cost of products and services cost of products and services includes primarily labor and related costs , drugs and supplies used primarily in the embryo transfer and in vitro fertilization processes , livestock and feed used in production , and facility charges , including rent and depreciation . fluctuations in the price of livestock and feed have not had a significant impact on our operating margins and no derivative financial instruments are used to mitigate the price risk . research and development expenses we recognize research and development expenses as they are incurred . our research and development expenses consist primarily of : salaries and benefits , including stock-based compensation expense , for personnel in research and development functions ; fees paid to consultants and contract research organizations who perform research on our behalf and under our direction ; costs related to laboratory supplies used in our research and development efforts ; 59 costs related to certain in-licensed technology rights or reacquired in-process research and development ; depreciation of leasehold improvements and laboratory equipment ; amortization of patents and related technologies acquired in mergers and acquisitions ; and rent and utility costs for our research and development facilities . we have no individually significant research and development projects , and our research and development expenses primarily relate to either the costs incurred to expand or otherwise improve our multiple platform technologies , the costs incurred to develop a specific application of our technologies in support of current or prospective partners , or costs incurred to expand or otherwise improve our products and services . research and development expenses , including costs for preclinical and clinical development , incurred for programs we support pursuant to an ecc agreement are typically reimbursed by the partner at cost , and all other research and development programs may be terminated or otherwise deferred at our discretion . the amount of our research and development expenses may be impacted by , among other things , the number of eccs and the number and size of programs we may support on behalf of an ecc . the table below summarizes our research and development expenses incurred to expand or otherwise improve our multiple platform technologies , the costs incurred to develop a specific application of our technologies in support of current or prospective partners , or costs incurred to expand or otherwise improve our products and services for the years ended december 31 , 2018 , 2017 , and 2016 . other research and development expenses for these periods include indirect salaries and overhead expenses that are not allocated to either expanding or improving our multiple platform technologies , specific applications of our technologies in support of current or prospective partners , or expanding or improving our product and services offerings . additionally , other research and development expenses for the year ended december 31 , 2018 include $ 236.7 million of expense related to in-process research and development reacquired from several collaborators in 2018. replace_table_token_7_th other than our expenses related to reacquired in-process research and development , we expect that our research and development expenses will increase as we develop our own proprietary programs and expand our offerings . we believe these increases will likely include increased costs related to the hiring of additional personnel in research and development functions , increased costs paid to consultants and contract research organizations , and increased costs related to laboratory supplies . research and development expenses may also increase as a result of ongoing research and development operations that we might assume through mergers and acquisitions . selling , general and administrative expenses selling , general and administrative , or sg & a , expenses consist primarily of salaries and related costs , including stock-based compensation expense , for employees in executive , operational , finance , sales and marketing , information technology , legal and corporate communications functions . other significant sg & a expenses include rent and utilities , insurance , accounting and legal services , and expenses associated with obtaining and maintaining our intellectual property . sg & a expenses may increase in the future to support our expanding operations as we explore new partnering opportunities and continue to develop our proprietary programs . these increases would likely include costs related to the hiring of additional personnel and increased fees for business development functions , costs associated with defending us in litigation matters , the costs of outside consultants , and other professional services . sg & a expenses may also increase as a result of ongoing operations that we might assume through mergers and acquisitions . 60 other income ( expense ) , net we hold equity securities and preferred stock received and or purchased from certain collaborators . other than investments accounted for using the equity method discussed below , we elected the fair value option to account for our equity securities and preferred stock held in these collaborators . these equity securities and preferred stock are recorded at fair value at each reporting date . unrealized appreciation ( depreciation ) resulting from fair value adjustments are reported as other income ( expense ) in the consolidated statements of operations . as such , we bear the risk that fluctuations in the securities ' share prices may significantly impact our results of operations . interest expense is expected to increase in future periods as we incur interest expense related to the convertible notes issued in july 2018. interest income consists of interest earned on our cash and cash equivalents and short-term and long-term investments . dividend income consists of the monthly preferred stock dividends received from our investments in preferred stock . story_separator_special_tag if we do not achieve our planned operating results , our ability to continue as a going concern would be jeopardized and we may need to take the following actions to support our liquidity needs in 2019 : shift our internal investments from subsidiaries and platforms whose potential for value creation is longer-term to near-term opportunities ; sell certain of our operating subsidiaries to third parties ; reduce operating expenditures for third-party contractors , including consultants , professional advisors , and other vendors ; and reduce or delay capital expenditures , including non-essential facility expansions , lab equipment , and information technology projects . implementing this plan could have a negative impact on our ability to continue our business as currently contemplated , including , without limitation , delays or failures in our ability to : maintain the diversity of our various portfolio offerings ; develop and commercialize products within planned timelines or at planned scales ; and invest in new research and development efforts . contractual obligations and commitments the following table summarizes our significant contractual obligations and commitments as of december 31 , 2018 and the effects such obligations are expected to have on our liquidity and cash flows in future periods : replace_table_token_13_th ( 1 ) the convertible debt may be converted to intrexon common stock or to the common stock of one of our subsidiaries . in addition to the obligations in the table above , as of december 31 , 2018 we also have the following significant contractual obligations described below . 70 in conjunction with the formation of our jvs , we committed to making future capital contributions subject to certain conditions and limitations . as of december 31 , 2018 , our remaining capital contribution commitments to our jvs were $ 14.9 million . these future capital contributions are not included in the table above due to the uncertainty of the timing and amounts of such contributions . we are party to in-licensed research and development agreements with various academic and commercial institutions where we could be required to make future payments for annual maintenance fees as well as for milestones and royalties we might receive upon commercial sales of products that incorporate their technologies . these agreements are generally subject to termination by us and therefore no amounts are included in the tables above . as of december 31 , 2018 , we also had research and development commitments with third parties totaling $ 11.9 million that had not yet been incurred . in january 2009 , aquabounty was awarded a grant to provide funding of a research and development project from the atlantic canada opportunities agency , a canadian government agency . amounts claimed by aquabounty must be repaid in the form of a 10 percent royalty on any products commercialized out of this research and development project until fully paid . because the timing of commercialization is subject to additional regulatory considerations , the timing of repayment is uncertain . aquabounty claimed all amounts available under the grant , resulting in total long-term debt of $ 2.1 million on our consolidated balance sheet as of december 31 , 2018 . this amount is not included in the table above due to the uncertainty of the timing of repayment . net operating losses as of december 31 , 2018 , we had net operating loss carryforwards of approximately $ 369.1 million for united states federal income tax purposes available to offset future taxable income , including $ 116.6 million generated after 2017 , and united states federal and state research and development tax credits of approximately $ 7.9 million , prior to consideration of annual limitations that may be imposed under section 382. carryforwards generated prior to 2018 begin to expire in 2022 . our direct foreign subsidiaries have foreign loss carryforwards of approximately $ 159.8 million , most of which do not expire . excluding certain deferred tax liabilities totaling $ 7.2 million , our remaining net deferred tax assets , which primarily relate to these loss carryforwards , are offset by a valuation allowance due to our history of net losses . as a result of our past issuances of stock , as well as due to prior mergers and acquisitions , certain of our net operating losses have been subject to limitations pursuant to section 382. as of december 31 , 2018 , intrexon has utilized all net operating losses subject to section 382 limitations , other than those losses inherited via acquisitions . as of december 31 , 2018 , approximately $ 41.9 million of domestic net operating losses were inherited via acquisitions and are limited based on the value of the target at the time of the transaction . future changes in stock ownership may also trigger an ownership change and , consequently , a section 382 limitation . we do not file a consolidated income tax return with aquabounty . as of december 31 , 2018 , aquabounty had loss carryforwards for federal and foreign income tax purposes of approximately $ 37.8 million , including $ 9.4 million generated after 2017 , and $ 14.0 million , respectively , and foreign research tax credits of $ 2.6 million available to offset future taxable income , prior to consideration of annual limitations that may be imposed under section 382 or analogous foreign provisions . carryforwards generated prior to 2018 began to expire in 2018 . as a result of our ownership in aquabounty passing 50 percent in 2013 , an annual section 382 limitation of approximately $ 0.9 million per year will apply to losses and credits carried forward by aquabounty from prior years , which are also subject to prior section 382 limitations . the tax act introduced certain limitations on utilization of net operating losses that are generated after 2017 , generally limiting utilization of those losses to 80 percent of future annual taxable income . however , losses generated after 2017 will generally

liquidity and capital resources sources of liquidity we have incurred losses from operations since our inception and as of december 31 , 2018 , we had an accumulated deficit of $ 1.3 billion . from our inception through december 31 , 2018 , we have funded our operations principally with proceeds received from private and public equity and debt offerings , cash received from our collaborators and through product and service sales made directly to customers . as of december 31 , 2018 , we had cash and cash equivalents of $ 102.8 million and short-term investments of $ 119.7 million . cash in excess of immediate requirements is typically invested primarily in money market funds and united states government debt securities in order to maintain liquidity and preserve capital . we currently generate cash receipts primarily from sales of products and services , reimbursement of research and development services performed by us and from strategic transactions involving our subsidiaries . 67 cash flows the following table sets forth the significant sources and uses of cash for the periods set forth below : replace_table_token_12_th cash flows from operating activities : in 2018 , our net loss was $ 514.7 million , which includes the following significant noncash expenses totaling $ 440.0 million : ( i ) $ 236.7 million of expense related to reacquired in-process research and development previously licensed to certain of our collaborators , ( ii ) $ 60.5 million of impairment loss , ( iii ) $ 36.3 million of stock-based compensation expense , ( iv ) $ 33.1 million of depreciation and amortization expense , ( v ) $ 30.2 million of net unrealized and realized losses on our equity securities and preferred


 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 sources of liquidity we have incurred losses from operations since our inception and as of december 31 , 2018 , we had an accumulated deficit of $ 1.3 billion . from our inception through december 31 , 2018 , we have funded our operations principally with proceeds received from private and public equity and debt offerings , cash received from our collaborators and through product and service sales made directly to customers . as of december 31 , 2018 , we had cash and cash equivalents of $ 102.8 million and short-term investments of $ 119.7 million . cash in excess of immediate requirements is typically invested primarily in money market funds and united states government debt securities in order to maintain liquidity and preserve capital . we currently generate cash receipts primarily from sales of products and services , reimbursement of research and development services performed by us and from strategic transactions involving our subsidiaries . 67 cash flows the following table sets forth the significant sources and uses of cash for the periods set forth below : replace_table_token_12_th cash flows from operating activities : in 2018 , our net loss was $ 514.7 million , which includes the following significant noncash expenses totaling $ 440.0 million : ( i ) $ 236.7 million of expense related to reacquired in-process research and development previously licensed to certain of our collaborators , ( ii ) $ 60.5 million of impairment loss , ( iii ) $ 36.3 million of stock-based compensation expense , ( iv ) $ 33.1 million of depreciation and amortization expense , ( v ) $ 30.2 million of net unrealized and realized losses on our equity securities and preferred
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 Suspicious Activity Report : cost of products and services cost of products and services includes primarily labor and related costs , drugs and supplies used primarily in the embryo transfer and in vitro fertilization processes , livestock and feed used in production , and facility charges , including rent and depreciation . fluctuations in the price of livestock and feed have not had a significant impact on our operating margins and no derivative financial instruments are used to mitigate the price risk . research and development expenses we recognize research and development expenses as they are incurred . our research and development expenses consist primarily of : salaries and benefits , including stock-based compensation expense , for personnel in research and development functions ; fees paid to consultants and contract research organizations who perform research on our behalf and under our direction ; costs related to laboratory supplies used in our research and development efforts ; 59 costs related to certain in-licensed technology rights or reacquired in-process research and development ; depreciation of leasehold improvements and laboratory equipment ; amortization of patents and related technologies acquired in mergers and acquisitions ; and rent and utility costs for our research and development facilities . we have no individually significant research and development projects , and our research and development expenses primarily relate to either the costs incurred to expand or otherwise improve our multiple platform technologies , the costs incurred to develop a specific application of our technologies in support of current or prospective partners , or costs incurred to expand or otherwise improve our products and services . research and development expenses , including costs for preclinical and clinical development , incurred for programs we support pursuant to an ecc agreement are typically reimbursed by the partner at cost , and all other research and development programs may be terminated or otherwise deferred at our discretion . the amount of our research and development expenses may be impacted by , among other things , the number of eccs and the number and size of programs we may support on behalf of an ecc . the table below summarizes our research and development expenses incurred to expand or otherwise improve our multiple platform technologies , the costs incurred to develop a specific application of our technologies in support of current or prospective partners , or costs incurred to expand or otherwise improve our products and services for the years ended december 31 , 2018 , 2017 , and 2016 . other research and development expenses for these periods include indirect salaries and overhead expenses that are not allocated to either expanding or improving our multiple platform technologies , specific applications of our technologies in support of current or prospective partners , or expanding or improving our product and services offerings . additionally , other research and development expenses for the year ended december 31 , 2018 include $ 236.7 million of expense related to in-process research and development reacquired from several collaborators in 2018. replace_table_token_7_th other than our expenses related to reacquired in-process research and development , we expect that our research and development expenses will increase as we develop our own proprietary programs and expand our offerings . we believe these increases will likely include increased costs related to the hiring of additional personnel in research and development functions , increased costs paid to consultants and contract research organizations , and increased costs related to laboratory supplies . research and development expenses may also increase as a result of ongoing research and development operations that we might assume through mergers and acquisitions . selling , general and administrative expenses selling , general and administrative , or sg & a , expenses consist primarily of salaries and related costs , including stock-based compensation expense , for employees in executive , operational , finance , sales and marketing , information technology , legal and corporate communications functions . other significant sg & a expenses include rent and utilities , insurance , accounting and legal services , and expenses associated with obtaining and maintaining our intellectual property . sg & a expenses may increase in the future to support our expanding operations as we explore new partnering opportunities and continue to develop our proprietary programs . these increases would likely include costs related to the hiring of additional personnel and increased fees for business development functions , costs associated with defending us in litigation matters , the costs of outside consultants , and other professional services . sg & a expenses may also increase as a result of ongoing operations that we might assume through mergers and acquisitions . 60 other income ( expense ) , net we hold equity securities and preferred stock received and or purchased from certain collaborators . other than investments accounted for using the equity method discussed below , we elected the fair value option to account for our equity securities and preferred stock held in these collaborators . these equity securities and preferred stock are recorded at fair value at each reporting date . unrealized appreciation ( depreciation ) resulting from fair value adjustments are reported as other income ( expense ) in the consolidated statements of operations . as such , we bear the risk that fluctuations in the securities ' share prices may significantly impact our results of operations . interest expense is expected to increase in future periods as we incur interest expense related to the convertible notes issued in july 2018. interest income consists of interest earned on our cash and cash equivalents and short-term and long-term investments . dividend income consists of the monthly preferred stock dividends received from our investments in preferred stock . story_separator_special_tag if we do not achieve our planned operating results , our ability to continue as a going concern would be jeopardized and we may need to take the following actions to support our liquidity needs in 2019 : shift our internal investments from subsidiaries and platforms whose potential for value creation is longer-term to near-term opportunities ; sell certain of our operating subsidiaries to third parties ; reduce operating expenditures for third-party contractors , including consultants , professional advisors , and other vendors ; and reduce or delay capital expenditures , including non-essential facility expansions , lab equipment , and information technology projects . implementing this plan could have a negative impact on our ability to continue our business as currently contemplated , including , without limitation , delays or failures in our ability to : maintain the diversity of our various portfolio offerings ; develop and commercialize products within planned timelines or at planned scales ; and invest in new research and development efforts . contractual obligations and commitments the following table summarizes our significant contractual obligations and commitments as of december 31 , 2018 and the effects such obligations are expected to have on our liquidity and cash flows in future periods : replace_table_token_13_th ( 1 ) the convertible debt may be converted to intrexon common stock or to the common stock of one of our subsidiaries . in addition to the obligations in the table above , as of december 31 , 2018 we also have the following significant contractual obligations described below . 70 in conjunction with the formation of our jvs , we committed to making future capital contributions subject to certain conditions and limitations . as of december 31 , 2018 , our remaining capital contribution commitments to our jvs were $ 14.9 million . these future capital contributions are not included in the table above due to the uncertainty of the timing and amounts of such contributions . we are party to in-licensed research and development agreements with various academic and commercial institutions where we could be required to make future payments for annual maintenance fees as well as for milestones and royalties we might receive upon commercial sales of products that incorporate their technologies . these agreements are generally subject to termination by us and therefore no amounts are included in the tables above . as of december 31 , 2018 , we also had research and development commitments with third parties totaling $ 11.9 million that had not yet been incurred . in january 2009 , aquabounty was awarded a grant to provide funding of a research and development project from the atlantic canada opportunities agency , a canadian government agency . amounts claimed by aquabounty must be repaid in the form of a 10 percent royalty on any products commercialized out of this research and development project until fully paid . because the timing of commercialization is subject to additional regulatory considerations , the timing of repayment is uncertain . aquabounty claimed all amounts available under the grant , resulting in total long-term debt of $ 2.1 million on our consolidated balance sheet as of december 31 , 2018 . this amount is not included in the table above due to the uncertainty of the timing of repayment . net operating losses as of december 31 , 2018 , we had net operating loss carryforwards of approximately $ 369.1 million for united states federal income tax purposes available to offset future taxable income , including $ 116.6 million generated after 2017 , and united states federal and state research and development tax credits of approximately $ 7.9 million , prior to consideration of annual limitations that may be imposed under section 382. carryforwards generated prior to 2018 begin to expire in 2022 . our direct foreign subsidiaries have foreign loss carryforwards of approximately $ 159.8 million , most of which do not expire . excluding certain deferred tax liabilities totaling $ 7.2 million , our remaining net deferred tax assets , which primarily relate to these loss carryforwards , are offset by a valuation allowance due to our history of net losses . as a result of our past issuances of stock , as well as due to prior mergers and acquisitions , certain of our net operating losses have been subject to limitations pursuant to section 382. as of december 31 , 2018 , intrexon has utilized all net operating losses subject to section 382 limitations , other than those losses inherited via acquisitions . as of december 31 , 2018 , approximately $ 41.9 million of domestic net operating losses were inherited via acquisitions and are limited based on the value of the target at the time of the transaction . future changes in stock ownership may also trigger an ownership change and , consequently , a section 382 limitation . we do not file a consolidated income tax return with aquabounty . as of december 31 , 2018 , aquabounty had loss carryforwards for federal and foreign income tax purposes of approximately $ 37.8 million , including $ 9.4 million generated after 2017 , and $ 14.0 million , respectively , and foreign research tax credits of $ 2.6 million available to offset future taxable income , prior to consideration of annual limitations that may be imposed under section 382 or analogous foreign provisions . carryforwards generated prior to 2018 began to expire in 2018 . as a result of our ownership in aquabounty passing 50 percent in 2013 , an annual section 382 limitation of approximately $ 0.9 million per year will apply to losses and credits carried forward by aquabounty from prior years , which are also subject to prior section 382 limitations . the tax act introduced certain limitations on utilization of net operating losses that are generated after 2017 , generally limiting utilization of those losses to 80 percent of future annual taxable income . however , losses generated after 2017 will generally

