in this manner , metap2 inhibition serves the purpose of re-establishing balance to the ways the body stores and metabolizes fat and glucose . metap2 inhibitors reduce the production of new fatty acid molecules by the liver and help convert stored fats into useful energy , while stimulating use of glucose and fats as an energy source . in the setting of type 2 diabetes , these processes lead to improvement of glycemic control . zgn-1258 was also discovered by our researchers as part of a multi-year campaign to identify novel compounds that avoided limiting nonclinical safety concerns observed with our first-generation compound . the compound has similar potency , and range of desired pharmacological activities in animal models as other metap2 inhibitors , including beloranib . zgn-1258 displays broadly improved safety margins in nonclinical studies , supporting the value of the compound as a more highly optimized drug product candidate . zgn-1258 acts through potent inhibition of metap2 . like other metap2 inhibitors , zgn-1258 modulates the activity of key cellular processes that control metabolism and impact lipid synthesis and storage throughout the body and leads to increase use of stored fats as an energy source . zgn-1258 displays enhanced uptake into the brain and displays greater potency and activity in animal models of hyperphagic behaviors relative to other compounds including zgn-1061 . these differences support the use of zgn-1258 in higher need indications such as pws , in which brain activity is likely to be more important for therapeutic effect . treatment of obese and hyperphagic animals with zgn-1258 leads to reduction in both pathologic food intake and rapid body weight loss , making it of interest in the treatment of severe forms of human obesity . since our inception in november 2005 , we have devoted substantially all of our resources to developing zgn-1061 , beloranib , zgn-839 , zgn-1258 and additional metap2 inhibitors , building our intellectual property portfolio , developing our supply chain , business planning , raising capital , and providing general and administrative support for such operations . from our inception through our initial public offering , or ipo , in june 2014 , we received gross proceeds of $ 104.0 million from sales of redeemable convertible preferred stock and , to a lesser extent , through the issuances of convertible promissory notes . during june 2014 , we completed our ipo with net proceeds of $ 102.7 million after deducting underwriting discounts and commissions paid by us . on january 28 , 2015 , we completed a follow-on offering of our common stock , with net proceeds of $ 130.0 million after deducting underwriting discounts and commissions paid by us . we have never generated any revenue and have incurred net losses in each year since our inception . we have an accumulated deficit of $ 289.6 million as of december 31 , 2017. our net loss was $ 52.0 million for the year ended december 31 , 2017 and $ 57.9 million for the year ended december 31 , 2016. these losses have resulted principally from costs incurred in connection with in-licensing of beloranib , research and development activities and general and administrative costs associated with our operations . we expect to incur significant expenses and operating losses for the foreseeable future . we expect to continue to incur expenses in connection with our ongoing activities , if and as we : advance the development of zgn-1061 through phase 2 clinical trials ; advance the development of zgn-1258 through nonclinical and clinical development ; seek to identify and advance development of additional product candidates into clinical development and indications for our product candidates ; seek to obtain regulatory approvals for our product candidates ; add operational , financial and management information systems ; add personnel , including personnel to support our product development and future commercialization ; and maintain , leverage and expand our intellectual property portfolio . 67 as a result , we will need additional financing to support our continuing operations . until such time that we can generate significant revenue from product sales , if ever , we expect to finance our operations through a combination of public , private equity , debt financings , or other sources , which may include collaborations with third parties . arrangements with collaborators or others may require us to relinquish rights to certain of our technologies or product candidates . in addition , we may never successfully complete development of any of our product candidates , obtain adequate patent protection for our technology , obtain necessary regulatory approval for our product candidates or achieve commercial viability for any approved product candidates . 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 revenue to achieve profitability , and we may never do so . we expect that our existing cash , cash equivalents and marketable securities as of december 31 , 2017 , will enable us to fund our operating expenses and capital expenditure requirements for a period of at least one year from the issuance date of this annual report . see liquidity and capital resources. financial operations overview revenue we have not generated any revenue from product sales since our inception , and do not expect to generate any revenue from the sale of products in the near future . if our development efforts result in clinical success and regulatory approval or collaboration agreements with third parties for our product candidates , we may generate revenue from those product candidates or collaborations . operating expenses the majority of our operating expenses since inception have consisted primarily of research and development activities , and general and administrative costs . story_separator_special_tag 72 the following table summarizes the classification of our stock-based compensation expenses recognized in our consolidated statements of operations and comprehensive loss : replace_table_token_5_th as of december 31 , 2017 , we had unrecognized stock-based compensation expense related to our unvested service-based stock option awards of $ 10.7 million , which is expected to be recognized over the remaining weighted average vesting period of 2.54 years . as of december 31 , 2017 , we had unrecognized stock-based compensation expense related to our unvested market-based stock option awards of $ 3.1 million , which is expected to be recognized over the remaining weighted average vesting period of 2.77 years . results of operations comparison of years ended december 31 , 2017 and 2016 the following table summarizes our results of operations for the years ended december 31 , 2017 and 2016 : replace_table_token_6_th 73 replace_table_token_7_th research and development expenses research and development expenses for the year ended december 31 , 2017 increased $ 0.9 million compared to the year ended december 31 , 2016. the increase was primarily due to an increase of $ 10.4 million related to our zgn-1061 program , as well as an increase in discovery and screening expenses of $ 5.9 million , partially offset by decreased costs of $ 12.9 million in our beloranib program and a decrease of $ 1.6 million associated with our unallocated expenses . costs associated with our zgn-1061 program increased period over period by $ 10.4 million . in the third quarter of 2016 we initiated a phase 1 clinical trial for zgn-1061 which completed recruiting and dosing patients in the first quarter of 2017. the overall increase is primarily due to additional nonclinical studies as well as drug product and drug substance activities as we commenced our phase 2 clinical trial in the third quarter of 2017 in both australia and new zealand , for which we enrolled 137 patients in a 12 week clinical trial . the expenses during the 2016 period were for startup costs for a phase 1 clinical trial of zgn-1061 in the netherlands , which was comprised of 39 patients in a single ascending dose , or sad , portion and 29 patients in a multiple ascending dose , or mad , portion . of the decrease in costs associated with our beloranib program , clinical trials costs decreased by $ 8.3 million period over period and nonclinical and manufacturing costs decreased $ 4.6 million period over period , both as a result of the suspension of our beloranib program in july 2016. during the year ended december 31 , 2016 , we reported topline clinical data from our phase 2b clinical trial in patients with severe obesity complicated by type 2 diabetes and our u.s. phase 3 clinical trial in patients with pws . prior to the fda placing the ind application for beloranib on full clinical hold in december 2015 , we suspended dosing of patients in the randomized portion of both of these trials in october 2015. in july 2016 , we announced the suspension of our beloranib program . 74 unallocated expenses decreased period over period primarily due to a decrease of $ 1.0 million in consultants , as well as a decrease in personnel related costs of $ 0.8 million . consultant costs decreased primarily related to our beloranib program which we suspended in july 2016. personnel related expenses decreased primarily from a reduction in the number of employees for the 2017 period as compared to the 2016 period , as we had a reduction in workforce which took place in july 2016. replace_table_token_8_th general and administrative expenses general and administrative expenses for the year ended december 31 , 2017 decreased $ 6.1 million compared to the year ended december 31 , 2016. the decrease was due to decreases in non-cash stock-based compensation expense of $ 2.2 million , personnel related costs of $ 2.1 million and professional fees of $ 1.6 million . non-cash stock-based compensation expense decreased due mainly to forfeited stock options related to the reduction in workforce in july 2016 , as well as a lower stock option grant price for the 2017 annual grant . personnel related expenses decreased primarily from a reduction in the number of employees for the 2017 period as compared to the 2016 period , from the reduction in workforce which took place in july 2016. professional fees decreased primarily due to lower legal fees as the plaintiffs for the class action lawsuit had filed a notice of appeal to the first circuit court of appeals and on april 7 , 2017 , the dismissal with prejudice was affirmed . the decrease was also due to lower commercial readiness costs and investor relations and public relations costs in the 2017 period as compared to the same period in 2016 , primarily as a result of suspending development of beloranib in july 2016. other income ( expense ) , net interest expense . interest expense for the year ended december 31 , 2017 and 2016 of $ 0.2 million and $ 0.5 million , respectively , was related to interest expense on our outstanding borrowings under the 2014 credit facility , which was fully repaid in december 2017. interest expense consists primarily of the stated interest of 8.1 % per year due on outstanding borrowings . it also includes expense related to the final payment of 6 % of amounts drawn down that was recorded over the term through the maturity date using the effective-interest method and the amortization of deferred financing costs and debt discounts relating to the 2014 credit facility . interest income . interest income of $ 1.0 million and $ 0.9 million for the years ended december 31 , 2017 and 2016 , respectively , was related to interest earned on our marketable securities balances . foreign currency transaction gains ( losses ) , net . we had foreign currency transaction gains of $ 0.1 million for

net cash used in operating activities during the year ended december 31 , 2017 , operating activities used $ 43.8 million of cash , resulting from our net loss of $ 52.0 million , partially offset by non-cash charges of $ 8.3 million . our net loss was primarily attributed to research and development activities related to our zgn-1061 program , discovery and screening and our general and administrative expenses , as we had no revenue in the period . our net non-cash charges during the year ended december 31 , 2017 , consisted primarily of stock-based compensation expense of $ 8.3 million . net cash used in changes in our operating assets and liabilities during the year ended december 31 , 2017 , consisted primarily of a $ 1.0 million increase in accounts payable and accrued expenses , partially offset by a $ 0.6 million increase in prepaid expenses and other current assets and a $ 0.6 million increase in tax incentive receivable . 79 during the year ended december 31 , 2016 , operating activities used $ 52.0 million of cash , resulting from our net loss of $ 57.9 million and changes in our operating assets and liabilities of $ 5.5 million , partially offset by non-cash charges of $ 11.4 million . our net loss was primarily attributed to research and development activities related to our beloranib program , our zgn-1061 program , and our general and administrative expenses , as we had no revenue in the period . our net non-cash charges during the year ended december 31 , 2016 , consisted primarily of stock-based compensation expense of $ 10.1 million .


 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 used in operating activities during the year ended december 31 , 2017 , operating activities used $ 43.8 million of cash , resulting from our net loss of $ 52.0 million , partially offset by non-cash charges of $ 8.3 million . our net loss was primarily attributed to research and development activities related to our zgn-1061 program , discovery and screening and our general and administrative expenses , as we had no revenue in the period . our net non-cash charges during the year ended december 31 , 2017 , consisted primarily of stock-based compensation expense of $ 8.3 million . net cash used in changes in our operating assets and liabilities during the year ended december 31 , 2017 , consisted primarily of a $ 1.0 million increase in accounts payable and accrued expenses , partially offset by a $ 0.6 million increase in prepaid expenses and other current assets and a $ 0.6 million increase in tax incentive receivable . 79 during the year ended december 31 , 2016 , operating activities used $ 52.0 million of cash , resulting from our net loss of $ 57.9 million and changes in our operating assets and liabilities of $ 5.5 million , partially offset by non-cash charges of $ 11.4 million . our net loss was primarily attributed to research and development activities related to our beloranib program , our zgn-1061 program , and our general and administrative expenses , as we had no revenue in the period . our net non-cash charges during the year ended december 31 , 2016 , consisted primarily of stock-based compensation expense of $ 10.1 million .
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 Suspicious Activity Report : in this manner , metap2 inhibition serves the purpose of re-establishing balance to the ways the body stores and metabolizes fat and glucose . metap2 inhibitors reduce the production of new fatty acid molecules by the liver and help convert stored fats into useful energy , while stimulating use of glucose and fats as an energy source . in the setting of type 2 diabetes , these processes lead to improvement of glycemic control . zgn-1258 was also discovered by our researchers as part of a multi-year campaign to identify novel compounds that avoided limiting nonclinical safety concerns observed with our first-generation compound . the compound has similar potency , and range of desired pharmacological activities in animal models as other metap2 inhibitors , including beloranib . zgn-1258 displays broadly improved safety margins in nonclinical studies , supporting the value of the compound as a more highly optimized drug product candidate . zgn-1258 acts through potent inhibition of metap2 . like other metap2 inhibitors , zgn-1258 modulates the activity of key cellular processes that control metabolism and impact lipid synthesis and storage throughout the body and leads to increase use of stored fats as an energy source . zgn-1258 displays enhanced uptake into the brain and displays greater potency and activity in animal models of hyperphagic behaviors relative to other compounds including zgn-1061 . these differences support the use of zgn-1258 in higher need indications such as pws , in which brain activity is likely to be more important for therapeutic effect . treatment of obese and hyperphagic animals with zgn-1258 leads to reduction in both pathologic food intake and rapid body weight loss , making it of interest in the treatment of severe forms of human obesity . since our inception in november 2005 , we have devoted substantially all of our resources to developing zgn-1061 , beloranib , zgn-839 , zgn-1258 and additional metap2 inhibitors , building our intellectual property portfolio , developing our supply chain , business planning , raising capital , and providing general and administrative support for such operations . from our inception through our initial public offering , or ipo , in june 2014 , we received gross proceeds of $ 104.0 million from sales of redeemable convertible preferred stock and , to a lesser extent , through the issuances of convertible promissory notes . during june 2014 , we completed our ipo with net proceeds of $ 102.7 million after deducting underwriting discounts and commissions paid by us . on january 28 , 2015 , we completed a follow-on offering of our common stock , with net proceeds of $ 130.0 million after deducting underwriting discounts and commissions paid by us . we have never generated any revenue and have incurred net losses in each year since our inception . we have an accumulated deficit of $ 289.6 million as of december 31 , 2017. our net loss was $ 52.0 million for the year ended december 31 , 2017 and $ 57.9 million for the year ended december 31 , 2016. these losses have resulted principally from costs incurred in connection with in-licensing of beloranib , research and development activities and general and administrative costs associated with our operations . we expect to incur significant expenses and operating losses for the foreseeable future . we expect to continue to incur expenses in connection with our ongoing activities , if and as we : advance the development of zgn-1061 through phase 2 clinical trials ; advance the development of zgn-1258 through nonclinical and clinical development ; seek to identify and advance development of additional product candidates into clinical development and indications for our product candidates ; seek to obtain regulatory approvals for our product candidates ; add operational , financial and management information systems ; add personnel , including personnel to support our product development and future commercialization ; and maintain , leverage and expand our intellectual property portfolio . 67 as a result , we will need additional financing to support our continuing operations . until such time that we can generate significant revenue from product sales , if ever , we expect to finance our operations through a combination of public , private equity , debt financings , or other sources , which may include collaborations with third parties . arrangements with collaborators or others may require us to relinquish rights to certain of our technologies or product candidates . in addition , we may never successfully complete development of any of our product candidates , obtain adequate patent protection for our technology , obtain necessary regulatory approval for our product candidates or achieve commercial viability for any approved product candidates . 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 revenue to achieve profitability , and we may never do so . we expect that our existing cash , cash equivalents and marketable securities as of december 31 , 2017 , will enable us to fund our operating expenses and capital expenditure requirements for a period of at least one year from the issuance date of this annual report . see liquidity and capital resources. financial operations overview revenue we have not generated any revenue from product sales since our inception , and do not expect to generate any revenue from the sale of products in the near future . if our development efforts result in clinical success and regulatory approval or collaboration agreements with third parties for our product candidates , we may generate revenue from those product candidates or collaborations . operating expenses the majority of our operating expenses since inception have consisted primarily of research and development activities , and general and administrative costs . story_separator_special_tag 72 the following table summarizes the classification of our stock-based compensation expenses recognized in our consolidated statements of operations and comprehensive loss : replace_table_token_5_th as of december 31 , 2017 , we had unrecognized stock-based compensation expense related to our unvested service-based stock option awards of $ 10.7 million , which is expected to be recognized over the remaining weighted average vesting period of 2.54 years . as of december 31 , 2017 , we had unrecognized stock-based compensation expense related to our unvested market-based stock option awards of $ 3.1 million , which is expected to be recognized over the remaining weighted average vesting period of 2.77 years . results of operations comparison of years ended december 31 , 2017 and 2016 the following table summarizes our results of operations for the years ended december 31 , 2017 and 2016 : replace_table_token_6_th 73 replace_table_token_7_th research and development expenses research and development expenses for the year ended december 31 , 2017 increased $ 0.9 million compared to the year ended december 31 , 2016. the increase was primarily due to an increase of $ 10.4 million related to our zgn-1061 program , as well as an increase in discovery and screening expenses of $ 5.9 million , partially offset by decreased costs of $ 12.9 million in our beloranib program and a decrease of $ 1.6 million associated with our unallocated expenses . costs associated with our zgn-1061 program increased period over period by $ 10.4 million . in the third quarter of 2016 we initiated a phase 1 clinical trial for zgn-1061 which completed recruiting and dosing patients in the first quarter of 2017. the overall increase is primarily due to additional nonclinical studies as well as drug product and drug substance activities as we commenced our phase 2 clinical trial in the third quarter of 2017 in both australia and new zealand , for which we enrolled 137 patients in a 12 week clinical trial . the expenses during the 2016 period were for startup costs for a phase 1 clinical trial of zgn-1061 in the netherlands , which was comprised of 39 patients in a single ascending dose , or sad , portion and 29 patients in a multiple ascending dose , or mad , portion . of the decrease in costs associated with our beloranib program , clinical trials costs decreased by $ 8.3 million period over period and nonclinical and manufacturing costs decreased $ 4.6 million period over period , both as a result of the suspension of our beloranib program in july 2016. during the year ended december 31 , 2016 , we reported topline clinical data from our phase 2b clinical trial in patients with severe obesity complicated by type 2 diabetes and our u.s. phase 3 clinical trial in patients with pws . prior to the fda placing the ind application for beloranib on full clinical hold in december 2015 , we suspended dosing of patients in the randomized portion of both of these trials in october 2015. in july 2016 , we announced the suspension of our beloranib program . 74 unallocated expenses decreased period over period primarily due to a decrease of $ 1.0 million in consultants , as well as a decrease in personnel related costs of $ 0.8 million . consultant costs decreased primarily related to our beloranib program which we suspended in july 2016. personnel related expenses decreased primarily from a reduction in the number of employees for the 2017 period as compared to the 2016 period , as we had a reduction in workforce which took place in july 2016. replace_table_token_8_th general and administrative expenses general and administrative expenses for the year ended december 31 , 2017 decreased $ 6.1 million compared to the year ended december 31 , 2016. the decrease was due to decreases in non-cash stock-based compensation expense of $ 2.2 million , personnel related costs of $ 2.1 million and professional fees of $ 1.6 million . non-cash stock-based compensation expense decreased due mainly to forfeited stock options related to the reduction in workforce in july 2016 , as well as a lower stock option grant price for the 2017 annual grant . personnel related expenses decreased primarily from a reduction in the number of employees for the 2017 period as compared to the 2016 period , from the reduction in workforce which took place in july 2016. professional fees decreased primarily due to lower legal fees as the plaintiffs for the class action lawsuit had filed a notice of appeal to the first circuit court of appeals and on april 7 , 2017 , the dismissal with prejudice was affirmed . the decrease was also due to lower commercial readiness costs and investor relations and public relations costs in the 2017 period as compared to the same period in 2016 , primarily as a result of suspending development of beloranib in july 2016. other income ( expense ) , net interest expense . interest expense for the year ended december 31 , 2017 and 2016 of $ 0.2 million and $ 0.5 million , respectively , was related to interest expense on our outstanding borrowings under the 2014 credit facility , which was fully repaid in december 2017. interest expense consists primarily of the stated interest of 8.1 % per year due on outstanding borrowings . it also includes expense related to the final payment of 6 % of amounts drawn down that was recorded over the term through the maturity date using the effective-interest method and the amortization of deferred financing costs and debt discounts relating to the 2014 credit facility . interest income . interest income of $ 1.0 million and $ 0.9 million for the years ended december 31 , 2017 and 2016 , respectively , was related to interest earned on our marketable securities balances . foreign currency transaction gains ( losses ) , net . we had foreign currency transaction gains of $ 0.1 million for

