . we intend to use the premises as our corporate headquarters . the term of the office lease is through december

