we also intend to seek regional partnerships for the development and commercialization of afrezza in foreign jurisdictions where there are appropriate commercial opportunities . our business is subject to significant risks , including but not limited to our ability to successfully commercialize and manufacture sufficient quantities of arezza and the risks inherent in our ongoing clinical trials and the regulatory approval process for our product candidates . additional significant risks also include the results of our research and development efforts , competition from other products and technologies and uncertainties associated with obtaining and enforcing patent rights . research and development expenses historically our research and development expenses have consisted mainly of costs associated with research and development of our product candidates , including associated clinical trials , and manufacturing process development . this includes the salaries , benefits and stock-based compensation of research and development personnel , raw materials , laboratory supplies and materials , facility costs , costs for consultants and related contract research , licensing fees , and depreciation of equipment . we track research and development costs by the type of cost incurred . we partially offset research and development expenses with the recognition of estimated amounts receivable from the state of connecticut pursuant to a program under which we can exchange qualified research and development income tax credits for cash . 46 our research and development staff conducts our internal research and development activities , which include research , product development , clinical development , manufacturing process development and related activities . this staff is located in our facilities in valencia , california and danbury , connecticut . we expense research and development costs as we incur them . general and administrative expenses our general and administrative expenses are driven by salaries , benefits and stock-based compensation for administrative , finance , business development , human resources , legal and information systems support personnel . in addition , general and administrative expenses include professional service fees and business insurance costs . product manufacturing expenses product manufacturing expenses represent under-absorbed labor and overhead and inventory write-offs , which are expensed in the period in which they are incurred rather than as a portion of the inventory cost . critical accounting policies we have based our discussion and analysis of our financial condition and results of operations on our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities and expenses . we evaluate our estimates and judgments on an ongoing basis . we base our estimates on historical experience and on various assumptions that we believe to be reasonable under the circumstances , the results of which form the basis for making estimates of expenses such as stock option expenses and judgments about the carrying values of assets and liabilities . actual results may differ from these estimates under different assumptions or conditions . the significant accounting policies that are critical to the judgments and estimates used in the preparation of our financial statements are described in more detail below . license and collaboration agreements pursuant to the sanofi license agreement , we granted to sanofi exclusive , worldwide licenses to certain of our patents , trademarks and know-how for the development and commercialization of afrezza . the terms of the sanofi license agreement provide for consideration to us in the form of a non-refundable up-front payment , product sales , manufacturing , regulatory and sales milestone payments and profit and loss sharing . on january 4 , 2016 , we received written notice from sanofi of its election to terminate in its entirety the sanofi license agreement , effective either on april 4 , 2016 or july 4 , 2016 depending on the permitted basis for termination . we analyze consideration received under the provisions of asc 605 , revenue recognition , to determine whether the consideration , or a portion thereof , could be recognized as revenue . asc 605 provides that revenue is recognized when there is persuasive evidence that an arrangement exists , delivery has occurred or services have been rendered , the price is fixed or determinable and collection is reasonably assured . in arrangements involving the delivery of more than one element , each required deliverable is evaluated to determine whether it qualifies as a separate unit of accounting . this determination is generally based on whether the deliverable has stand-alone value to the customer . the arrangement 's consideration that is fixed and determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable . the estimated selling price of each deliverable is determined using the following hierarchy of values : ( i ) vendor-specific objective evidence of fair value , ( ii ) third-party evidence of selling price and ( iii ) best estimate of selling price ( besp ) . the besp reflects our best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis . in general , the consideration allocated to each unit of accounting is recognized as the related goods or services are delivered , limited to the consideration that is not contingent upon future deliverables . the assessment of multiple element arrangements requires judgment in order to determine the appropriate units of accounting and the points in time that , or periods over which , revenue should be recognized . as of 47 december 31 , 2015 , we did not have the ability to estimate the amount of costs that would potentially be incurred under the loss sharing provision of the sanofi license agreement , and accordingly we believe the fixed and determinable fee requirement for revenue recognition was not met . story_separator_special_tag 51 research and development expenses the following table provides a comparison of the research and development expense categories for the years ended december 31 , 2015 and 2014 ( dollars in thousands ) : replace_table_token_3_th the decrease in research and development expenses of $ 70.6 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 was primarily due to a decrease of $ 36.0 million in manufacturing process development expenses resulting from the shift to commercial production of afrezza of $ 30.8 million and decreased expenses of $ 0.7 million following the completion of restructuring activities in early 2015. the decrease is also attributable to a $ 19.3 million decrease in stock-based compensation expense compared to 2014 as a result of a non-recurring modification of the settlement terms ( the modification ) of certain performance-based restricted stock units and the achievement of performance-based grants in 2014 and the first quarter of 2015. the modification resulted in the reclassification of these performance grants from equity awards to liability awards , which required re-measurement on the modification date and resulted in incremental stock-based compensation expense . further , the reductions in research and development expenses was also driven by a decrease in clinical trial related expenses of $ 16.0 million primarily resulting from the completion of the affinity trials of $ 11.1 million and decreased personnel costs related to restructuring of $ 9.0 million . we anticipate that our overall research and development expenses will decrease in 2016 compared to 2015 due to the focus on the transition of the afrezza rights in 2016 and minimal incremental cost associated with our development pipeline . general and administrative expenses the following table provides a comparison of the general and administrative expense categories for the years ended december 31 , 2015 and 2014 ( dollars in thousands ) : replace_table_token_4_th the decrease in general and administrative expenses of $ 38.4 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 was primarily due to decreased stock-based compensation expense of $ 20.6 million , resulting from the modification and achievement of performance-based grants in 2014 and the first quarter of 2015 , as described above . additionally , the decrease is also attributable to professional fees of $ 13.8 million related to the sanofi license agreement incurred in the third quarter of 2014 and decreased expenses of $ 3.2 million following the completion of restructuring activities and decreased personnel costs in early 2015. we expect general and administrative expenses to remain relatively flat in 2016 as compared to 2015 due to restructuring measures in 2015 offset by an increase in professional fees related to the sanofi termination . we expect to have sales and marketing expenses in 2016 due to termination of the sanofi license agreement and the transition of sales and marketing efforts to us in 2016 . 52 product manufacturing expenses product manufacturing expenses were $ 67.4 million for the year ended december 31 , 2015 , resulting from product manufacturing costs associated with afrezza product sales , which can not be capitalized due to excess capacity . we had no product manufacturing expense for the year ended december 31 , 2014 , as pre-commercial manufacturing costs associated with afrezza were accounted for as research and development expenses . product manufacturing expenses represent under-absorbed labor and overhead of $ 21.4 million and inventory write-offs of 36.1 million , which are expensed in the period in which they are incurred . although the sanofi license agreement will terminate in the second quarter of 2016 , we expect our 2016 production of afrezza to be relatively consistent with production levels in 2015 , primarily as a result of existing customer demand . with the exception of the inventory write-off , we expect product manufacturing expense to remain relatively flat in 2016 compared to 2015. property and equipment impairment property and equipment impairment increased $ 140.4 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. the property and equipment impairment was to reduce the carrying amount of our real property and machinery and equipment to fair value based on our impairment assessment in the fourth quarter of 2015. loss on purchase commitments loss on purchase commitments increased $ 66.2 million for the year ended december 31 , 2015 compared to the year end 2014. the loss on purchase commitments was related to the loss on future purchase commitments resulting from our assessment of excess inventory as a result of lower than expected sales of afrezza as well as a lower of cost or market adjustment due to estimated conversion costs in excess of our estimated selling price of afrezza . other income ( expense ) other income for the year ended december 31 , 2015 was $ 1.4 million resulting from the relief of an accrual for potential expenses associated with the sale of intellectual property related to oncology in 2014 , which was subsequently resolved without payment in the first quarter of 2015. for the year ended december 31 , 2014 , other income was $ 1.7 million resulting from the sale of intellectual property related to oncology in the third quarter of 2014 in the amount of $ 7.9 million , partially offset by a $ 6.4 million non-cash charge recognized upon the conversion of 2019 notes into equity . story_separator_special_tag principal amount of 2019 notes bearing interest at 9.75 % per annum , $ 5.0 million of which is due and payable in july 2016 , $ 15.0 million of which is due and payable in july 2017 , $ 15.0 million of which is due and payable in july 2018 and $ 25.0 million of which is due and payable in july and december 2019 ; $ 20.0 million principal amount of tranche b notes bearing interest at 8.75 % per annum , $ 5.0 million of

loss on extinguishment of debt loss on extinguishment of debt increased $ 1.0 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. the loss on extinguishment is due to the settlement of the 2015 notes through payment of cash and issuance of new debt . interest income and expense interest expense increased $ 3.7 million from $ 20.4 million for the year ended december 31 , 2014 to $ 24.1 million for the year ended december 31 , 2015. the increase was primarily due to $ 5.8 million interest expense associated with the milestone payment resulting from the achievement and re-measurement of the second milestone under the milestone agreement in the first quarter of 2015 compared to the $ 1.9 million interest expense from the payment of the first milestone in 2014. the increase was also due to an increase of $ 1.7 million related to the sanofi loan facility and $ 0.8 million in interest for 2018 notes , which was offset by a decrease in interest expense of $ 2.7 million resulting from the maturity of 2015 notes . years ended december 31 , 2014 and 2013 revenues during the years ended december 31 , 2014 and 2013 , we did not recognize any revenue .


 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.
     ```loss on extinguishment of debt loss on extinguishment of debt increased $ 1.0 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. the loss on extinguishment is due to the settlement of the 2015 notes through payment of cash and issuance of new debt . interest income and expense interest expense increased $ 3.7 million from $ 20.4 million for the year ended december 31 , 2014 to $ 24.1 million for the year ended december 31 , 2015. the increase was primarily due to $ 5.8 million interest expense associated with the milestone payment resulting from the achievement and re-measurement of the second milestone under the milestone agreement in the first quarter of 2015 compared to the $ 1.9 million interest expense from the payment of the first milestone in 2014. the increase was also due to an increase of $ 1.7 million related to the sanofi loan facility and $ 0.8 million in interest for 2018 notes , which was offset by a decrease in interest expense of $ 2.7 million resulting from the maturity of 2015 notes . years ended december 31 , 2014 and 2013 revenues during the years ended december 31 , 2014 and 2013 , we did not recognize any revenue .
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 Suspicious Activity Report : we also intend to seek regional partnerships for the development and commercialization of afrezza in foreign jurisdictions where there are appropriate commercial opportunities . our business is subject to significant risks , including but not limited to our ability to successfully commercialize and manufacture sufficient quantities of arezza and the risks inherent in our ongoing clinical trials and the regulatory approval process for our product candidates . additional significant risks also include the results of our research and development efforts , competition from other products and technologies and uncertainties associated with obtaining and enforcing patent rights . research and development expenses historically our research and development expenses have consisted mainly of costs associated with research and development of our product candidates , including associated clinical trials , and manufacturing process development . this includes the salaries , benefits and stock-based compensation of research and development personnel , raw materials , laboratory supplies and materials , facility costs , costs for consultants and related contract research , licensing fees , and depreciation of equipment . we track research and development costs by the type of cost incurred . we partially offset research and development expenses with the recognition of estimated amounts receivable from the state of connecticut pursuant to a program under which we can exchange qualified research and development income tax credits for cash . 46 our research and development staff conducts our internal research and development activities , which include research , product development , clinical development , manufacturing process development and related activities . this staff is located in our facilities in valencia , california and danbury , connecticut . we expense research and development costs as we incur them . general and administrative expenses our general and administrative expenses are driven by salaries , benefits and stock-based compensation for administrative , finance , business development , human resources , legal and information systems support personnel . in addition , general and administrative expenses include professional service fees and business insurance costs . product manufacturing expenses product manufacturing expenses represent under-absorbed labor and overhead and inventory write-offs , which are expensed in the period in which they are incurred rather than as a portion of the inventory cost . critical accounting policies we have based our discussion and analysis of our financial condition and results of operations on our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities and expenses . we evaluate our estimates and judgments on an ongoing basis . we base our estimates on historical experience and on various assumptions that we believe to be reasonable under the circumstances , the results of which form the basis for making estimates of expenses such as stock option expenses and judgments about the carrying values of assets and liabilities . actual results may differ from these estimates under different assumptions or conditions . the significant accounting policies that are critical to the judgments and estimates used in the preparation of our financial statements are described in more detail below . license and collaboration agreements pursuant to the sanofi license agreement , we granted to sanofi exclusive , worldwide licenses to certain of our patents , trademarks and know-how for the development and commercialization of afrezza . the terms of the sanofi license agreement provide for consideration to us in the form of a non-refundable up-front payment , product sales , manufacturing , regulatory and sales milestone payments and profit and loss sharing . on january 4 , 2016 , we received written notice from sanofi of its election to terminate in its entirety the sanofi license agreement , effective either on april 4 , 2016 or july 4 , 2016 depending on the permitted basis for termination . we analyze consideration received under the provisions of asc 605 , revenue recognition , to determine whether the consideration , or a portion thereof , could be recognized as revenue . asc 605 provides that revenue is recognized when there is persuasive evidence that an arrangement exists , delivery has occurred or services have been rendered , the price is fixed or determinable and collection is reasonably assured . in arrangements involving the delivery of more than one element , each required deliverable is evaluated to determine whether it qualifies as a separate unit of accounting . this determination is generally based on whether the deliverable has stand-alone value to the customer . the arrangement 's consideration that is fixed and determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable . the estimated selling price of each deliverable is determined using the following hierarchy of values : ( i ) vendor-specific objective evidence of fair value , ( ii ) third-party evidence of selling price and ( iii ) best estimate of selling price ( besp ) . the besp reflects our best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis . in general , the consideration allocated to each unit of accounting is recognized as the related goods or services are delivered , limited to the consideration that is not contingent upon future deliverables . the assessment of multiple element arrangements requires judgment in order to determine the appropriate units of accounting and the points in time that , or periods over which , revenue should be recognized . as of 47 december 31 , 2015 , we did not have the ability to estimate the amount of costs that would potentially be incurred under the loss sharing provision of the sanofi license agreement , and accordingly we believe the fixed and determinable fee requirement for revenue recognition was not met . story_separator_special_tag 51 research and development expenses the following table provides a comparison of the research and development expense categories for the years ended december 31 , 2015 and 2014 ( dollars in thousands ) : replace_table_token_3_th the decrease in research and development expenses of $ 70.6 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 was primarily due to a decrease of $ 36.0 million in manufacturing process development expenses resulting from the shift to commercial production of afrezza of $ 30.8 million and decreased expenses of $ 0.7 million following the completion of restructuring activities in early 2015. the decrease is also attributable to a $ 19.3 million decrease in stock-based compensation expense compared to 2014 as a result of a non-recurring modification of the settlement terms ( the modification ) of certain performance-based restricted stock units and the achievement of performance-based grants in 2014 and the first quarter of 2015. the modification resulted in the reclassification of these performance grants from equity awards to liability awards , which required re-measurement on the modification date and resulted in incremental stock-based compensation expense . further , the reductions in research and development expenses was also driven by a decrease in clinical trial related expenses of $ 16.0 million primarily resulting from the completion of the affinity trials of $ 11.1 million and decreased personnel costs related to restructuring of $ 9.0 million . we anticipate that our overall research and development expenses will decrease in 2016 compared to 2015 due to the focus on the transition of the afrezza rights in 2016 and minimal incremental cost associated with our development pipeline . general and administrative expenses the following table provides a comparison of the general and administrative expense categories for the years ended december 31 , 2015 and 2014 ( dollars in thousands ) : replace_table_token_4_th the decrease in general and administrative expenses of $ 38.4 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 was primarily due to decreased stock-based compensation expense of $ 20.6 million , resulting from the modification and achievement of performance-based grants in 2014 and the first quarter of 2015 , as described above . additionally , the decrease is also attributable to professional fees of $ 13.8 million related to the sanofi license agreement incurred in the third quarter of 2014 and decreased expenses of $ 3.2 million following the completion of restructuring activities and decreased personnel costs in early 2015. we expect general and administrative expenses to remain relatively flat in 2016 as compared to 2015 due to restructuring measures in 2015 offset by an increase in professional fees related to the sanofi termination . we expect to have sales and marketing expenses in 2016 due to termination of the sanofi license agreement and the transition of sales and marketing efforts to us in 2016 . 52 product manufacturing expenses product manufacturing expenses were $ 67.4 million for the year ended december 31 , 2015 , resulting from product manufacturing costs associated with afrezza product sales , which can not be capitalized due to excess capacity . we had no product manufacturing expense for the year ended december 31 , 2014 , as pre-commercial manufacturing costs associated with afrezza were accounted for as research and development expenses . product manufacturing expenses represent under-absorbed labor and overhead of $ 21.4 million and inventory write-offs of 36.1 million , which are expensed in the period in which they are incurred . although the sanofi license agreement will terminate in the second quarter of 2016 , we expect our 2016 production of afrezza to be relatively consistent with production levels in 2015 , primarily as a result of existing customer demand . with the exception of the inventory write-off , we expect product manufacturing expense to remain relatively flat in 2016 compared to 2015. property and equipment impairment property and equipment impairment increased $ 140.4 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014. the property and equipment impairment was to reduce the carrying amount of our real property and machinery and equipment to fair value based on our impairment assessment in the fourth quarter of 2015. loss on purchase commitments loss on purchase commitments increased $ 66.2 million for the year ended december 31 , 2015 compared to the year end 2014. the loss on purchase commitments was related to the loss on future purchase commitments resulting from our assessment of excess inventory as a result of lower than expected sales of afrezza as well as a lower of cost or market adjustment due to estimated conversion costs in excess of our estimated selling price of afrezza . other income ( expense ) other income for the year ended december 31 , 2015 was $ 1.4 million resulting from the relief of an accrual for potential expenses associated with the sale of intellectual property related to oncology in 2014 , which was subsequently resolved without payment in the first quarter of 2015. for the year ended december 31 , 2014 , other income was $ 1.7 million resulting from the sale of intellectual property related to oncology in the third quarter of 2014 in the amount of $ 7.9 million , partially offset by a $ 6.4 million non-cash charge recognized upon the conversion of 2019 notes into equity . story_separator_special_tag principal amount of 2019 notes bearing interest at 9.75 % per annum , $ 5.0 million of which is due and payable in july 2016 , $ 15.0 million of which is due and payable in july 2017 , $ 15.0 million of which is due and payable in july 2018 and $ 25.0 million of which is due and payable in july and december 2019 ; $ 20.0 million principal amount of tranche b notes bearing interest at 8.75 % per annum , $ 5.0 million of

