in addition to those directly involved in practicing our codeevolver ® protein engineering platform technology , such as molecular biology , enzymology , microbiology , cellular engineering , metabolic engineering , bioinformatics , biochemistry and high throughput analytical chemistry , our process development projects also involve integrated expertise in organic chemistry , chemical process development , chemical engineering , fermentation process development and fermentation engineering . our integrated , multi-disciplinary approach to biocatalyst and process development is a critical success factor for our company . we initially commercialized our codeevolver ® protein engineering technology platform and products in the pharmaceuticals market , which remains our primary business focus . our customers , which include several large global pharmaceutical companies , use our technology , products and services in their manufacturing processes and process development . we have also used the technology to develop protein catalysts for use in the fine chemicals market . the fine chemicals market consists of several large market verticals , including food and food ingredients , animal feed , flavors , fragrances and agricultural chemicals . we have also begun using the codeevolver ® protein engineering technology platform to develop early stage , novel biotherapeutic product candidates , both for our customers and for our own business , most notably our lead program for the 54 potential treatment of phenylketonuria ( `` pku `` ) in humans . pku is an inherited metabolic disorder in which the enzyme that converts the essential amino acid phenylalanine into tyrosine is deficient . in october 2017 , we entered into a global development , option and license agreement ( the `` nestlé agreement `` ) with nestec ltd. ( `` nestlé health science `` ) , to advance cdx-6114 , our enzyme biotherapeutic product candidate for the potential treatment of pku . in february 2019 , nestlé health science exercised its option to obtain an exclusive license to develop and commercialize cdx-6114 . see note 16 , “ subsequent events ” in the notes to the consolidated financial statements set forth in item 8 of this annual report on form 10-k for details . in april 2018 , we entered into a strategic agreement ( the `` porton agreement `` ) with porton pharma solutions , ltd. ( `` porton `` ) to license key elements of our platform technology to porton 's global custom intermediate and active pharmaceutical ingredients ( `` api `` ) development and manufacturing business . this gives us access to a wide variety of small and medium-sized pharmaceutical customers . we are also using our technology to develop enzymes for customers using next generation sequencing ( `` ngs `` ) and polymerase chain reaction ( `` pcr/qpcr `` ) for in vitro molecular diagnostic and genomic research applications . our first enzyme is a ligase which we began marketing to customers in 2018. business segments we manage our business as two business segments : performance enzymes and novel biotherapeutics . see note 15 , `` segment , geographical and other revenue information `` in the notes to the consolidated financial statements set forth in item 8 of this annual report on form 10-k. performance enzymes we initially commercialized our codeevolver ® protein engineering technology platform and products in the pharmaceuticals market , and to date this continues to be our largest market served . our customers , which include many large global pharmaceutical companies , use our technology , products and services in their manufacturing processes and process development . we have also used the technology to develop customized enzymes for use in other industrial markets . these markets consist of several large industrial verticals , including food and food ingredients , animal feed , flavors , fragrances , and agricultural chemicals . we also use our technology to develop enzymes for customers using ngs and pcr/qpcr for in vitro molecular diagnostic and molecular biology research applications . in april 2018 , we entered into the porton agreement related to our strategic collaboration with porton to license key elements of our world-leading biocatalyst technology for use in porton 's global custom intermediate and api development and manufacturing business . novel biotherapeutics we are also targeting new opportunities in the pharmaceutical industry to discover , improve , and or develop biotherapeutic drug candidates . we believe that our codeevolver ® protein engineering platform technology can be used to discover novel biotherapeutic drug candidates that will target human diseases that are in need of improved therapeutic interventions . similarly , we believe that we can deploy our platform technology to improve specific characteristics of a customer 's pre-existing biotherapeutic drug candidate , such as its activity , stability or immunogenicity . most notable is our lead program for the potential treatment of hyperphenylalaninemia ( “ hpa ” ) ( also referred to as pku ) in humans . pku is an inherited metabolic disorder in which the enzyme that converts the essential amino acid phenylalanine into tyrosine is deficient . in october 2017 , we announced a strategic collaboration with nestlé health science to advance cdx-6114 , our own novel orally administrable enzyme therapeutic candidate for the potential treatment of pku . in july 2018 , we announced that we had dosed the first subjects in a first-in-human phase 1a dose-escalation trial with cdx-6114 , which was conducted in australia . in november 2018 , we announced top-line results from the phase 1a study in healthy volunteers with cdx-6114 . in december 2018 , nestlé health science became obligated to pay us an additional $ 1.0 million within 60 days after the achievement of a milestone relating to formulation of cdx-6114 . story_separator_special_tag under the strategic collaboration agreement , we received an 58 upfront payment of $ 1.2 million in 2017 and an incremental $ 0.6 million payment in september 2018 for additional services . we recognized research and development fees of $ 3.6 million and $ 0.5 million in 2018 and 2017 , respectively . as of december 31 , 2018 and 2017 , we had deferred revenue of $ 0.8 million and $ 1.1 million , respectively . strategic collaboration agreement in april 2018 , we entered into the porton agreement with porton to license key elements of codexis ' biocatalyst technology for use in porton 's global custom intermediate and api development and manufacturing business . under the porton agreement , we are eligible to receive annual collaboration fees and research and development revenues . we received an initial collaboration fee of $ 0.5 million within 30 days of the effective date of the agreement . as of december 31 , 2018 , we completed the technical transfer and we recognized revenue of $ 2.8 million in 2018 as research and development revenue . revenue relating to the functional license provided to porton was recognized at a point in time when control of the license transferred and technology transfer to the customer . we have the potential to receive performance payments based on products produced by porton using our company 's technology under the license agreement . recent accounting pronouncements for information on recent accounting pronouncements , see note 2 , “ summary of significant accounting policies ” , to the consolidated financial statements set forth in item 8 of this annual report on form 10-k. financial results for the year ended december 31 , 2018 , as compared to the year ended december 31 , 2017 , reflect the effects of adopting asu 2014-09 , “ revenue from contracts with customers ( topic 606 ) , ” and the related amendments ( “ asc 606 ” ) , which provided a new basis of accounting for our revenue arrangements during fiscal 2018. the adoption of asc 606 limits the comparability of revenue and certain expenses , including revenues and costs and operating expenses , presented in the results of operations for the year ended december 31 , 2018 when compared to the year ended december 31 , 2017. for additional information regarding the impact from adoption of this accounting standard , see note 3 , “ revenue recognition ” to the consolidated financial statements set forth in item 8 of this annual report on form 10-k. results of operations the following table shows the amounts from our consolidated statements of operations for the periods presented ( in thousands , except percentages ) : replace_table_token_4_th 59 revenues our revenues are comprised of product revenue and research and development revenue as follows : product revenue consist of sales of protein catalysts , pharmaceutical intermediates , and codex ® biocatalyst panels and kits . research and development revenue include license , technology access and exclusivity fees , research services fees , milestone payments , royalties , optimization and screening fees , and revenue sharing arrangement based upon sales of licensed products by our former revenue sharing partner , exela pharmsci , inc. ( “ exela ” ) in 2017 and 2016. revenues is as follows ( in thousands , except percentages ) : replace_table_token_5_th revenues typically fluctuate on a quarterly basis due to the variability in our customers ' manufacturing schedules and the timing of our customers ' clinical trials . in addition , we have limited internal capacity to manufacture enzymes . as a result , we are dependent upon the performance and capacity of third party manufacturers for the commercial scale manufacturing of the enzymes used in our pharmaceutical and fine chemicals business . we accept purchase orders for deliveries covering periods from one day up to approximately one year from the date on which the order is placed . however , a majority of the purchase orders can be revised or cancelled by the customer without penalty . considering these industry practices and our experience , we do not believe the total of customer purchase orders outstanding ( backlog ) provides meaningful information that can be relied on to predict actual sales for future periods . 2018 compared to 2017 total revenues increased by $ 10.6 million in 2018 to $ 60.6 million , as compared to 2017 . the increase was driven by growth in research and development revenue of $ 11.7 million or 50 % , partially offset by a decrease of $ 1.1 million in product revenue . product revenue , which consist primarily of sales of protein catalysts , pharmaceutical intermediates , and codex ® biocatalyst panels and kits , were $ 25.6 million in 2018 , a decrease of 4 % compared with $ 26.7 million in 2017 . the decrease was primarily due to variability in our customers ' manufacturing schedules . research and development revenue increased by $ 11.7 million in 2018 to $ 35.0 million , as compared to 2017 , primarily due to revenues from our arrangements with nestlé health science for the development of cdx-6114 and development of novel enzymes for nestlé health science under our strategic collaboration agreement , research and development revenue from tate & lyle , merck and novartis , and on the recognition of a functional license fee and technology transfer from porton . 2017 compared to 2016 total revenues increased by $ 1.2 million in 2017 to $ 50.0 million , as compared to 2016. the increase was driven by an increase in product revenue of $ 11.4 million or 74 % , offset by a decrease of $ 10.2 million in research and development revenue . product revenue , which consist primarily of sales of protein catalysts , pharmaceutical intermediates , and codex ® biocatalyst panels and kits , were $ 26.7 million in 2017 , an increase of 74 % compared with

cash used in operating activities was $ 1.9 million in 2016 , which resulted from a net loss of $ 8.6 million adjusted for non-cash depreciation and amortization of $ 4.5 million and stock-based compensation of $ 5.7 million , as well as changes in operating assets and liabilities . the net change in operating assets and liabilities included decreases in deferred revenue of $ 6.4 million primarily related to revenue recognition on the achievement of milestones from collaborative arrangements with merck and gsk , partially offset by a decrease in accounts receivable of $ 1.4 million , and increases in accrued compensation of $ 1.0 million primarily due to higher payroll costs and higher accounts payable of $ 0.9 million due to the timing of payment of invoices . cash flows from investing activities cash used in investing activities was $ 2.8 million in 2018 primarily due to the purchase of property and equipment . we expect our capital spending including replacement and upgrades of lab equipment and information technology equipment will be higher in 2019 as compared to 2018. cash used in investing activities was $ 1.0 million in 2017 , primarily due to the purchase of property and equipment . 67 cash used investing activities was $ 0.8 million in 2016 , primarily due to the purchase of property and equipment . cash flows from financing activities cash provided by financing activities was $ 38.6 million in 2018 , primarily due to net proceeds from our offering of common stock after deducting underwriting discounts and commission and related costs and proceeds from the exercises of employee stock options which were partially offset by the payment of taxes related to the net share settlement of equity awards . cash provided by financing activities was $ 21.7 million in 2017 , primarily due to net proceeds from our offering of common stock after deducting underwriting discounts and commission and related costs and proceeds from the exercises of employee stock options which were partially offset by the payment of taxes related to the net share settlement of equity awards .


 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 used in operating activities was $ 1.9 million in 2016 , which resulted from a net loss of $ 8.6 million adjusted for non-cash depreciation and amortization of $ 4.5 million and stock-based compensation of $ 5.7 million , as well as changes in operating assets and liabilities . the net change in operating assets and liabilities included decreases in deferred revenue of $ 6.4 million primarily related to revenue recognition on the achievement of milestones from collaborative arrangements with merck and gsk , partially offset by a decrease in accounts receivable of $ 1.4 million , and increases in accrued compensation of $ 1.0 million primarily due to higher payroll costs and higher accounts payable of $ 0.9 million due to the timing of payment of invoices . cash flows from investing activities cash used in investing activities was $ 2.8 million in 2018 primarily due to the purchase of property and equipment . we expect our capital spending including replacement and upgrades of lab equipment and information technology equipment will be higher in 2019 as compared to 2018. cash used in investing activities was $ 1.0 million in 2017 , primarily due to the purchase of property and equipment . 67 cash used investing activities was $ 0.8 million in 2016 , primarily due to the purchase of property and equipment . cash flows from financing activities cash provided by financing activities was $ 38.6 million in 2018 , primarily due to net proceeds from our offering of common stock after deducting underwriting discounts and commission and related costs and proceeds from the exercises of employee stock options which were partially offset by the payment of taxes related to the net share settlement of equity awards . cash provided by financing activities was $ 21.7 million in 2017 , primarily due to net proceeds from our offering of common stock after deducting underwriting discounts and commission and related costs and proceeds from the exercises of employee stock options which were partially offset by the payment of taxes related to the net share settlement of equity awards .
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 Suspicious Activity Report : in addition to those directly involved in practicing our codeevolver ® protein engineering platform technology , such as molecular biology , enzymology , microbiology , cellular engineering , metabolic engineering , bioinformatics , biochemistry and high throughput analytical chemistry , our process development projects also involve integrated expertise in organic chemistry , chemical process development , chemical engineering , fermentation process development and fermentation engineering . our integrated , multi-disciplinary approach to biocatalyst and process development is a critical success factor for our company . we initially commercialized our codeevolver ® protein engineering technology platform and products in the pharmaceuticals market , which remains our primary business focus . our customers , which include several large global pharmaceutical companies , use our technology , products and services in their manufacturing processes and process development . we have also used the technology to develop protein catalysts for use in the fine chemicals market . the fine chemicals market consists of several large market verticals , including food and food ingredients , animal feed , flavors , fragrances and agricultural chemicals . we have also begun using the codeevolver ® protein engineering technology platform to develop early stage , novel biotherapeutic product candidates , both for our customers and for our own business , most notably our lead program for the 54 potential treatment of phenylketonuria ( `` pku `` ) in humans . pku is an inherited metabolic disorder in which the enzyme that converts the essential amino acid phenylalanine into tyrosine is deficient . in october 2017 , we entered into a global development , option and license agreement ( the `` nestlé agreement `` ) with nestec ltd. ( `` nestlé health science `` ) , to advance cdx-6114 , our enzyme biotherapeutic product candidate for the potential treatment of pku . in february 2019 , nestlé health science exercised its option to obtain an exclusive license to develop and commercialize cdx-6114 . see note 16 , “ subsequent events ” in the notes to the consolidated financial statements set forth in item 8 of this annual report on form 10-k for details . in april 2018 , we entered into a strategic agreement ( the `` porton agreement `` ) with porton pharma solutions , ltd. ( `` porton `` ) to license key elements of our platform technology to porton 's global custom intermediate and active pharmaceutical ingredients ( `` api `` ) development and manufacturing business . this gives us access to a wide variety of small and medium-sized pharmaceutical customers . we are also using our technology to develop enzymes for customers using next generation sequencing ( `` ngs `` ) and polymerase chain reaction ( `` pcr/qpcr `` ) for in vitro molecular diagnostic and genomic research applications . our first enzyme is a ligase which we began marketing to customers in 2018. business segments we manage our business as two business segments : performance enzymes and novel biotherapeutics . see note 15 , `` segment , geographical and other revenue information `` in the notes to the consolidated financial statements set forth in item 8 of this annual report on form 10-k. performance enzymes we initially commercialized our codeevolver ® protein engineering technology platform and products in the pharmaceuticals market , and to date this continues to be our largest market served . our customers , which include many large global pharmaceutical companies , use our technology , products and services in their manufacturing processes and process development . we have also used the technology to develop customized enzymes for use in other industrial markets . these markets consist of several large industrial verticals , including food and food ingredients , animal feed , flavors , fragrances , and agricultural chemicals . we also use our technology to develop enzymes for customers using ngs and pcr/qpcr for in vitro molecular diagnostic and molecular biology research applications . in april 2018 , we entered into the porton agreement related to our strategic collaboration with porton to license key elements of our world-leading biocatalyst technology for use in porton 's global custom intermediate and api development and manufacturing business . novel biotherapeutics we are also targeting new opportunities in the pharmaceutical industry to discover , improve , and or develop biotherapeutic drug candidates . we believe that our codeevolver ® protein engineering platform technology can be used to discover novel biotherapeutic drug candidates that will target human diseases that are in need of improved therapeutic interventions . similarly , we believe that we can deploy our platform technology to improve specific characteristics of a customer 's pre-existing biotherapeutic drug candidate , such as its activity , stability or immunogenicity . most notable is our lead program for the potential treatment of hyperphenylalaninemia ( “ hpa ” ) ( also referred to as pku ) in humans . pku is an inherited metabolic disorder in which the enzyme that converts the essential amino acid phenylalanine into tyrosine is deficient . in october 2017 , we announced a strategic collaboration with nestlé health science to advance cdx-6114 , our own novel orally administrable enzyme therapeutic candidate for the potential treatment of pku . in july 2018 , we announced that we had dosed the first subjects in a first-in-human phase 1a dose-escalation trial with cdx-6114 , which was conducted in australia . in november 2018 , we announced top-line results from the phase 1a study in healthy volunteers with cdx-6114 . in december 2018 , nestlé health science became obligated to pay us an additional $ 1.0 million within 60 days after the achievement of a milestone relating to formulation of cdx-6114 . story_separator_special_tag under the strategic collaboration agreement , we received an 58 upfront payment of $ 1.2 million in 2017 and an incremental $ 0.6 million payment in september 2018 for additional services . we recognized research and development fees of $ 3.6 million and $ 0.5 million in 2018 and 2017 , respectively . as of december 31 , 2018 and 2017 , we had deferred revenue of $ 0.8 million and $ 1.1 million , respectively . strategic collaboration agreement in april 2018 , we entered into the porton agreement with porton to license key elements of codexis ' biocatalyst technology for use in porton 's global custom intermediate and api development and manufacturing business . under the porton agreement , we are eligible to receive annual collaboration fees and research and development revenues . we received an initial collaboration fee of $ 0.5 million within 30 days of the effective date of the agreement . as of december 31 , 2018 , we completed the technical transfer and we recognized revenue of $ 2.8 million in 2018 as research and development revenue . revenue relating to the functional license provided to porton was recognized at a point in time when control of the license transferred and technology transfer to the customer . we have the potential to receive performance payments based on products produced by porton using our company 's technology under the license agreement . recent accounting pronouncements for information on recent accounting pronouncements , see note 2 , “ summary of significant accounting policies ” , to the consolidated financial statements set forth in item 8 of this annual report on form 10-k. financial results for the year ended december 31 , 2018 , as compared to the year ended december 31 , 2017 , reflect the effects of adopting asu 2014-09 , “ revenue from contracts with customers ( topic 606 ) , ” and the related amendments ( “ asc 606 ” ) , which provided a new basis of accounting for our revenue arrangements during fiscal 2018. the adoption of asc 606 limits the comparability of revenue and certain expenses , including revenues and costs and operating expenses , presented in the results of operations for the year ended december 31 , 2018 when compared to the year ended december 31 , 2017. for additional information regarding the impact from adoption of this accounting standard , see note 3 , “ revenue recognition ” to the consolidated financial statements set forth in item 8 of this annual report on form 10-k. results of operations the following table shows the amounts from our consolidated statements of operations for the periods presented ( in thousands , except percentages ) : replace_table_token_4_th 59 revenues our revenues are comprised of product revenue and research and development revenue as follows : product revenue consist of sales of protein catalysts , pharmaceutical intermediates , and codex ® biocatalyst panels and kits . research and development revenue include license , technology access and exclusivity fees , research services fees , milestone payments , royalties , optimization and screening fees , and revenue sharing arrangement based upon sales of licensed products by our former revenue sharing partner , exela pharmsci , inc. ( “ exela ” ) in 2017 and 2016. revenues is as follows ( in thousands , except percentages ) : replace_table_token_5_th revenues typically fluctuate on a quarterly basis due to the variability in our customers ' manufacturing schedules and the timing of our customers ' clinical trials . in addition , we have limited internal capacity to manufacture enzymes . as a result , we are dependent upon the performance and capacity of third party manufacturers for the commercial scale manufacturing of the enzymes used in our pharmaceutical and fine chemicals business . we accept purchase orders for deliveries covering periods from one day up to approximately one year from the date on which the order is placed . however , a majority of the purchase orders can be revised or cancelled by the customer without penalty . considering these industry practices and our experience , we do not believe the total of customer purchase orders outstanding ( backlog ) provides meaningful information that can be relied on to predict actual sales for future periods . 2018 compared to 2017 total revenues increased by $ 10.6 million in 2018 to $ 60.6 million , as compared to 2017 . the increase was driven by growth in research and development revenue of $ 11.7 million or 50 % , partially offset by a decrease of $ 1.1 million in product revenue . product revenue , which consist primarily of sales of protein catalysts , pharmaceutical intermediates , and codex ® biocatalyst panels and kits , were $ 25.6 million in 2018 , a decrease of 4 % compared with $ 26.7 million in 2017 . the decrease was primarily due to variability in our customers ' manufacturing schedules . research and development revenue increased by $ 11.7 million in 2018 to $ 35.0 million , as compared to 2017 , primarily due to revenues from our arrangements with nestlé health science for the development of cdx-6114 and development of novel enzymes for nestlé health science under our strategic collaboration agreement , research and development revenue from tate & lyle , merck and novartis , and on the recognition of a functional license fee and technology transfer from porton . 2017 compared to 2016 total revenues increased by $ 1.2 million in 2017 to $ 50.0 million , as compared to 2016. the increase was driven by an increase in product revenue of $ 11.4 million or 74 % , offset by a decrease of $ 10.2 million in research and development revenue . product revenue , which consist primarily of sales of protein catalysts , pharmaceutical intermediates , and codex ® biocatalyst panels and kits , were $ 26.7 million in 2017 , an increase of 74 % compared with

