since we began operations in march 2003 , we have devoted substantially all of our resources to the in-licensing , clinical development and commercialization of our products . our ability to generate meaningful product sales and achieve profitability largely depends on our ability to successfully commercialize hetlioz ® and fanapt ® in the u.s. and europe , on our ability , alone or with others , to complete the development of our products , and to obtain the regulatory approvals for and to manufacture , market and sell our products . the results of our operations will vary significantly from year-to-year and quarter-to-quarter and depend on a number of factors , including risks related to our business , risks related to our industry , and other risks which are detailed in risk factors reported in item 1a of part i of this annual report on form 10-k. as described in part i , item 3 , legal proceedings , of this annual report on form 10-k , we have initiated lawsuits to enforce our patent rights against certain generic pharmaceutical companies . critical accounting policies the preparation of our consolidated financial statements requires us 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 our financial statements , as well as the reported revenues and expenses during the reported periods . we base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . a summary of our significant accounting policies appears in the notes to our audited consolidated financial statements for the year ended december 31 , 2016 included in this annual report on form 10-k. however , we believe that the following accounting policies are important to understanding and evaluating our reported financial results , and we have accordingly included them in this discussion . inventory . inventory , which is recorded at the lower of cost or net realizable value , includes the cost of third-party manufacturing and other direct and indirect costs and is valued using the first-in , first-out method . we capitalize inventory costs associated with our products upon regulatory approval when , based on management 's judgment , future commercialization is considered probable and the future economic benefit is expected to be realized ; otherwise , such costs are expensed as research and development . inventory is evaluated for impairment by consideration of factors such as lower of cost or net realizable value , obsolescence or expiry . net product sales . our net product sales consist of sales of hetlioz ® and sales of fanapt ® . we apply the revenue recognition guidance in accordance with financial accounting standards board accounting standards codification ( asc ) subtopic 605-15 , revenue recognitionproducts . we recognize revenue from product sales when there is persuasive evidence that an arrangement exists , title to product and associated risk of loss has passed to the customer , the price is fixed or determinable , collectability is reasonably assured and we have no further performance obligations . hetlioz ® is available in the u.s. for distribution through a limited number of specialty pharmacies , and is not available in retail pharmacies . fanapt ® is available in the u.s. for distribution through a limited number of wholesalers and is available in retail pharmacies . we invoice and record revenue when our customers , specialty pharmacies and wholesalers , receive product from the third-party logistics warehouse . revenues and accounts receivable are concentrated with these customers . we have entered into distribution agreements with probiomed s.a. de c.v. ( probiomed ) for the commercialization of fanapt ® in mexico and megapharm ltd. for the commercialization of fanapt ® in israel . 42 product sales discounts and allowances . product sales are recorded net of applicable discounts , chargebacks , rebates , co-pay assistance , service fees and product returns that are applicable for various government and commercial payors . reserves established for discounts and returns are classified as reductions of accounts receivable if the amount is payable to direct customers , with the exception of service fees . service fees are classified as a liability . reserves established for chargebacks , rebates or co-pay assistance are classified as a liability if the amount is payable to a party other than customers . we currently record sales allowances for the following : prompt-pay : specialty pharmacies and wholesalers are offered discounts for prompt payment . we expect that the specialty pharmacies and wholesalers will earn prompt payment discounts and , therefore , deduct the full amount of these discounts from total product sales when revenues are recognized . rebates : allowances for rebates include mandated and supplemental discounts under the medicaid drug rebate program as well as contracted rebate programs with other payors . rebate amounts owed after the final dispensing of the product to a benefit plan participant are based upon contractual agreements or legal requirements with public sector benefit providers , such as medicaid . the allowance for rebates is based on statutory or contracted discount rates and expected utilization . estimates for the expected utilization of rebates are based on historical activity and , where available , actual and pending prescriptions for which we have validated the insurance benefits . rebates are generally invoiced and paid in arrears , such that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter 's activity , plus an accrual balance for known prior quarter 's unpaid rebates . story_separator_special_tag increased clinical trial expenses associated with the hetlioz ® jet lag disorder and sms programs and the tradipitant chronic pruritus in atopic dermatitis program that were incurred for the year ended december 31 , 2016 were offset by the close out of fanapt ® clinical trial expenses transitioned to us as part of the settlement agreement with novartis and regulatory expenses related to our snda filing incurred during the year ended december 31 , 2015. the following table summarizes the costs of our product development initiatives for the year ended december 31 , 2016 and 2015 . 46 replace_table_token_8_th ( 1 ) we record direct costs , including personnel costs and related benefits , on a project-by-project basis . many of our research and development costs are not attributable to any individual project because we share resources across several development projects . we record indirect costs that support a number of our research and development activities in the aggregate , including stock-based compensation expense . we expect to incur significant research and development expenses as we continue to develop our products . in addition , we expect to incur licensing costs in the future that could be substantial , as we continue our efforts to develop our products . selling , general and administrative expenses . selling , general and administrative expenses increased by $ 15.3 million , or 18 % , to $ 99.8 million for the year ended december 31 , 2016 , compared with $ 84.5 million for the year ended december 31 , 2015. the increase was primarily the result of marketing and sales efforts around fanapt ® in the u.s. and hetlioz ® in europe , an increase in the number of employees , including the hiring of new members of the executive management team at the end of 2015 , as well as increased legal fees associated with ongoing patent litigation . intangible asset amortization . intangible asset amortization decreased by $ 2.1 million , or 16 % , to $ 10.9 million for year ended december 31 , 2016 compared to $ 13.0 million for the year ended december 31 , 2015. the likelihood of achieving a future milestone obligation that becomes payable to bms when cumulative sales of hetlioz ® equal $ 250.0 million was determined to be probable in the first quarter of 2015 resulting in an increase in capitalized intangible assets of $ 25.0 million . as a result , intangible asset amortization relating to hetlioz ® for the year ended december 31 , 2015 had included additional amortization of $ 1.2 million for a catch-up adjustment to retroactively record cumulative amortization from february 1 to december 31 , 2014 relating to the capitalized intangible asset of $ 25.0 million . we expect that annual amortization of capitalized intangible asset costs relating to hetlioz ® will amount to $ 1.7 million in future years until the expiration of the patent in 2033. amortization of intangible assets relating to fanapt ® was completed in november 2016 and amounted to $ 9.2 million for the year ended december 31 , 2016 , compared to $ 10.1 million for the year ended december 31 , 2015. pursuant to the terms of the settlement agreement with novartis , novartis transferred all u.s. and canadian rights in the fanapt ® franchise to us on december 31 , 2014 resulting in an increase in capitalized intangible assets of $ 15.9 million that has been amortized until november 2016. the useful life estimation for the fanapt ® intangible asset was based on the market participant methodology prescribed by asc 805 , and therefore does not reflect the impact of additional fanapt ® patents solely owned by us with varying expiration dates , the latest of which is december 2031. provision for income taxes . the provision for income taxes was $ 0.1 million and zero for the years ended december 31 , 2016 and 2015 , respectively . the tax provision for the year ended december 31 , 2016 is attributable to activities at our foreign subsidiaries and state income taxes . the tax benefit relating to the loss before income taxes for the years ended december 31 , 2016 and 2015 in the u.s. was fully offset by a tax valuation allowance resulting from our assessment that it is more likely than not that our deferred tax assets will not be realized . the ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which nols and credit carryforwards can be utilized . 47 year ended december 31 , 2015 compared to year ended december 31 , 2014 revenues . total revenues increased by $ 59.8 million , or 119 % , to $ 109.9 million for the year ended december 31 , 2015 compared to $ 50.2 million for the year ended december 31 , 2014. during the years ended december 31 , 2015 and 2014 , revenues consisted of the following : replace_table_token_9_th ( 1 ) percentage change not meaningful . hetlioz ® was commercially launched in the u.s. in april 2014. pursuant to the terms of the settlement agreement , novartis transferred all u.s. and canadian rights in the fanapt ® franchise to us in december 2014. we began selling fanapt ® commercially in the u.s. in january 2015. fanapt ® royalty revenue for the year ended december 31 , 2014 represented amounts due from novartis based on quarterly u.s. sales of fanapt ® by novartis , and fanapt ® license revenue for the year ended december 31 , 2014 represented amortization of deferred revenue from the $ 200.0 million up-front license fee received from novartis . pursuant to the settlement agreement , royalties from novartis ceased , and the remaining balance of the deferred revenue as of december 31 , 2014 related to the up-front license fee was recognized as part of gain on arbitration settlement in the consolidated statement of operations for

cash flow the following table summarizes our net cash flows from operating , investing and financing activities for the years ended december 31 , 2016 , 2015 and 2014 : replace_table_token_12_th year ended december 31 , 2016 compared to year ended december 31 , 2015 net cash used in operating activities was $ 8.1 million for the year ended december 31 , 2016 , a decrease of $ 20.6 million compared with net cash provided of $ 12.4 million for the year ended december 31 , 2015. the decrease reflects a net reduction of $ 40.7 million from the net change in operating assets and liabilities , including a decrease in accrued government and other rebates of $ 36.5 million primarily from sales allowances relating to our initial sales of fanapt ® in 2015 and a decrease in accounts payable and accrued liabilities of $ 8.9 million , partly offset by a net decrease of $ 8.4 million in accounts receivable primarily relating to initial u.s. sales of fanapt ® in 2015. the effect of the net changes in operating assets and liabilities was partially offset by a reduction in the net loss of $ 21.9 million . year ended december 31 , 2015 compared to year ended december 31 , 2014 net cash provided by operating activities was $ 12.4 million for the year ended december 31 , 2015 , an increase of $ 94.0 million from net cash used in operating activities of $ 81.6 million for the year ended december 31 , 2014. the increase resulted from a reduction in the net loss of $ 17.6 million , excluding the non-cash gain of $ 77.6 million on arbitration settlement recognized in the year ended december 31 , 2014 , non-cash amortization of deferred licensing revenue of $ 30.6 million relating to fanapt ® in the year ended december 31 , 2014 , and an increase of $ 13.6 million in other non-cash charges primarily from an increase the amortization of intangible assets relating to fanapt ® .


 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.
     ```cash flow the following table summarizes our net cash flows from operating , investing and financing activities for the years ended december 31 , 2016 , 2015 and 2014 : replace_table_token_12_th year ended december 31 , 2016 compared to year ended december 31 , 2015 net cash used in operating activities was $ 8.1 million for the year ended december 31 , 2016 , a decrease of $ 20.6 million compared with net cash provided of $ 12.4 million for the year ended december 31 , 2015. the decrease reflects a net reduction of $ 40.7 million from the net change in operating assets and liabilities , including a decrease in accrued government and other rebates of $ 36.5 million primarily from sales allowances relating to our initial sales of fanapt ® in 2015 and a decrease in accounts payable and accrued liabilities of $ 8.9 million , partly offset by a net decrease of $ 8.4 million in accounts receivable primarily relating to initial u.s. sales of fanapt ® in 2015. the effect of the net changes in operating assets and liabilities was partially offset by a reduction in the net loss of $ 21.9 million . year ended december 31 , 2015 compared to year ended december 31 , 2014 net cash provided by operating activities was $ 12.4 million for the year ended december 31 , 2015 , an increase of $ 94.0 million from net cash used in operating activities of $ 81.6 million for the year ended december 31 , 2014. the increase resulted from a reduction in the net loss of $ 17.6 million , excluding the non-cash gain of $ 77.6 million on arbitration settlement recognized in the year ended december 31 , 2014 , non-cash amortization of deferred licensing revenue of $ 30.6 million relating to fanapt ® in the year ended december 31 , 2014 , and an increase of $ 13.6 million in other non-cash charges primarily from an increase the amortization of intangible assets relating to fanapt ® .
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 Suspicious Activity Report : since we began operations in march 2003 , we have devoted substantially all of our resources to the in-licensing , clinical development and commercialization of our products . our ability to generate meaningful product sales and achieve profitability largely depends on our ability to successfully commercialize hetlioz ® and fanapt ® in the u.s. and europe , on our ability , alone or with others , to complete the development of our products , and to obtain the regulatory approvals for and to manufacture , market and sell our products . the results of our operations will vary significantly from year-to-year and quarter-to-quarter and depend on a number of factors , including risks related to our business , risks related to our industry , and other risks which are detailed in risk factors reported in item 1a of part i of this annual report on form 10-k. as described in part i , item 3 , legal proceedings , of this annual report on form 10-k , we have initiated lawsuits to enforce our patent rights against certain generic pharmaceutical companies . critical accounting policies the preparation of our consolidated financial statements requires us 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 our financial statements , as well as the reported revenues and expenses during the reported periods . we base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . a summary of our significant accounting policies appears in the notes to our audited consolidated financial statements for the year ended december 31 , 2016 included in this annual report on form 10-k. however , we believe that the following accounting policies are important to understanding and evaluating our reported financial results , and we have accordingly included them in this discussion . inventory . inventory , which is recorded at the lower of cost or net realizable value , includes the cost of third-party manufacturing and other direct and indirect costs and is valued using the first-in , first-out method . we capitalize inventory costs associated with our products upon regulatory approval when , based on management 's judgment , future commercialization is considered probable and the future economic benefit is expected to be realized ; otherwise , such costs are expensed as research and development . inventory is evaluated for impairment by consideration of factors such as lower of cost or net realizable value , obsolescence or expiry . net product sales . our net product sales consist of sales of hetlioz ® and sales of fanapt ® . we apply the revenue recognition guidance in accordance with financial accounting standards board accounting standards codification ( asc ) subtopic 605-15 , revenue recognitionproducts . we recognize revenue from product sales when there is persuasive evidence that an arrangement exists , title to product and associated risk of loss has passed to the customer , the price is fixed or determinable , collectability is reasonably assured and we have no further performance obligations . hetlioz ® is available in the u.s. for distribution through a limited number of specialty pharmacies , and is not available in retail pharmacies . fanapt ® is available in the u.s. for distribution through a limited number of wholesalers and is available in retail pharmacies . we invoice and record revenue when our customers , specialty pharmacies and wholesalers , receive product from the third-party logistics warehouse . revenues and accounts receivable are concentrated with these customers . we have entered into distribution agreements with probiomed s.a. de c.v. ( probiomed ) for the commercialization of fanapt ® in mexico and megapharm ltd. for the commercialization of fanapt ® in israel . 42 product sales discounts and allowances . product sales are recorded net of applicable discounts , chargebacks , rebates , co-pay assistance , service fees and product returns that are applicable for various government and commercial payors . reserves established for discounts and returns are classified as reductions of accounts receivable if the amount is payable to direct customers , with the exception of service fees . service fees are classified as a liability . reserves established for chargebacks , rebates or co-pay assistance are classified as a liability if the amount is payable to a party other than customers . we currently record sales allowances for the following : prompt-pay : specialty pharmacies and wholesalers are offered discounts for prompt payment . we expect that the specialty pharmacies and wholesalers will earn prompt payment discounts and , therefore , deduct the full amount of these discounts from total product sales when revenues are recognized . rebates : allowances for rebates include mandated and supplemental discounts under the medicaid drug rebate program as well as contracted rebate programs with other payors . rebate amounts owed after the final dispensing of the product to a benefit plan participant are based upon contractual agreements or legal requirements with public sector benefit providers , such as medicaid . the allowance for rebates is based on statutory or contracted discount rates and expected utilization . estimates for the expected utilization of rebates are based on historical activity and , where available , actual and pending prescriptions for which we have validated the insurance benefits . rebates are generally invoiced and paid in arrears , such that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter 's activity , plus an accrual balance for known prior quarter 's unpaid rebates . story_separator_special_tag increased clinical trial expenses associated with the hetlioz ® jet lag disorder and sms programs and the tradipitant chronic pruritus in atopic dermatitis program that were incurred for the year ended december 31 , 2016 were offset by the close out of fanapt ® clinical trial expenses transitioned to us as part of the settlement agreement with novartis and regulatory expenses related to our snda filing incurred during the year ended december 31 , 2015. the following table summarizes the costs of our product development initiatives for the year ended december 31 , 2016 and 2015 . 46 replace_table_token_8_th ( 1 ) we record direct costs , including personnel costs and related benefits , on a project-by-project basis . many of our research and development costs are not attributable to any individual project because we share resources across several development projects . we record indirect costs that support a number of our research and development activities in the aggregate , including stock-based compensation expense . we expect to incur significant research and development expenses as we continue to develop our products . in addition , we expect to incur licensing costs in the future that could be substantial , as we continue our efforts to develop our products . selling , general and administrative expenses . selling , general and administrative expenses increased by $ 15.3 million , or 18 % , to $ 99.8 million for the year ended december 31 , 2016 , compared with $ 84.5 million for the year ended december 31 , 2015. the increase was primarily the result of marketing and sales efforts around fanapt ® in the u.s. and hetlioz ® in europe , an increase in the number of employees , including the hiring of new members of the executive management team at the end of 2015 , as well as increased legal fees associated with ongoing patent litigation . intangible asset amortization . intangible asset amortization decreased by $ 2.1 million , or 16 % , to $ 10.9 million for year ended december 31 , 2016 compared to $ 13.0 million for the year ended december 31 , 2015. the likelihood of achieving a future milestone obligation that becomes payable to bms when cumulative sales of hetlioz ® equal $ 250.0 million was determined to be probable in the first quarter of 2015 resulting in an increase in capitalized intangible assets of $ 25.0 million . as a result , intangible asset amortization relating to hetlioz ® for the year ended december 31 , 2015 had included additional amortization of $ 1.2 million for a catch-up adjustment to retroactively record cumulative amortization from february 1 to december 31 , 2014 relating to the capitalized intangible asset of $ 25.0 million . we expect that annual amortization of capitalized intangible asset costs relating to hetlioz ® will amount to $ 1.7 million in future years until the expiration of the patent in 2033. amortization of intangible assets relating to fanapt ® was completed in november 2016 and amounted to $ 9.2 million for the year ended december 31 , 2016 , compared to $ 10.1 million for the year ended december 31 , 2015. pursuant to the terms of the settlement agreement with novartis , novartis transferred all u.s. and canadian rights in the fanapt ® franchise to us on december 31 , 2014 resulting in an increase in capitalized intangible assets of $ 15.9 million that has been amortized until november 2016. the useful life estimation for the fanapt ® intangible asset was based on the market participant methodology prescribed by asc 805 , and therefore does not reflect the impact of additional fanapt ® patents solely owned by us with varying expiration dates , the latest of which is december 2031. provision for income taxes . the provision for income taxes was $ 0.1 million and zero for the years ended december 31 , 2016 and 2015 , respectively . the tax provision for the year ended december 31 , 2016 is attributable to activities at our foreign subsidiaries and state income taxes . the tax benefit relating to the loss before income taxes for the years ended december 31 , 2016 and 2015 in the u.s. was fully offset by a tax valuation allowance resulting from our assessment that it is more likely than not that our deferred tax assets will not be realized . the ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which nols and credit carryforwards can be utilized . 47 year ended december 31 , 2015 compared to year ended december 31 , 2014 revenues . total revenues increased by $ 59.8 million , or 119 % , to $ 109.9 million for the year ended december 31 , 2015 compared to $ 50.2 million for the year ended december 31 , 2014. during the years ended december 31 , 2015 and 2014 , revenues consisted of the following : replace_table_token_9_th ( 1 ) percentage change not meaningful . hetlioz ® was commercially launched in the u.s. in april 2014. pursuant to the terms of the settlement agreement , novartis transferred all u.s. and canadian rights in the fanapt ® franchise to us in december 2014. we began selling fanapt ® commercially in the u.s. in january 2015. fanapt ® royalty revenue for the year ended december 31 , 2014 represented amounts due from novartis based on quarterly u.s. sales of fanapt ® by novartis , and fanapt ® license revenue for the year ended december 31 , 2014 represented amortization of deferred revenue from the $ 200.0 million up-front license fee received from novartis . pursuant to the settlement agreement , royalties from novartis ceased , and the remaining balance of the deferred revenue as of december 31 , 2014 related to the up-front license fee was recognized as part of gain on arbitration settlement in the consolidated statement of operations for

