on july 16 , 2018 , following the consummation of the underwritten public offering , the holders of our shares of series a convertible preferred stock exchanged an aggregate of $ 7,871,186 of stated value and accrued but unpaid dividends on their shares for an aggregate of 3,748,184 shares of our common stock and warrants to purchase an aggregate of 3,748,184 shares of our common stock . as a result of such exchange , there are no longer any shares of series a convertible preferred stock issued and outstanding . the warrants have an exercise price of $ 2.10 per share and a term of five years . in addition , pursuant to certain anti-dilution provisions included in warrants issued to the holders of our series a convertible preferred stock in march and may 2018 , or pipe warrants , the exercise price of the pipe warrants was automatically adjusted to $ 2.10 per share from the original exercise price of $ 6.59 per share . 84 on november 5 , 2018 , we entered into a settlement agreement with jgb ( cayman ) newton , ltd. , or jgb , regarding our counterclaims against jgb that were asserted in the litigation originally commenced by jgb in april 2018. as part of the settlement , jgb paid us approximately $ 6.6 million in exchange for a full discharge of all counterclaims asserted by us against jgb in the litigation . we and jgb also agreed to terminate the senior secured debenture agreement and all related agreements , and jgb released all of its interests in the collateral for the senior secured debenture . see note 8 to the consolidated financial statements for a description of the litigation and settlement agreement . overview we are a clinical-stage biopharmaceutical company focused on developing novel cancer immunotherapeutics for a broad range of cancer indications . our product candidates currently include galinpepimut-s and nelipepimut-s. galinpepimut-s , or gps our lead product candidate , galinpepimut-s , or gps , is a cancer immunotherapeutic agent licensed from memorial sloan kettering cancer center , or msk , that targets the wilms tumor 1 , or wt1 , protein , which is present in 20 or more cancer types . based on its mechanism of action as a directly immunizing agent , gps has potential as a monotherapy or in combination with other immunotherapeutic agents to address a broad spectrum of hematologic , or blood , cancers and solid tumor indications . in november 2018 , following discussions with the u.s. food and drug administration , or fda , regarding a clinical trial design and biostatistical plan , we commenced preparations for a phase 3 trial for gps monotherapy in patients with acute myeloid leukemia , or aml , in the maintenance setting after achievement of their second complete remission , or crem2 , following successful completion of second-line antileukemic therapy . this trial is expected to serve as the basis for a biologics license application , or bla , submission , subject to positive results . we are currently ready to start this phase 3 trial , pending receipt of sufficient funding . we plan to enroll approximately 116 patients at approximately 50 clinical sites in the united states and europe and is contemplated to have a planned interim safety and futility analysis after 80 events ( deaths ) . in december 2018 , we initiated a phase 1/2 multi-arm ( ‘ basket ' type ) clinical study of gps in combination with merck & co. , inc. 's anti-pd-1 therapy , keytruda® ( pembrolizumab ) . we plan to enroll approximately 90 patients at up to 20 centers in the united states . the initial tumor types to be treated will be aml ( in patients having achieved partial response as their best hematological response after four cycles of therapy with hypomethylating agents ) , and ovarian cancer ( second or third line ) , to be followed by triple negative breast cancer , or tnbc , ( second line ) , small cell lung cancer , or sclc ( second line ) , and colorectal cancer ( third or fourth line ) . gps was granted orphan drug product designations from the fda as well as orphan medicinal product designations from the european medicines agency , or ema , for gps in aml , malignant pleural mesothelioma , or mpm , and multiple myeloma , or mm , as well as fast track designation for aml , mpm , and mm from the fda . nelipepimut-s or nps nelipepimut-s , or nps , is a cancer immunotherapy targeting the human epidermal growth factor receptor , or her2 , expressing cancers . in 2018 we presented data from our phase 2b study of the combination of trastuzumab plus nps in her 1+/2+ breast cancer patients in the adjuvant setting to prevent recurrences that showed a clinically and statistically significant improvement in the dfs rate for the tnbc cohort at 24 months for patients treated with nps plus trastuzumab of 92.6 % compared to 70.2 % for those treated with trastuzumab alone . in october 2018 , the dsmb , unanimously concluded that the final analysis of the phase 2b study data , with a median follow-up of 26 months , confirmed that tnbc patients should be the key target population for the development of trastuzumab plus nps in the adjuvant setting in early-stage her2 1+/2+ breast cancer patients . we are having ongoing discussions with the fda to define an optimal path for further development of the combination of nps plus trastuzumab in tnbc and expect to complete these discussions in the first half of 2019 . 85 fbp-targeting bivalent vaccine ( gale-301/-302 ) gale-301 and gale 302 are cancer immunotherapies that target the e39 peptide derived from the folate binding protein , or fbp . story_separator_special_tag million increase in insurance premiums , $ 0.4 million increase in rebates and returns of former commercial products , and a $ 0.5 million increase in other expenses . such increases during 2018 are a result of an increase in accounting , consulting , and tax-related services associated with maintaining compliance with nasdaq and sec reporting requirements , investor relations costs , and director and officer insurance premiums associated with being a public company . 91 asset impairment in january 2014 , galena , our predecessor-in-interest , acquired the worldwide rights to develop and commercialize anagrelide cr formulation ( gale-401 ) through its acquisition of mills pharmaceuticals , llc , or mills . the license agreement ( “ bvi agreement ” ) for gale-401 between mills and biovascular , inc. ( “ biovascular ” ) provides that mills may terminate the bvi agreement by providing 60 days written notice to biovascular . on december 5 , 2018 , our board of directors approved the termination of the bvi agreement and we , on behalf of mills , provided written notice of such termination to biovascular and confirmed that mills will no longer support or pursue the filing , prosecution , or maintenance of any patent covered in the bvi agreement . we previously disclosed that management had been evaluating gale-401 , among other items , for potential internal development , strategic partnership , or other types of product rationalizations and determined that further development of gale-401 is outside of the scope of our core focus on cancer immunotherapy/cancer vaccine development . we recognized asset impairment expenses of approximately $ 9.6 million for the year ended december 31 , 2018 . included in the asset impairment expenses are a non-cash charge of approximately $ 9.1 million for impairment of intangible assets recorded as in-process research and development and an additional $ 0.5 million of milestone payments recorded as deposits and other assets . severance costs related to merger there were no severance costs related to the merger for the year ended december 31 , 2018. severance costs incurred during the year ended december 31 , 2017 include employee-related costs for severance of certain former galena employees of approximately $ 1.9 million . the amount was paid by galena prior to the consummation of the merger and subsequently recognized as an expense by the combined company immediately following the closing of the merger . such termination resulted in contingent consideration being paid out in the form of severance based on change of control provisions in their employment agreements . their employment agreements all required both a change of control and termination of employment , or a double trigger in connection with the payment of such severance amounts . since there was a change of control as a result of the merger and galena terminated all employees prior to the closing , with both provisions of the double trigger were satisfied and the severance is treated as an action triggered by the accounting acquirer , private sellas . non-operating income ( expense ) , net non-operating income ( expense ) , net for the years ended december 31 , 2018 and 2017 , respectively , was as follows ( dollars in thousands ) : replace_table_token_2_th the increase in our net non-operating income ( expense ) during the year ended december 31 , 2018 compared to the year ended december 31 , 2017 was primarily due to a $ 5.3 million gain arising from the decrease in the fair value of liability-classified warrants to acquire shares of our common stock and a $ 0.8 million gain on extinguishment of debt . the decrease in the estimated fair value of our warrant liability was primarily due to the decrease in our common stock price . the $ 0.8 million gain on extinguishment of debt relates to the settlement with jgb , the holder of our former senior secured debenture . as a result of the settlement , the $ 0.8 million of additional interest that was due at maturity was forgiven . see note 10 to the consolidated financial statements included elsewhere in this annual report on form 10-k for a description of the litigation and settlement agreement . 92 these amounts were partially offset by a $ 3.0 million increase in the fair value of the contingent consideration liability and a $ 0.7 million loss on settlement of liability-classified awards . the change in the estimated fair value of the contingent consideration during the year ended december 31 , 2018 reflects an adjusted probability and time-line for the potential approval of nps associated with the positive interim data from the phase 2b investigator-sponsored clinical trial of trastuzumab +/- nps in her2 1+/2+ breast cancer patients that was announced on april 2 , 2018. the $ 0.7 million loss on settlement of liability-classified warrants relates to warrants to acquire shares of common stock issued by galena in february 2017 that were assumed in the merger . during the year ended december 31 , 2018 , a total of 534,333 of the liability-classified warrants were canceled under various warrant exchange agreements , as further described herein . we issued 54,343 shares of our common stock in exchange for the surrender and cancellation of warrants to acquire 121,667 shares of our common stock and $ 1.0 million in convertible promissory notes in exchange for the surrender and cancellation of warrants to acquire 412,667 shares of our common stock , as described in note 12 to the consolidated financial statements included elsewhere in this annual report on form 10-k. the fair value of the consideration exchanged which totaled approximately $ 1.3 million exceeded the fair value of the warrant liability of the canceled warrants by $ 0.7 million and is recorded as loss on settlement of liability-classified warrants in the consolidated statement of operations for the year ended december 31 , 2018 . interest expense , net for the years ended december 31 , 2018 and 2017 primarily

liquidity and capital resources we have not generated any revenue from product sales or collaboration and licensing agreements in the years ended december 31 , 2018 and 2017. since inception , we have incurred net losses , used net cash from our operations , and have funded substantially all of our operations through proceeds from sale of debt and equity securities . on march 6 , 2019 , we entered into a warrant exercise agreement , or the exercise agreement , with one of the holders of our warrants issued in july 2018. pursuant to the exercise agreement , such holder agreed that it would cash exercise up to 3,800,000 of its warrants issued in july 2018 into shares of common stock at a reduced exercise price of $ 1.10 per share for any warrants exercised prior to may 31 , 2019. in addition to reducing the exercise price of the warrants , the exercise agreement also provides for the issuance of new warrants to purchase up to an aggregate of approximately 3,800,000 shares of common stock at an exercise price of $ 1.40 per share , or new warrants , to be issued on a share-for-share basis in an amount equal to the number of the warrants that are cash exercised by the holder by may 31 , 2019. to date , the holder has exercised approximately 1.2 million warrants for gross proceeds of $ 1.3 million and approximately 1.2 million new warrants were issued . under the terms of the warrant exchange agreement , we may receive aggregate gross proceeds of up to approximately $ 4.2 million from the cash exercise if all of the warrants under the exercise agreement are exercised . on july 16 , 2018 , we completed an underwritten public offering , or the july 2018 offering , pursuant to which we sold ( i ) 6,845,000 shares of common stock , ( ii ) 4,675,000 pre-funded warrants exercisable for shares of common stock and ( iii ) accompanying common stock warrants to purchase an aggregate of 11,520,000 shares of common stock .


 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 we have not generated any revenue from product sales or collaboration and licensing agreements in the years ended december 31 , 2018 and 2017. since inception , we have incurred net losses , used net cash from our operations , and have funded substantially all of our operations through proceeds from sale of debt and equity securities . on march 6 , 2019 , we entered into a warrant exercise agreement , or the exercise agreement , with one of the holders of our warrants issued in july 2018. pursuant to the exercise agreement , such holder agreed that it would cash exercise up to 3,800,000 of its warrants issued in july 2018 into shares of common stock at a reduced exercise price of $ 1.10 per share for any warrants exercised prior to may 31 , 2019. in addition to reducing the exercise price of the warrants , the exercise agreement also provides for the issuance of new warrants to purchase up to an aggregate of approximately 3,800,000 shares of common stock at an exercise price of $ 1.40 per share , or new warrants , to be issued on a share-for-share basis in an amount equal to the number of the warrants that are cash exercised by the holder by may 31 , 2019. to date , the holder has exercised approximately 1.2 million warrants for gross proceeds of $ 1.3 million and approximately 1.2 million new warrants were issued . under the terms of the warrant exchange agreement , we may receive aggregate gross proceeds of up to approximately $ 4.2 million from the cash exercise if all of the warrants under the exercise agreement are exercised . on july 16 , 2018 , we completed an underwritten public offering , or the july 2018 offering , pursuant to which we sold ( i ) 6,845,000 shares of common stock , ( ii ) 4,675,000 pre-funded warrants exercisable for shares of common stock and ( iii ) accompanying common stock warrants to purchase an aggregate of 11,520,000 shares of common stock .
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 Suspicious Activity Report : on july 16 , 2018 , following the consummation of the underwritten public offering , the holders of our shares of series a convertible preferred stock exchanged an aggregate of $ 7,871,186 of stated value and accrued but unpaid dividends on their shares for an aggregate of 3,748,184 shares of our common stock and warrants to purchase an aggregate of 3,748,184 shares of our common stock . as a result of such exchange , there are no longer any shares of series a convertible preferred stock issued and outstanding . the warrants have an exercise price of $ 2.10 per share and a term of five years . in addition , pursuant to certain anti-dilution provisions included in warrants issued to the holders of our series a convertible preferred stock in march and may 2018 , or pipe warrants , the exercise price of the pipe warrants was automatically adjusted to $ 2.10 per share from the original exercise price of $ 6.59 per share . 84 on november 5 , 2018 , we entered into a settlement agreement with jgb ( cayman ) newton , ltd. , or jgb , regarding our counterclaims against jgb that were asserted in the litigation originally commenced by jgb in april 2018. as part of the settlement , jgb paid us approximately $ 6.6 million in exchange for a full discharge of all counterclaims asserted by us against jgb in the litigation . we and jgb also agreed to terminate the senior secured debenture agreement and all related agreements , and jgb released all of its interests in the collateral for the senior secured debenture . see note 8 to the consolidated financial statements for a description of the litigation and settlement agreement . overview we are a clinical-stage biopharmaceutical company focused on developing novel cancer immunotherapeutics for a broad range of cancer indications . our product candidates currently include galinpepimut-s and nelipepimut-s. galinpepimut-s , or gps our lead product candidate , galinpepimut-s , or gps , is a cancer immunotherapeutic agent licensed from memorial sloan kettering cancer center , or msk , that targets the wilms tumor 1 , or wt1 , protein , which is present in 20 or more cancer types . based on its mechanism of action as a directly immunizing agent , gps has potential as a monotherapy or in combination with other immunotherapeutic agents to address a broad spectrum of hematologic , or blood , cancers and solid tumor indications . in november 2018 , following discussions with the u.s. food and drug administration , or fda , regarding a clinical trial design and biostatistical plan , we commenced preparations for a phase 3 trial for gps monotherapy in patients with acute myeloid leukemia , or aml , in the maintenance setting after achievement of their second complete remission , or crem2 , following successful completion of second-line antileukemic therapy . this trial is expected to serve as the basis for a biologics license application , or bla , submission , subject to positive results . we are currently ready to start this phase 3 trial , pending receipt of sufficient funding . we plan to enroll approximately 116 patients at approximately 50 clinical sites in the united states and europe and is contemplated to have a planned interim safety and futility analysis after 80 events ( deaths ) . in december 2018 , we initiated a phase 1/2 multi-arm ( ‘ basket ' type ) clinical study of gps in combination with merck & co. , inc. 's anti-pd-1 therapy , keytruda® ( pembrolizumab ) . we plan to enroll approximately 90 patients at up to 20 centers in the united states . the initial tumor types to be treated will be aml ( in patients having achieved partial response as their best hematological response after four cycles of therapy with hypomethylating agents ) , and ovarian cancer ( second or third line ) , to be followed by triple negative breast cancer , or tnbc , ( second line ) , small cell lung cancer , or sclc ( second line ) , and colorectal cancer ( third or fourth line ) . gps was granted orphan drug product designations from the fda as well as orphan medicinal product designations from the european medicines agency , or ema , for gps in aml , malignant pleural mesothelioma , or mpm , and multiple myeloma , or mm , as well as fast track designation for aml , mpm , and mm from the fda . nelipepimut-s or nps nelipepimut-s , or nps , is a cancer immunotherapy targeting the human epidermal growth factor receptor , or her2 , expressing cancers . in 2018 we presented data from our phase 2b study of the combination of trastuzumab plus nps in her 1+/2+ breast cancer patients in the adjuvant setting to prevent recurrences that showed a clinically and statistically significant improvement in the dfs rate for the tnbc cohort at 24 months for patients treated with nps plus trastuzumab of 92.6 % compared to 70.2 % for those treated with trastuzumab alone . in october 2018 , the dsmb , unanimously concluded that the final analysis of the phase 2b study data , with a median follow-up of 26 months , confirmed that tnbc patients should be the key target population for the development of trastuzumab plus nps in the adjuvant setting in early-stage her2 1+/2+ breast cancer patients . we are having ongoing discussions with the fda to define an optimal path for further development of the combination of nps plus trastuzumab in tnbc and expect to complete these discussions in the first half of 2019 . 85 fbp-targeting bivalent vaccine ( gale-301/-302 ) gale-301 and gale 302 are cancer immunotherapies that target the e39 peptide derived from the folate binding protein , or fbp . story_separator_special_tag million increase in insurance premiums , $ 0.4 million increase in rebates and returns of former commercial products , and a $ 0.5 million increase in other expenses . such increases during 2018 are a result of an increase in accounting , consulting , and tax-related services associated with maintaining compliance with nasdaq and sec reporting requirements , investor relations costs , and director and officer insurance premiums associated with being a public company . 91 asset impairment in january 2014 , galena , our predecessor-in-interest , acquired the worldwide rights to develop and commercialize anagrelide cr formulation ( gale-401 ) through its acquisition of mills pharmaceuticals , llc , or mills . the license agreement ( “ bvi agreement ” ) for gale-401 between mills and biovascular , inc. ( “ biovascular ” ) provides that mills may terminate the bvi agreement by providing 60 days written notice to biovascular . on december 5 , 2018 , our board of directors approved the termination of the bvi agreement and we , on behalf of mills , provided written notice of such termination to biovascular and confirmed that mills will no longer support or pursue the filing , prosecution , or maintenance of any patent covered in the bvi agreement . we previously disclosed that management had been evaluating gale-401 , among other items , for potential internal development , strategic partnership , or other types of product rationalizations and determined that further development of gale-401 is outside of the scope of our core focus on cancer immunotherapy/cancer vaccine development . we recognized asset impairment expenses of approximately $ 9.6 million for the year ended december 31 , 2018 . included in the asset impairment expenses are a non-cash charge of approximately $ 9.1 million for impairment of intangible assets recorded as in-process research and development and an additional $ 0.5 million of milestone payments recorded as deposits and other assets . severance costs related to merger there were no severance costs related to the merger for the year ended december 31 , 2018. severance costs incurred during the year ended december 31 , 2017 include employee-related costs for severance of certain former galena employees of approximately $ 1.9 million . the amount was paid by galena prior to the consummation of the merger and subsequently recognized as an expense by the combined company immediately following the closing of the merger . such termination resulted in contingent consideration being paid out in the form of severance based on change of control provisions in their employment agreements . their employment agreements all required both a change of control and termination of employment , or a double trigger in connection with the payment of such severance amounts . since there was a change of control as a result of the merger and galena terminated all employees prior to the closing , with both provisions of the double trigger were satisfied and the severance is treated as an action triggered by the accounting acquirer , private sellas . non-operating income ( expense ) , net non-operating income ( expense ) , net for the years ended december 31 , 2018 and 2017 , respectively , was as follows ( dollars in thousands ) : replace_table_token_2_th the increase in our net non-operating income ( expense ) during the year ended december 31 , 2018 compared to the year ended december 31 , 2017 was primarily due to a $ 5.3 million gain arising from the decrease in the fair value of liability-classified warrants to acquire shares of our common stock and a $ 0.8 million gain on extinguishment of debt . the decrease in the estimated fair value of our warrant liability was primarily due to the decrease in our common stock price . the $ 0.8 million gain on extinguishment of debt relates to the settlement with jgb , the holder of our former senior secured debenture . as a result of the settlement , the $ 0.8 million of additional interest that was due at maturity was forgiven . see note 10 to the consolidated financial statements included elsewhere in this annual report on form 10-k for a description of the litigation and settlement agreement . 92 these amounts were partially offset by a $ 3.0 million increase in the fair value of the contingent consideration liability and a $ 0.7 million loss on settlement of liability-classified awards . the change in the estimated fair value of the contingent consideration during the year ended december 31 , 2018 reflects an adjusted probability and time-line for the potential approval of nps associated with the positive interim data from the phase 2b investigator-sponsored clinical trial of trastuzumab +/- nps in her2 1+/2+ breast cancer patients that was announced on april 2 , 2018. the $ 0.7 million loss on settlement of liability-classified warrants relates to warrants to acquire shares of common stock issued by galena in february 2017 that were assumed in the merger . during the year ended december 31 , 2018 , a total of 534,333 of the liability-classified warrants were canceled under various warrant exchange agreements , as further described herein . we issued 54,343 shares of our common stock in exchange for the surrender and cancellation of warrants to acquire 121,667 shares of our common stock and $ 1.0 million in convertible promissory notes in exchange for the surrender and cancellation of warrants to acquire 412,667 shares of our common stock , as described in note 12 to the consolidated financial statements included elsewhere in this annual report on form 10-k. the fair value of the consideration exchanged which totaled approximately $ 1.3 million exceeded the fair value of the warrant liability of the canceled warrants by $ 0.7 million and is recorded as loss on settlement of liability-classified warrants in the consolidated statement of operations for the year ended december 31 , 2018 . interest expense , net for the years ended december 31 , 2018 and 2017 primarily

