we intend to file an investigational new drug application with the fda and thereafter commence phase 1 development in 2017 , subject to the availability of additional funding . cerc-406 is our lead preclinical candidate from our proprietary platform of compounds that inhibit catechol-o-methyltransferase , or comt , within the brain , which we refer to as our comti platform . we intend to develop cerc‑406 for the treatment of residual cognitive impairment symptoms in patients with mdd , subject to the availability of additional funding . further development of our product candidates will not be possible unless we secure additional funding . our strategy is to seek funding for our operations from further offerings of equity and debt securities , non-dilutive financing arrangements such as federal grants , collaboration agreements or out-licensing arrangements , and to explore strategic alternatives such as an acquisition , merger , or business combination . however , we may be unable to raise additional funds or enter into such other agreements or transactions on favorable terms , or at all . if we fail to raise capital or enter into such other arrangements or 73 transactions in the short term , we will have to significantly delay , scale back or discontinue the development and or commercialization of one or more of our product candidates or cease our operations altogether . we were incorporated in delaware in 2011 and commenced operations in the second quarter of 2011. since inception , our operations have included organizing and staffing our company , business planning , raising capital and developing our product candidates . we have no products approved for commercial sale and have not generated any revenue from product sales to date , and we continue to incur significant research , development and other expenses related to our ongoing operations . we have incurred losses in each period since our inception . as of december 31 , 2016 , we had an accumulated deficit of $ 70.0 million . we expect to incur significant expenses and operating losses for the foreseeable future as we continue the development and clinical trials of , and seek marketing approval for , our product candidates . our recurring losses and negative cash flows from operations raise substantial doubt about our ability to continue as a going concern within one year of the date that our financial statements were issued , and our ability to continue as a going concern will require us to obtain additional financing to fund our operations . we have financed our operations primarily through a public offering , private placements of our common stock and convertible preferred stock , and the issuance of debt . our ability to become and remain profitable depends on our ability to generate product revenue . we do not expect to generate any product revenue unless , and until , we obtain marketing approval for , and commercialize , any of our product candidates . there can be no assurance as to whether or when we will achieve profitability . recent developments the aspire capital transaction on september 8 , 2016 , we entered into a common stock purchase agreement , or the purchase agreement , with aspire capital fund , llc , or aspire capital , pursuant to which aspire capital committed to purchase up to an aggregate of $ 15.0 million of shares of our common stock over the 30 -month term of the purchase agreement . upon execution of the purchase agreement , we issued and sold to aspire capital 250,000 shares of common stock at a price per share of $ 4.00 , for gross proceeds of $ 1.0 million . additionally , as consideration for aspire capital entering into the purchase agreement , we issued 175,000 shares of common stock as a commitment fee . the net proceeds of the aspire capital transaction , after offering expenses , were approximately $ 1.9 million for the year ended december 31 , 2016. as of december 31 , 2016 , we had sold 763,998 shares of common stock to aspire capital . subsequent to december 31 , 2016 , we sold an additional 965,165 shares of common stock to aspire capital under the terms of the purchase agreement for gross proceeds of approximately $ 789,000 . as of the date of this annual report on form 10-k , we may not issue additional shares of common stock to aspire capital under the purchase agreement unless shareholder approval to issue additional shares is obtained . the maxim group equity distribution agreement on january 27 , 2017 , we entered into an equity distribution agreement , or the equity distribution agreement , with maxim group llc , or maxim , as sales agent , pursuant to which we may offer and sell shares of our common stock through maxim from time to time . we have no obligation to sell any of the shares , and may at any time suspend offers under the equity distribution agreement . as of the date of this filing , we had sold 345,653 shares of our common stock through maxim under the equity distribution agreement for gross proceeds of $ 287,000. immediat ely after we file this annual report on form 10-k we expect that the amount of additional securities we will be able to sell under the registration statement on form s-3 will be approxima tely $ 3.3 million . engagement of suntrust robinson humphrey to assist with review of strategic alternatives on february 7 , 2017 , we announced the engagement of suntrust robinson humphrey , inc. , or suntrust , as our exclusive financial advisor to assist with our ongoing process to explore and review a range of strategic alternatives focused on maximizing stockholder value . potential strategic alternatives that may be explored or evaluated as part of this process include an acquisition , merger , business combination or other strategic transaction . story_separator_special_tag in the absence of a public trading market for our common stock prior to our initial public offering , our board of directors determined the fair market value of our common stock at various dates , with input from management , considering our most recently available third‑party valuations of common stock and its assessment of additional objective and subjective factors that it believed were relevant and which may have changed from the date of the most recent valuation through the date of the grant . in valuing our common stock prior to our initial public offering , the board of directors determined the equity value of our business by considering a number of valuation approaches and allocation methodologies . valuation techniques considered included the current value method , the probability‑weighted expected return method , or pwerm , the option pricing method , or opm , and the hybrid method . given the range of possible financing and exit events that existed at the time we completed our valuations , which was prior to our initial public offering , we concluded the pwerm to be the most appropriate for purposes of valuing our common stock given our expected time to a liquidity event , subjectivity with regards to estimating possible proceeds from a future liquidation event and subjectivity with regards to the ability to estimate the probability of an ipo , sale or other financing events . the pwerm explicitly considered the various terms of our investor related documents , including various rights of each class of our stock , at the date of the liquidity event when those rights would either be executed or abandoned . under the pwerm , the value of each class of our stock was estimated using a probability‑weighted analysis of the present value of the returns afforded to our stockholders under each of the possible future exit scenarios . the scenarios included within the pwerm analysis included ipos , a sale transaction , remaining private and dissolution . discrete future outcomes considered under the pwerm included non‑ipo market based outcomes as well as ipo scenarios . in the non‑ipo scenarios , a large portion of the equity value was allocated to the preferred stock to incorporate higher aggregate liquidation preferences . in the ipo scenarios , the equity value was allocated pro rata among the shares of common stock and each series of preferred stock , which caused the common stock to have a higher relative value per share than under the non‑ipo scenario . the fair value of the enterprise determined using the ipo and non‑ipo scenarios was 78 weighted according to the board of directors ' estimate of the probability of each scenario at the time the valuation was completed . we have periodically determined the fair market value of our common stock at various dates using contemporaneous valuations performed in accordance with the guidance outlined in the american institute of certified public accountants ' accounting and valuation guide , valuation of privately‑held‑company equity securities issued as compensation . our common stock valuations were performed using a hybrid method , which used market approaches to determine our enterprise value . the hybrid method is a probability‑weighted expected return method where the equity value in one or more of the scenarios is calculated using an option‑pricing method . we selected the method based on availability and the quality of information to develop the assumptions for the methodology . we performed these contemporaneous valuations , with the assistance of a third‑party valuation specialist , as of july 11 , 2014 , december 31 , 2014 , march 31 , 2015 , june 30 , 2015 and september 30 , 2015. in addition , our board of directors considered various objective and subjective factors , along with input from management , to determine the fair market value of our common stock as of each grant date , including the following : prices at which we sold shares of our preferred stock and the superior rights and preferences of our preferred stock relative to our common stock ; the progress of our research and development programs , including the status of non‑clinical studies and clinical trials for our product candidates ; our stage of development and commercialization and our business strategy ; our financial condition , including cash on hand ; our historical and forecasted performance and operating results ; the composition of , and changes to , our management team and board of directors ; the lack of an active public market for our common stock and our preferred stock ; the likelihood of achieving a liquidity event , such as a sale of our company or an initial public offering , or ipo , given prevailing market conditions ; the analysis of ipos and the market performance of similar companies in the biopharmaceutical industry ; external market conditions affecting the biopharmaceutical industry ; and trends within the biopharmaceutical industry . the assumptions underlying these valuations represent management 's determinations , which involve inherent uncertainties and the application of management judgment . as a result , if factors or expected outcomes change and we use significantly different assumptions or estimates , our equity‑based compensation could be materially different . the following table summarizes by grant date the number of shares subject to options granted since january 1 , 2014 , the per share exercise price of the options , the fair market value of common stock underlying the options on date of grant and the per share fair value of the options : 79 replace_table_token_5_th results of operations comparison of the years ended december 31 , 2016 and 2015 grant revenue the following table summarizes our grant revenue for the years ended december 31 , 2016 and 2015 : year ended december 31 , 2016 2015 ( in thousands ) grant revenue $ 1,153 $ — grant revenue was $ 1.2 million for the year ended december 31 , 2016 and was comprised of revenue from

liquidity and capital resources we have devoted most of our cash resources to research and development and general and administrative activities . since our inception , we have incurred net losses and negative cash flows from our operations . we expect to incur significant expenses and operating losses for the foreseeable future as we continue the development and clinical trials of , and seek marketing approval for , our product candidates . we incurred net losses of $ 16.5 million , $ 10.5 million and $ 16.1 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . at december 31 , 2016 , we had an accumulated deficit of $ 70.0 million , net working capital of $ 1.4 million and cash and cash equivalents of $ 5.1 million . to date , we have not generated any revenues from the sale of products and we do not anticipate generating any revenues from the sale of our product candidates for the foreseeable future . historically , we have financed our operations principally through private placements of common and convertible preferred stock , convertible and nonconvertible debt , as well as our ipo in october 2015. we will require substantial additional financing to fund our operations beyond the short term and to continue to execute our strategy . further development of our product candidates will not be possible unless we secure additional funding . our strategy is to seek funding for our operations from further offerings of equity or debt securities , non-dilutive financing arrangements such as federal grants , collaboration agreements or out-licensing arrangements , and to explore strategic alternatives such as an acquisition , merger , or business combination . based on our current research and development plans we 83 expect that our existing cash and cash equivalents will enable us to fund our operating expenses and capital expenditure requirements well into the second quarter of 2017.


 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 devoted most of our cash resources to research and development and general and administrative activities . since our inception , we have incurred net losses and negative cash flows from our operations . we expect to incur significant expenses and operating losses for the foreseeable future as we continue the development and clinical trials of , and seek marketing approval for , our product candidates . we incurred net losses of $ 16.5 million , $ 10.5 million and $ 16.1 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . at december 31 , 2016 , we had an accumulated deficit of $ 70.0 million , net working capital of $ 1.4 million and cash and cash equivalents of $ 5.1 million . to date , we have not generated any revenues from the sale of products and we do not anticipate generating any revenues from the sale of our product candidates for the foreseeable future . historically , we have financed our operations principally through private placements of common and convertible preferred stock , convertible and nonconvertible debt , as well as our ipo in october 2015. we will require substantial additional financing to fund our operations beyond the short term and to continue to execute our strategy . further development of our product candidates will not be possible unless we secure additional funding . our strategy is to seek funding for our operations from further offerings of equity or debt securities , non-dilutive financing arrangements such as federal grants , collaboration agreements or out-licensing arrangements , and to explore strategic alternatives such as an acquisition , merger , or business combination . based on our current research and development plans we 83 expect that our existing cash and cash equivalents will enable us to fund our operating expenses and capital expenditure requirements well into the second quarter of 2017.
```    
 Suspicious Activity Report : we intend to file an investigational new drug application with the fda and thereafter commence phase 1 development in 2017 , subject to the availability of additional funding . cerc-406 is our lead preclinical candidate from our proprietary platform of compounds that inhibit catechol-o-methyltransferase , or comt , within the brain , which we refer to as our comti platform . we intend to develop cerc‑406 for the treatment of residual cognitive impairment symptoms in patients with mdd , subject to the availability of additional funding . further development of our product candidates will not be possible unless we secure additional funding . our strategy is to seek funding for our operations from further offerings of equity and debt securities , non-dilutive financing arrangements such as federal grants , collaboration agreements or out-licensing arrangements , and to explore strategic alternatives such as an acquisition , merger , or business combination . however , we may be unable to raise additional funds or enter into such other agreements or transactions on favorable terms , or at all . if we fail to raise capital or enter into such other arrangements or 73 transactions in the short term , we will have to significantly delay , scale back or discontinue the development and or commercialization of one or more of our product candidates or cease our operations altogether . we were incorporated in delaware in 2011 and commenced operations in the second quarter of 2011. since inception , our operations have included organizing and staffing our company , business planning , raising capital and developing our product candidates . we have no products approved for commercial sale and have not generated any revenue from product sales to date , and we continue to incur significant research , development and other expenses related to our ongoing operations . we have incurred losses in each period since our inception . as of december 31 , 2016 , we had an accumulated deficit of $ 70.0 million . we expect to incur significant expenses and operating losses for the foreseeable future as we continue the development and clinical trials of , and seek marketing approval for , our product candidates . our recurring losses and negative cash flows from operations raise substantial doubt about our ability to continue as a going concern within one year of the date that our financial statements were issued , and our ability to continue as a going concern will require us to obtain additional financing to fund our operations . we have financed our operations primarily through a public offering , private placements of our common stock and convertible preferred stock , and the issuance of debt . our ability to become and remain profitable depends on our ability to generate product revenue . we do not expect to generate any product revenue unless , and until , we obtain marketing approval for , and commercialize , any of our product candidates . there can be no assurance as to whether or when we will achieve profitability . recent developments the aspire capital transaction on september 8 , 2016 , we entered into a common stock purchase agreement , or the purchase agreement , with aspire capital fund , llc , or aspire capital , pursuant to which aspire capital committed to purchase up to an aggregate of $ 15.0 million of shares of our common stock over the 30 -month term of the purchase agreement . upon execution of the purchase agreement , we issued and sold to aspire capital 250,000 shares of common stock at a price per share of $ 4.00 , for gross proceeds of $ 1.0 million . additionally , as consideration for aspire capital entering into the purchase agreement , we issued 175,000 shares of common stock as a commitment fee . the net proceeds of the aspire capital transaction , after offering expenses , were approximately $ 1.9 million for the year ended december 31 , 2016. as of december 31 , 2016 , we had sold 763,998 shares of common stock to aspire capital . subsequent to december 31 , 2016 , we sold an additional 965,165 shares of common stock to aspire capital under the terms of the purchase agreement for gross proceeds of approximately $ 789,000 . as of the date of this annual report on form 10-k , we may not issue additional shares of common stock to aspire capital under the purchase agreement unless shareholder approval to issue additional shares is obtained . the maxim group equity distribution agreement on january 27 , 2017 , we entered into an equity distribution agreement , or the equity distribution agreement , with maxim group llc , or maxim , as sales agent , pursuant to which we may offer and sell shares of our common stock through maxim from time to time . we have no obligation to sell any of the shares , and may at any time suspend offers under the equity distribution agreement . as of the date of this filing , we had sold 345,653 shares of our common stock through maxim under the equity distribution agreement for gross proceeds of $ 287,000. immediat ely after we file this annual report on form 10-k we expect that the amount of additional securities we will be able to sell under the registration statement on form s-3 will be approxima tely $ 3.3 million . engagement of suntrust robinson humphrey to assist with review of strategic alternatives on february 7 , 2017 , we announced the engagement of suntrust robinson humphrey , inc. , or suntrust , as our exclusive financial advisor to assist with our ongoing process to explore and review a range of strategic alternatives focused on maximizing stockholder value . potential strategic alternatives that may be explored or evaluated as part of this process include an acquisition , merger , business combination or other strategic transaction . story_separator_special_tag in the absence of a public trading market for our common stock prior to our initial public offering , our board of directors determined the fair market value of our common stock at various dates , with input from management , considering our most recently available third‑party valuations of common stock and its assessment of additional objective and subjective factors that it believed were relevant and which may have changed from the date of the most recent valuation through the date of the grant . in valuing our common stock prior to our initial public offering , the board of directors determined the equity value of our business by considering a number of valuation approaches and allocation methodologies . valuation techniques considered included the current value method , the probability‑weighted expected return method , or pwerm , the option pricing method , or opm , and the hybrid method . given the range of possible financing and exit events that existed at the time we completed our valuations , which was prior to our initial public offering , we concluded the pwerm to be the most appropriate for purposes of valuing our common stock given our expected time to a liquidity event , subjectivity with regards to estimating possible proceeds from a future liquidation event and subjectivity with regards to the ability to estimate the probability of an ipo , sale or other financing events . the pwerm explicitly considered the various terms of our investor related documents , including various rights of each class of our stock , at the date of the liquidity event when those rights would either be executed or abandoned . under the pwerm , the value of each class of our stock was estimated using a probability‑weighted analysis of the present value of the returns afforded to our stockholders under each of the possible future exit scenarios . the scenarios included within the pwerm analysis included ipos , a sale transaction , remaining private and dissolution . discrete future outcomes considered under the pwerm included non‑ipo market based outcomes as well as ipo scenarios . in the non‑ipo scenarios , a large portion of the equity value was allocated to the preferred stock to incorporate higher aggregate liquidation preferences . in the ipo scenarios , the equity value was allocated pro rata among the shares of common stock and each series of preferred stock , which caused the common stock to have a higher relative value per share than under the non‑ipo scenario . the fair value of the enterprise determined using the ipo and non‑ipo scenarios was 78 weighted according to the board of directors ' estimate of the probability of each scenario at the time the valuation was completed . we have periodically determined the fair market value of our common stock at various dates using contemporaneous valuations performed in accordance with the guidance outlined in the american institute of certified public accountants ' accounting and valuation guide , valuation of privately‑held‑company equity securities issued as compensation . our common stock valuations were performed using a hybrid method , which used market approaches to determine our enterprise value . the hybrid method is a probability‑weighted expected return method where the equity value in one or more of the scenarios is calculated using an option‑pricing method . we selected the method based on availability and the quality of information to develop the assumptions for the methodology . we performed these contemporaneous valuations , with the assistance of a third‑party valuation specialist , as of july 11 , 2014 , december 31 , 2014 , march 31 , 2015 , june 30 , 2015 and september 30 , 2015. in addition , our board of directors considered various objective and subjective factors , along with input from management , to determine the fair market value of our common stock as of each grant date , including the following : prices at which we sold shares of our preferred stock and the superior rights and preferences of our preferred stock relative to our common stock ; the progress of our research and development programs , including the status of non‑clinical studies and clinical trials for our product candidates ; our stage of development and commercialization and our business strategy ; our financial condition , including cash on hand ; our historical and forecasted performance and operating results ; the composition of , and changes to , our management team and board of directors ; the lack of an active public market for our common stock and our preferred stock ; the likelihood of achieving a liquidity event , such as a sale of our company or an initial public offering , or ipo , given prevailing market conditions ; the analysis of ipos and the market performance of similar companies in the biopharmaceutical industry ; external market conditions affecting the biopharmaceutical industry ; and trends within the biopharmaceutical industry . the assumptions underlying these valuations represent management 's determinations , which involve inherent uncertainties and the application of management judgment . as a result , if factors or expected outcomes change and we use significantly different assumptions or estimates , our equity‑based compensation could be materially different . the following table summarizes by grant date the number of shares subject to options granted since january 1 , 2014 , the per share exercise price of the options , the fair market value of common stock underlying the options on date of grant and the per share fair value of the options : 79 replace_table_token_5_th results of operations comparison of the years ended december 31 , 2016 and 2015 grant revenue the following table summarizes our grant revenue for the years ended december 31 , 2016 and 2015 : year ended december 31 , 2016 2015 ( in thousands ) grant revenue $ 1,153 $ — grant revenue was $ 1.2 million for the year ended december 31 , 2016 and was comprised of revenue from

