the 2016 losses were primarily due to an impairment loss of $ 92,396,000 on our ipr & d , $ 13,400,000 from ongoing operations , $ 1,177,000 impairment on our mortgage note , offset by a $ 29,394,000 deferred tax benefit associated with the impairment charge incurred on our ipr & d asset . our operating loss for the year ended december 31 , 2017 was $ 8,262,000 , compared to an operating loss of $ 105,819,000 in 2016. the operating loss for 2016 included the impairment charge of $ 92,369,000 on our ipr & d asset noted above . other income was $ 769,000 for the year ended december 31 , 2017 , which is primarily due to a $ 907,000 gain on the fair value of derivative liabilities . under accounting principles generally accepted in the united states , we record other income or expense for the change in fair value of our outstanding warrants that are accounted for as liabilities during each reporting period . if the value of the warrants decreases during a period , which occurred during the year ended december 31 , 2017 , we record other income . the fair value of our outstanding warrants is inversely related to the fair value of the underlying common stock ; as such , a decrease in the fair value of our common stock during a given period generally results in other income while an increase in the fair value of our common stock generally results in other expense . this other income or expense is non-cash . we believe investors should focus on our operating loss rather than net income or loss for the periods presented . research and development expense research and development expense consists primarily of compensation-related costs for our 8 employees dedicated to research and development activities and for our scientific advisory board members , as well as lab supplies , lab services , and facilities and equipment costs . we expect research and development expenses to increase in future periods as we expand our pre-clinical development activities . also included in research and development expense for the year ended december 31 , 2016 is an impairment charge related to our in-process research and development ( ipr & d ) intangible asset in the amount of $ 92,369,000. total research and development expenses were $ 5,822,000 for the year ended december 31 , 2017 , compared with $ 101,679,000 for the year ended december 31 , 2016. this decrease of $ 95,857,000 is primarily the result of recognizing an impairment loss on ipr & d of $ 92,396,000 in 2016. excluding the impact of the ipr & d impairment charge , research and development expenses decreased $ 3,461,000 from $ 9,283,000 for the year ended december 31 , 2016. we continue to expect research and development expenses to increase in 2018 as a result of hcv phase 2 programs and preparation for influenza phase 1 start up . general and administrative expense general and administrative expense includes compensation-related costs for our employees dedicated to general and administrative activities , legal fees , audit and tax fees , consultants and professional services , and general corporate expenses . general and administrative expenses were $ 2,440,000 for the year ended december 31 , 2017 , compared with $ 4,140,000 for the year ended december 31 , 2016. this decrease of $ 1,700,000 was primarily due to an insurance reimbursement of prior legal costs , a non-cash reversal of stock compensation expense related to unvested options for the former general counsel and interim cfo that left the company during 2017 , a decrease in compensation costs due to staffing turnover , and a general decrease in legal costs . interest income/expense interest income ( expense ) was ( $ 7,000 ) for the year ended december 31 , 2017 , compared to $ 126,000 for the year ended december 31 , 2016. the interest expense in 2017 is a result of the convertible promissory notes we entered into in november 2017. the 2016 income amounts primarily represent interest earned on the mortgage note we acquired in june 2015. as further explained in note 4 to the consolidated financial statements , we have sold this note in february 2018 . 37 other income/expense other income , net , was $ 769,000 for the year ended december 31 , 2017 compared with $ 1,551,000 for the year ended december 31 , 2016. other income , net for the year ended december 31 , 2017 primarily consisted of a gain recognized from a decrease in the fair value of our derivative liabilities as our stock price decreased . other income for the year ended december 31 , 2016 also included a gain of $ 2,603,000 due to a decrease in the fair value of our derivative liabilities , offset by an impairment loss of $ 1,177,000 related to our mortgage note receivable . income taxes for the year ended december 31 , 2017 , we recorded an income tax benefit of $ 6,880,000 , primarily as a result of reduction of our deferred tax liability which was caused by recent tax law changes lowering the corporate tax rate to 21 % . for the year ended december 31 , 2016 , we recorded an income tax benefit of $ 29,394,000 resulting from reduction of our deferred tax liability primarily stemming from the impairment loss recorded for the company 's in-process research and development . for the years ended december 31 , 2016 and december 31 , 2015 research and development expense research and development expense consists primarily of compensation-related costs for our employees dedicated to research and development activities and for our scientific advisory board members , as well as lab supplies , lab services , and facilities and equipment costs . story_separator_special_tag 41 in november 2016 , due to industry reports forecasting patient volume decreasing and the average price of treatment trending downward , as well as due to increased competition in the hepatitis c market , and partially the result of further data defining the scientific and commercial potential of company hcv compounds , we further lowered our forecasts of future cash flows , which caused a reduction in value of our hepatitis c assets . this resulted in an impairment charge recorded to our ipr & d asset in the amount of $ 92.4 million in 2016. during 2017 , our impairment test concluded no impairment of our ipr & d asset was required . however , as we continue work on this program , we may be required to record additional impairment charges in the future depending on the outcome of our research activities and changes in the market for our hepatitis c assets . we also recorded $ 65.2 million of goodwill in the rfs pharma acquisition that is subject to impairment testing . this goodwill primarily represents the amount initially recorded as a deferred tax liability in the rfs pharma acquisition , which was required as the goodwill recorded for book purposes is not tax deductible based on the structure of the acquisition . future impairment tests of goodwill will also require substantial judgment and estimates . we completed our annual goodwill impairment tests as of november 30 , 2017 , 2016 , and 2015 , and determined that there was no impairment of goodwill in any period . income taxes as noted above , we initially recorded a deferred tax liability of $ 65.2 million related to the rfs pharma acquisition . in 2015 , we recognized an impairment loss on our in-process research and development asset , resulting in a reduction of our deferred tax liability of approximately $ 15.3 million . in 2016 , we recognized another impairment loss on our in-process research and development of $ 92.4 million , which reduced our deferred tax liability to approximately $ 20.5 million . for 2017 , our deferred tax liability declined by $ 6.8 million due to the impact of recent changes in the tax laws which , among other things , lowered the corporate tax rate to 21 % . the remeasurement of our deferred tax liability generated an income tax benefit of $ 6.6 million . in addition to lowering the corporate tax rate for years beginning january 1 , 2018 , the new tax laws allow for net operating loss carryforwards to be carried forward indefinitely for losses incurred beginning in 2018 , subject to a limitation on the amount that can be used to offset income generated in a given year . prior to 2017 , we have not considered the deferred tax liability as a source of future income in our determination of the need for a valuation allowance against our deferred tax assets due to the fact that this deferred tax liability relates to our indefinite-lived ipr & d asset , and the timing of reversal of this deferred tax liability can not currently be determined due to uncertainty regarding the ultimate outcome of our research activities associated with the intellectual property acquired in the rfs pharma transaction . given the change in tax laws , we considered whether the reversal of taxable temporary differences related to the indefinite lived intangible assets may be used as a source of future taxable income in assessing the realizability of deferred tax assets than upon reversal would give rise to nols that do not expire , which resulted in an additional tax benefit of approximately $ 293,000 in 2017. in 2018 , we will likely record a tax benefit to reflect the indefinite carryforward period for future net operating losses that would allow such net operating losses to be used to offset any income recorded upon reversal of the deferred tax liability ; however , we are still evaluating the impact on our future financial statements . to the extent our estimates regarding the outcome of those activities changes in future periods , our determination regarding the valuation allowance may also change . contractual obligations the following table summarizes our significant contractual obligations at december 31 , 2017 ( in thousands ) : replace_table_token_3_th the minimum lease payments above do not include common area maintenance ( cam ) charges , which are contractual obligations under some of the company 's operating leases , but are not fixed and can fluctuate from year to year . 42 licenses and collaborations in addition to the above contractual commitments , we also have potential future payments due under various licenses and collaborations as follows : emory university : the company has an exclusive license from emory university for use of certain inventions and technology related to inhibitors of hepatitis c virus that were jointly developed by emory and company employees . the license agreement is dated march 7 , 2013 wherein emory agrees to add to the licensed patents and licensed technology emory 's rights to any patent , patent application , invention , or technology application that is based on technology disclosed within three ( 3 ) years of march 7 , 2013. the agreement includes payments due to emory ranging from $ 40,000 to $ 500,000 based on successful achievement of certain drug development milestones . additionally , the company may have royalty payments at 3.5 % of net sales due to emory with a minimum in year one of $ 25,000 and increase to $ 400,000 in year five upon product commercialization . recent accounting pronouncements in february 2016 , the financial accounting standards board ( “ fasb ” ) issued accounting standards update ( “ asu ” ) no . 2016-02 , leases ( topic 842 ) . asu 2016-02 impacts any entity that enters into a lease with some specified scope exceptions . this new standard establishes a right-of-use (

liquidity and capital resources for the year ended december 31 , 2017 , net cash used in operating activities was $ 6,903,000 , compared to net cash used in operating activities of $ 14,655,000 for 2016. the decrease in cash used in operating activities from 2017 to 2016 was attributable to reduced spending in research and development activities following the completion of the hcv phase 1 clinical trials . in 2017 , net cash used in investing activities consisted of $ 40,000 in capital expenditures for lab equipment . for 2016 , our net cash provided by investing activities netted to $ 3,000 , which consisted of receipts related to our mortgage note offset by capital expenditures primarily for lab equipment for our r & d facilities . for the year ended december 31 , 2017 , net cash provided by financing activities was $ 4,080,000 , compared to net cash provided by financing activities of $ 9,016,000 for 2016. net cash generated by financing activities in 2017 was the result of issuing convertible notes payable and additional issuances of common stock . during 2016 , net cash from financing activities was generated solely from the issuance of common stock . for the year ended december 31 , 2016 , net cash used in operating activities was $ 14,655,000 , compared to net cash used in operating activities of $ 10,317,000 for 2015. the increase in cash used in operating activities in 2016 as compared to 2015 was attributable to our increase in research and development activities , including phase i testing of our lead non-nucleoside inhibitor .


 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 for the year ended december 31 , 2017 , net cash used in operating activities was $ 6,903,000 , compared to net cash used in operating activities of $ 14,655,000 for 2016. the decrease in cash used in operating activities from 2017 to 2016 was attributable to reduced spending in research and development activities following the completion of the hcv phase 1 clinical trials . in 2017 , net cash used in investing activities consisted of $ 40,000 in capital expenditures for lab equipment . for 2016 , our net cash provided by investing activities netted to $ 3,000 , which consisted of receipts related to our mortgage note offset by capital expenditures primarily for lab equipment for our r & d facilities . for the year ended december 31 , 2017 , net cash provided by financing activities was $ 4,080,000 , compared to net cash provided by financing activities of $ 9,016,000 for 2016. net cash generated by financing activities in 2017 was the result of issuing convertible notes payable and additional issuances of common stock . during 2016 , net cash from financing activities was generated solely from the issuance of common stock . for the year ended december 31 , 2016 , net cash used in operating activities was $ 14,655,000 , compared to net cash used in operating activities of $ 10,317,000 for 2015. the increase in cash used in operating activities in 2016 as compared to 2015 was attributable to our increase in research and development activities , including phase i testing of our lead non-nucleoside inhibitor .
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 Suspicious Activity Report : the 2016 losses were primarily due to an impairment loss of $ 92,396,000 on our ipr & d , $ 13,400,000 from ongoing operations , $ 1,177,000 impairment on our mortgage note , offset by a $ 29,394,000 deferred tax benefit associated with the impairment charge incurred on our ipr & d asset . our operating loss for the year ended december 31 , 2017 was $ 8,262,000 , compared to an operating loss of $ 105,819,000 in 2016. the operating loss for 2016 included the impairment charge of $ 92,369,000 on our ipr & d asset noted above . other income was $ 769,000 for the year ended december 31 , 2017 , which is primarily due to a $ 907,000 gain on the fair value of derivative liabilities . under accounting principles generally accepted in the united states , we record other income or expense for the change in fair value of our outstanding warrants that are accounted for as liabilities during each reporting period . if the value of the warrants decreases during a period , which occurred during the year ended december 31 , 2017 , we record other income . the fair value of our outstanding warrants is inversely related to the fair value of the underlying common stock ; as such , a decrease in the fair value of our common stock during a given period generally results in other income while an increase in the fair value of our common stock generally results in other expense . this other income or expense is non-cash . we believe investors should focus on our operating loss rather than net income or loss for the periods presented . research and development expense research and development expense consists primarily of compensation-related costs for our 8 employees dedicated to research and development activities and for our scientific advisory board members , as well as lab supplies , lab services , and facilities and equipment costs . we expect research and development expenses to increase in future periods as we expand our pre-clinical development activities . also included in research and development expense for the year ended december 31 , 2016 is an impairment charge related to our in-process research and development ( ipr & d ) intangible asset in the amount of $ 92,369,000. total research and development expenses were $ 5,822,000 for the year ended december 31 , 2017 , compared with $ 101,679,000 for the year ended december 31 , 2016. this decrease of $ 95,857,000 is primarily the result of recognizing an impairment loss on ipr & d of $ 92,396,000 in 2016. excluding the impact of the ipr & d impairment charge , research and development expenses decreased $ 3,461,000 from $ 9,283,000 for the year ended december 31 , 2016. we continue to expect research and development expenses to increase in 2018 as a result of hcv phase 2 programs and preparation for influenza phase 1 start up . general and administrative expense general and administrative expense includes compensation-related costs for our employees dedicated to general and administrative activities , legal fees , audit and tax fees , consultants and professional services , and general corporate expenses . general and administrative expenses were $ 2,440,000 for the year ended december 31 , 2017 , compared with $ 4,140,000 for the year ended december 31 , 2016. this decrease of $ 1,700,000 was primarily due to an insurance reimbursement of prior legal costs , a non-cash reversal of stock compensation expense related to unvested options for the former general counsel and interim cfo that left the company during 2017 , a decrease in compensation costs due to staffing turnover , and a general decrease in legal costs . interest income/expense interest income ( expense ) was ( $ 7,000 ) for the year ended december 31 , 2017 , compared to $ 126,000 for the year ended december 31 , 2016. the interest expense in 2017 is a result of the convertible promissory notes we entered into in november 2017. the 2016 income amounts primarily represent interest earned on the mortgage note we acquired in june 2015. as further explained in note 4 to the consolidated financial statements , we have sold this note in february 2018 . 37 other income/expense other income , net , was $ 769,000 for the year ended december 31 , 2017 compared with $ 1,551,000 for the year ended december 31 , 2016. other income , net for the year ended december 31 , 2017 primarily consisted of a gain recognized from a decrease in the fair value of our derivative liabilities as our stock price decreased . other income for the year ended december 31 , 2016 also included a gain of $ 2,603,000 due to a decrease in the fair value of our derivative liabilities , offset by an impairment loss of $ 1,177,000 related to our mortgage note receivable . income taxes for the year ended december 31 , 2017 , we recorded an income tax benefit of $ 6,880,000 , primarily as a result of reduction of our deferred tax liability which was caused by recent tax law changes lowering the corporate tax rate to 21 % . for the year ended december 31 , 2016 , we recorded an income tax benefit of $ 29,394,000 resulting from reduction of our deferred tax liability primarily stemming from the impairment loss recorded for the company 's in-process research and development . for the years ended december 31 , 2016 and december 31 , 2015 research and development expense research and development expense consists primarily of compensation-related costs for our employees dedicated to research and development activities and for our scientific advisory board members , as well as lab supplies , lab services , and facilities and equipment costs . story_separator_special_tag 41 in november 2016 , due to industry reports forecasting patient volume decreasing and the average price of treatment trending downward , as well as due to increased competition in the hepatitis c market , and partially the result of further data defining the scientific and commercial potential of company hcv compounds , we further lowered our forecasts of future cash flows , which caused a reduction in value of our hepatitis c assets . this resulted in an impairment charge recorded to our ipr & d asset in the amount of $ 92.4 million in 2016. during 2017 , our impairment test concluded no impairment of our ipr & d asset was required . however , as we continue work on this program , we may be required to record additional impairment charges in the future depending on the outcome of our research activities and changes in the market for our hepatitis c assets . we also recorded $ 65.2 million of goodwill in the rfs pharma acquisition that is subject to impairment testing . this goodwill primarily represents the amount initially recorded as a deferred tax liability in the rfs pharma acquisition , which was required as the goodwill recorded for book purposes is not tax deductible based on the structure of the acquisition . future impairment tests of goodwill will also require substantial judgment and estimates . we completed our annual goodwill impairment tests as of november 30 , 2017 , 2016 , and 2015 , and determined that there was no impairment of goodwill in any period . income taxes as noted above , we initially recorded a deferred tax liability of $ 65.2 million related to the rfs pharma acquisition . in 2015 , we recognized an impairment loss on our in-process research and development asset , resulting in a reduction of our deferred tax liability of approximately $ 15.3 million . in 2016 , we recognized another impairment loss on our in-process research and development of $ 92.4 million , which reduced our deferred tax liability to approximately $ 20.5 million . for 2017 , our deferred tax liability declined by $ 6.8 million due to the impact of recent changes in the tax laws which , among other things , lowered the corporate tax rate to 21 % . the remeasurement of our deferred tax liability generated an income tax benefit of $ 6.6 million . in addition to lowering the corporate tax rate for years beginning january 1 , 2018 , the new tax laws allow for net operating loss carryforwards to be carried forward indefinitely for losses incurred beginning in 2018 , subject to a limitation on the amount that can be used to offset income generated in a given year . prior to 2017 , we have not considered the deferred tax liability as a source of future income in our determination of the need for a valuation allowance against our deferred tax assets due to the fact that this deferred tax liability relates to our indefinite-lived ipr & d asset , and the timing of reversal of this deferred tax liability can not currently be determined due to uncertainty regarding the ultimate outcome of our research activities associated with the intellectual property acquired in the rfs pharma transaction . given the change in tax laws , we considered whether the reversal of taxable temporary differences related to the indefinite lived intangible assets may be used as a source of future taxable income in assessing the realizability of deferred tax assets than upon reversal would give rise to nols that do not expire , which resulted in an additional tax benefit of approximately $ 293,000 in 2017. in 2018 , we will likely record a tax benefit to reflect the indefinite carryforward period for future net operating losses that would allow such net operating losses to be used to offset any income recorded upon reversal of the deferred tax liability ; however , we are still evaluating the impact on our future financial statements . to the extent our estimates regarding the outcome of those activities changes in future periods , our determination regarding the valuation allowance may also change . contractual obligations the following table summarizes our significant contractual obligations at december 31 , 2017 ( in thousands ) : replace_table_token_3_th the minimum lease payments above do not include common area maintenance ( cam ) charges , which are contractual obligations under some of the company 's operating leases , but are not fixed and can fluctuate from year to year . 42 licenses and collaborations in addition to the above contractual commitments , we also have potential future payments due under various licenses and collaborations as follows : emory university : the company has an exclusive license from emory university for use of certain inventions and technology related to inhibitors of hepatitis c virus that were jointly developed by emory and company employees . the license agreement is dated march 7 , 2013 wherein emory agrees to add to the licensed patents and licensed technology emory 's rights to any patent , patent application , invention , or technology application that is based on technology disclosed within three ( 3 ) years of march 7 , 2013. the agreement includes payments due to emory ranging from $ 40,000 to $ 500,000 based on successful achievement of certain drug development milestones . additionally , the company may have royalty payments at 3.5 % of net sales due to emory with a minimum in year one of $ 25,000 and increase to $ 400,000 in year five upon product commercialization . recent accounting pronouncements in february 2016 , the financial accounting standards board ( “ fasb ” ) issued accounting standards update ( “ asu ” ) no . 2016-02 , leases ( topic 842 ) . asu 2016-02 impacts any entity that enters into a lease with some specified scope exceptions . this new standard establishes a right-of-use (

