on march 18 , 2014 , the company reincorporated in delaware under the name cocrystal pharma , inc. effective november 25 , 2014 , cocrystal pharma , inc. and affiliated entities completed a series of merger transactions as a result of which cocrystal pharma , inc. merged with rfs pharma , llc , a georgia limited liability company ( “ rfs pharma ” ) . we refer to the surviving entity of this merger as “ cocrystal ” or the “ company . ” 33 our primary business going forward is to develop novel medicines for use in the treatment of human viral diseases . cocrystal has been developing novel technologies and approaches to create first-in-class and best-in-class antiviral drug candidates since its initial funding in 2008. our focus is to pursue the development and commercialization of broad-spectrum antiviral drug candidates that will transform the treatment and prophylaxis of viral diseases in humans . by concentrating our research and development efforts on viral replication inhibitors , we plan to leverage our infrastructure and expertise in these areas . results of operations for the years ended december 31 , 2016 and december 31 , 2015 as stated above , we are focused on research and development of novel medicines for use in the treatment of human viral diseases . accordingly , we had no revenue for the years ended december 31 , 2016 or 2015 , except for $ 78,000 in grant revenues for 2015. for the year ended december 31 , 2016 , we had a net loss of $ 74,874,000 compared to a net loss of $ 50,122,000 for 2015. this net loss for the year was due primarily to an impairment loss of $ 92,396,000 on our ipr & d , $ 13,400,000 from ongoing operations , $ 1,177,000 impairment on our mortgage note , and a ( $ 29,394,000 ) deferred tax benefit associated with the impairment charges incurred . our operating loss for the year ended december 31 , 2016 was $ 105,819,000 , compared to an operating loss of $ 53,948,000 in 2015. other income was $ 1,551,000 for the year ended december 31 , 2016 , which is primarily due to a $ 2,603,000 gain on the fair value of derivative liabilities , offset by a loss of $ 1,177,000 related to impairment of our mortgage note receivable . under accounting principles generally accepted in the united states , we record other income or expense for the change in fair value of our outstanding warrants that are accounted for as liabilities during each reporting period . if the value of the warrants decreases during a period , which occurred during the year ended december 31 , 2016 , we record other income . the fair value of our outstanding warrants is inversely related to the fair value of the underlying common stock ; as such , a decrease in the fair value of our common stock during a given period generally results in other income while an increase in the fair value of our common stock generally results in other expense . this other income or expense is non-cash . we believe investors should focus on our operating loss rather than net income or loss for the periods presented . research and development expense research and development expense consists primarily of compensation-related costs for our 16 employees dedicated to research and development activities and for our scientific advisory board members , as well as lab supplies , lab services , and facilities and equipment costs . we expect research and development expenses to increase in future periods as we expand our pre-clinical development activities . also included in research and development expense for the years ended december 31 , 2016 and 2015 are impairment charges related to our in-process research and development ( ipr & d ) intangible asset . total research and development expenses were $ 101,679,000 for the year ended december 31 , 2016 , compared with $ 47,261,000 for the year ended december 31 , 2015. this increase of $ 54,418,000 is primarily the result of recognizing an impairment loss on ipr & d of $ 92,396,000 in 2016 as compared to an impairment loss of $ 38,665,000 in 2015. excluding the impact of the ipr & d impairment charges in each period , research and development expenses were $ 9,283,000 for the year ended december 31 , 2016 , which is an increase of $ 687,000 from $ 8,596,000 for the year ended december 31 , 2015. we continue to expect research and development expenses to increase in 2017 as a result of ongoing phase 1 programs and phase 2 start up . general and administrative expense general and administrative expense includes compensation-related costs for our employees dedicated to general and administrative activities , legal fees , audit and tax fees , consultants and professional services , and general corporate expenses . general and administrative expenses were $ 4,140,000 for the year ended december 31 , 2016 , compared with $ 6,765,000 for the year ended december 31 , 2015. this decrease of $ 2,625,000 is primarily the result of lower stock option expense due to the resignation of the ceo and cmo during the year . 34 future general and administrative expenses are expected to continue at the current levels , although we expect legal expenses relating to the sec and the sec investigation to be covered by insurance . story_separator_special_tag these impairment tests require significant judgment regarding the status of the research activities , the potential for future revenues to be derived from any products that may result from those activities , and other factors . 38 the company conducted its annual impairment tests related to the in-process research and development asset as of november 30 , 2015. the initial valuation recorded in november 2014 at the time of the rfs pharma acquisition represented the fair value of the acquired hepatitis c program acquired from rfs pharma . we performed our impairment test and estimated fair value of each unit of account based on the income approach ( also known as the discounted cash flow ( “ dcf ” ) method , which utilizes the present value of future cash flows to estimate fair value . ) the future cash flows for our hepatitis c assets were projected based upon our estimates of future revenues , operating income and other factors ( such as working capital and capital expenditures ) . we took into account market conditions for hepatitis c therapies , anticipated new competitive therapies and anticipated market price declines as we modeled future cash flows . late in 2015 , the company received reports from ongoing pre-clinical studies that indicated higher than acceptable toxicity related to its hepatitis c lead molecule , cc-1845 . work is ongoing to further isolate the source ( s ) of the higher than acceptable toxicity by separating the two diasteromers that form cc-1845 . we have determined one of these diasteromers has higher than desired toxicity . work on the second diasteromer is still in process . these events result in longer than anticipated development times for our lead molecule , a lower probability of technical and regulatory success and longer development times for back-up molecules within hepatitis c. as a result , we have lowered our forecasts of future cash flows , which caused a reduction in value of our hepatitis c assets and which led to the impairment charge recorded in the amount of $ 38.7 million in 2015 related to our ipr & d asset . as we continue work on this program , we may be required to record additional impairment charges depending on the outcome of our research activities . in november 2016 , the company performed annual tests of impairment on our ipr & d asset and to determine the fair value . due to industry reports forecasting patient volume decreasing and the average price of treatment trending downward , as well as due to increased competition in the hepatitis c market , and partially the result of further data defining the scientific and commercial potential of company hcv compounds , we have lowered our forecasts of future cash flows , which caused a reduction in value of our hepatitis c assets . this resulted in an impairment charge recorded to our ipr & d asset in the amount of $ 92.4 million in 2016. we also recorded $ 65.2 million of goodwill in the rfs pharma acquisition that is subject to impairment testing . this goodwill primarily represents the amount recorded as a deferred tax liability in the rfs pharma acquisition , which was required as the goodwill recorded for book purposes is not tax deductible based on the structure of the acquisition . future impairment tests of goodwill will also require substantial judgment and estimates . we completed our annual goodwill impairment tests as of november 30 , 2016 and 2015 , and determined that there was no impairment . income taxes given the uncertainty regarding future realization of our deferred tax assets , which primarily result from our net operating losses and research and development credit carryforwards , we have placed a full valuation allowance on our deferred tax assets . however , as noted above , we initially recorded a deferred tax liability of $ 65.2 million related to the rfs pharma acquisition . due to the impairment loss we recognized on our in-process research and development in 2015 , we reduced the deferred tax liability for the tax effect on that impairment loss of approximately $ 15.3 million . in 2016 , we recognized another impairment loss on our in-process research and development of $ 92.4 million . as a result , our deferred tax liability at december 31 , 2016 was reduced to $ 20.5 million . we have not considered this deferred tax liability as a source of future income in our determination of the need for a valuation allowance against our deferred tax assets due to the fact that this deferred tax liability relates to our indefinite-lived ipr & d asset , and the timing of reversal of this deferred tax liability can not currently be determined due to uncertainty regarding the ultimate outcome of our research activities associated with the intellectual property acquired in the rfs pharma transaction . to the extent our estimates regarding the outcome of those activities changes in future periods , our determination regarding the valuation allowance may also change . contractual obligations the following table summarizes our significant contractual obligations at december 31 , 2016 ( in thousands ) : replace_table_token_3_th the minimum lease payments above do not include common area maintenance ( cam ) charges , which are contractual obligations under some of the company 's operating leases , but are not fixed and can fluctuate from year to year . licenses and collaborations in addition to the above contractual commitments , we also have potential future payments due under various licenses and collaborations as follows : emory university : cocrystal pharma has an exclusive license from emory university for use of certain inventions and technology related to inhibitors of hepatitis c virus that were jointly developed by emory and cocrystal pharma employees . the license agreement is dated march 7 , 2013 wherein emory agrees to add to the licensed patents and licensed technology emory 's rights to any patent

liquidity and capital resources for the year ended december 31 , 2016 , net cash used in operating activities was $ 14,655,000 , compared to net cash used in operating activities of $ 10,317,000 for 2015. the increase in cash used in operating activities from 2016 to 2015 was attributable to our increase in research and development activities , including phase i testing of our lead non-nucleoside inhibitor . in 2016 , net cash provided by investing activities of $ 3,000 consisted of receipts related to our mortgage note offset by capital expenditures primarily for lab equipment for our r & d facilities , as compared to cash used by investing activities of $ 262,000 when our capital expenditures exceeded amounts received for our mortgage note . for the year ended december 31 , 2016 , net cash provided by financing activities was $ 9,016,000 , compared to cash provided by financing activities of $ 15,885,000 for 2015. in both years , net cash generated by financing activities was primarily generated from the issuance of common stock . for the year ended december 31 , 2015 , net cash used in operating activities was $ 10,317,000 , compared to net cash used in operating activities of $ 6,012,000 for 2014. the increase in cash used in operating activities from 2014 to 2015 was attributable to our increase in research and development activities , including an increase in personnel , and increased general and administrative expenses associated with being a public company and with the two mergers we entered into during 2014. in 2015 , net cash used in investing activities of $ 262,000 consisted of capital expenditures primarily for improvements to our corporate offices in tucker , georgia .


 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 for the year ended december 31 , 2016 , net cash used in operating activities was $ 14,655,000 , compared to net cash used in operating activities of $ 10,317,000 for 2015. the increase in cash used in operating activities from 2016 to 2015 was attributable to our increase in research and development activities , including phase i testing of our lead non-nucleoside inhibitor . in 2016 , net cash provided by investing activities of $ 3,000 consisted of receipts related to our mortgage note offset by capital expenditures primarily for lab equipment for our r & d facilities , as compared to cash used by investing activities of $ 262,000 when our capital expenditures exceeded amounts received for our mortgage note . for the year ended december 31 , 2016 , net cash provided by financing activities was $ 9,016,000 , compared to cash provided by financing activities of $ 15,885,000 for 2015. in both years , net cash generated by financing activities was primarily generated from the issuance of common stock . for the year ended december 31 , 2015 , net cash used in operating activities was $ 10,317,000 , compared to net cash used in operating activities of $ 6,012,000 for 2014. the increase in cash used in operating activities from 2014 to 2015 was attributable to our increase in research and development activities , including an increase in personnel , and increased general and administrative expenses associated with being a public company and with the two mergers we entered into during 2014. in 2015 , net cash used in investing activities of $ 262,000 consisted of capital expenditures primarily for improvements to our corporate offices in tucker , georgia .
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 Suspicious Activity Report : on march 18 , 2014 , the company reincorporated in delaware under the name cocrystal pharma , inc. effective november 25 , 2014 , cocrystal pharma , inc. and affiliated entities completed a series of merger transactions as a result of which cocrystal pharma , inc. merged with rfs pharma , llc , a georgia limited liability company ( “ rfs pharma ” ) . we refer to the surviving entity of this merger as “ cocrystal ” or the “ company . ” 33 our primary business going forward is to develop novel medicines for use in the treatment of human viral diseases . cocrystal has been developing novel technologies and approaches to create first-in-class and best-in-class antiviral drug candidates since its initial funding in 2008. our focus is to pursue the development and commercialization of broad-spectrum antiviral drug candidates that will transform the treatment and prophylaxis of viral diseases in humans . by concentrating our research and development efforts on viral replication inhibitors , we plan to leverage our infrastructure and expertise in these areas . results of operations for the years ended december 31 , 2016 and december 31 , 2015 as stated above , we are focused on research and development of novel medicines for use in the treatment of human viral diseases . accordingly , we had no revenue for the years ended december 31 , 2016 or 2015 , except for $ 78,000 in grant revenues for 2015. for the year ended december 31 , 2016 , we had a net loss of $ 74,874,000 compared to a net loss of $ 50,122,000 for 2015. this net loss for the year was due primarily to an impairment loss of $ 92,396,000 on our ipr & d , $ 13,400,000 from ongoing operations , $ 1,177,000 impairment on our mortgage note , and a ( $ 29,394,000 ) deferred tax benefit associated with the impairment charges incurred . our operating loss for the year ended december 31 , 2016 was $ 105,819,000 , compared to an operating loss of $ 53,948,000 in 2015. other income was $ 1,551,000 for the year ended december 31 , 2016 , which is primarily due to a $ 2,603,000 gain on the fair value of derivative liabilities , offset by a loss of $ 1,177,000 related to impairment of our mortgage note receivable . under accounting principles generally accepted in the united states , we record other income or expense for the change in fair value of our outstanding warrants that are accounted for as liabilities during each reporting period . if the value of the warrants decreases during a period , which occurred during the year ended december 31 , 2016 , we record other income . the fair value of our outstanding warrants is inversely related to the fair value of the underlying common stock ; as such , a decrease in the fair value of our common stock during a given period generally results in other income while an increase in the fair value of our common stock generally results in other expense . this other income or expense is non-cash . we believe investors should focus on our operating loss rather than net income or loss for the periods presented . research and development expense research and development expense consists primarily of compensation-related costs for our 16 employees dedicated to research and development activities and for our scientific advisory board members , as well as lab supplies , lab services , and facilities and equipment costs . we expect research and development expenses to increase in future periods as we expand our pre-clinical development activities . also included in research and development expense for the years ended december 31 , 2016 and 2015 are impairment charges related to our in-process research and development ( ipr & d ) intangible asset . total research and development expenses were $ 101,679,000 for the year ended december 31 , 2016 , compared with $ 47,261,000 for the year ended december 31 , 2015. this increase of $ 54,418,000 is primarily the result of recognizing an impairment loss on ipr & d of $ 92,396,000 in 2016 as compared to an impairment loss of $ 38,665,000 in 2015. excluding the impact of the ipr & d impairment charges in each period , research and development expenses were $ 9,283,000 for the year ended december 31 , 2016 , which is an increase of $ 687,000 from $ 8,596,000 for the year ended december 31 , 2015. we continue to expect research and development expenses to increase in 2017 as a result of ongoing phase 1 programs and phase 2 start up . general and administrative expense general and administrative expense includes compensation-related costs for our employees dedicated to general and administrative activities , legal fees , audit and tax fees , consultants and professional services , and general corporate expenses . general and administrative expenses were $ 4,140,000 for the year ended december 31 , 2016 , compared with $ 6,765,000 for the year ended december 31 , 2015. this decrease of $ 2,625,000 is primarily the result of lower stock option expense due to the resignation of the ceo and cmo during the year . 34 future general and administrative expenses are expected to continue at the current levels , although we expect legal expenses relating to the sec and the sec investigation to be covered by insurance . story_separator_special_tag these impairment tests require significant judgment regarding the status of the research activities , the potential for future revenues to be derived from any products that may result from those activities , and other factors . 38 the company conducted its annual impairment tests related to the in-process research and development asset as of november 30 , 2015. the initial valuation recorded in november 2014 at the time of the rfs pharma acquisition represented the fair value of the acquired hepatitis c program acquired from rfs pharma . we performed our impairment test and estimated fair value of each unit of account based on the income approach ( also known as the discounted cash flow ( “ dcf ” ) method , which utilizes the present value of future cash flows to estimate fair value . ) the future cash flows for our hepatitis c assets were projected based upon our estimates of future revenues , operating income and other factors ( such as working capital and capital expenditures ) . we took into account market conditions for hepatitis c therapies , anticipated new competitive therapies and anticipated market price declines as we modeled future cash flows . late in 2015 , the company received reports from ongoing pre-clinical studies that indicated higher than acceptable toxicity related to its hepatitis c lead molecule , cc-1845 . work is ongoing to further isolate the source ( s ) of the higher than acceptable toxicity by separating the two diasteromers that form cc-1845 . we have determined one of these diasteromers has higher than desired toxicity . work on the second diasteromer is still in process . these events result in longer than anticipated development times for our lead molecule , a lower probability of technical and regulatory success and longer development times for back-up molecules within hepatitis c. as a result , we have lowered our forecasts of future cash flows , which caused a reduction in value of our hepatitis c assets and which led to the impairment charge recorded in the amount of $ 38.7 million in 2015 related to our ipr & d asset . as we continue work on this program , we may be required to record additional impairment charges depending on the outcome of our research activities . in november 2016 , the company performed annual tests of impairment on our ipr & d asset and to determine the fair value . due to industry reports forecasting patient volume decreasing and the average price of treatment trending downward , as well as due to increased competition in the hepatitis c market , and partially the result of further data defining the scientific and commercial potential of company hcv compounds , we have lowered our forecasts of future cash flows , which caused a reduction in value of our hepatitis c assets . this resulted in an impairment charge recorded to our ipr & d asset in the amount of $ 92.4 million in 2016. we also recorded $ 65.2 million of goodwill in the rfs pharma acquisition that is subject to impairment testing . this goodwill primarily represents the amount recorded as a deferred tax liability in the rfs pharma acquisition , which was required as the goodwill recorded for book purposes is not tax deductible based on the structure of the acquisition . future impairment tests of goodwill will also require substantial judgment and estimates . we completed our annual goodwill impairment tests as of november 30 , 2016 and 2015 , and determined that there was no impairment . income taxes given the uncertainty regarding future realization of our deferred tax assets , which primarily result from our net operating losses and research and development credit carryforwards , we have placed a full valuation allowance on our deferred tax assets . however , as noted above , we initially recorded a deferred tax liability of $ 65.2 million related to the rfs pharma acquisition . due to the impairment loss we recognized on our in-process research and development in 2015 , we reduced the deferred tax liability for the tax effect on that impairment loss of approximately $ 15.3 million . in 2016 , we recognized another impairment loss on our in-process research and development of $ 92.4 million . as a result , our deferred tax liability at december 31 , 2016 was reduced to $ 20.5 million . we have not considered this deferred tax liability as a source of future income in our determination of the need for a valuation allowance against our deferred tax assets due to the fact that this deferred tax liability relates to our indefinite-lived ipr & d asset , and the timing of reversal of this deferred tax liability can not currently be determined due to uncertainty regarding the ultimate outcome of our research activities associated with the intellectual property acquired in the rfs pharma transaction . to the extent our estimates regarding the outcome of those activities changes in future periods , our determination regarding the valuation allowance may also change . contractual obligations the following table summarizes our significant contractual obligations at december 31 , 2016 ( in thousands ) : replace_table_token_3_th the minimum lease payments above do not include common area maintenance ( cam ) charges , which are contractual obligations under some of the company 's operating leases , but are not fixed and can fluctuate from year to year . licenses and collaborations in addition to the above contractual commitments , we also have potential future payments due under various licenses and collaborations as follows : emory university : cocrystal pharma has an exclusive license from emory university for use of certain inventions and technology related to inhibitors of hepatitis c virus that were jointly developed by emory and cocrystal pharma employees . the license agreement is dated march 7 , 2013 wherein emory agrees to add to the licensed patents and licensed technology emory 's rights to any patent

