these expenses consist primarily of salaries and related expenses , stock-based compensation , the purchase of equipment , laboratory and manufacturing supplies , facility costs , costs for preclinical and clinical research , development of quality control systems , quality assurance programs and manufacturing processes . we charge all research and development expenses to operating expenses as incurred . clinical development timelines , likelihood of success and total costs vary widely . we do not currently track our internal research and development costs or our personnel and related costs on an individual drug candidate basis . we use our research and development resources , including employees and our drug discovery technology , across multiple drug development programs . as a result , we can not state precisely the costs incurred for each of our research and development programs or our clinical and preclinical drug candidates . from inception through december 31 , 2016 , we have recorded total research and development expenses , including share-based compensation , of $ 143.6 million . our total research and development expenses for the year ended december 31 , 2016 was $ 42.5 million , compared to $ 31.3 million the year ended december 31 , 2015 , and $ 14.3 million for the year ended december 31 , 2014. share-based compensation accounted for $ 2.1 million for the year ended december 31 , 2016 , $ 2.2 million for the year ended december 31 , 2015 and $ 1.3 million for the year ended december 31 , 2014. research and development expenses as a percentage of total operating expenses was 81 % for the year ended december 31 , 2016 , 83 % for the year ended december 31 , 2015 , and 66 % for the year ended december 31 , 2014. the percentages , excluding stock-based compensation , was 86 % for the year ended december 31 , 2016 , 88 % for the year ended december 31 , 2015 and 88 % for the year ended december 31 , 2014. as planned , our clinical development costs increased as we advanced our lead product candidate as an anti-cancer therapy for treating last-line metastatic colorectal cancer ( mcrc ) , under a regulatory pathway through global phase iii clinical trials under ema and fda jurisdictions . the company 's maa submission in europe could potentially position the company to generate related revenues in 2017 if it receives ema marketing approval and the company successfully completes the commercialization plan for its lead product candidate . the clinical research and development costs may decrease going forward with the completion of the phase i/ii s. aureus bacteremia study and as we enter the maintenance phase of the fda pivotal phase iii mcrc trial . although , expenses could increase due to potential marketing approval of our lead product candidate in europe and related commercialization costs , as well as , the potential of pursuing advanced clinical studies in various indications . based on the results of our preclinical studies , we anticipate that we will select drug candidates and research projects for further development on an ongoing basis in response to their preclinical and clinical success and commercial potential . for research and development candidates in early stages of development , it is premature to estimate when material net cash inflows from these projects might occur . general and administrative expenses general and administrative expense consists primarily of salaries and related expenses for personnel in administrative , finance , business development and human resource functions , as well as the legal costs of pursuing patent protection of our intellectual property and patent filing and maintenance expenses , share–based compensation , and professional fees for legal services . our total general and administration expenses was 10.3 million for the year ended december 31 , 2016 , $ 6.2 million for the year ended december 31 , 2015 and $ 7.4 million for the year ended december 31 , 2014. share-based compensation accounted for $ 3.5 million for the year ended december 31 , 2016 , $ 2.2 million for the year ended december 31 , 2015 and $ 5.7 million for the year ended december 31 , 2014 . 42 critical accounting policies our management 's discussion and analysis of financial condition and results of operations is based on our financial statements , which have been prepared in conformity with generally accepted accounting principles in the united states ( us gaap ) . the preparation of our financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and expenses incurred during the reported periods . we base estimates on our historical experience , known trends and various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . while our significant accounting policies are more fully described in the notes to our financial statements appearing in this annual report on form 10-k , we believe that the following accounting policies are the most critical to understanding and evaluating our reported financial results . stock-based compensation stock-based awards are measured at fair value at each grant date . we recognize stock-based compensation expenses ratably over the requisite service period of the option award . determination of the fair value of stock-based compensation grants the determination of the fair value of stock-based compensation arrangements is affected by a number of variables , including estimates of the expected stock price volatility , risk-free interest rate and the expected life of the award . we value stock options using the black-scholes option-pricing model , which was developed for use in estimating the fair value of traded options that are fully transferable and have no vesting restrictions . story_separator_special_tag black-scholes option-pricing model and other option valuation models require the input of highly subjective assumptions , including the expected stock price volatility . if we made different assumptions , our stock-based compensation expenses , net loss , and net loss per common share could be significantly different . prior to our initial public offering in april 2015 , we issued common stock for cash consideration to investors . we believe that such transactions represent the best evidence of fair value of our common stock . therefore , we used the sales price of our common stock prior to our initial public offering ( ipo ) in april 2015 as the fair value of our common stock . after our ipo , we determine that the fair value of common stock is equal to the closing price of the company 's common stock as reported by nasdaq on the option grant date . the following summarizes the assumptions used for estimating the fair value of stock options granted during the periods indicated : replace_table_token_4_th we have assumed no dividend yield because we do not expect to pay dividends in the foreseeable future , which is consistent with our past practice . the risk-free interest rate assumption is based on observed interest rates for u.s. treasury securities with maturities consistent with the expected life of our stock options . the expected life represents the period of time the stock options are expected to be outstanding and is based on the simplified method when the stock option includes “ plain vanilla ” terms . under the simplified method , the expected life of an option is presumed to be the midpoint between the vesting date and the end of the agreement term . we used the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options . for stock options that did not include “ plain vanilla ” terms , we used the contractual life of the stock option as the expected life . such stock options consisted primarily of options issued to our board of directors that were immediately vested at issuance . expected volatility is based on historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the stock options . as part of the requirements of asc 718 , the company is required to estimate potential forfeitures of stock grants and adjust compensation cost recorded accordingly . we based our estimate of pre-vesting forfeitures , or forfeiture rate , on historical forfeiture rates . we apply the estimated forfeiture rate to the total estimated fair value of the awards , as derived from the black-scholes model , to compute the share-based compensation expenses , net of pre-vesting forfeitures , to be recognized in our consolidated statements of operations . 43 results of operations revenue we did not record any revenue during the years ended december 31 , 2016 , 2015 and 2014. expenses research and development research and development costs are summarized as follows ( in thousands ) : replace_table_token_5_th we do not currently track our internal research and development costs or our personnel and related costs on an individual drug candidate basis . we use our research and development resources , including employees and our drug discovery technology , across multiple drug development programs . as a result , we can not state precisely the costs incurred for each of our research and development programs or our clinical and preclinical drug candidates . research and development expenses increased by 36 % to $ 42.5 million for year ended december 31 , 2016 compared to $ 31.3 million for the year ended december 31 , 2015. the increase in research and development expenses for the year ended december 31 , 2016 compared to the year ended december 31 , 2015 was due to a $ 5.2 million increase of clinical trial activities and sponsored research expense , related to an expansion of clinical sites globally . in addition , there was a continued increase in laboratory and manufacturing supplies expense due to the increase of manufacturing processing development activities , research activities , quality control activities and the validation of equipment in the new manufacturing facility . the increase is also due to higher salaries and related expenses in 2016 due to the growing size of our workforce from 70 to 96. we also incurred increased allocated facility expense due to the facility expense incurred in the new manufacturing facility . stock–based compensation increased due to the issuance of stock options to new employees . the increase in research and development expenses for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 was due to a $ 10.7 million increase of clinical trial activities and sponsored research expense , which results primarily from the clinical trial started in europe and the us . the increase is also due to higher salaries and related expenses in 2015 due to the growing size of our workforce from 49 to 70 and a $ 330 thousand bonus payment to an executive officer in the second quarter of 2015. laboratory and manufacturing supplies also increased due to the increase of manufacturing processing development activities , research activities and quality control activities . stock–based compensation increased due the issuance of stock options to new employees . 44 general and administrative general and administrative costs are summarized as follows ( in thousands ) : replace_table_token_6_th general and administrative expenses increased 66 % to $ 10.3 million for the year ended december 31 , 2016 compared to $ 6.2 million for the year ended december 31 , 2015. the increase was principally due to a $ 0.6 million salary increase from the growth of our workforce and a $ 135 thousand bonus payment to an executive officer in march 2016. share-based compensation also increased by $ 1.3

liquidity and capital resources our cash requirements could change materially as a result of the progress of our research and development and clinical programs , licensing activities , acquisitions , divestitures or other corporate developments . since our inception on march 22 , 2005 through december 31 , 2016 , we have funded our operations principally through the private placement of equity securities and our initial public offering , which have provided aggregate cash proceeds of approximately $ 223.9 million . at december 31 , 2016 , we had cash and cash equivalents of $ 34.3 million as compared to cash and cash equivalents of $ 91.1 million at december 31 , 2015. the following table summarizes our sources and uses of cash ( in thousands ) : replace_table_token_8_th during the years ended december 31 , 2016 , 2015 and 2014 , our operating activities used net cash of $ 46.0 million , $ 33.3 million and $ 11.7 million , respectively . the use of net cash in each of these periods primarily resulted from our net losses . the increase in net loss from operations for the year ended december 31 , 2016 as compared to the year ended december 31 , 2015 and 2014 was mainly due to the increase in clinical trial and manufacturing activities , as well as , the growing size of our workforce . during the years ended december 31 , 2016 , 2015 and 2014 , our investing activities used net cash of $ 13.9 million , $ 10.4 million , and $ 1.4 million , respectively .


 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 our cash requirements could change materially as a result of the progress of our research and development and clinical programs , licensing activities , acquisitions , divestitures or other corporate developments . since our inception on march 22 , 2005 through december 31 , 2016 , we have funded our operations principally through the private placement of equity securities and our initial public offering , which have provided aggregate cash proceeds of approximately $ 223.9 million . at december 31 , 2016 , we had cash and cash equivalents of $ 34.3 million as compared to cash and cash equivalents of $ 91.1 million at december 31 , 2015. the following table summarizes our sources and uses of cash ( in thousands ) : replace_table_token_8_th during the years ended december 31 , 2016 , 2015 and 2014 , our operating activities used net cash of $ 46.0 million , $ 33.3 million and $ 11.7 million , respectively . the use of net cash in each of these periods primarily resulted from our net losses . the increase in net loss from operations for the year ended december 31 , 2016 as compared to the year ended december 31 , 2015 and 2014 was mainly due to the increase in clinical trial and manufacturing activities , as well as , the growing size of our workforce . during the years ended december 31 , 2016 , 2015 and 2014 , our investing activities used net cash of $ 13.9 million , $ 10.4 million , and $ 1.4 million , respectively .
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 Suspicious Activity Report : these expenses consist primarily of salaries and related expenses , stock-based compensation , the purchase of equipment , laboratory and manufacturing supplies , facility costs , costs for preclinical and clinical research , development of quality control systems , quality assurance programs and manufacturing processes . we charge all research and development expenses to operating expenses as incurred . clinical development timelines , likelihood of success and total costs vary widely . we do not currently track our internal research and development costs or our personnel and related costs on an individual drug candidate basis . we use our research and development resources , including employees and our drug discovery technology , across multiple drug development programs . as a result , we can not state precisely the costs incurred for each of our research and development programs or our clinical and preclinical drug candidates . from inception through december 31 , 2016 , we have recorded total research and development expenses , including share-based compensation , of $ 143.6 million . our total research and development expenses for the year ended december 31 , 2016 was $ 42.5 million , compared to $ 31.3 million the year ended december 31 , 2015 , and $ 14.3 million for the year ended december 31 , 2014. share-based compensation accounted for $ 2.1 million for the year ended december 31 , 2016 , $ 2.2 million for the year ended december 31 , 2015 and $ 1.3 million for the year ended december 31 , 2014. research and development expenses as a percentage of total operating expenses was 81 % for the year ended december 31 , 2016 , 83 % for the year ended december 31 , 2015 , and 66 % for the year ended december 31 , 2014. the percentages , excluding stock-based compensation , was 86 % for the year ended december 31 , 2016 , 88 % for the year ended december 31 , 2015 and 88 % for the year ended december 31 , 2014. as planned , our clinical development costs increased as we advanced our lead product candidate as an anti-cancer therapy for treating last-line metastatic colorectal cancer ( mcrc ) , under a regulatory pathway through global phase iii clinical trials under ema and fda jurisdictions . the company 's maa submission in europe could potentially position the company to generate related revenues in 2017 if it receives ema marketing approval and the company successfully completes the commercialization plan for its lead product candidate . the clinical research and development costs may decrease going forward with the completion of the phase i/ii s. aureus bacteremia study and as we enter the maintenance phase of the fda pivotal phase iii mcrc trial . although , expenses could increase due to potential marketing approval of our lead product candidate in europe and related commercialization costs , as well as , the potential of pursuing advanced clinical studies in various indications . based on the results of our preclinical studies , we anticipate that we will select drug candidates and research projects for further development on an ongoing basis in response to their preclinical and clinical success and commercial potential . for research and development candidates in early stages of development , it is premature to estimate when material net cash inflows from these projects might occur . general and administrative expenses general and administrative expense consists primarily of salaries and related expenses for personnel in administrative , finance , business development and human resource functions , as well as the legal costs of pursuing patent protection of our intellectual property and patent filing and maintenance expenses , share–based compensation , and professional fees for legal services . our total general and administration expenses was 10.3 million for the year ended december 31 , 2016 , $ 6.2 million for the year ended december 31 , 2015 and $ 7.4 million for the year ended december 31 , 2014. share-based compensation accounted for $ 3.5 million for the year ended december 31 , 2016 , $ 2.2 million for the year ended december 31 , 2015 and $ 5.7 million for the year ended december 31 , 2014 . 42 critical accounting policies our management 's discussion and analysis of financial condition and results of operations is based on our financial statements , which have been prepared in conformity with generally accepted accounting principles in the united states ( us gaap ) . the preparation of our financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and expenses incurred during the reported periods . we base estimates on our historical experience , known trends and various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . while our significant accounting policies are more fully described in the notes to our financial statements appearing in this annual report on form 10-k , we believe that the following accounting policies are the most critical to understanding and evaluating our reported financial results . stock-based compensation stock-based awards are measured at fair value at each grant date . we recognize stock-based compensation expenses ratably over the requisite service period of the option award . determination of the fair value of stock-based compensation grants the determination of the fair value of stock-based compensation arrangements is affected by a number of variables , including estimates of the expected stock price volatility , risk-free interest rate and the expected life of the award . we value stock options using the black-scholes option-pricing model , which was developed for use in estimating the fair value of traded options that are fully transferable and have no vesting restrictions . story_separator_special_tag black-scholes option-pricing model and other option valuation models require the input of highly subjective assumptions , including the expected stock price volatility . if we made different assumptions , our stock-based compensation expenses , net loss , and net loss per common share could be significantly different . prior to our initial public offering in april 2015 , we issued common stock for cash consideration to investors . we believe that such transactions represent the best evidence of fair value of our common stock . therefore , we used the sales price of our common stock prior to our initial public offering ( ipo ) in april 2015 as the fair value of our common stock . after our ipo , we determine that the fair value of common stock is equal to the closing price of the company 's common stock as reported by nasdaq on the option grant date . the following summarizes the assumptions used for estimating the fair value of stock options granted during the periods indicated : replace_table_token_4_th we have assumed no dividend yield because we do not expect to pay dividends in the foreseeable future , which is consistent with our past practice . the risk-free interest rate assumption is based on observed interest rates for u.s. treasury securities with maturities consistent with the expected life of our stock options . the expected life represents the period of time the stock options are expected to be outstanding and is based on the simplified method when the stock option includes “ plain vanilla ” terms . under the simplified method , the expected life of an option is presumed to be the midpoint between the vesting date and the end of the agreement term . we used the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options . for stock options that did not include “ plain vanilla ” terms , we used the contractual life of the stock option as the expected life . such stock options consisted primarily of options issued to our board of directors that were immediately vested at issuance . expected volatility is based on historical volatilities for publicly traded stock of comparable companies over the estimated expected life of the stock options . as part of the requirements of asc 718 , the company is required to estimate potential forfeitures of stock grants and adjust compensation cost recorded accordingly . we based our estimate of pre-vesting forfeitures , or forfeiture rate , on historical forfeiture rates . we apply the estimated forfeiture rate to the total estimated fair value of the awards , as derived from the black-scholes model , to compute the share-based compensation expenses , net of pre-vesting forfeitures , to be recognized in our consolidated statements of operations . 43 results of operations revenue we did not record any revenue during the years ended december 31 , 2016 , 2015 and 2014. expenses research and development research and development costs are summarized as follows ( in thousands ) : replace_table_token_5_th we do not currently track our internal research and development costs or our personnel and related costs on an individual drug candidate basis . we use our research and development resources , including employees and our drug discovery technology , across multiple drug development programs . as a result , we can not state precisely the costs incurred for each of our research and development programs or our clinical and preclinical drug candidates . research and development expenses increased by 36 % to $ 42.5 million for year ended december 31 , 2016 compared to $ 31.3 million for the year ended december 31 , 2015. the increase in research and development expenses for the year ended december 31 , 2016 compared to the year ended december 31 , 2015 was due to a $ 5.2 million increase of clinical trial activities and sponsored research expense , related to an expansion of clinical sites globally . in addition , there was a continued increase in laboratory and manufacturing supplies expense due to the increase of manufacturing processing development activities , research activities , quality control activities and the validation of equipment in the new manufacturing facility . the increase is also due to higher salaries and related expenses in 2016 due to the growing size of our workforce from 70 to 96. we also incurred increased allocated facility expense due to the facility expense incurred in the new manufacturing facility . stock–based compensation increased due to the issuance of stock options to new employees . the increase in research and development expenses for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 was due to a $ 10.7 million increase of clinical trial activities and sponsored research expense , which results primarily from the clinical trial started in europe and the us . the increase is also due to higher salaries and related expenses in 2015 due to the growing size of our workforce from 49 to 70 and a $ 330 thousand bonus payment to an executive officer in the second quarter of 2015. laboratory and manufacturing supplies also increased due to the increase of manufacturing processing development activities , research activities and quality control activities . stock–based compensation increased due the issuance of stock options to new employees . 44 general and administrative general and administrative costs are summarized as follows ( in thousands ) : replace_table_token_6_th general and administrative expenses increased 66 % to $ 10.3 million for the year ended december 31 , 2016 compared to $ 6.2 million for the year ended december 31 , 2015. the increase was principally due to a $ 0.6 million salary increase from the growth of our workforce and a $ 135 thousand bonus payment to an executive officer in march 2016. share-based compensation also increased by $ 1.3

