resunab stimulates the production of specialized pro-resolving lipid mediators , or spms , which act to resolve inflammation , clear bacteria and halt fibrosis by activating endogenous pathways . these endogenous resolution pathways are normally activated in healthy individuals during the course of normal immune responses but are dysfunctional in chronic inflammatory and fibrotic diseases . through its ' activation of the cb2 receptor , resunab is designed to move innate immune responses from the activation phase through completion of the resolution phase . the cb2 receptor plays an endogenous role in modulating and resolving inflammation by , in effect , turning heightened inflammation “ off ” and restoring homeostasis . financial operations overview we are a research and development company and have not generated any revenues from the sale of products . we have never been profitable and , from inception through december 2015 , our losses from operations have been approximately $ 13.3 million . our net losses for the years ended december 31 , 2015 and 2014 were approximately $ 8,851,000 and $ 2,540,000 , respectively . we expect to continue to incur significant expenses and increasing operating losses for the foreseeable future . we expect our expenses to increase significantly in connection with our ongoing activities to develop , seek regulatory approval and commercialization of resunab . furthermore , we expect to incur additional costs associated with operating as a public company . accordingly , we will need additional financing to support our continuing operations . we will seek to fund our operations through public or private equity or debt financings or other sources , which may include government grants and collaborations with third parties . adequate additional financing may not be available to us on acceptable terms , or at all . our failure to raise capital as and when needed would have a negative impact on our financial condition and our ability to pursue our business strategy . we will need to generate significant revenues to achieve profitability , and we may never do so . we expect to continue to incur significant expenses and increasing operating losses for at least the next several years . we expect our expenses will increase substantially in 2016 and in the future in connection with our ongoing activities , as we : · conduct clinical trials for resunab in scleroderma , cystic fibrosis , systemic lupus erythematosus and other indications ; · continue our research and development efforts ; · manufacture clinical study materials and develop commercial scale manufacturing capabilities ; · seek regulatory approval for our product candidates ; · add personnel to support development of our product candidates ; and · operate as a public company . 45 critical accounting policies and estimates our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . on an ongoing basis , we evaluate our estimates and judgments for all assets and liabilities , including those related to stock-based compensation expense and the fair value determined for stock purchase warrants classified as derivative liabilities . we base our estimates and judgments on historical experience , current economic and industry conditions and on various other factors that are believed to be reasonable under the circumstances . this forms the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe that full consideration has been given to all relevant circumstances that we may be subject to , and the consolidated financial statements accurately reflect our best estimate of the results of operations , financial position and cash flows for the periods presented . revenue to date , we have not generated any revenues from the sales of products . we do not expect to generate revenue from product sales unless and until we successfully complete development and obtain regulatory approval for the marketing of resunab , which we expect will take a number of years and is subject to significant uncertainty . to date , we have recorded $ 648,382 of collaboration revenue related to an award agreement we entered into in fiscal 2015 with the cfft , a non-profit drug discovery and development affiliate of the cystic fibrosis foundation , pursuant to which we received a development award ( the “ award ” ) for up to $ 5 million in funding . the funding from the award is supporting the phase 2 clinical trial of resunab in adults with cystic fibrosis . upon the execution of the award agreement , we received a payment of $ 1,250,000 in may 2015. in november 2015 , we received a second payment of $ 1,250,000 upon the achievement of a milestone for dosing the first patient . we recorded these two milestone payments received from the cfft totaling $ 2,500,000 as deferred revenue and they are being amortized on a straight-line basis over the expected duration of the performance period of the development program under the award , which is expected to conclude in february 2017. the remaining $ 2,500,000 under the award will be paid to us incrementally upon the achievement of certain milestones related to the progress of the phase 2 cf clinical trial , as set forth in the award agreement . story_separator_special_tag the expected term of options granted under the 2014 plan , all of which qualify as “ plain vanilla ” per sec staff accounting bulletin 107 , is based on the average of the 6.25 years . for non-employee options , the expected term is the contractual term and stock options granted to non-employee consultants are revalued at the end of each reporting period until vested and changes in their fair value are recorded as adjustments to expense over the related vesting period . the risk-free rate is based on the yield of a u.s. treasury security with a term consistent with the option . the risk-free rate is based on the yield of a u.s. treasury security with a term consistent with the expected term of the option . we estimate the forfeiture rate at the time of grant and revise it , if necessary , in subsequent periods if actual forfeitures differ from those estimates . forfeitures were estimated based on management 's expectation through industry knowledge and historical data . we have never paid dividends on our common stock and do not anticipate paying dividends on our common stock in the foreseeable future . accordingly , we have assumed no dividend yield for purposes of estimating the fair value of our share-based compensation . 47 the following assumptions were used to estimate the fair value of stock options granted using the black-scholes option pricing model for the years ended december 31 , 2015 and 2014 is as follows : replace_table_token_2_th valuation of common stock until october 24 , 2014 , when our common stock started trading on the over-the-counter markets ( “ otc.qb ” ) , we were a privately held company with no active public market for our common stock . our board of directors intends all options granted to be exercisable at a price per share not less than the per share fair value of our common stock underlying those options on the date of grant . the estimated fair value of our common stock was determined at each valuation date in accordance with the guidelines outlined in the american institute of certified public accountants practice aid , valuation of privately-held-company equity securities issued as compensation . our board of directors , with the assistance of management and an outside third-party valuation firm , developed these valuations using significant judgment and taking into account numerous factors , including the stage of development of our company and market conditions . for all options granted after the completion of the series a financing in march 2012 until january 2014 , the fair value of our common stock was supported by an independent third-party valuation . in conducting this valuation , we utilized the market approach to estimate the fair value of our common stock . under this approach , we considered the market value of comparable early-stage public life science companies and used the ratio of market value to invested capital as a common benchmark for assessing valuation . for the stock options granted on april 11 , 2014 through october 2 , 2014 , we estimated the fair value of our stock to be $ 0.63 per share . this was based on our private placement completed in april and may 2014 ( the “ 2014 private placement ” ) , in which we sold one share of common stock and one warrant for $ 1.00. we estimated the fair value of each warrant to be $ 0.37 based on the black scholes valuation model . for stock options granted after october 2 , 2014 but prior to october 24 , 2014 we estimated the fair value of our stock to be $ 1.00 with the increase in value attributable to the effectiveness of a registration statement filed on form s-1 ( file no . 333-198563 ) . commencing on october 24 , 2014 , when our common stock started trading on the otc.qb , we used the closing stock price on the date of grant as quoted on the otc.qb to determine fair value . commencing on april 16 , 2015 , when our common stock started trading on the nasdaq capital market , we used the closing stock price on the date of grant as quoted on the nasdaq capital market to determine fair value . emerging growth company status under section 107 ( b ) of the jumpstart our business startups act of 2012 , emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies . we have irrevocably elected not to avail ourselves of this exemption from new or revised accounting standards and , therefore , we will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies . results of operations comparison of year ended 2015 to 2014 collaboration revenue . on april 20 , 2015 , we entered into an award agreement with the cfft , a non-profit drug discovery and development affiliate of the cystic fibrosis foundation , pursuant to which we received a development award ( the “ award ” ) for up to $ 5 million in funding . the funding from the award is supporting the phase 2 clinical trial of resunab-inflammatory in adults with cystic fibrosis ( “ cf ” ) . upon the execution of the award agreement , we received a payment of $ 1,250,000 in may 2015. in november 2015 , we received $ 1,250,000 from the cfft upon the achievement of a milestone for dosing the first patient . in fiscal 2015 , we recorded these two milestone payments received from the cfft totaling $ 2,500,000 as deferred revenue . we are amortizing the $ 2,500,000 on a straight-line basis over the expected duration of the performance period of the development program under the award , which is expected to conclude in february 2017. accordingly , we recorded $ 648,382

liquidity and capital resources since inception , we have experienced negative cash flows from operations . we have financed our operations primarily through sales of equity-related securities . in addition , the majority of the costs of the dermatomyositis and systemic lupus erythematosus clinical trials are being funded by nih grants and our cystic fibrosis clinical trial is being partially funded by a $ 5 million award from the cystic fibrosis foundation trust . at december 31 , 2015 , our accumulated deficit since inception was approximately $ 13,278,000. at december 31 , 2015 , we had total current assets of approximately $ 12,715,000 and current liabilities of approximately $ 3,630,000 resulting in working capital of $ 9,085,000. at december 31 , 2015 , we had total assets of approximately $ 12,875,000 and total liabilities of approximately $ 3,890,000 , resulting in a stockholders ' equity of $ 8,985,000. net cash used in operating activities for the year ended december 31 , 2015 was approximately $ 4,647,000 , which includes a net loss of $ 8,851,000 , non-cash expenses of $ 1,195,000 , and $ 3,008,000 of cash provided from a change in net working capital items . cash used in investing activities for the year ended december 31 , 2015 totaled approximately $ 114,000 for the purchase of property and equipment . cash provided from financing activities for the year ended december 31 , 2015 totaled approximately $ 10,837,000 primarily from the issuance of common stock and warrants .


 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 since inception , we have experienced negative cash flows from operations . we have financed our operations primarily through sales of equity-related securities . in addition , the majority of the costs of the dermatomyositis and systemic lupus erythematosus clinical trials are being funded by nih grants and our cystic fibrosis clinical trial is being partially funded by a $ 5 million award from the cystic fibrosis foundation trust . at december 31 , 2015 , our accumulated deficit since inception was approximately $ 13,278,000. at december 31 , 2015 , we had total current assets of approximately $ 12,715,000 and current liabilities of approximately $ 3,630,000 resulting in working capital of $ 9,085,000. at december 31 , 2015 , we had total assets of approximately $ 12,875,000 and total liabilities of approximately $ 3,890,000 , resulting in a stockholders ' equity of $ 8,985,000. net cash used in operating activities for the year ended december 31 , 2015 was approximately $ 4,647,000 , which includes a net loss of $ 8,851,000 , non-cash expenses of $ 1,195,000 , and $ 3,008,000 of cash provided from a change in net working capital items . cash used in investing activities for the year ended december 31 , 2015 totaled approximately $ 114,000 for the purchase of property and equipment . cash provided from financing activities for the year ended december 31 , 2015 totaled approximately $ 10,837,000 primarily from the issuance of common stock and warrants .
```    
 Suspicious Activity Report : resunab stimulates the production of specialized pro-resolving lipid mediators , or spms , which act to resolve inflammation , clear bacteria and halt fibrosis by activating endogenous pathways . these endogenous resolution pathways are normally activated in healthy individuals during the course of normal immune responses but are dysfunctional in chronic inflammatory and fibrotic diseases . through its ' activation of the cb2 receptor , resunab is designed to move innate immune responses from the activation phase through completion of the resolution phase . the cb2 receptor plays an endogenous role in modulating and resolving inflammation by , in effect , turning heightened inflammation “ off ” and restoring homeostasis . financial operations overview we are a research and development company and have not generated any revenues from the sale of products . we have never been profitable and , from inception through december 2015 , our losses from operations have been approximately $ 13.3 million . our net losses for the years ended december 31 , 2015 and 2014 were approximately $ 8,851,000 and $ 2,540,000 , respectively . we expect to continue to incur significant expenses and increasing operating losses for the foreseeable future . we expect our expenses to increase significantly in connection with our ongoing activities to develop , seek regulatory approval and commercialization of resunab . furthermore , we expect to incur additional costs associated with operating as a public company . accordingly , we will need additional financing to support our continuing operations . we will seek to fund our operations through public or private equity or debt financings or other sources , which may include government grants and collaborations with third parties . adequate additional financing may not be available to us on acceptable terms , or at all . our failure to raise capital as and when needed would have a negative impact on our financial condition and our ability to pursue our business strategy . we will need to generate significant revenues to achieve profitability , and we may never do so . we expect to continue to incur significant expenses and increasing operating losses for at least the next several years . we expect our expenses will increase substantially in 2016 and in the future in connection with our ongoing activities , as we : · conduct clinical trials for resunab in scleroderma , cystic fibrosis , systemic lupus erythematosus and other indications ; · continue our research and development efforts ; · manufacture clinical study materials and develop commercial scale manufacturing capabilities ; · seek regulatory approval for our product candidates ; · add personnel to support development of our product candidates ; and · operate as a public company . 45 critical accounting policies and estimates our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . on an ongoing basis , we evaluate our estimates and judgments for all assets and liabilities , including those related to stock-based compensation expense and the fair value determined for stock purchase warrants classified as derivative liabilities . we base our estimates and judgments on historical experience , current economic and industry conditions and on various other factors that are believed to be reasonable under the circumstances . this forms the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe that full consideration has been given to all relevant circumstances that we may be subject to , and the consolidated financial statements accurately reflect our best estimate of the results of operations , financial position and cash flows for the periods presented . revenue to date , we have not generated any revenues from the sales of products . we do not expect to generate revenue from product sales unless and until we successfully complete development and obtain regulatory approval for the marketing of resunab , which we expect will take a number of years and is subject to significant uncertainty . to date , we have recorded $ 648,382 of collaboration revenue related to an award agreement we entered into in fiscal 2015 with the cfft , a non-profit drug discovery and development affiliate of the cystic fibrosis foundation , pursuant to which we received a development award ( the “ award ” ) for up to $ 5 million in funding . the funding from the award is supporting the phase 2 clinical trial of resunab in adults with cystic fibrosis . upon the execution of the award agreement , we received a payment of $ 1,250,000 in may 2015. in november 2015 , we received a second payment of $ 1,250,000 upon the achievement of a milestone for dosing the first patient . we recorded these two milestone payments received from the cfft totaling $ 2,500,000 as deferred revenue and they are being amortized on a straight-line basis over the expected duration of the performance period of the development program under the award , which is expected to conclude in february 2017. the remaining $ 2,500,000 under the award will be paid to us incrementally upon the achievement of certain milestones related to the progress of the phase 2 cf clinical trial , as set forth in the award agreement . story_separator_special_tag the expected term of options granted under the 2014 plan , all of which qualify as “ plain vanilla ” per sec staff accounting bulletin 107 , is based on the average of the 6.25 years . for non-employee options , the expected term is the contractual term and stock options granted to non-employee consultants are revalued at the end of each reporting period until vested and changes in their fair value are recorded as adjustments to expense over the related vesting period . the risk-free rate is based on the yield of a u.s. treasury security with a term consistent with the option . the risk-free rate is based on the yield of a u.s. treasury security with a term consistent with the expected term of the option . we estimate the forfeiture rate at the time of grant and revise it , if necessary , in subsequent periods if actual forfeitures differ from those estimates . forfeitures were estimated based on management 's expectation through industry knowledge and historical data . we have never paid dividends on our common stock and do not anticipate paying dividends on our common stock in the foreseeable future . accordingly , we have assumed no dividend yield for purposes of estimating the fair value of our share-based compensation . 47 the following assumptions were used to estimate the fair value of stock options granted using the black-scholes option pricing model for the years ended december 31 , 2015 and 2014 is as follows : replace_table_token_2_th valuation of common stock until october 24 , 2014 , when our common stock started trading on the over-the-counter markets ( “ otc.qb ” ) , we were a privately held company with no active public market for our common stock . our board of directors intends all options granted to be exercisable at a price per share not less than the per share fair value of our common stock underlying those options on the date of grant . the estimated fair value of our common stock was determined at each valuation date in accordance with the guidelines outlined in the american institute of certified public accountants practice aid , valuation of privately-held-company equity securities issued as compensation . our board of directors , with the assistance of management and an outside third-party valuation firm , developed these valuations using significant judgment and taking into account numerous factors , including the stage of development of our company and market conditions . for all options granted after the completion of the series a financing in march 2012 until january 2014 , the fair value of our common stock was supported by an independent third-party valuation . in conducting this valuation , we utilized the market approach to estimate the fair value of our common stock . under this approach , we considered the market value of comparable early-stage public life science companies and used the ratio of market value to invested capital as a common benchmark for assessing valuation . for the stock options granted on april 11 , 2014 through october 2 , 2014 , we estimated the fair value of our stock to be $ 0.63 per share . this was based on our private placement completed in april and may 2014 ( the “ 2014 private placement ” ) , in which we sold one share of common stock and one warrant for $ 1.00. we estimated the fair value of each warrant to be $ 0.37 based on the black scholes valuation model . for stock options granted after october 2 , 2014 but prior to october 24 , 2014 we estimated the fair value of our stock to be $ 1.00 with the increase in value attributable to the effectiveness of a registration statement filed on form s-1 ( file no . 333-198563 ) . commencing on october 24 , 2014 , when our common stock started trading on the otc.qb , we used the closing stock price on the date of grant as quoted on the otc.qb to determine fair value . commencing on april 16 , 2015 , when our common stock started trading on the nasdaq capital market , we used the closing stock price on the date of grant as quoted on the nasdaq capital market to determine fair value . emerging growth company status under section 107 ( b ) of the jumpstart our business startups act of 2012 , emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies . we have irrevocably elected not to avail ourselves of this exemption from new or revised accounting standards and , therefore , we will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies . results of operations comparison of year ended 2015 to 2014 collaboration revenue . on april 20 , 2015 , we entered into an award agreement with the cfft , a non-profit drug discovery and development affiliate of the cystic fibrosis foundation , pursuant to which we received a development award ( the “ award ” ) for up to $ 5 million in funding . the funding from the award is supporting the phase 2 clinical trial of resunab-inflammatory in adults with cystic fibrosis ( “ cf ” ) . upon the execution of the award agreement , we received a payment of $ 1,250,000 in may 2015. in november 2015 , we received $ 1,250,000 from the cfft upon the achievement of a milestone for dosing the first patient . in fiscal 2015 , we recorded these two milestone payments received from the cfft totaling $ 2,500,000 as deferred revenue . we are amortizing the $ 2,500,000 on a straight-line basis over the expected duration of the performance period of the development program under the award , which is expected to conclude in february 2017. accordingly , we recorded $ 648,382

