we use words such as “ anticipate , ” “ estimate , ” “ plan , ” “ project , ” “ continuing , ” “ ongoing , ” “ expect , ” “ believe , ” “ intend , ” “ may , ” “ will , ” “ should , ” “ could , ” and similar expressions to identify forward-looking statements . all forward-looking statements included in this report are based on information available to us on the date hereof and , except as required by law , we assume no obligation to update any such forward-looking statements . overview we are a clinical-stage biopharmaceutical company focused on the development and commercialization of novel cancer immunotherapy products designed to harness the power of a patient 's own immune system to eradicate cancer cells . our lead program is an adoptive cell therapy utilizing tumor-infiltrating lymphocytes ( til ) , which are t cells derived from patients ' tumors , for the treatment of metastatic melanoma . we have an on-going phase 2 clinical trial of our lead product candidate , ln-144 , til for the treatment of metastatic melanoma . this single-arm study is enrolling patients with melanoma whose disease has progressed following treatment with at least one systemic therapy . the trial opened for enrollment during the second half of 2015 and is being conducted at eight sites . the purpose of the study is to evaluate the safety , and efficacy of our autologous til infusion ( ln-144 ) . the trial 's primary endpoints are characterized by the safety of ln-144 . secondary outcome measures efficacy of ln-144 which include objective response and complete response rates . additional secondary or exploratory endpoints may be considered as well . updates from this phase 2 trial is planned to be released in 2017. during 2015 , we received orphan drug designation for ln-144 in the united states to treat metastatic melanoma . this designation provides seven years of market exclusivity in the united states , subject to certain limited exceptions . in september 2016 , we entered into an exclusive and co-exclusive license agreement polybiocept ab for the exclusive right and license to polybiocept 's intellectual property to develop , manufacture , market and genetically engineer til produced by expansion , selection and enrichment using a cytokine cocktail . we paid polybiocept a total of $ 2.5 million as an up-front exclusive license payment and agreed to make milestone payments to polybiocept under the polybiocept license agreement if , and when , ( i ) certain product development milestones are achieved , ( ii ) certain regulatory approvals have been obtained from the fda and or the european medicines agency ( ema ) , and ( iii ) certain product sales targets are achieved . the milestone payments will be payable both in cash ( u.s. dollars ) and in shares of our common stock . if all of the foregoing product development , regulatory approval and sales milestone payments are met , we will have to pay polybiocept an additional $ 8.7 million and will have to issue to polybiocept a total 2,219,376 shares of unregistered common stock . in addition to these potential payments , we agreed to reimburse polybiocept for up to $ 0.2 million in expenses related to the transfer of know-how and to pay polybiocept $ 0.1 million as a clinical trials management fee . on november 23 , 2016 we entered into that a three-year manufacturing and services agreement with wuxi pursuant to which wuxi agreed to provide manufacturing and other services . under the agreement , we entered into two statements of work for two cgmp manufacturing suites to be established and operated by wuxi for us , one of which is expected to be capable of being used for the commercial manufacture of our products . the fee payable under the first statement of work for the use of one of the manufacturing suites during the first year of the agreement , including the fees for the necessary personnel , is $ 2.5 million . the second statement of work , under which wuxi agreed to establish and operate a second , dedicated facility for a late stage/commercial manufacturing cgmp suite requires us to pay approximately $ 5.85 million during the first year of the agreement . results of operations for the years ended december 31 , 2016 and 2015 revenues as a development stage company that is currently engaged in the development of novel cancer immunotherapy products , we have not yet generated any revenues from our biotechnology business or otherwise since our formation . we currently do not anticipate that we will generate any revenues during 2017 from the sale or licensing of our products . our ability to generate revenues in the future will depend on our ability to complete the development of our product candidates and to obtain regulatory approval for them . 40 costs and expenses research and development expense ( in thousands ) replace_table_token_5_th research and development expense for the year ended december 31 , 2016 increased by $ 12.6 million , or 81 % , compared to the year ended december 31 , 2015 , inclusive of stock-based compensation . the increase was primarily attributable to a $ 2.3 million increase in payroll and related expenses primarily due to an increase in headcount , a $ 3.2 million increase in drug manufacturing costs , a $ 0.9 million increase in costs related to our clinical trials , $ 1.0 million increase in stock-based compensation expense and expenses incurred under the polybiocept agreement in the amount of $ 2.7 million . story_separator_special_tag research and development activities are central to our business model . product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development , primarily due to the increased size and duration of later-stage clinical trials . we expect our research and development expenses to increase over the next several years as we continue to conduct our clinical trial for our products and as we increase our research and development efforts in other cancer indications . however , it is difficult to determine with certainty the duration and completion costs of our current or future preclinical programs and clinical trials of our product candidates . the duration , costs and timing of our clinical trials and development of our product candidates will depend on a number of factors that include , but are not limited to , the number of patients that enroll in the trial , per patient trial costs , number of sites included in the trial , discontinuation rates of patients , duration of patient follow-up , efficacy and safety profile of the product candidate , and the length of time required to enroll eligible patients . additionally , the probability of success for our product candidate will depend on a number of factors , including competition , manufacturing capability and cost efficiency , and commercial viability . general and administrative expense ( in thousands ) replace_table_token_6_th general and administrative expense for the year ended december 31 , 2016 increased by $ 13.2 million , or 107 % , compared to the year ended december 31 , 2015 , inclusive of stock-based compensation . the increase was primarily attributable to a $ 9.3 million increase in stock-based compensation expense primarily due to the accelerated vesting of equity awards upon the termination of employment of our former chief executive officer and our former chief financial officer , and the increase in the number of our employees . a $ 1.5 million increase in payroll and related expenses primarily due to the increase in headcount , a $ 0.9 million increase due to severance payments to our former chief executive officer and our former chief financial officer and a $ 1.3 million increase in consulting and legal related expenses . general and administrative expenses include personnel costs for our employees engaged in general and administrative activities , legal fees , audit and tax fees , consultants and professional services , and general corporate expenses . interest income ( in thousands ) replace_table_token_7_th interest income results from our interest-bearing cash and investment balances . interest income for the year ended december 31 , 2016 increased due to the higher cash balances in 2016 as a result of the proceeds received from our equity financings in 2015 and june 2016 . 41 results of operations for the years ended december 31 , 2015 and 2014 revenues as a development stage company that is currently engaged in the development of novel cancer immunotherapy products , we have not yet generated any revenues from our biotechnology business or otherwise since our formation . costs and expenses research and development expense ( in thousands ) replace_table_token_8_th during the year ended december 31 , 2015 , our research and development costs increased by $ 11.6 million when compared to the same period in 2014 , inclusive of stock-based compensation . the increase is mainly attributable to the expansion of our crada in 2015 , the general expansion of our research and development efforts , the establishment of our tampa , florida , research facility in the fourth quarter of 2014 and the initiation of our phase ii clinical trial in september 2015. general and administrative expense ( in thousands ) replace_table_token_9_th for the year ended december 31 , 2015 our general and administrative expenses increased by $ 4.2 million , or 51 % , and for the year ended december 31 , 2014 compared to the prior year comparable period , inclusive of stock-based compensation . the increase in our general and administrative expenses during the year ended december 31 , 2015 is primarily due to stock-based compensation , and increases in our overall corporate activities , including business development and increases in employment related expenses , insurance costs and legal fees . for the years ended december 31 , 2015 and 2014 , we incurred $ 6.3 million and $ 2.7 million , respectively , of non-cash stock-based compensation costs . share based compensation includes stock and options granted to our executive officers , our employees , our directors , and our consultants and advisors . interest income ( in thousands ) replace_table_token_10_th interest income results from our interest-bearing cash and investment balances . interest income for the year ended december 31 , 2015 increased over 2014 due to the higher cash balances in 2015 as a result of the proceeds received from our equity financings in late 2014 and early 2015. net loss we had a net loss of $ 52.9 million , $ 27.7 million , and $ 12.0 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . the increase in our net loss during 2016 is due to the continued expansion of our research and development activities , increased clinical trials and manufacturing activities , and the overall growth of our corporate infrastructure . our general and administrative expenses increased due to the increase in headcount and due to stock-based equity awards accelerated in 2016 related to the termination of certain executives . the increase in our net loss during 2015 is due to an increase in general and administrative expenses , along with the expansion of our research and development activities . we anticipate that we will continue to incur net losses in the future as we further invest in our research and development activities , including our clinical development . we do not expect to generate any revenues in the near term .

liquidity and capital resources corporate capitalization . as of december 31 , 2016 , we had outstanding 62,248,074 shares of our $ 0.000041666 par value common stock , 1,694 shares of our $ 0.0001 par value series a convertible preferred stock , and 7,946,673 shares of our $ 0.0001 par value series b convertible preferred stock . the outstanding shares of series a convertible preferred stock are currently convertible into 847,000 shares of our common stock , and the outstanding shares of series b convertible preferred stock are currently convertible into 7,946,673 shares of our common stock . the shares of series a convertible preferred stock and series b convertible preferred stock do not have voting rights or accrue dividends . our major sources of funding have been proceeds from various public and private offerings of our common stock , option and warrant exercises , and interest income . we are currently engaged in the development of therapeutics to fight cancer . we do not have any commercial products and have not yet generated any revenues from our biopharmaceutical business . we currently do not anticipate that we will generate any revenues during 2017 from the sale or licensing of any products . as shown in the accompanying financial statements , we have incurred a net loss of $ 52.9 million for the year ended december 31 , 2016 and used $ 32.7 million of cash in our operating activities during the year ended december 31 , 2016. as of december 31 , 2016 , we had $ 166.5 million of cash and cash equivalents and short-term investments on hand , stockholders ' equity of $ 166.9 million and had working capital of $ 164.5 million . we expect to further increase our research and development activities , which will increase the amount of cash we will use during 2017. specifically , we expect increased spending on clinical trials , research and development activities , higher payroll expenses as we increase our professional and scientific staff and continued and expansion of manufacturing activities .


 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 corporate capitalization . as of december 31 , 2016 , we had outstanding 62,248,074 shares of our $ 0.000041666 par value common stock , 1,694 shares of our $ 0.0001 par value series a convertible preferred stock , and 7,946,673 shares of our $ 0.0001 par value series b convertible preferred stock . the outstanding shares of series a convertible preferred stock are currently convertible into 847,000 shares of our common stock , and the outstanding shares of series b convertible preferred stock are currently convertible into 7,946,673 shares of our common stock . the shares of series a convertible preferred stock and series b convertible preferred stock do not have voting rights or accrue dividends . our major sources of funding have been proceeds from various public and private offerings of our common stock , option and warrant exercises , and interest income . we are currently engaged in the development of therapeutics to fight cancer . we do not have any commercial products and have not yet generated any revenues from our biopharmaceutical business . we currently do not anticipate that we will generate any revenues during 2017 from the sale or licensing of any products . as shown in the accompanying financial statements , we have incurred a net loss of $ 52.9 million for the year ended december 31 , 2016 and used $ 32.7 million of cash in our operating activities during the year ended december 31 , 2016. as of december 31 , 2016 , we had $ 166.5 million of cash and cash equivalents and short-term investments on hand , stockholders ' equity of $ 166.9 million and had working capital of $ 164.5 million . we expect to further increase our research and development activities , which will increase the amount of cash we will use during 2017. specifically , we expect increased spending on clinical trials , research and development activities , higher payroll expenses as we increase our professional and scientific staff and continued and expansion of manufacturing activities .
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 Suspicious Activity Report : we use words such as “ anticipate , ” “ estimate , ” “ plan , ” “ project , ” “ continuing , ” “ ongoing , ” “ expect , ” “ believe , ” “ intend , ” “ may , ” “ will , ” “ should , ” “ could , ” and similar expressions to identify forward-looking statements . all forward-looking statements included in this report are based on information available to us on the date hereof and , except as required by law , we assume no obligation to update any such forward-looking statements . overview we are a clinical-stage biopharmaceutical company focused on the development and commercialization of novel cancer immunotherapy products designed to harness the power of a patient 's own immune system to eradicate cancer cells . our lead program is an adoptive cell therapy utilizing tumor-infiltrating lymphocytes ( til ) , which are t cells derived from patients ' tumors , for the treatment of metastatic melanoma . we have an on-going phase 2 clinical trial of our lead product candidate , ln-144 , til for the treatment of metastatic melanoma . this single-arm study is enrolling patients with melanoma whose disease has progressed following treatment with at least one systemic therapy . the trial opened for enrollment during the second half of 2015 and is being conducted at eight sites . the purpose of the study is to evaluate the safety , and efficacy of our autologous til infusion ( ln-144 ) . the trial 's primary endpoints are characterized by the safety of ln-144 . secondary outcome measures efficacy of ln-144 which include objective response and complete response rates . additional secondary or exploratory endpoints may be considered as well . updates from this phase 2 trial is planned to be released in 2017. during 2015 , we received orphan drug designation for ln-144 in the united states to treat metastatic melanoma . this designation provides seven years of market exclusivity in the united states , subject to certain limited exceptions . in september 2016 , we entered into an exclusive and co-exclusive license agreement polybiocept ab for the exclusive right and license to polybiocept 's intellectual property to develop , manufacture , market and genetically engineer til produced by expansion , selection and enrichment using a cytokine cocktail . we paid polybiocept a total of $ 2.5 million as an up-front exclusive license payment and agreed to make milestone payments to polybiocept under the polybiocept license agreement if , and when , ( i ) certain product development milestones are achieved , ( ii ) certain regulatory approvals have been obtained from the fda and or the european medicines agency ( ema ) , and ( iii ) certain product sales targets are achieved . the milestone payments will be payable both in cash ( u.s. dollars ) and in shares of our common stock . if all of the foregoing product development , regulatory approval and sales milestone payments are met , we will have to pay polybiocept an additional $ 8.7 million and will have to issue to polybiocept a total 2,219,376 shares of unregistered common stock . in addition to these potential payments , we agreed to reimburse polybiocept for up to $ 0.2 million in expenses related to the transfer of know-how and to pay polybiocept $ 0.1 million as a clinical trials management fee . on november 23 , 2016 we entered into that a three-year manufacturing and services agreement with wuxi pursuant to which wuxi agreed to provide manufacturing and other services . under the agreement , we entered into two statements of work for two cgmp manufacturing suites to be established and operated by wuxi for us , one of which is expected to be capable of being used for the commercial manufacture of our products . the fee payable under the first statement of work for the use of one of the manufacturing suites during the first year of the agreement , including the fees for the necessary personnel , is $ 2.5 million . the second statement of work , under which wuxi agreed to establish and operate a second , dedicated facility for a late stage/commercial manufacturing cgmp suite requires us to pay approximately $ 5.85 million during the first year of the agreement . results of operations for the years ended december 31 , 2016 and 2015 revenues as a development stage company that is currently engaged in the development of novel cancer immunotherapy products , we have not yet generated any revenues from our biotechnology business or otherwise since our formation . we currently do not anticipate that we will generate any revenues during 2017 from the sale or licensing of our products . our ability to generate revenues in the future will depend on our ability to complete the development of our product candidates and to obtain regulatory approval for them . 40 costs and expenses research and development expense ( in thousands ) replace_table_token_5_th research and development expense for the year ended december 31 , 2016 increased by $ 12.6 million , or 81 % , compared to the year ended december 31 , 2015 , inclusive of stock-based compensation . the increase was primarily attributable to a $ 2.3 million increase in payroll and related expenses primarily due to an increase in headcount , a $ 3.2 million increase in drug manufacturing costs , a $ 0.9 million increase in costs related to our clinical trials , $ 1.0 million increase in stock-based compensation expense and expenses incurred under the polybiocept agreement in the amount of $ 2.7 million . story_separator_special_tag research and development activities are central to our business model . product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development , primarily due to the increased size and duration of later-stage clinical trials . we expect our research and development expenses to increase over the next several years as we continue to conduct our clinical trial for our products and as we increase our research and development efforts in other cancer indications . however , it is difficult to determine with certainty the duration and completion costs of our current or future preclinical programs and clinical trials of our product candidates . the duration , costs and timing of our clinical trials and development of our product candidates will depend on a number of factors that include , but are not limited to , the number of patients that enroll in the trial , per patient trial costs , number of sites included in the trial , discontinuation rates of patients , duration of patient follow-up , efficacy and safety profile of the product candidate , and the length of time required to enroll eligible patients . additionally , the probability of success for our product candidate will depend on a number of factors , including competition , manufacturing capability and cost efficiency , and commercial viability . general and administrative expense ( in thousands ) replace_table_token_6_th general and administrative expense for the year ended december 31 , 2016 increased by $ 13.2 million , or 107 % , compared to the year ended december 31 , 2015 , inclusive of stock-based compensation . the increase was primarily attributable to a $ 9.3 million increase in stock-based compensation expense primarily due to the accelerated vesting of equity awards upon the termination of employment of our former chief executive officer and our former chief financial officer , and the increase in the number of our employees . a $ 1.5 million increase in payroll and related expenses primarily due to the increase in headcount , a $ 0.9 million increase due to severance payments to our former chief executive officer and our former chief financial officer and a $ 1.3 million increase in consulting and legal related expenses . general and administrative expenses include personnel costs for our employees engaged in general and administrative activities , legal fees , audit and tax fees , consultants and professional services , and general corporate expenses . interest income ( in thousands ) replace_table_token_7_th interest income results from our interest-bearing cash and investment balances . interest income for the year ended december 31 , 2016 increased due to the higher cash balances in 2016 as a result of the proceeds received from our equity financings in 2015 and june 2016 . 41 results of operations for the years ended december 31 , 2015 and 2014 revenues as a development stage company that is currently engaged in the development of novel cancer immunotherapy products , we have not yet generated any revenues from our biotechnology business or otherwise since our formation . costs and expenses research and development expense ( in thousands ) replace_table_token_8_th during the year ended december 31 , 2015 , our research and development costs increased by $ 11.6 million when compared to the same period in 2014 , inclusive of stock-based compensation . the increase is mainly attributable to the expansion of our crada in 2015 , the general expansion of our research and development efforts , the establishment of our tampa , florida , research facility in the fourth quarter of 2014 and the initiation of our phase ii clinical trial in september 2015. general and administrative expense ( in thousands ) replace_table_token_9_th for the year ended december 31 , 2015 our general and administrative expenses increased by $ 4.2 million , or 51 % , and for the year ended december 31 , 2014 compared to the prior year comparable period , inclusive of stock-based compensation . the increase in our general and administrative expenses during the year ended december 31 , 2015 is primarily due to stock-based compensation , and increases in our overall corporate activities , including business development and increases in employment related expenses , insurance costs and legal fees . for the years ended december 31 , 2015 and 2014 , we incurred $ 6.3 million and $ 2.7 million , respectively , of non-cash stock-based compensation costs . share based compensation includes stock and options granted to our executive officers , our employees , our directors , and our consultants and advisors . interest income ( in thousands ) replace_table_token_10_th interest income results from our interest-bearing cash and investment balances . interest income for the year ended december 31 , 2015 increased over 2014 due to the higher cash balances in 2015 as a result of the proceeds received from our equity financings in late 2014 and early 2015. net loss we had a net loss of $ 52.9 million , $ 27.7 million , and $ 12.0 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . the increase in our net loss during 2016 is due to the continued expansion of our research and development activities , increased clinical trials and manufacturing activities , and the overall growth of our corporate infrastructure . our general and administrative expenses increased due to the increase in headcount and due to stock-based equity awards accelerated in 2016 related to the termination of certain executives . the increase in our net loss during 2015 is due to an increase in general and administrative expenses , along with the expansion of our research and development activities . we anticipate that we will continue to incur net losses in the future as we further invest in our research and development activities , including our clinical development . we do not expect to generate any revenues in the near term .

