we expect our expenses will increase substantially in connection with our ongoing activities as we continue to develop and seek regulatory approval of our product candidates and operate as a public company . to fund further operations , we will need to raise additional capital . accordingly , we will seek to fund our operations through equity and or debt financings . we may also consider new collaborations or selectively partnering our technology or programs . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all . in addition , subject to limited exceptions , our loan agreement ( as defined below ) also prohibits us from incurring indebtedness without the prior written consent of the lenders . our failure to raise capital or enter into such other arrangements as and when needed would have a negative impact on our financial condition and our ability to develop our product candidates . on april 19 , 2017 , we completed our initial public offering whereby we sold an aggregate of 9,775,000 shares of common stock , at $ 10.00 per share , resulting in net proceeds of $ 86.9 million after underwriting discounts , commissions and offering costs . 69 in august 2017 , we were awarded a $ 2.0 million grant payable over four years , by the fda office of orphan products development to support our phase 3 clinical trial of toca 511 & toca fc , or oopd grant . at december 31 , 2017 , we had received $ 0.5 million relating to the oopd grant . financial operations overview revenue we currently have no products approved for sale , and have not generated any revenues from the sale of products . we have not submitted any product candidate for regulatory approval . our revenue has been derived from our license and collaboration arrangement we entered into with siemens in 2011 , under which we received a nonrefundable , non-creditable , lump-sum , upfront license payment of $ 0.5 million for our sublicense to siemens of certain diagnostic assay technology . in the future , we may generate revenue from a combination of product sales and royalties in connection with our siemens agreement and any future marketing and distribution arrangements and other collaborations , strategic alliances and license arrangements , or a combination of these approaches . however , we do not expect to receive additional revenues unless and until we receive regulatory approval for product candidates or potentially enter into collaboration agreements . we do not expect any of our current product candidates to be commercially available in major markets for at least the next few years . we expect that any revenue we generate will fluctuate from quarter to quarter and year to year as a result of the timing and amount of license fees , milestone and other payments , and the amount and timing of payments that we receive upon the sale of our products , to the extent any are successfully commercialized . if we fail to complete the development of our product candidates in a timely manner or obtain regulatory approval of them , our ability to generate future revenue , and our results of operations and financial position , would be materially adversely affected . research and development expenses research and development expenses consist primarily of salaries and related expenses for personnel , including stock-based compensation costs , preclinical costs , clinical trial costs , costs related to acquiring and manufacturing clinical trial materials , contract services , facilities costs , overhead costs and depreciation . these activities also include research and development related to our gene therapy platform development . all research and development costs are expensed as incurred . we can not determine with certainty the duration and completion costs of the current or future clinical trials of our product candidates , or if , when or to what extent we will generate revenues from the commercialization and sale of any of our product candidates that obtain regulatory approval . we may never succeed in achieving regulatory approval for any of our product candidates . the duration , costs and timing of clinical trials and development of our product candidates will depend on a variety of factors , including : per patient trial costs ; the number of patients that participate in the trials ; the number of sites included in the trials ; the countries in which the trials are conducted ; the length of time required to enroll eligible patients ; the drop-out or discontinuation rates of patients ; the potential for additional safety monitoring or other clinical trials requested by regulatory agencies ; significant and changing government regulation ; and the timing and receipt of any regulatory approvals . a change in the outcome of any of these variables with respect to the development of a product candidate could mean a significant change in the costs and timing associated with the development of that product candidate . for example , if the u.s. food and drug administration , or fda , or another regulatory authority were to require us to conduct clinical trials beyond those that we currently anticipate will be required for the completion of clinical development of a product candidate or if we experience significant delays in enrollment in any of our clinical trials , we could be required to expend significant additional financial resources and time on the completion of clinical development . in addition , the probability of success for each product candidate will depend on numerous factors , including competition , manufacturing capability and commercial viability . we will determine which programs to pursue and how much to fund each program in response to the scientific and clinical success of each product candidate , as well as an assessment of each product candidate 's commercial potential . story_separator_special_tag the interest rate as of december 31 , 2017 was 8.75 % . the loans under the loan agreement mature in may 2019 and are due in monthly payments of principal and interest . the loan agreement contains customary conditions of borrowing , events of default and covenants , including covenants that restrict our ability to dispose of assets , merge with or acquire other entities , incur indebtedness and make distributions to holders of our capital stock . should an event of default occur , including the occurrence of a material adverse change , we could be liable for immediate repayment of all obligations under the loan agreement . 74 as of december 31 , 2017 , we had $ 88.7 million in cash , cash equivalents and marketable securities . our available cash and marketable securities are invested in acc ordance with our investment policy , primarily with a view to preserve principal and maintain liquidity . currently , our funds are held in fdic insured cash accounts , certificates of deposits , money market funds and investment-grade fixed income securities . story_separator_special_tag as such , at this time , we can not reasonably estimate or know the nature , timing and costs of the efforts that will be necessary to complete the development of toca 511 & toca fc or our other current and future product candidates . we are also unable to predict when , if ever , material net cash inflows will commence from the sale of product candidates . this is due to the numerous risks and uncertainties associated with developing immunotherapies , including the uncertainty of : the progress , timing , costs and results of our ongoing phase 3 clinical trial of toca 511 & toca fc ; the progress , timing , costs and results of our phase 1 dose escalation clinical trials that include our intratumoral study , resection study , and intravenous study ; the progress , timing , costs and results of development for toca 511 & toca fc for the treatment of metastatic solid tumors ; the progress , timing , costs and results of development for our other future product candidates ; the outcome , timing and cost of regulatory approvals by the fda and comparable foreign regulatory authorities , including the potential for the fda or comparable foreign regulatory authorities to require that we perform more studies than those that we currently expect ; the ability of our product candidates to progress through clinical development successfully ; the cost of filing , prosecuting , defending and enforcing any patent claims and other intellectual property rights ; arrangements with third-party service providers and manufacturers ; our need and ability to hire additional personnel ; our need to implement additional infrastructure and internal systems ; the effect of competing technological and market developments ; and the cost of establishing sales , marketing and distribution capabilities for any products for which we may receive regulatory approval . a change in the outcome of any of these variables with respect to the development of any of our product candidates would significantly change the costs and timing associated with the development of that product candidate . until we can generate a sufficient amount of revenue from our products , if ever , we expect to finance future cash needs through equity and or debt financings . we may also consider new collaborations or selectively partnering our technology or programs . we do not have any committed external source of funds . additional capital may not be available on reasonable terms , if at all . subject to limited exceptions , our loan agreement also prohibits us from incurring indebtedness without the prior written consent of the lenders . if we are unable to raise additional capital in sufficient amounts or on terms acceptable to us , we may have to significantly delay , scale back or discontinue the development or commercialization of one or more of our product candidates . if we raise additional funds through the issuance of additional equity or debt securities , it could result in dilution to our existing stockholders and increased fixed payment obligations , and these securities may have rights senior to those of our common stock . if we incur indebtedness , we could become subject to covenants that would restrict our operations and potentially impair our competitiveness , such as limitations on our ability to incur additional debt , limitations on our ability to acquire , sell or license intellectual property rights and other operating restrictions that could adversely impact our ability to conduct our business . any of these events could significantly harm our business , financial condition and prospects . 76 off-balance sheet arrangements we did not have during the periods presented , and we do not currently have , any off-balance sheet arrangements , as defined in the rules and regulations of the sec . contractual obligations and commitments the following table summarizes our contractual obligations and commitments as of december 31 , 2017 that will affect our future liquidity ( in thousands ) : replace_table_token_13_th on january 10 , 2018 , we entered into a new lease , or the new lease , totaling approximately 39,000 square feet of laboratory and office space located at 4242 campus point court , san diego , california , or the new premises . the commencement date of the new lease will be the earlier of ( a ) june 1 , 2018 , ( b ) substantial completion of tenant improvements , or ( c ) the date we begin conducting business operations in all or any portion of the new premises . we expect to use the new premises as our new principal executive offices and for general office , research and development , lab and pilot manufacturing uses . the term of the new lease is eight years and we have one option to extend the new lease for

cash flows the following table sets forth the primary sources and uses of cash for each of the periods set forth below ( in thousands ) : replace_table_token_12_th operating activities . net cash used in operating activities was $ 31.1 million for the year ended december 31 , 2017 , and consisted primarily of a net loss of $ 38.9 million adjusted for a net increase in cash from operating assets and liabilities of $ 2.5 million , noncash stock-based compensation expense of $ 4.5 million , depreciation expense of $ 0.3 million and noncash interest expense of $ 0.6 million . the $ 2.5 million net increase in cash from operating assets and liabilities is due primarily to a $ 3.2 million increase in our accounts payable and accrued liabilities resulting mainly from increased accrued payroll and related liabilities and continued increases in clinical costs incurred to support our clinical trials , primarily offset by a $ 0.7 million increase in prepaid expenses related to our manufacturing costs . net cash used in operating activities was $ 29.5 million for the year ended december 31 , 2016 , and consisted primarily of a net loss of $ 33.5 million adjusted for a net increase in cash from operating assets and liabilities of $ 1.8 million , noncash stock-based compensation expense of $ 1.3 million , depreciation expense of $ 0.3 million and noncash interest expense of $ 0.6 million . the $ 1.8 million net increase in cash from operating assets and liabilities is due primarily to a $ 2.1 million increase in our accounts payable and accrued liabilities resulting mainly from continued increases in clinical and manufacturing costs incurred to support our clinical trials and increased accrued payroll and related liabilities , primarily offset by a $ 0.2 million increase in prepaid expenses related to our clinical trial costs .


 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.
     ```cash flows the following table sets forth the primary sources and uses of cash for each of the periods set forth below ( in thousands ) : replace_table_token_12_th operating activities . net cash used in operating activities was $ 31.1 million for the year ended december 31 , 2017 , and consisted primarily of a net loss of $ 38.9 million adjusted for a net increase in cash from operating assets and liabilities of $ 2.5 million , noncash stock-based compensation expense of $ 4.5 million , depreciation expense of $ 0.3 million and noncash interest expense of $ 0.6 million . the $ 2.5 million net increase in cash from operating assets and liabilities is due primarily to a $ 3.2 million increase in our accounts payable and accrued liabilities resulting mainly from increased accrued payroll and related liabilities and continued increases in clinical costs incurred to support our clinical trials , primarily offset by a $ 0.7 million increase in prepaid expenses related to our manufacturing costs . net cash used in operating activities was $ 29.5 million for the year ended december 31 , 2016 , and consisted primarily of a net loss of $ 33.5 million adjusted for a net increase in cash from operating assets and liabilities of $ 1.8 million , noncash stock-based compensation expense of $ 1.3 million , depreciation expense of $ 0.3 million and noncash interest expense of $ 0.6 million . the $ 1.8 million net increase in cash from operating assets and liabilities is due primarily to a $ 2.1 million increase in our accounts payable and accrued liabilities resulting mainly from continued increases in clinical and manufacturing costs incurred to support our clinical trials and increased accrued payroll and related liabilities , primarily offset by a $ 0.2 million increase in prepaid expenses related to our clinical trial costs .
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 Suspicious Activity Report : we expect our expenses will increase substantially in connection with our ongoing activities as we continue to develop and seek regulatory approval of our product candidates and operate as a public company . to fund further operations , we will need to raise additional capital . accordingly , we will seek to fund our operations through equity and or debt financings . we may also consider new collaborations or selectively partnering our technology or programs . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all . in addition , subject to limited exceptions , our loan agreement ( as defined below ) also prohibits us from incurring indebtedness without the prior written consent of the lenders . our failure to raise capital or enter into such other arrangements as and when needed would have a negative impact on our financial condition and our ability to develop our product candidates . on april 19 , 2017 , we completed our initial public offering whereby we sold an aggregate of 9,775,000 shares of common stock , at $ 10.00 per share , resulting in net proceeds of $ 86.9 million after underwriting discounts , commissions and offering costs . 69 in august 2017 , we were awarded a $ 2.0 million grant payable over four years , by the fda office of orphan products development to support our phase 3 clinical trial of toca 511 & toca fc , or oopd grant . at december 31 , 2017 , we had received $ 0.5 million relating to the oopd grant . financial operations overview revenue we currently have no products approved for sale , and have not generated any revenues from the sale of products . we have not submitted any product candidate for regulatory approval . our revenue has been derived from our license and collaboration arrangement we entered into with siemens in 2011 , under which we received a nonrefundable , non-creditable , lump-sum , upfront license payment of $ 0.5 million for our sublicense to siemens of certain diagnostic assay technology . in the future , we may generate revenue from a combination of product sales and royalties in connection with our siemens agreement and any future marketing and distribution arrangements and other collaborations , strategic alliances and license arrangements , or a combination of these approaches . however , we do not expect to receive additional revenues unless and until we receive regulatory approval for product candidates or potentially enter into collaboration agreements . we do not expect any of our current product candidates to be commercially available in major markets for at least the next few years . we expect that any revenue we generate will fluctuate from quarter to quarter and year to year as a result of the timing and amount of license fees , milestone and other payments , and the amount and timing of payments that we receive upon the sale of our products , to the extent any are successfully commercialized . if we fail to complete the development of our product candidates in a timely manner or obtain regulatory approval of them , our ability to generate future revenue , and our results of operations and financial position , would be materially adversely affected . research and development expenses research and development expenses consist primarily of salaries and related expenses for personnel , including stock-based compensation costs , preclinical costs , clinical trial costs , costs related to acquiring and manufacturing clinical trial materials , contract services , facilities costs , overhead costs and depreciation . these activities also include research and development related to our gene therapy platform development . all research and development costs are expensed as incurred . we can not determine with certainty the duration and completion costs of the current or future clinical trials of our product candidates , or if , when or to what extent we will generate revenues from the commercialization and sale of any of our product candidates that obtain regulatory approval . we may never succeed in achieving regulatory approval for any of our product candidates . the duration , costs and timing of clinical trials and development of our product candidates will depend on a variety of factors , including : per patient trial costs ; the number of patients that participate in the trials ; the number of sites included in the trials ; the countries in which the trials are conducted ; the length of time required to enroll eligible patients ; the drop-out or discontinuation rates of patients ; the potential for additional safety monitoring or other clinical trials requested by regulatory agencies ; significant and changing government regulation ; and the timing and receipt of any regulatory approvals . a change in the outcome of any of these variables with respect to the development of a product candidate could mean a significant change in the costs and timing associated with the development of that product candidate . for example , if the u.s. food and drug administration , or fda , or another regulatory authority were to require us to conduct clinical trials beyond those that we currently anticipate will be required for the completion of clinical development of a product candidate or if we experience significant delays in enrollment in any of our clinical trials , we could be required to expend significant additional financial resources and time on the completion of clinical development . in addition , the probability of success for each product candidate will depend on numerous factors , including competition , manufacturing capability and commercial viability . we will determine which programs to pursue and how much to fund each program in response to the scientific and clinical success of each product candidate , as well as an assessment of each product candidate 's commercial potential . story_separator_special_tag the interest rate as of december 31 , 2017 was 8.75 % . the loans under the loan agreement mature in may 2019 and are due in monthly payments of principal and interest . the loan agreement contains customary conditions of borrowing , events of default and covenants , including covenants that restrict our ability to dispose of assets , merge with or acquire other entities , incur indebtedness and make distributions to holders of our capital stock . should an event of default occur , including the occurrence of a material adverse change , we could be liable for immediate repayment of all obligations under the loan agreement . 74 as of december 31 , 2017 , we had $ 88.7 million in cash , cash equivalents and marketable securities . our available cash and marketable securities are invested in acc ordance with our investment policy , primarily with a view to preserve principal and maintain liquidity . currently , our funds are held in fdic insured cash accounts , certificates of deposits , money market funds and investment-grade fixed income securities . story_separator_special_tag as such , at this time , we can not reasonably estimate or know the nature , timing and costs of the efforts that will be necessary to complete the development of toca 511 & toca fc or our other current and future product candidates . we are also unable to predict when , if ever , material net cash inflows will commence from the sale of product candidates . this is due to the numerous risks and uncertainties associated with developing immunotherapies , including the uncertainty of : the progress , timing , costs and results of our ongoing phase 3 clinical trial of toca 511 & toca fc ; the progress , timing , costs and results of our phase 1 dose escalation clinical trials that include our intratumoral study , resection study , and intravenous study ; the progress , timing , costs and results of development for toca 511 & toca fc for the treatment of metastatic solid tumors ; the progress , timing , costs and results of development for our other future product candidates ; the outcome , timing and cost of regulatory approvals by the fda and comparable foreign regulatory authorities , including the potential for the fda or comparable foreign regulatory authorities to require that we perform more studies than those that we currently expect ; the ability of our product candidates to progress through clinical development successfully ; the cost of filing , prosecuting , defending and enforcing any patent claims and other intellectual property rights ; arrangements with third-party service providers and manufacturers ; our need and ability to hire additional personnel ; our need to implement additional infrastructure and internal systems ; the effect of competing technological and market developments ; and the cost of establishing sales , marketing and distribution capabilities for any products for which we may receive regulatory approval . a change in the outcome of any of these variables with respect to the development of any of our product candidates would significantly change the costs and timing associated with the development of that product candidate . until we can generate a sufficient amount of revenue from our products , if ever , we expect to finance future cash needs through equity and or debt financings . we may also consider new collaborations or selectively partnering our technology or programs . we do not have any committed external source of funds . additional capital may not be available on reasonable terms , if at all . subject to limited exceptions , our loan agreement also prohibits us from incurring indebtedness without the prior written consent of the lenders . if we are unable to raise additional capital in sufficient amounts or on terms acceptable to us , we may have to significantly delay , scale back or discontinue the development or commercialization of one or more of our product candidates . if we raise additional funds through the issuance of additional equity or debt securities , it could result in dilution to our existing stockholders and increased fixed payment obligations , and these securities may have rights senior to those of our common stock . if we incur indebtedness , we could become subject to covenants that would restrict our operations and potentially impair our competitiveness , such as limitations on our ability to incur additional debt , limitations on our ability to acquire , sell or license intellectual property rights and other operating restrictions that could adversely impact our ability to conduct our business . any of these events could significantly harm our business , financial condition and prospects . 76 off-balance sheet arrangements we did not have during the periods presented , and we do not currently have , any off-balance sheet arrangements , as defined in the rules and regulations of the sec . contractual obligations and commitments the following table summarizes our contractual obligations and commitments as of december 31 , 2017 that will affect our future liquidity ( in thousands ) : replace_table_token_13_th on january 10 , 2018 , we entered into a new lease , or the new lease , totaling approximately 39,000 square feet of laboratory and office space located at 4242 campus point court , san diego , california , or the new premises . the commencement date of the new lease will be the earlier of ( a ) june 1 , 2018 , ( b ) substantial completion of tenant improvements , or ( c ) the date we begin conducting business operations in all or any portion of the new premises . we expect to use the new premises as our new principal executive offices and for general office , research and development , lab and pilot manufacturing uses . the term of the new lease is eight years and we have one option to extend the new lease for

