we sell copiktra to a limited number of specialty pharmacies and specialty distributors . although we expect net product revenues to increase over time , the provisions for product sales and allowances may fluctuate based on the mix of sales to either specialty pharmacy or specialty distributor customers . see “ critical accounting policies and significant judgements and estimates ” below for more information on the components of net u.s. product sales of copiktra . license and collaboration revenue to date has been generated through our license and collaboration agreements for the development and commercialization of duvelisib with sanofi in the sanofi territory , cspc in china and yakult in japan . the terms of these agreements contain multiple deliverables which may include ( i ) licenses , ( ii ) research and development activities , and ( iii ) the manufacture of finished drug product , active pharmaceutical ingredient ( api ) , or development materials for a partner , which are reimbursed at a contractually determined rate . payments to us may include ( i ) up‑front license fees , ( ii ) payments for research and development activities , ( iii ) payments for the manufacture of finished drug product , api or development materials , ( iv ) payments based upon the achievement of certain milestones , and ( v ) royalties on product sales . duvelisib has not received regulatory approval for commercial sale in the sanofi territory , china or japan . costs of sales - product cost of sales - product consist of costs of copiktra on which product revenue was recognized , royalties owed to healthcare royalty partners ( hcr ) and infinity we incur as a result of such sales of copiktra , and certain period costs . we expensed the manufacturing costs of copiktra as operating expenses in the periods prior to july 1 , 2018. in the third quarter of 2018 , we began capitalizing inventory costs for copiktra manufactured in preparation for our launch in the united states based on our evaluation of , among other factors , the status of the copiktra new drug application ( nda ) in the united states and the ability of our third-party suppliers to successfully manufacture commercial quantities of copiktra . certain of the costs of copiktra units recognized as revenue during 2019 were expensed prior to the september 2018 fda marketing approval and , therefore , are not included in cost of sales during this period . we expect cost of sales - product to increase in relation to product revenues as we deplete these inventories . research and development expenses research and development expenses consist of costs associated with our research activities , including the development of our product candidates . our research and development expenses consist of : · employee‑related expenses , including salaries , benefits , travel and stock‑based compensation expense ; · external research and development expenses incurred under arrangements with third parties , such as contract research organizations ( cros ) , clinical sites , manufacturing organizations and consultants , including our scientific advisory board ; · license fees ; · facilities , depreciation and other allocated expenses , which include direct and allocated expenses for rent and maintenance of facilities , depreciation of leasehold improvements and equipment , and laboratory and other supplies ; and · costs associated with copiktra prior to us concluding that regulatory approval is probable and that its net realizable value is recoverable . we expense research and development costs to operations as incurred . we account for nonrefundable advance payments for goods and services that will be used in future research and development activities as expenses when the service has been performed or when the goods have been received , rather than when the payment is made . 76 on september 24 , 2018 , copiktra was approved by the fda and is now indicated for the treatment of adult patients with relapsed or refractory cll/sll after at least two prior therapies and relapsed or refractory fl after at least two prior systemic therapies . due to long-lead time requirements for manufacturing our product , manufacturing constraints and the desire to have copiktra commercially available as soon as possible following regulatory approval , we contracted with our third-party supplier to manufacture commercial quantities of copiktra drug substance prior to final approval by regulators . we expensed all pre-validation and validation manufacturing costs of drug product as research and development expenses in the periods prior to july 1 , 2018. total costs of manufacturing copiktra drug product expensed as research and development through june 30 , 2018 was approximately $ 1.8 million . beginning july 1 , 2018 , we began capitalizing copiktra related drug product costs for validation and post-validation ( i.e . commercial ) lots as regulatory approval became probable . for the periods beginning on july 1 , 2018 and beyond , we have capitalized any copiktra drug product costs incurred for commercial use as inventory . we allocate the expenses related to external research and development services , such as cros , clinical sites , manufacturing organizations and consultants by project . the table below summarizes our external allocation of research and development expenses to our clinical programs , including copiktra and defactinib , for the years ended december 31 , 2019 , 2018 and 2017. we use our employee and infrastructure resources across multiple research and development projects . our project costing methodology does not allocate personnel and other indirect costs to specific clinical programs . these unallocated research and development expenses are summarized in the table below and include $ 11.3 million , $ 9.2 million and $ 5.8 million of personnel costs for the years ended december 31 , 2019 , 2018 and 2017 , respectively . story_separator_special_tag in addition , we consider whether the collaboration partner can benefit from a promise for its intended purpose without the receipt of the remaining elements , whether the value of the promise is dependent on the unsatisfied promise , whether there are other vendors that could provide the remaining promise , and whether it is separately identifiable from the remaining promise . for licenses that are combined with other promises , we utilize judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and , if over time , the appropriate method of measuring progress for purposes of recognizing revenue . we evaluate the measure of progress as of each reporting period and , if necessary , adjust the measure of performance and related revenue recognition . the measure of progress , and thereby periods over which revenue should be recognized , is subject to estimates by management and may change over the course of the arrangement . such a change could have a material impact on the amount of revenue we record in future periods . customer options : if an arrangement is determined to contain customer options that allow the customer to acquire additional goods or services such as research and development services or manufacturing services , the goods and services underlying the customer options are not considered to be performance obligations at the inception of the arrangement ; rather , such goods and services are contingent on exercise of the option , and the associated option fees are not included in the transaction price . we evaluate customer options for material rights or options to acquire additional goods or services for free or at a discount . if a customer option is determined to represent a material right , the material right is recognized as a separate performance obligation at the outset of the arrangement . we allocate the transaction price to material rights based on the relative standalone selling price , which is determined based on the identified discount and the estimated probability that the customer will exercise the option . amounts allocated to a material right are not recognized as revenue until , at the earliest , the option is exercised . milestone payments : at the inception of each arrangement that includes milestone payments , we evaluate whether the milestones are considered probable of being achieved and estimate the amount to be included in the transaction price using the most likely amount method . if it is probable that a significant revenue reversal would not 81 occur , the associated milestone value is included in the transaction price . milestone payments that are not within the control of us or the licensee , such as regulatory approvals , are not considered probable of being achieved until those approvals are received . we evaluate factors such as the scientific , clinical , regulatory , commercial , and other risks that must be overcome to achieve the respective milestone in making this assessment . there is considerable judgment involved in determining whether it is probable that a significant revenue reversal would not occur . at the end of each subsequent reporting period , we reevaluate the probability of achievement of all milestones subject to constraint and , if necessary , adjust our estimate of the overall transaction price . any such adjustments are recorded on a cumulative catch-up basis , which would affect revenues and earnings in the period of adjustment . royalties : for arrangements that include sales-based royalties , including milestone payments based on a level of sales , and the license is deemed to be the predominant item to which the royalties relate , we recognize revenue at the later of ( i ) when the related sales occur , or ( ii ) when the performance obligation to which some or all of the royalty has been allocated has been satisfied ( or partially satisfied ) . to date , we have not recognized any royalty revenue resulting from any of our licensing arrangements . collaborative arrangements : contracts are considered to be collaborative arrangements when they satisfy the following criteria defined in asc 808 , collaborative arrangements : ( i ) the parties to the contract must actively participate in the joint operating activity and ( ii ) the joint operating activity must expose the parties to the possibility of significant risks and rewards , based on whether or not the activity is successful . payments received from or made to a partner that are the result of a collaborative relationship with a partner , instead of a customer relationship , such as co-development activities , are recorded as a reduction or increase to research and development expense , respectively . accrued research and development expenses as part of the process of preparing our consolidated financial statements , we are required to estimate our accrued expenses . this process involves reviewing contracts , identifying services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred when we have not yet been invoiced or otherwise notified of the actual cost . the majority of our service providers invoice us monthly in arrears for services performed or when contractual milestones are met . we make estimates of our accrued expenses as of each balance sheet date in our financial statements based on facts and circumstances known to us at that time . we periodically confirm the accuracy of our estimates with the service providers and make adjustments if necessary . the significant estimates in our accrued research and development expenses include fees paid to cros in connection with research and development activities for which we have not yet been invoiced . we base our expenses related to cros on our estimates of the services received and efforts expended pursuant to quotes and contracts with cros that conduct

cash flows the following table sets forth the primary sources and uses of cash for each of the periods set forth below ( in thousands ) : replace_table_token_9_th operating activities . the use of cash in operating activities for all periods resulted primarily from our net losses adjusted for non-cash charges and changes in the components of working capital . the $ 64.0 million increase in cash used in operating activities for the 2019 period compared to the 2018 period was primarily due to an increase in selling , general , and administrative expenses related to the post-launch commercial operations supporting copiktra , and due to a $ 10.0 million license payment from yakult and $ 15.0 million license payment received from cspc during the 2018 period , partially offset by a $ 5.0 million license payment received from sanofi during the 2019 period . the $ 17.2 million increase in cash used in operating activities for the 2018 period compared to the 2017 period primarily due to an increase in selling , general , and administrative expenses related to the hiring and staffing of our sales and commercial teams as well as an increase in consulting and professional fees primarily related to the support of the commercial launch preparation activities . investing activities . the cash provided by investing activities for the 2019 period relates to the net maturities of investments of $ 89.6 million . the cash used in investing activities for the 2018 period relates to the net purchases of investments of $ 115.0 million , the acquisition of the copiktra finite-lived intangible asset of $ 22.0 million and net purchases of property and equipment of approximately $ 1.4 million . 88 financing activities . the cash used by financing activities for the 2019 period represents $ 12.2 million principal payments on the 2018 notes , $ 0.4 million of interest-make whole payments on the 2019 notes and $ 0.1 million of payments for settlement of restricted stock for tax withholdings .


 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 flows the following table sets forth the primary sources and uses of cash for each of the periods set forth below ( in thousands ) : replace_table_token_9_th operating activities . the use of cash in operating activities for all periods resulted primarily from our net losses adjusted for non-cash charges and changes in the components of working capital . the $ 64.0 million increase in cash used in operating activities for the 2019 period compared to the 2018 period was primarily due to an increase in selling , general , and administrative expenses related to the post-launch commercial operations supporting copiktra , and due to a $ 10.0 million license payment from yakult and $ 15.0 million license payment received from cspc during the 2018 period , partially offset by a $ 5.0 million license payment received from sanofi during the 2019 period . the $ 17.2 million increase in cash used in operating activities for the 2018 period compared to the 2017 period primarily due to an increase in selling , general , and administrative expenses related to the hiring and staffing of our sales and commercial teams as well as an increase in consulting and professional fees primarily related to the support of the commercial launch preparation activities . investing activities . the cash provided by investing activities for the 2019 period relates to the net maturities of investments of $ 89.6 million . the cash used in investing activities for the 2018 period relates to the net purchases of investments of $ 115.0 million , the acquisition of the copiktra finite-lived intangible asset of $ 22.0 million and net purchases of property and equipment of approximately $ 1.4 million . 88 financing activities . the cash used by financing activities for the 2019 period represents $ 12.2 million principal payments on the 2018 notes , $ 0.4 million of interest-make whole payments on the 2019 notes and $ 0.1 million of payments for settlement of restricted stock for tax withholdings .
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 Suspicious Activity Report : we sell copiktra to a limited number of specialty pharmacies and specialty distributors . although we expect net product revenues to increase over time , the provisions for product sales and allowances may fluctuate based on the mix of sales to either specialty pharmacy or specialty distributor customers . see “ critical accounting policies and significant judgements and estimates ” below for more information on the components of net u.s. product sales of copiktra . license and collaboration revenue to date has been generated through our license and collaboration agreements for the development and commercialization of duvelisib with sanofi in the sanofi territory , cspc in china and yakult in japan . the terms of these agreements contain multiple deliverables which may include ( i ) licenses , ( ii ) research and development activities , and ( iii ) the manufacture of finished drug product , active pharmaceutical ingredient ( api ) , or development materials for a partner , which are reimbursed at a contractually determined rate . payments to us may include ( i ) up‑front license fees , ( ii ) payments for research and development activities , ( iii ) payments for the manufacture of finished drug product , api or development materials , ( iv ) payments based upon the achievement of certain milestones , and ( v ) royalties on product sales . duvelisib has not received regulatory approval for commercial sale in the sanofi territory , china or japan . costs of sales - product cost of sales - product consist of costs of copiktra on which product revenue was recognized , royalties owed to healthcare royalty partners ( hcr ) and infinity we incur as a result of such sales of copiktra , and certain period costs . we expensed the manufacturing costs of copiktra as operating expenses in the periods prior to july 1 , 2018. in the third quarter of 2018 , we began capitalizing inventory costs for copiktra manufactured in preparation for our launch in the united states based on our evaluation of , among other factors , the status of the copiktra new drug application ( nda ) in the united states and the ability of our third-party suppliers to successfully manufacture commercial quantities of copiktra . certain of the costs of copiktra units recognized as revenue during 2019 were expensed prior to the september 2018 fda marketing approval and , therefore , are not included in cost of sales during this period . we expect cost of sales - product to increase in relation to product revenues as we deplete these inventories . research and development expenses research and development expenses consist of costs associated with our research activities , including the development of our product candidates . our research and development expenses consist of : · employee‑related expenses , including salaries , benefits , travel and stock‑based compensation expense ; · external research and development expenses incurred under arrangements with third parties , such as contract research organizations ( cros ) , clinical sites , manufacturing organizations and consultants , including our scientific advisory board ; · license fees ; · facilities , depreciation and other allocated expenses , which include direct and allocated expenses for rent and maintenance of facilities , depreciation of leasehold improvements and equipment , and laboratory and other supplies ; and · costs associated with copiktra prior to us concluding that regulatory approval is probable and that its net realizable value is recoverable . we expense research and development costs to operations as incurred . we account for nonrefundable advance payments for goods and services that will be used in future research and development activities as expenses when the service has been performed or when the goods have been received , rather than when the payment is made . 76 on september 24 , 2018 , copiktra was approved by the fda and is now indicated for the treatment of adult patients with relapsed or refractory cll/sll after at least two prior therapies and relapsed or refractory fl after at least two prior systemic therapies . due to long-lead time requirements for manufacturing our product , manufacturing constraints and the desire to have copiktra commercially available as soon as possible following regulatory approval , we contracted with our third-party supplier to manufacture commercial quantities of copiktra drug substance prior to final approval by regulators . we expensed all pre-validation and validation manufacturing costs of drug product as research and development expenses in the periods prior to july 1 , 2018. total costs of manufacturing copiktra drug product expensed as research and development through june 30 , 2018 was approximately $ 1.8 million . beginning july 1 , 2018 , we began capitalizing copiktra related drug product costs for validation and post-validation ( i.e . commercial ) lots as regulatory approval became probable . for the periods beginning on july 1 , 2018 and beyond , we have capitalized any copiktra drug product costs incurred for commercial use as inventory . we allocate the expenses related to external research and development services , such as cros , clinical sites , manufacturing organizations and consultants by project . the table below summarizes our external allocation of research and development expenses to our clinical programs , including copiktra and defactinib , for the years ended december 31 , 2019 , 2018 and 2017. we use our employee and infrastructure resources across multiple research and development projects . our project costing methodology does not allocate personnel and other indirect costs to specific clinical programs . these unallocated research and development expenses are summarized in the table below and include $ 11.3 million , $ 9.2 million and $ 5.8 million of personnel costs for the years ended december 31 , 2019 , 2018 and 2017 , respectively . story_separator_special_tag in addition , we consider whether the collaboration partner can benefit from a promise for its intended purpose without the receipt of the remaining elements , whether the value of the promise is dependent on the unsatisfied promise , whether there are other vendors that could provide the remaining promise , and whether it is separately identifiable from the remaining promise . for licenses that are combined with other promises , we utilize judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and , if over time , the appropriate method of measuring progress for purposes of recognizing revenue . we evaluate the measure of progress as of each reporting period and , if necessary , adjust the measure of performance and related revenue recognition . the measure of progress , and thereby periods over which revenue should be recognized , is subject to estimates by management and may change over the course of the arrangement . such a change could have a material impact on the amount of revenue we record in future periods . customer options : if an arrangement is determined to contain customer options that allow the customer to acquire additional goods or services such as research and development services or manufacturing services , the goods and services underlying the customer options are not considered to be performance obligations at the inception of the arrangement ; rather , such goods and services are contingent on exercise of the option , and the associated option fees are not included in the transaction price . we evaluate customer options for material rights or options to acquire additional goods or services for free or at a discount . if a customer option is determined to represent a material right , the material right is recognized as a separate performance obligation at the outset of the arrangement . we allocate the transaction price to material rights based on the relative standalone selling price , which is determined based on the identified discount and the estimated probability that the customer will exercise the option . amounts allocated to a material right are not recognized as revenue until , at the earliest , the option is exercised . milestone payments : at the inception of each arrangement that includes milestone payments , we evaluate whether the milestones are considered probable of being achieved and estimate the amount to be included in the transaction price using the most likely amount method . if it is probable that a significant revenue reversal would not 81 occur , the associated milestone value is included in the transaction price . milestone payments that are not within the control of us or the licensee , such as regulatory approvals , are not considered probable of being achieved until those approvals are received . we evaluate factors such as the scientific , clinical , regulatory , commercial , and other risks that must be overcome to achieve the respective milestone in making this assessment . there is considerable judgment involved in determining whether it is probable that a significant revenue reversal would not occur . at the end of each subsequent reporting period , we reevaluate the probability of achievement of all milestones subject to constraint and , if necessary , adjust our estimate of the overall transaction price . any such adjustments are recorded on a cumulative catch-up basis , which would affect revenues and earnings in the period of adjustment . royalties : for arrangements that include sales-based royalties , including milestone payments based on a level of sales , and the license is deemed to be the predominant item to which the royalties relate , we recognize revenue at the later of ( i ) when the related sales occur , or ( ii ) when the performance obligation to which some or all of the royalty has been allocated has been satisfied ( or partially satisfied ) . to date , we have not recognized any royalty revenue resulting from any of our licensing arrangements . collaborative arrangements : contracts are considered to be collaborative arrangements when they satisfy the following criteria defined in asc 808 , collaborative arrangements : ( i ) the parties to the contract must actively participate in the joint operating activity and ( ii ) the joint operating activity must expose the parties to the possibility of significant risks and rewards , based on whether or not the activity is successful . payments received from or made to a partner that are the result of a collaborative relationship with a partner , instead of a customer relationship , such as co-development activities , are recorded as a reduction or increase to research and development expense , respectively . accrued research and development expenses as part of the process of preparing our consolidated financial statements , we are required to estimate our accrued expenses . this process involves reviewing contracts , identifying services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred when we have not yet been invoiced or otherwise notified of the actual cost . the majority of our service providers invoice us monthly in arrears for services performed or when contractual milestones are met . we make estimates of our accrued expenses as of each balance sheet date in our financial statements based on facts and circumstances known to us at that time . we periodically confirm the accuracy of our estimates with the service providers and make adjustments if necessary . the significant estimates in our accrued research and development expenses include fees paid to cros in connection with research and development activities for which we have not yet been invoiced . we base our expenses related to cros on our estimates of the services received and efforts expended pursuant to quotes and contracts with cros that conduct

