as we proceed with clinical development of pb272 ( neratinib ( oral ) ) , and as we further develop pb272 ( neratinib ( intravenous ) ) , and pb357 , our second and third product candidates , respectively , we expect our r & d expenses and expenses related to our third-party contractors will begin to decline unless we decide to pursue additional clinical trials in alternate indications or acquire additional product candidates . to the extent we are successful in acquiring additional product candidates for our development pipeline , our need to finance r & d will increase . accordingly , our success depends not only on the safety and efficacy of our product candidates , but also on our ability to finance product development . our major sources of working capital have been proceeds from public offerings of our common stock , proceeds from our credit facility and sales of our common stock in private placements . summary of income and expenses product revenue , net product revenue , net consists of revenue from sales of nerlynx . we record revenue at the net sales price , which includes an estimate for variable consideration for which reserves are established . variable consideration consists of trade discounts and allowances , product returns , provider chargebacks and discounts , government rebates and other incentives . license revenue license revenue consists of consideration paid to us pursuant to our license agreements . 57 cost of sales cost of sales consists of third-party manufacturing costs , freight , and indirect overhead costs associated with sales of nerlynx . cost of product sales may also include period costs related to royalty charges payable to the licensor , the amortization of a milestone payment made to the licensor after obtaining fda approval of nerlynx , certain inventory manufacturing services , inventory adjustment charges , unabsorbed manufacturing and overhead costs , and manufacturing variances . selling , general and administration expenses selling , general and administrative , or sg & a , expenses consist primarily of salaries and related personnel costs , including stock-based compensation expense , professional fees , business insurance , rent , general legal activities , and other corporate expenses . internal expenses primarily consist of payroll-related costs , but also include facilities and equipment costs , travel expenses and supplies . external expenses primarily consist of legal fees , insurance expenses and consulting for activities such as sales , marketing and software implementations to support corporate growth . research and development expenses : r & d expenses include costs associated with services provided by consultants who conduct clinical services on our behalf , contract organizations for manufacturing of clinical materials and clinical trials . during the years ended december 31 , 2017 , 2016 and 2015 , our r & d expenses consisted primarily of clinical research organization , or cro , fees ; fees paid to consultants ; salaries and related personnel costs ; and stock-based compensation . we expense our r & d costs as they are incurred . internal expenses primarily consist of payroll-related costs , but also include equipment costs , travel expenses and supplies . external expenses primarily consist of clinical trial expenses and consultant and contractor expense , but also include costs such as legal fees , insurance costs and manufacturing expense . results of operations the following summarizes our results of operations for the periods indicated . year ended december 31 , 2017 compared to year ended december 31 , 2016 total revenue total revenue was approximately $ 27.7 million for the year ended december 31 , 2017 compared to $ 0 for the year ended december 31 , 2016. product revenue , net product revenue , net was approximately $ 26.2 million for the year ended december 31 , 2017 , compared to $ 0 for the year ended december 31 , 2016. this increase in product revenue , net was entirely attributable to sales of nerlynx , our initial product , following its commercial launch in july 2017. license revenue license revenue was approximately $ 1.5 million for the year ended december 31 , 2017 , compared to $ 0 for the year ended december 31 , 2016. this increase in license revenue was entirely attributable to an upfront payment in an out-license agreement . cost of sales cost of sales was approximately $ 5.6 million for the year ended december 31 , 2017 , compared to $ 0 for the year ended december 31 , 2016. the increase in cost of sales was entirely attributable to the commercial launch of nerlynx , our initial product , in july 2017. year ended december 31 , 2016 compared to year ended december 31 , 2015 total revenue total revenue was $ 0 for the years ended december 31 , 2016 and 2015 as we did not generate revenue until the commercial launch of nerlynx during 2017 . 58 cost of sales cost of sales was $ 0 for the years ended december 31 , 2016 and 2015 because we did not yet have a commercial product . selling , general and administrative expenses : replace_table_token_5_th year ended december 31 , 2017 compared to year ended december 31 , 2016 total sg & a expenses increased approximately 98.3 % to $ 106.7 million for the year ended december 31 , 2017 from $ 53.8 million for the year ended december 31 , 2016. approximately $ 16.1 million of this increase , or 30.4 % of the total increase , is related to the hiring and training of a commercial sales force and field based support personnel ( approximately 100 employees ) upon obtaining fda approval of nerlynx . story_separator_special_tag the credit facility also includes events of default , the occurrence and continuation of which could cause interest to be charged at the rate that is otherwise applicable plus 5.0 % and would provide svb , as collateral agent , with the right to exercise remedies against us and the collateral securing the credit facility , including foreclosure against the property securing the credit facilities , including its cash . these events of default include , among other things , any failure by us to pay principal or interest due under the credit facility , a breach of certain covenants under the credit facility , our insolvency , a material adverse change , the occurrence of any default under certain other indebtedness in an amount greater than $ 500,000 and one or more judgments against us in an amount greater than $ 500,000 individually or in the aggregate . current and future financing needs we have incurred negative cash flows from operations since we started our business , and we did not achieve any product revenues until the third quarter of 2017. we have spent , and expect to continue to spend , substantial amounts in connection with implementing our business strategy , including our planned product development efforts , our clinical trials , our r & d efforts and the commercialization efforts . given the current and desired pace of clinical development of our product candidates , over the next 12 months we estimate that our r & d spending will be approximately $ 130 million to $ 140 million , excluding stock-based compensation . 64 additionally , we expect sg & a expenses to increase as we continue commercialization efforts . we are currently exploring methods by which to commercialize our product candidates if approved by the fda or ema . these methods may require funding in addition to the cash and cash equivalents totaling approximately $ 81.7 million available at december 31 , 2017. while our consolidated financial statements have been prepared on a going concern basis , we expect to continue incurring significant losses for the foreseeable future and will continue to remain dependent on our ability to obtain sufficient funding to sustain operation and successfully commercially launch neratinib . while we have been successful in raising financing in the past , there can be no assurance that we will be able to do so in the future . our ability to obtain funding may be adversely impacted by uncertain market conditions , unfavorable decisions of regulatory authorities or adverse clinical trial results . the outcome of these matters can not be predicted at this time . in addition , we have based our estimate of capital needs on assumptions that may prove to be wrong . changes may occur that would consume our available capital faster than anticipated , including changes in and progress of our development activities , the impact of commercialization efforts , acquisitions of additional drug candidates and changes in regulation . potential sources of financing include strategic relationships , public or private sales of equity or debt and other sources of funds . we may seek to access the public or private equity markets when conditions are favorable due to our long-term capital requirements . although we may have access to the additional $ 50 million from the debt financing during 2018 provided we have achieved a specified minimum revnue milestone and no event of default is occurring , it is uncertain whether additional funding will be available when we need it on terms that will be acceptable to us , or at all . if we raise funds by selling additional shares of common stock or other securities convertible into common stock , the ownership interests of our existing stockholders will be diluted . if we are not able to obtain financing when needed , we may be unable to carry out our business plan . as a result , we may have to significantly limit our operations , and our business , financial condition and results of operations would be materially harmed . in such an event , we will be required to undertake a thorough review of our programs , and the opportunities presented by such programs , and allocate our resources in the manner most prudent . going concern our independent registered public accounting firm has issued a report on our audited consolidated financial statements for the year ended december 31 , 2017 that included an explanatory paragraph referring to our significant operating losses and expressing substantial doubt in our ability to continue as a going concern . our consolidated financial statements have been prepared on a going concern basis , which assumes the realization of assets and settlement of liabilities in the normal course of business . our ability to continue as a going concern is dependent upon our ability to generate profitable operations in the future and/ or to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they become due . the outcome of these matters can not be predicted with any certainty at this time and raise substantial doubt that we will be able to continue as a going concern . our consolidated financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should we be unable to continue as a going concern . off-balance sheet arrangements we do not have any “ off-balance sheet arrangements , ” as defined by the sec regulations . contractual obligations contractual obligations represent future cash commitments and liabilities under agreements with third parties , and exclude contingent liabilities for which we can not reasonably predict future payment . our contractual obligations result from property leases for office space . although we do have obligations for cro services , the table below excludes potential payments we may be required to make under our agreements with cros because timing

liquidity and capital resources operating activities we reported net losses of approximately $ 292.0 million , $ 276.0 million and $ 239.3 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively . we also reported negative cash flows from operating activities of approximately $ 172.5 million , $ 141.7 million and $ 154.5 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively . net cash used in operating activities for the year ended december 31 , 2017 , includes a net loss of $ 292.0 million adjusted for non-cash items of approximately $ 108.7 million for stock-based compensation expense , and depreciation of property and equipment and license amortization of approximately $ 2.8 million . further changes in cash flows from operations include an increase in accounts payable and accrued expenses of approximately $ 21.6 million , an increase in accounts receivable of approximately $ 9.7 million , an increase in inventory of approximately $ 2.0 million , an increase in prepaid expenses and other of approximately $ 1.1 million and an decrease in the accrued liability for deferred rent of approximately $ 0.1 million . net cash used in operating activities for the year ended december 31 , 2016 , includes a net loss of $ 276.0 million adjusted for non-cash items of approximately $ 117.3 million for stock-based compensation expense , build-out allowance of approximately $ 3.0 million , disposal of leasehold improvements of approximately $ 0.4 million and depreciation and amortization of property and equipment of approximately $ 1.1 million . further changes in cash flows from operations include an increase in accounts payable and accrued expenses of approximately $ 5.0 million , a decrease in prepaid expenses and other of approximately $ 3.4 million and an increase in the accrued liability for deferred rent of approximately $ 4.1 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.
     ```liquidity and capital resources operating activities we reported net losses of approximately $ 292.0 million , $ 276.0 million and $ 239.3 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively . we also reported negative cash flows from operating activities of approximately $ 172.5 million , $ 141.7 million and $ 154.5 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively . net cash used in operating activities for the year ended december 31 , 2017 , includes a net loss of $ 292.0 million adjusted for non-cash items of approximately $ 108.7 million for stock-based compensation expense , and depreciation of property and equipment and license amortization of approximately $ 2.8 million . further changes in cash flows from operations include an increase in accounts payable and accrued expenses of approximately $ 21.6 million , an increase in accounts receivable of approximately $ 9.7 million , an increase in inventory of approximately $ 2.0 million , an increase in prepaid expenses and other of approximately $ 1.1 million and an decrease in the accrued liability for deferred rent of approximately $ 0.1 million . net cash used in operating activities for the year ended december 31 , 2016 , includes a net loss of $ 276.0 million adjusted for non-cash items of approximately $ 117.3 million for stock-based compensation expense , build-out allowance of approximately $ 3.0 million , disposal of leasehold improvements of approximately $ 0.4 million and depreciation and amortization of property and equipment of approximately $ 1.1 million . further changes in cash flows from operations include an increase in accounts payable and accrued expenses of approximately $ 5.0 million , a decrease in prepaid expenses and other of approximately $ 3.4 million and an increase in the accrued liability for deferred rent of approximately $ 4.1 million .
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 Suspicious Activity Report : as we proceed with clinical development of pb272 ( neratinib ( oral ) ) , and as we further develop pb272 ( neratinib ( intravenous ) ) , and pb357 , our second and third product candidates , respectively , we expect our r & d expenses and expenses related to our third-party contractors will begin to decline unless we decide to pursue additional clinical trials in alternate indications or acquire additional product candidates . to the extent we are successful in acquiring additional product candidates for our development pipeline , our need to finance r & d will increase . accordingly , our success depends not only on the safety and efficacy of our product candidates , but also on our ability to finance product development . our major sources of working capital have been proceeds from public offerings of our common stock , proceeds from our credit facility and sales of our common stock in private placements . summary of income and expenses product revenue , net product revenue , net consists of revenue from sales of nerlynx . we record revenue at the net sales price , which includes an estimate for variable consideration for which reserves are established . variable consideration consists of trade discounts and allowances , product returns , provider chargebacks and discounts , government rebates and other incentives . license revenue license revenue consists of consideration paid to us pursuant to our license agreements . 57 cost of sales cost of sales consists of third-party manufacturing costs , freight , and indirect overhead costs associated with sales of nerlynx . cost of product sales may also include period costs related to royalty charges payable to the licensor , the amortization of a milestone payment made to the licensor after obtaining fda approval of nerlynx , certain inventory manufacturing services , inventory adjustment charges , unabsorbed manufacturing and overhead costs , and manufacturing variances . selling , general and administration expenses selling , general and administrative , or sg & a , expenses consist primarily of salaries and related personnel costs , including stock-based compensation expense , professional fees , business insurance , rent , general legal activities , and other corporate expenses . internal expenses primarily consist of payroll-related costs , but also include facilities and equipment costs , travel expenses and supplies . external expenses primarily consist of legal fees , insurance expenses and consulting for activities such as sales , marketing and software implementations to support corporate growth . research and development expenses : r & d expenses include costs associated with services provided by consultants who conduct clinical services on our behalf , contract organizations for manufacturing of clinical materials and clinical trials . during the years ended december 31 , 2017 , 2016 and 2015 , our r & d expenses consisted primarily of clinical research organization , or cro , fees ; fees paid to consultants ; salaries and related personnel costs ; and stock-based compensation . we expense our r & d costs as they are incurred . internal expenses primarily consist of payroll-related costs , but also include equipment costs , travel expenses and supplies . external expenses primarily consist of clinical trial expenses and consultant and contractor expense , but also include costs such as legal fees , insurance costs and manufacturing expense . results of operations the following summarizes our results of operations for the periods indicated . year ended december 31 , 2017 compared to year ended december 31 , 2016 total revenue total revenue was approximately $ 27.7 million for the year ended december 31 , 2017 compared to $ 0 for the year ended december 31 , 2016. product revenue , net product revenue , net was approximately $ 26.2 million for the year ended december 31 , 2017 , compared to $ 0 for the year ended december 31 , 2016. this increase in product revenue , net was entirely attributable to sales of nerlynx , our initial product , following its commercial launch in july 2017. license revenue license revenue was approximately $ 1.5 million for the year ended december 31 , 2017 , compared to $ 0 for the year ended december 31 , 2016. this increase in license revenue was entirely attributable to an upfront payment in an out-license agreement . cost of sales cost of sales was approximately $ 5.6 million for the year ended december 31 , 2017 , compared to $ 0 for the year ended december 31 , 2016. the increase in cost of sales was entirely attributable to the commercial launch of nerlynx , our initial product , in july 2017. year ended december 31 , 2016 compared to year ended december 31 , 2015 total revenue total revenue was $ 0 for the years ended december 31 , 2016 and 2015 as we did not generate revenue until the commercial launch of nerlynx during 2017 . 58 cost of sales cost of sales was $ 0 for the years ended december 31 , 2016 and 2015 because we did not yet have a commercial product . selling , general and administrative expenses : replace_table_token_5_th year ended december 31 , 2017 compared to year ended december 31 , 2016 total sg & a expenses increased approximately 98.3 % to $ 106.7 million for the year ended december 31 , 2017 from $ 53.8 million for the year ended december 31 , 2016. approximately $ 16.1 million of this increase , or 30.4 % of the total increase , is related to the hiring and training of a commercial sales force and field based support personnel ( approximately 100 employees ) upon obtaining fda approval of nerlynx . story_separator_special_tag the credit facility also includes events of default , the occurrence and continuation of which could cause interest to be charged at the rate that is otherwise applicable plus 5.0 % and would provide svb , as collateral agent , with the right to exercise remedies against us and the collateral securing the credit facility , including foreclosure against the property securing the credit facilities , including its cash . these events of default include , among other things , any failure by us to pay principal or interest due under the credit facility , a breach of certain covenants under the credit facility , our insolvency , a material adverse change , the occurrence of any default under certain other indebtedness in an amount greater than $ 500,000 and one or more judgments against us in an amount greater than $ 500,000 individually or in the aggregate . current and future financing needs we have incurred negative cash flows from operations since we started our business , and we did not achieve any product revenues until the third quarter of 2017. we have spent , and expect to continue to spend , substantial amounts in connection with implementing our business strategy , including our planned product development efforts , our clinical trials , our r & d efforts and the commercialization efforts . given the current and desired pace of clinical development of our product candidates , over the next 12 months we estimate that our r & d spending will be approximately $ 130 million to $ 140 million , excluding stock-based compensation . 64 additionally , we expect sg & a expenses to increase as we continue commercialization efforts . we are currently exploring methods by which to commercialize our product candidates if approved by the fda or ema . these methods may require funding in addition to the cash and cash equivalents totaling approximately $ 81.7 million available at december 31 , 2017. while our consolidated financial statements have been prepared on a going concern basis , we expect to continue incurring significant losses for the foreseeable future and will continue to remain dependent on our ability to obtain sufficient funding to sustain operation and successfully commercially launch neratinib . while we have been successful in raising financing in the past , there can be no assurance that we will be able to do so in the future . our ability to obtain funding may be adversely impacted by uncertain market conditions , unfavorable decisions of regulatory authorities or adverse clinical trial results . the outcome of these matters can not be predicted at this time . in addition , we have based our estimate of capital needs on assumptions that may prove to be wrong . changes may occur that would consume our available capital faster than anticipated , including changes in and progress of our development activities , the impact of commercialization efforts , acquisitions of additional drug candidates and changes in regulation . potential sources of financing include strategic relationships , public or private sales of equity or debt and other sources of funds . we may seek to access the public or private equity markets when conditions are favorable due to our long-term capital requirements . although we may have access to the additional $ 50 million from the debt financing during 2018 provided we have achieved a specified minimum revnue milestone and no event of default is occurring , it is uncertain whether additional funding will be available when we need it on terms that will be acceptable to us , or at all . if we raise funds by selling additional shares of common stock or other securities convertible into common stock , the ownership interests of our existing stockholders will be diluted . if we are not able to obtain financing when needed , we may be unable to carry out our business plan . as a result , we may have to significantly limit our operations , and our business , financial condition and results of operations would be materially harmed . in such an event , we will be required to undertake a thorough review of our programs , and the opportunities presented by such programs , and allocate our resources in the manner most prudent . going concern our independent registered public accounting firm has issued a report on our audited consolidated financial statements for the year ended december 31 , 2017 that included an explanatory paragraph referring to our significant operating losses and expressing substantial doubt in our ability to continue as a going concern . our consolidated financial statements have been prepared on a going concern basis , which assumes the realization of assets and settlement of liabilities in the normal course of business . our ability to continue as a going concern is dependent upon our ability to generate profitable operations in the future and/ or to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they become due . the outcome of these matters can not be predicted with any certainty at this time and raise substantial doubt that we will be able to continue as a going concern . our consolidated financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should we be unable to continue as a going concern . off-balance sheet arrangements we do not have any “ off-balance sheet arrangements , ” as defined by the sec regulations . contractual obligations contractual obligations represent future cash commitments and liabilities under agreements with third parties , and exclude contingent liabilities for which we can not reasonably predict future payment . our contractual obligations result from property leases for office space . although we do have obligations for cro services , the table below excludes potential payments we may be required to make under our agreements with cros because timing

