our preclinical antibody development program comprises an antibody against the ion channel kv1.3 , which is an important molecule in regulating t-cell activation in a number of autoimmune diseases . we have performed experiments showing that this antibody potently blocks activation of human t-cells in vitro . future development efforts will include a phase i clinical trial . consistent with our commercialization strategy , we may license our technology as the opportunities may arise , that may result in additional license fees , revenues from contract research and other related revenues . successful future operations will depend on our and our partners ' ability to transform our research and development activities into a commercially feasible technology . on may 31 , 2017 , we entered into an agreement , or the agreement , which was amended on august 1 , 2017 , with sevion acquisition co. ltd. , an israeli company and our wholly-owned subsidiary , or acquisition subsidiary , and eloxx pharmaceuticals ltd. , an israeli company , or eloxx , pursuant to which eloxx will merge with and into acquisition subsidiary , with eloxx surviving as our wholly-owned subsidiary . we refer to the transaction with eloxx herein as the “ transaction . ” consummation of the transaction is subject to certain closing conditions , including , among other things : ( i ) approval of the transaction by the stockholders of eloxx ; and ( ii ) the successful consummation of separate equity financings resulting in cash investments in our business and eloxx of no less than $ 12,000,000 each , or the financing covenant . pursuant to the agreement , the transaction must close , if it closes , on or prior to december 31 , 2017 , and we will not be entitled to receive any portion of the money that we ultimately raise in fulfillment of our financing covenant unless the transaction closes . 27 on july 28 , 2017 , we received gross proceeds of $ 1,500,000 from opko health , inc. , or opko , one of our existing shareholders , pursuant to a subscription agreement , which we refer to as the subscription agreement , by and among us , eloxx , opko and certain other subscribers that we entered into in connection with the transaction . the funds we received from opko satisfied a portion of our financing covenant . if the transaction does not close , we will not be entitled to keep any portion of the money that we ultimately raise in fulfillment of our financing covenant , with the exception of the $ 1.5 million in gross proceeds we received from opko , which is not conditioned upon closing of the transaction . accordingly , if we do not complete the transaction and are unable to raise additional funds ( apart from any funds we raise in satisfaction of our financing covenant , which funds are conditioned upon closing of the transaction ) , we do not believe that we will have enough cash to continue as a going concern past december 31 , 2017. however , we believe we currently have enough cash to fund operations through december 31 , 2017. critical accounting policies and estimates revenue recognition we record revenue under technology license and development agreements related to the following . actual fees received may vary from the recorded estimated revenues . · nonrefundable upfront license fees that are received in exchange for the transfer of our technology to licensees , for which no further obligations to the licensee exist with respect to the basic technology transferred , are recognized as revenue on the earlier of when payments are received or collections are assured . · nonrefundable upfront license fees that are received in connection with agreements that include time-based payments are , together with the time-based payments , deferred and amortized ratably over the estimated research period of the license . · milestone payments , which are contingent upon the achievement of certain research goals , are recognized as revenue when the milestones , as defined in the particular agreement , are achieved . · direct and indirect costs reimbursed are offset against r & d costs . the effect of any change in revenues from technology license and development agreements would be reflected in revenues in the period such determination was made . historically , no such adjustments have been made . estimates of expenses our research and development agreements with third parties provide for an estimate of our expenses and costs , which are variable and are based on the actual services performed by the third party . we estimate the aggregate amount of the expenses based upon the projected amounts that are set forth in the agreements , and we accrue the expenses for which we have not yet been invoiced or prepay the expenses that have been invoiced but the services have not yet been performed . in estimating the expenses , we consider , among other things , the following factors : · the existence of any prior relationship between us and the third party provider ; · the past results of prior research and development services performed by the third party provider ; and 28 · the scope and timing of the research and development services set forth in the agreement with the third party provider . after the research services are performed and we are invoiced , we make any adjustments that are necessary to accurately report research and development expense for the period . story_separator_special_tag the company recognized an impairment charge of $ 5,780,951 , the balance of the remaining goodwill , for the fiscal year ended june 30 , 2016. impairment of acquired r & d during the fiscal year ended june 30 , 2017 and 2016 , we reviewed acquired r & d for impairment and determined that impairment had occurred as a result of the decrease in the market value of the company for the fiscal years ended june 30 , 2017 and 2016 resulting in the company recognizing an impairment charge of $ 2,600,000 and $ 1,700,000 , respectively . impairment and write-off of patents abandoned during the fiscal year ended june 30 , 2015 , we reviewed our patent portfolio and determined that our agricultural patents were impaired . we also identified several patents and patents pending that we believe we no longer need to maintain without having a material impact on the portfolio . therefore , we wrote-off the net book value of those patents and patents pending in the amount of $ 2,290,836 during fiscal year 2015 . 36 fiscal year ended june 30 , 2016 revenue during the fiscal year ended june 30 , 2016 , revenue in the amount of $ 75,000 represented the amortization of deferred revenue for a collaboration and option agreement . operating expenses replace_table_token_5_th general and administrative expenses general and administrative expenses consist of the following : replace_table_token_6_th · payroll and benefits for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 as a result of onetime severance payments previously paid to employees terminated in connection with the closing of our new jersey office in november 2014 . · professional fees for the fiscal year ended june 30 , 2016 was higher than for the fiscal year ended june 30 , 2015 as a result of an increase in accounting costs associated with additional bookkeeping , consulting and auditing fees related to our financing efforts in june and july of 2015 . · 37 · stock-based compensation for the fiscal years ended june 30 , 2016 and june 30 , 2015 consisted of the amortized portion of the black-scholes value of options and warrants granted to directors , employees and consultants . during the fiscal years ended june 30 , 2016 and 2015 , 485,682 and 1,203,676 options , respectively , were granted to such individuals . in addition , during the fiscal years ended june 30 , 2016 and 2015 , 195,363 and 556,061 options , respectively , expired or were forfeited . stock-based compensation for the fiscal year ended june 30 , 2016 was lower than the fiscal year ended june 30 , 2015 primarily due to fewer options issued during the fiscal year ended june 30 , 2016 . · · delaware franchise tax decreased for the fiscal year ended june 30 , 2016 from the fiscal year ended june 30 , 2015 as a result of an increase in the computed tax calculation resulting from the reverse stock split and acquisition of fabrus , inc. in may 2014 . · · investor relations fees for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 as a result of reduced investor relations activity and spending . · · consulting fees for the fiscal year ended june 30 , 2016 were higher than for the fiscal year ended june 30 , 2015 primarily due to our treatment of our ceo as a consultant , as compared to the prior year when our ceo was paid as an employee for the majority of the period . · other general and administrative expenses for the fiscal year ended june 30 , 2016 were lower than for the fiscal year ended june 30 , 2015 due to reduction in employees and reduced operating activity . research and development expenses replace_table_token_7_th 38 · payroll for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 primarily as a result of the closure of the new jersey office in november 2014 and subsequent attrition . · · patent costs for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 primarily as a result of discontinuing patent prosecution services for certain of our patents . · · facility rent for the fiscal year ended june 30 , 2016 was higher than for the fiscal year ended june 30 , 2015 due to relocation of our principal offices to san diego , california in october 2014 . · · depreciation for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 due to certain assets becoming fully depreciated . · · stock-based compensation for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 primarily due to fewer options issued during the fiscal year ended june 30 , 2016 combined with the cancellation of options for terminated employees . · · other research and development costs for the fiscal year ended june 30 , 2016 were lower than for the fiscal year ended june 30 , 2015 primarily due to the discontinuation of our clinical programs in 2014 and a reduction in research and development efforts . · · during the fiscal year ended june 30 , 2015 , the phase 1b/2a clinical trial was concluded . the program was subsequently abandoned and all associated costs were written off , including research supplies . no costs associated with the trial were incurred in the fiscal year ended june 30 , 2016 . · · our research contract with the university of waterloo was suspended in 2014 and therefore no costs related to the agreement were incurred in the fiscal year ended june 30 ,

capital resources we did not generate any revenue during the fiscal year ended june 30 , 2017 .. we have not been profitable since inception , we will continue to incur additional operating losses in the future , and we will require additional financing to continue the development and subsequent commercialization of our technology . while we do not expect to generate significant revenues from the licensing of our technology for several years , we may enter into additional licensing or other agreements with marketing and distribution partners that may result in additional license fees , receive revenues from contract research , or other related revenue . financing during the year ended june 30 , 2017 , we received aggregate net proceeds of $ 1,100,000 from the issuance of convertible promissory notes . contractual obligations our contractual obligations as of june 30 , 2017 consist of our month to month facility lease in the amount of $ 3,000 per month : 32 we expect our capital requirements to increase significantly over the next several years as we commence new research and development efforts , increase our business and administrative infrastructure and embark on developing in-house business capabilities and facilities . our future liquidity and capital funding requirements will depend on numerous factors , including , but not limited to , the levels and costs of our research and development initiatives and the cost and timing of the expansion of our business development and administrative staff . we anticipate that , based upon our current cash balance at june 30 , 2017 and the $ 1,500,000 financing we received from opko in partial satisfaction of our financial covenant , which is not subject to closing of the transaction , we will be able to fund our operations through december 31 , 2017. over the next 12 months , in order to fund our research and development we will need to do one or more of the following : · raise capital through the placement of equity or debt instruments · complete the transaction , or · raise capital through the execution of additional licensing agreements for our technology .


 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.
     ```capital resources we did not generate any revenue during the fiscal year ended june 30 , 2017 .. we have not been profitable since inception , we will continue to incur additional operating losses in the future , and we will require additional financing to continue the development and subsequent commercialization of our technology . while we do not expect to generate significant revenues from the licensing of our technology for several years , we may enter into additional licensing or other agreements with marketing and distribution partners that may result in additional license fees , receive revenues from contract research , or other related revenue . financing during the year ended june 30 , 2017 , we received aggregate net proceeds of $ 1,100,000 from the issuance of convertible promissory notes . contractual obligations our contractual obligations as of june 30 , 2017 consist of our month to month facility lease in the amount of $ 3,000 per month : 32 we expect our capital requirements to increase significantly over the next several years as we commence new research and development efforts , increase our business and administrative infrastructure and embark on developing in-house business capabilities and facilities . our future liquidity and capital funding requirements will depend on numerous factors , including , but not limited to , the levels and costs of our research and development initiatives and the cost and timing of the expansion of our business development and administrative staff . we anticipate that , based upon our current cash balance at june 30 , 2017 and the $ 1,500,000 financing we received from opko in partial satisfaction of our financial covenant , which is not subject to closing of the transaction , we will be able to fund our operations through december 31 , 2017. over the next 12 months , in order to fund our research and development we will need to do one or more of the following : · raise capital through the placement of equity or debt instruments · complete the transaction , or · raise capital through the execution of additional licensing agreements for our technology .
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 Suspicious Activity Report : our preclinical antibody development program comprises an antibody against the ion channel kv1.3 , which is an important molecule in regulating t-cell activation in a number of autoimmune diseases . we have performed experiments showing that this antibody potently blocks activation of human t-cells in vitro . future development efforts will include a phase i clinical trial . consistent with our commercialization strategy , we may license our technology as the opportunities may arise , that may result in additional license fees , revenues from contract research and other related revenues . successful future operations will depend on our and our partners ' ability to transform our research and development activities into a commercially feasible technology . on may 31 , 2017 , we entered into an agreement , or the agreement , which was amended on august 1 , 2017 , with sevion acquisition co. ltd. , an israeli company and our wholly-owned subsidiary , or acquisition subsidiary , and eloxx pharmaceuticals ltd. , an israeli company , or eloxx , pursuant to which eloxx will merge with and into acquisition subsidiary , with eloxx surviving as our wholly-owned subsidiary . we refer to the transaction with eloxx herein as the “ transaction . ” consummation of the transaction is subject to certain closing conditions , including , among other things : ( i ) approval of the transaction by the stockholders of eloxx ; and ( ii ) the successful consummation of separate equity financings resulting in cash investments in our business and eloxx of no less than $ 12,000,000 each , or the financing covenant . pursuant to the agreement , the transaction must close , if it closes , on or prior to december 31 , 2017 , and we will not be entitled to receive any portion of the money that we ultimately raise in fulfillment of our financing covenant unless the transaction closes . 27 on july 28 , 2017 , we received gross proceeds of $ 1,500,000 from opko health , inc. , or opko , one of our existing shareholders , pursuant to a subscription agreement , which we refer to as the subscription agreement , by and among us , eloxx , opko and certain other subscribers that we entered into in connection with the transaction . the funds we received from opko satisfied a portion of our financing covenant . if the transaction does not close , we will not be entitled to keep any portion of the money that we ultimately raise in fulfillment of our financing covenant , with the exception of the $ 1.5 million in gross proceeds we received from opko , which is not conditioned upon closing of the transaction . accordingly , if we do not complete the transaction and are unable to raise additional funds ( apart from any funds we raise in satisfaction of our financing covenant , which funds are conditioned upon closing of the transaction ) , we do not believe that we will have enough cash to continue as a going concern past december 31 , 2017. however , we believe we currently have enough cash to fund operations through december 31 , 2017. critical accounting policies and estimates revenue recognition we record revenue under technology license and development agreements related to the following . actual fees received may vary from the recorded estimated revenues . · nonrefundable upfront license fees that are received in exchange for the transfer of our technology to licensees , for which no further obligations to the licensee exist with respect to the basic technology transferred , are recognized as revenue on the earlier of when payments are received or collections are assured . · nonrefundable upfront license fees that are received in connection with agreements that include time-based payments are , together with the time-based payments , deferred and amortized ratably over the estimated research period of the license . · milestone payments , which are contingent upon the achievement of certain research goals , are recognized as revenue when the milestones , as defined in the particular agreement , are achieved . · direct and indirect costs reimbursed are offset against r & d costs . the effect of any change in revenues from technology license and development agreements would be reflected in revenues in the period such determination was made . historically , no such adjustments have been made . estimates of expenses our research and development agreements with third parties provide for an estimate of our expenses and costs , which are variable and are based on the actual services performed by the third party . we estimate the aggregate amount of the expenses based upon the projected amounts that are set forth in the agreements , and we accrue the expenses for which we have not yet been invoiced or prepay the expenses that have been invoiced but the services have not yet been performed . in estimating the expenses , we consider , among other things , the following factors : · the existence of any prior relationship between us and the third party provider ; · the past results of prior research and development services performed by the third party provider ; and 28 · the scope and timing of the research and development services set forth in the agreement with the third party provider . after the research services are performed and we are invoiced , we make any adjustments that are necessary to accurately report research and development expense for the period . story_separator_special_tag the company recognized an impairment charge of $ 5,780,951 , the balance of the remaining goodwill , for the fiscal year ended june 30 , 2016. impairment of acquired r & d during the fiscal year ended june 30 , 2017 and 2016 , we reviewed acquired r & d for impairment and determined that impairment had occurred as a result of the decrease in the market value of the company for the fiscal years ended june 30 , 2017 and 2016 resulting in the company recognizing an impairment charge of $ 2,600,000 and $ 1,700,000 , respectively . impairment and write-off of patents abandoned during the fiscal year ended june 30 , 2015 , we reviewed our patent portfolio and determined that our agricultural patents were impaired . we also identified several patents and patents pending that we believe we no longer need to maintain without having a material impact on the portfolio . therefore , we wrote-off the net book value of those patents and patents pending in the amount of $ 2,290,836 during fiscal year 2015 . 36 fiscal year ended june 30 , 2016 revenue during the fiscal year ended june 30 , 2016 , revenue in the amount of $ 75,000 represented the amortization of deferred revenue for a collaboration and option agreement . operating expenses replace_table_token_5_th general and administrative expenses general and administrative expenses consist of the following : replace_table_token_6_th · payroll and benefits for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 as a result of onetime severance payments previously paid to employees terminated in connection with the closing of our new jersey office in november 2014 . · professional fees for the fiscal year ended june 30 , 2016 was higher than for the fiscal year ended june 30 , 2015 as a result of an increase in accounting costs associated with additional bookkeeping , consulting and auditing fees related to our financing efforts in june and july of 2015 . · 37 · stock-based compensation for the fiscal years ended june 30 , 2016 and june 30 , 2015 consisted of the amortized portion of the black-scholes value of options and warrants granted to directors , employees and consultants . during the fiscal years ended june 30 , 2016 and 2015 , 485,682 and 1,203,676 options , respectively , were granted to such individuals . in addition , during the fiscal years ended june 30 , 2016 and 2015 , 195,363 and 556,061 options , respectively , expired or were forfeited . stock-based compensation for the fiscal year ended june 30 , 2016 was lower than the fiscal year ended june 30 , 2015 primarily due to fewer options issued during the fiscal year ended june 30 , 2016 . · · delaware franchise tax decreased for the fiscal year ended june 30 , 2016 from the fiscal year ended june 30 , 2015 as a result of an increase in the computed tax calculation resulting from the reverse stock split and acquisition of fabrus , inc. in may 2014 . · · investor relations fees for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 as a result of reduced investor relations activity and spending . · · consulting fees for the fiscal year ended june 30 , 2016 were higher than for the fiscal year ended june 30 , 2015 primarily due to our treatment of our ceo as a consultant , as compared to the prior year when our ceo was paid as an employee for the majority of the period . · other general and administrative expenses for the fiscal year ended june 30 , 2016 were lower than for the fiscal year ended june 30 , 2015 due to reduction in employees and reduced operating activity . research and development expenses replace_table_token_7_th 38 · payroll for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 primarily as a result of the closure of the new jersey office in november 2014 and subsequent attrition . · · patent costs for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 primarily as a result of discontinuing patent prosecution services for certain of our patents . · · facility rent for the fiscal year ended june 30 , 2016 was higher than for the fiscal year ended june 30 , 2015 due to relocation of our principal offices to san diego , california in october 2014 . · · depreciation for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 due to certain assets becoming fully depreciated . · · stock-based compensation for the fiscal year ended june 30 , 2016 was lower than for the fiscal year ended june 30 , 2015 primarily due to fewer options issued during the fiscal year ended june 30 , 2016 combined with the cancellation of options for terminated employees . · · other research and development costs for the fiscal year ended june 30 , 2016 were lower than for the fiscal year ended june 30 , 2015 primarily due to the discontinuation of our clinical programs in 2014 and a reduction in research and development efforts . · · during the fiscal year ended june 30 , 2015 , the phase 1b/2a clinical trial was concluded . the program was subsequently abandoned and all associated costs were written off , including research supplies . no costs associated with the trial were incurred in the fiscal year ended june 30 , 2016 . · · our research contract with the university of waterloo was suspended in 2014 and therefore no costs related to the agreement were incurred in the fiscal year ended june 30 ,

