our forward-looking statements can be affected by inaccurate assumptions we might make or by known or unknown risks , uncertainties and other factors . we discuss many of these risks , uncertainties and other factors in this annual report on form 10-k in greater detail under the heading item 1a  risk factors. we caution investors that our business and financial performance are subject to substantial risks and uncertainties . overview we are a pharmaceutical company discovering and developing novel therapeutics for conditions marked by inflammation , inflammatory pain and blood cancers . we commenced operations in canada in december 2003. aquinox pharmaceuticals ( canada ) inc. , a corporation formed under the canada business corporations act , is a wholly owned subsidiary of aquinox pharmaceuticals , inc. , a delaware corporation formed in may 2007. we operate in vancouver , british columbia , canada . on june 27 , 2018 , we announced that our phase 3 leadership 301 clinical trial evaluating once-daily , oral rosiptor for the treatment of interstitial cystitis/bladder pain syndrome ( ic/bps ) failed to meet its primary endpoint . as a result , in july 2018 , our board of directors approved a restructuring plan to reduce operating costs and to better align our workforce with the needs of our business going forward . all further development activities with rosiptor were halted . on november 6 , 2018 , our board of directors approved a second restructuring plan to further reduce operating costs . after the completion of both restructuring plans , we have reduced our workforce from 56 to eight employees . as of the date of this report , we do not have any product candidates in clinical development or identified for clinical development . in order for our business to continue , we must identify products or product candidates that we can advance into development . in connection with this , we and our board of directors are evaluating potential merger transactions with companies that have more advanced development and product candidates . we are also evaluating the potential in-license or direct acquisition of potential products and or product candidates as well as assessing whether any of our existing research stage compounds can be advanced into clinical development . if we are unable to identify products or additional product candidates , through merger , license or otherwise , that we and our board of directors determine would merit the investment of our capital and resources , our board of directors may pursue other options , which would potentially include a return of capital to our stockholders and the dissolution of our business . since inception , we have incurred significant operating losses . our net loss for the year ended december 31 , 2018 was $ 31.6 million , compared to $ 50.2 million for the year ended december 31 , 2017. as of december 31 , 2018 , we had an accumulated deficit of $ 230.1 million , compared to $ 198.5 million as of december 31 , 2017. we have funded our operations primarily through the sale of common stock and preferred stock . as of december 31 , 2018 , we had $ 76.9 million in cash and cash equivalents in liquid , high-quality securities . results of operations revenue on may 9 , 2018 , we entered into an exclusive license and collaboration agreement with astellas us llc , a subsidiary of astellas pharma inc. ( astellas ) . astellas was granted an exclusive , royalty-bearing license to use , research , develop , manufacture and commercialize rosiptor and related compounds for all human diseases and conditions in japan and certain other countries in the asia-pacific region , including major markets such as taiwan , indonesia , malaysia , south korea , and australia , but excluding china and india . as consideration for entering into this agreement , we received a non-refundable upfront payment of $ 25.0 million and potential future development and commercial milestone payments , as well as royalties on any future sales of rosiptor within the licensed territory . on september 4 , 2018 , we received notice from astellas that it was terminating this exclusive license and collaboration agreement effective march 4 , 2019 , unless an earlier termination date is agreed to by 59 the parties . on november 8 , 2018 , the company entered into an early termination agreement with astellas to terminate the exclusive license and collaboration agreement between the company and astellas effective november 8 , 2018. the upfront payment of $ 25.0 million from astellas is non-refundable and has been recorded as revenue for the year ended december 31 , 2018. operating expenses the following table summarizes our operating expenses for the years ended december 31 , 2018 , 2017 and 2016 : replace_table_token_4_th research and development expenses on june 27 , 2018 , we announced that our phase 3 leadership 301 clinical trial evaluating once-daily , oral rosiptor for the treatment of ic/bps failed to meet its primary endpoint . the leadership 301 clinical trial enrolled 433 participants , including 341 female subjects who were randomized to receive rosiptor 100 mg or 200 mg , or placebo . rosiptor failed to achieve a statistically significant reduction in the mean change from baseline at week 12 in maximum daily bladder pain score compared to placebo ( p =0.41 ) in the female subjects , which was the primary endpoint . as a result , all further development activities with rosiptor were halted . our research and development expenses consisted primarily of costs incurred for the development of rosiptor and other future product candidates . story_separator_special_tag under topic 606 , an entity recognizes revenue when its customer obtains control of promised goods or services , in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services . to determine revenue recognition for arrangements subject to the scope of topic 606 , the entity performs the following five steps : ( i ) identify the contract ( s ) with a customer ; ( ii ) identify the performance obligations in the contract ; ( iii ) determine the transaction price ; ( iv ) allocate the transaction price to the performance obligations in the contract ; and ( v ) recognize revenue when ( or as ) the entity satisfies a performance obligation . at contract inception , once the contract is determined to be within the scope of topic 606 , we assess the goods or services promised within each contract and identify performance obligations that are distinct . we then recognize as revenue the amount of the transaction price that is allocated to each performance obligation when ( or as ) the performance obligation is satisfied . the adoption of asu 2014-09 did not have a material impact on our consolidated financial statements on the date of adoption as we did not have any revenue generating arrangements prior to january 1 , 2018. during the year ended december 31 , 2018 , we recognized revenue earned under a license and collaboration agreement ( see license and collaboration agreement above ) . we adopted fasb asu 2016-01 financial instruments-overall ( subtopic 825-10 ) : recognition and measurement of financial assets and financial liabilities effective january 1 , 2018 which revises an entity 's accounting related to ( 1 ) the classification and measurement of investments in equity securities and ( 2 ) the presentation of certain fair value changes for financial liabilities measured at fair value . the asu also amended certain disclosure requirements associated with the fair value of financial instruments . the adoption of this asu 66 did not have a material impact on our consolidated financial statements as we do not currently hold any equity securities and we have not elected the fair value option for any of our financial liabilities . in february 2016 , the fasb issued asu 2016-02 leases ( topic 842 )  which requires the recognition of right-of-use assets and lease liabilities by lessees for those leases with a lease term of greater than 12 months . upon the adoption of asu 2016-02 , leases will be recognized and measured using a modified retrospective approach . the modified retrospective approach includes a number of optional practical expedients that companies may elect to apply . asu 2016-02 is effective for fiscal years and interim periods beginning after december 15 , 2018 , with early adoption permitted . we will adopt this standard on january 1 , 2019 using the optional transition method to recognize a cumulative-effect adjustment to the opening balance of retained deficit . consequently , comparative periods will continue to be accounted for in accordance with the current lease standard ( asc 840 ) and the disclosures will be in accordance with asc 840. we will elect to apply the package of practical expedients , which permits us not to reassess under asu 2016-02 our prior conclusions about lease identification , lease classification and initial direct costs and the practical expedient to not separate non-lease components from the associated lease component . the adoption of asu 2016-02 will result in the recognition of right-of-use assets of $ 0.2 million and lease liabilities of $ 0.5 million and derecognition of the deferred rent liability of $ 0.3 million for our operating leases in the consolidated balance sheets and will not have a material impact to our consolidated statements of operations . in august 2018 , the fasb issued asu 2018-13 fair value measurement ( topic 820 ) : disclosure framework  changes to the disclosure requirements for fair value measurement which eliminates , adds and modifies certain disclosure requirements for fair value measurements . the disclosure of the amount of and reasons for transfers between level 1 and level 2 of the fair value hierarchy have been eliminated , but disclosures for level 3 fair value measurements have been modified and added to . asu 2018-13 is effective for fiscal years and interim periods beginning after december 15 , 2019 , with early adoption permitted . the adoption of asu 2018-13 will not have a material impact on our consolidated financial statements . off-balance sheet arrangements we do not have any off-balance sheet arrangements as of december 31 , 2018. segment reporting we view our operations and manage our business in one segment , which is the development of novel therapeutics for conditions marked by inflammation , inflammatory pain and blood cancers . jobs act in april 2012 , the jumpstart our business startups act ( jobs act ) was enacted . the jobs act contains provisions that , among other things , reduce certain reporting requirements for an emerging growth company. we are an emerging growth company ,  as defined in the jobs act and for as long as we remain an emerging growth company , we may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. these exemptions provide for , but are not limited to , relief from the auditor attestation requirements of section 404 of the sarbanes-oxley act , less extensive disclosure obligations regarding executive compensation in our periodic reports and proxy statements , exemptions from the requirements to hold a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved and an extended transition period for complying with new or revised accounting standards . we may take advantage of these reporting exemptions until we are no longer an emerging growth company. we will

net cash provided by financing activities net cash provided by financing activities for the years ended december 31 , 2018 and 2017 resulted from the proceeds from the exercise of stock options . net cash provided by financing activities for the year ended december 31 , 2016 resulted from the public offering of common shares in september 2016 for gross proceeds of $ 75.4 million , before underwriting discounts , commissions and offering expenses of $ 4.7 million , and proceeds from the exercise of stock options of $ 0.4 million . 62 operating and capital expenditure requirements we have not generated product revenue or achieved profitability since our inception and we expect to continue to incur net losses for the foreseeable future . we believe that our existing capital resources will be sufficient to fund our operations for at least the next 12 months and we anticipate that we will need to raise substantial financing in the future to fund our operations . in order to meet these additional cash requirements , we may seek to sell additional equity or convertible debt securities that may result in dilution to our stockholders . if we raise additional funds through the issuance of convertible debt securities , these securities could have rights senior to those of our common stock and could contain covenants that restrict our operations . there can be no assurance that we will be able to obtain additional equity or debt financing on terms acceptable to us , if at all . our failure to obtain sufficient funds on acceptable terms when needed could have a negative impact on our business , results of operations , financial condition , cash flows and future prospects .


 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.
     ```net cash provided by financing activities net cash provided by financing activities for the years ended december 31 , 2018 and 2017 resulted from the proceeds from the exercise of stock options . net cash provided by financing activities for the year ended december 31 , 2016 resulted from the public offering of common shares in september 2016 for gross proceeds of $ 75.4 million , before underwriting discounts , commissions and offering expenses of $ 4.7 million , and proceeds from the exercise of stock options of $ 0.4 million . 62 operating and capital expenditure requirements we have not generated product revenue or achieved profitability since our inception and we expect to continue to incur net losses for the foreseeable future . we believe that our existing capital resources will be sufficient to fund our operations for at least the next 12 months and we anticipate that we will need to raise substantial financing in the future to fund our operations . in order to meet these additional cash requirements , we may seek to sell additional equity or convertible debt securities that may result in dilution to our stockholders . if we raise additional funds through the issuance of convertible debt securities , these securities could have rights senior to those of our common stock and could contain covenants that restrict our operations . there can be no assurance that we will be able to obtain additional equity or debt financing on terms acceptable to us , if at all . our failure to obtain sufficient funds on acceptable terms when needed could have a negative impact on our business , results of operations , financial condition , cash flows and future prospects .
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 Suspicious Activity Report : our forward-looking statements can be affected by inaccurate assumptions we might make or by known or unknown risks , uncertainties and other factors . we discuss many of these risks , uncertainties and other factors in this annual report on form 10-k in greater detail under the heading item 1a  risk factors. we caution investors that our business and financial performance are subject to substantial risks and uncertainties . overview we are a pharmaceutical company discovering and developing novel therapeutics for conditions marked by inflammation , inflammatory pain and blood cancers . we commenced operations in canada in december 2003. aquinox pharmaceuticals ( canada ) inc. , a corporation formed under the canada business corporations act , is a wholly owned subsidiary of aquinox pharmaceuticals , inc. , a delaware corporation formed in may 2007. we operate in vancouver , british columbia , canada . on june 27 , 2018 , we announced that our phase 3 leadership 301 clinical trial evaluating once-daily , oral rosiptor for the treatment of interstitial cystitis/bladder pain syndrome ( ic/bps ) failed to meet its primary endpoint . as a result , in july 2018 , our board of directors approved a restructuring plan to reduce operating costs and to better align our workforce with the needs of our business going forward . all further development activities with rosiptor were halted . on november 6 , 2018 , our board of directors approved a second restructuring plan to further reduce operating costs . after the completion of both restructuring plans , we have reduced our workforce from 56 to eight employees . as of the date of this report , we do not have any product candidates in clinical development or identified for clinical development . in order for our business to continue , we must identify products or product candidates that we can advance into development . in connection with this , we and our board of directors are evaluating potential merger transactions with companies that have more advanced development and product candidates . we are also evaluating the potential in-license or direct acquisition of potential products and or product candidates as well as assessing whether any of our existing research stage compounds can be advanced into clinical development . if we are unable to identify products or additional product candidates , through merger , license or otherwise , that we and our board of directors determine would merit the investment of our capital and resources , our board of directors may pursue other options , which would potentially include a return of capital to our stockholders and the dissolution of our business . since inception , we have incurred significant operating losses . our net loss for the year ended december 31 , 2018 was $ 31.6 million , compared to $ 50.2 million for the year ended december 31 , 2017. as of december 31 , 2018 , we had an accumulated deficit of $ 230.1 million , compared to $ 198.5 million as of december 31 , 2017. we have funded our operations primarily through the sale of common stock and preferred stock . as of december 31 , 2018 , we had $ 76.9 million in cash and cash equivalents in liquid , high-quality securities . results of operations revenue on may 9 , 2018 , we entered into an exclusive license and collaboration agreement with astellas us llc , a subsidiary of astellas pharma inc. ( astellas ) . astellas was granted an exclusive , royalty-bearing license to use , research , develop , manufacture and commercialize rosiptor and related compounds for all human diseases and conditions in japan and certain other countries in the asia-pacific region , including major markets such as taiwan , indonesia , malaysia , south korea , and australia , but excluding china and india . as consideration for entering into this agreement , we received a non-refundable upfront payment of $ 25.0 million and potential future development and commercial milestone payments , as well as royalties on any future sales of rosiptor within the licensed territory . on september 4 , 2018 , we received notice from astellas that it was terminating this exclusive license and collaboration agreement effective march 4 , 2019 , unless an earlier termination date is agreed to by 59 the parties . on november 8 , 2018 , the company entered into an early termination agreement with astellas to terminate the exclusive license and collaboration agreement between the company and astellas effective november 8 , 2018. the upfront payment of $ 25.0 million from astellas is non-refundable and has been recorded as revenue for the year ended december 31 , 2018. operating expenses the following table summarizes our operating expenses for the years ended december 31 , 2018 , 2017 and 2016 : replace_table_token_4_th research and development expenses on june 27 , 2018 , we announced that our phase 3 leadership 301 clinical trial evaluating once-daily , oral rosiptor for the treatment of ic/bps failed to meet its primary endpoint . the leadership 301 clinical trial enrolled 433 participants , including 341 female subjects who were randomized to receive rosiptor 100 mg or 200 mg , or placebo . rosiptor failed to achieve a statistically significant reduction in the mean change from baseline at week 12 in maximum daily bladder pain score compared to placebo ( p =0.41 ) in the female subjects , which was the primary endpoint . as a result , all further development activities with rosiptor were halted . our research and development expenses consisted primarily of costs incurred for the development of rosiptor and other future product candidates . story_separator_special_tag under topic 606 , an entity recognizes revenue when its customer obtains control of promised goods or services , in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services . to determine revenue recognition for arrangements subject to the scope of topic 606 , the entity performs the following five steps : ( i ) identify the contract ( s ) with a customer ; ( ii ) identify the performance obligations in the contract ; ( iii ) determine the transaction price ; ( iv ) allocate the transaction price to the performance obligations in the contract ; and ( v ) recognize revenue when ( or as ) the entity satisfies a performance obligation . at contract inception , once the contract is determined to be within the scope of topic 606 , we assess the goods or services promised within each contract and identify performance obligations that are distinct . we then recognize as revenue the amount of the transaction price that is allocated to each performance obligation when ( or as ) the performance obligation is satisfied . the adoption of asu 2014-09 did not have a material impact on our consolidated financial statements on the date of adoption as we did not have any revenue generating arrangements prior to january 1 , 2018. during the year ended december 31 , 2018 , we recognized revenue earned under a license and collaboration agreement ( see license and collaboration agreement above ) . we adopted fasb asu 2016-01 financial instruments-overall ( subtopic 825-10 ) : recognition and measurement of financial assets and financial liabilities effective january 1 , 2018 which revises an entity 's accounting related to ( 1 ) the classification and measurement of investments in equity securities and ( 2 ) the presentation of certain fair value changes for financial liabilities measured at fair value . the asu also amended certain disclosure requirements associated with the fair value of financial instruments . the adoption of this asu 66 did not have a material impact on our consolidated financial statements as we do not currently hold any equity securities and we have not elected the fair value option for any of our financial liabilities . in february 2016 , the fasb issued asu 2016-02 leases ( topic 842 )  which requires the recognition of right-of-use assets and lease liabilities by lessees for those leases with a lease term of greater than 12 months . upon the adoption of asu 2016-02 , leases will be recognized and measured using a modified retrospective approach . the modified retrospective approach includes a number of optional practical expedients that companies may elect to apply . asu 2016-02 is effective for fiscal years and interim periods beginning after december 15 , 2018 , with early adoption permitted . we will adopt this standard on january 1 , 2019 using the optional transition method to recognize a cumulative-effect adjustment to the opening balance of retained deficit . consequently , comparative periods will continue to be accounted for in accordance with the current lease standard ( asc 840 ) and the disclosures will be in accordance with asc 840. we will elect to apply the package of practical expedients , which permits us not to reassess under asu 2016-02 our prior conclusions about lease identification , lease classification and initial direct costs and the practical expedient to not separate non-lease components from the associated lease component . the adoption of asu 2016-02 will result in the recognition of right-of-use assets of $ 0.2 million and lease liabilities of $ 0.5 million and derecognition of the deferred rent liability of $ 0.3 million for our operating leases in the consolidated balance sheets and will not have a material impact to our consolidated statements of operations . in august 2018 , the fasb issued asu 2018-13 fair value measurement ( topic 820 ) : disclosure framework  changes to the disclosure requirements for fair value measurement which eliminates , adds and modifies certain disclosure requirements for fair value measurements . the disclosure of the amount of and reasons for transfers between level 1 and level 2 of the fair value hierarchy have been eliminated , but disclosures for level 3 fair value measurements have been modified and added to . asu 2018-13 is effective for fiscal years and interim periods beginning after december 15 , 2019 , with early adoption permitted . the adoption of asu 2018-13 will not have a material impact on our consolidated financial statements . off-balance sheet arrangements we do not have any off-balance sheet arrangements as of december 31 , 2018. segment reporting we view our operations and manage our business in one segment , which is the development of novel therapeutics for conditions marked by inflammation , inflammatory pain and blood cancers . jobs act in april 2012 , the jumpstart our business startups act ( jobs act ) was enacted . the jobs act contains provisions that , among other things , reduce certain reporting requirements for an emerging growth company. we are an emerging growth company ,  as defined in the jobs act and for as long as we remain an emerging growth company , we may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. these exemptions provide for , but are not limited to , relief from the auditor attestation requirements of section 404 of the sarbanes-oxley act , less extensive disclosure obligations regarding executive compensation in our periodic reports and proxy statements , exemptions from the requirements to hold a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved and an extended transition period for complying with new or revised accounting standards . we may take advantage of these reporting exemptions until we are no longer an emerging growth company. we will

