we are focused on developing products where rapid administration of established molecules with known safety and efficacy profiles provides an increased benefit to patients , for markets where patients remain underserved by existing therapies . we anticipate that many of our current and future development programs may enable us to utilize a regulatory pathway that would streamline clinical development and accelerate the path towards commercialization . adam is our proprietary , investigational technology platform designed to offer rapid drug absorption into the bloodstream , which can result in an improved pharmacokinetic profile compared to original dosage forms . adam consists of an array of drug-coated titanium microprojections mounted on an adhesive backing that is pressed on to the skin using a reusable handheld applicator . the microprojections penetrate the stratum corneum and allow the drug to be absorbed into the microcapillary system of the skin . we focus on developing products based on our adam technology for indications in which rapid onset , ease of use and stability offer significant therapeutic and practical advantages , for markets where there is a need for more effective therapies . our development efforts are focused on our product candidate , m207 . m207 is our proprietary formulation of zolmitriptan delivered utilizing our adam technology . zolmitriptan is one of a class of serotonin receptor 50 index to financial statements agonists known as triptans and is used as an acute treatment for migraine . migraine is a debilitating neurological disease , symptoms of which include moderate to severe headache pain , nausea and vomiting , and abnormal sensitivity to light and sound . the objective of m207 is to provide faster onset of efficacy and sustained freedom from migraine symptoms by delivering rapid absorption while avoiding gi tract . feedback from the united states food and drug administration , or fda , on m207 's regulatory path has also been encouraging . the agency has indicated that one positive pivotal efficacy study , in addition to the required safety study , would be sufficient for approval of m207 for the treatment of migraine . we have no product sales to date , and we will not have product sales unless and until we receive approval from the united states food and drug administration ( fda ) or equivalent foreign regulatory bodies , to market and sell our product candidate . accordingly , our success depends not only on the development , but also on our ability to finance the development of the product . we will require substantial additional funding to complete development and seek regulatory approval for these products . additionally , we currently have no sales , marketing or distribution capabilities and thus our ability to market our products in the future will depend in part on our ability to develop such capabilities either alone or with collaboration partners . critical accounting policies and significant judgments and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our audited consolidated financial statements , which have been prepared in accordance with united states generally accepted accounting principles . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported revenue generated and expenses incurred during the reporting periods . our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results could differ from these estimates under different assumptions or conditions . while our significant accounting policies are described in more detail in the notes to our consolidated financial statements included elsewhere in this annual report on form 10-k , we believe that the accounting policies discussed below are those that are most critical to understanding our historical and future performance , as these policies relate to the more significant areas involving management 's judgments and estimates . we are an emerging growth company as defined in the jumpstart our business startups act of 2012 , or the jobs act . emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies . we have irrevocably elected not to avail ourselves of this exemption from new or revised accounting standards , and , therefore , will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies . research and development expenses research and development costs are charged to expense as incurred and consist of costs related to ( i ) servicing our collaborative development efforts with other pharmaceutical companies , ( ii ) furthering our research and development efforts , and ( iii ) designing and manufacturing our intracutaneous applicator for our clinical and nonclinical studies . research and development costs include salaries and related employee benefits , costs associated with clinical trials , nonclinical research and development activities , regulatory activities , costs of active pharmaceutical ingredients and raw materials , research and development related overhead expenses , fees paid to contract research organizations that conduct clinical trials on behalf of the company , and fees paid to contract manufacturing organizations that conduct manufacturing activities on behalf of the company . stock-based compensation we account for its stock-based compensation , recorded as an expense , based on the fair value of the stock- based awards at the grant date that are ultimately expected to vest . story_separator_special_tag other adverse market developments ; the costs of maintaining , expanding , and protecting our intellectual property portfolio , including potential litigation costs and liabilities ; the resources we devote to marketing , and , if approved , commercializing our product candidates ; our ability to draw funds from our loan and security agreement ; and the costs associated with being a public company . if we are unable to raise additional funds when needed , we may be required to suspend , delay , reduce , or terminate our development programs and clinical trials . we may also be required to sell or license to others technologies or clinical product candidates or programs , if any , that we would prefer to develop and commercialize ourselves . this raises substantial doubt about our ability to continue as a going concern . as of december 31 , 2017 , we had an accumulated deficit of $ 225.9 million and we do not have sufficient cash resources to meet our plans in the next twelve months following the issuance of these financial statements . the following table shows a summary of our cash flows for the years ended december 31 , 2017 and 2016 : replace_table_token_14_th operating cash flow : net cash used in operating activities was $ 27.1 million and $ 25.7 million for the years ended december 31 , 2017 and 2016 , respectively . net cash used during 2017 was primarily due to the costs of completion of the zotrip trial , and start up and initiation costs related to our long-term safety study , in addition to other professional fees and administrative expenses incurred in the course of continuing operations . net cash used in 2016 was primarily the result of clinical and non-clinical development costs of the zotrip trial , personnel costs related to hiring key personnel with critical manufacturing know-how to ramp up our production of clinical trial material of our phase 2 and phase 3 clinical trials , professional fees and administrative expenses incurred in the course of continuing operations . investing cash flow : net cash used by investing activities was $ 1.2 million for the year ended december 31 , 2017 , and net cash provided by investing activities was $ 30.3 million for the year ended december 31 , 2016. net cash used by investing activities during 2017 was mostly the result of purchases of property and equipment . net cash provided by investing activities during 2016 resulted primarily from $ 30.2 million in proceeds from maturities of our investments in marketable securities . financing cash flow : net cash provided by financing activities was $ 25.0 million and $ 3.8 million for the years ended december 31 , 2017 and 2016 , respectively . net cash provided by financing activities for 2017 was primarily due to proceeds from a registered public offering of $ 26.6 million , net of underwriter 's discounts , 57 index to financial statements commissions , and offering expenses and proceeds of $ 4.0 million from the exercise of warrants to purchase 136,301 shares of common stock . these increases were partially offset by payments on the hercules term loan of approximately $ 5.8 million . net cash generated from financing activities during 2016 included $ 6.6 million of net proceeds from our private investment in public equity ( pipe ) financing , partially offset by $ 2.9 million in repayment of loan principal and accrued interest to hercules . contractual obligations the following table summarizes our contractual obligations as of december 31 , 2017 : replace_table_token_15_th ( 1 ) short and long-term debt obligations secured financing with hercules in june 2014 , we entered into a loan and security agreement with hercules capital inc. for a $ 4.0 million term loan facility . in june 2015 , we entered into a first amendment to the loan and security agreement with hercules to increase the aggregate principal amount of the loan to $ 15.0 million . upon the execution of the first amendment to the loan and security agreement , we used approximately $ 11.4 million of the hercules term loan to prepay all amounts owing under the secured promissory note held by bmv direct sotrs lp , an affiliate of biomed realty holdings , inc. the first amendment to the loan and security agreement with hercules provides that the $ 15.0 million principal balance will be subject to a 12-month interest-only period beginning july 1 , 2015 , followed by equal monthly installment payments of principal and interest , with all outstanding amounts due and payable on december 1 , 2018. the outstanding principal balance bears interest at a variable rate of the greater of ( i ) 7.95 % , or ( ii ) 7.95 % plus the prime rate as quoted in the wall street journal minus 5.25 % . in addition , we paid a $ 100,000 legacy end of term charge on june 1 , 2017 and is required to pay a $ 351,135 end of term charge on the earlier of loan maturity or at the date we prepay the hercules term loan . we may prepay all , but not less than all , of hercules term loan with no prepayment charge . the hercules term loan is secured by a first priority security interest and lien in and to all of our tangible and intangible properties and assets , including intellectual properties . the loan and security agreement with hercules contains customary conditions related to borrowing , events of default , and covenants , including covenants limiting our ability to dispose of collateralized assets , undergo a change of control , incur debt or incur liens , subject to certain exceptions . the loan and security agreement also requires us to comply with certain basic affirmative covenants , such as maintenance of financial records , insurance and prompt payment of taxes . ( 2 ) operating leases we

debt financing we have funded , and will continue to fund , our operations in part through debt financing . in june 2014 , we entered into a $ 4.0 million term loan facility with hercules capital , inc. ( hercules ) , previously known as hercules technology growth capital , inc. in june 2015 , we entered into a first amendment to the loan and security agreement with hercules to increase the aggregate principal amount of the loan to $ 15.0 million ( the hercules term loan ) . upon the execution of the first amendment to the loan and security agreement , we used approximately $ 11.4 million of the hercules term loan to prepay all amounts owing under the secured promissory note held by bmv direct sotrs lp , an affiliate of biomed realty holdings , inc. the first amendment to the loan and security agreement with hercules provides that the $ 15.0 million principal balance will be subject to a 12-month interest-only period beginning july 1 , 2015 , followed by equal monthly installment payments of principal and interest , with all outstanding amounts due and payable on december 1 , 2018. the outstanding principal balance bears interest at a variable rate of the greater of ( i ) 7.95 % , or ( ii ) 7.95 % plus the prime rate as quoted in the wall street journal minus 5.25 % . the interest rate on the secured term loan with hercules was 7.95 % for the years ended december 31 , 2017 and 2016. on june 1 , 2017 , we paid a $ 100,000 legacy end of term charge and is required to pay an additional $ 351,135 end of term charge on the earlier of loan maturity or at the date we prepay the hercules term loan . we may prepay all , but not less than all , of the hercules term loan with no prepayment charge . the hercules term loan is secured by a first priority security interest and lien in and to all of our tangible and intangible properties and assets , including intellectual properties .


 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.
     ```debt financing we have funded , and will continue to fund , our operations in part through debt financing . in june 2014 , we entered into a $ 4.0 million term loan facility with hercules capital , inc. ( hercules ) , previously known as hercules technology growth capital , inc. in june 2015 , we entered into a first amendment to the loan and security agreement with hercules to increase the aggregate principal amount of the loan to $ 15.0 million ( the hercules term loan ) . upon the execution of the first amendment to the loan and security agreement , we used approximately $ 11.4 million of the hercules term loan to prepay all amounts owing under the secured promissory note held by bmv direct sotrs lp , an affiliate of biomed realty holdings , inc. the first amendment to the loan and security agreement with hercules provides that the $ 15.0 million principal balance will be subject to a 12-month interest-only period beginning july 1 , 2015 , followed by equal monthly installment payments of principal and interest , with all outstanding amounts due and payable on december 1 , 2018. the outstanding principal balance bears interest at a variable rate of the greater of ( i ) 7.95 % , or ( ii ) 7.95 % plus the prime rate as quoted in the wall street journal minus 5.25 % . the interest rate on the secured term loan with hercules was 7.95 % for the years ended december 31 , 2017 and 2016. on june 1 , 2017 , we paid a $ 100,000 legacy end of term charge and is required to pay an additional $ 351,135 end of term charge on the earlier of loan maturity or at the date we prepay the hercules term loan . we may prepay all , but not less than all , of the hercules term loan with no prepayment charge . the hercules term loan is secured by a first priority security interest and lien in and to all of our tangible and intangible properties and assets , including intellectual properties .
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 Suspicious Activity Report : we are focused on developing products where rapid administration of established molecules with known safety and efficacy profiles provides an increased benefit to patients , for markets where patients remain underserved by existing therapies . we anticipate that many of our current and future development programs may enable us to utilize a regulatory pathway that would streamline clinical development and accelerate the path towards commercialization . adam is our proprietary , investigational technology platform designed to offer rapid drug absorption into the bloodstream , which can result in an improved pharmacokinetic profile compared to original dosage forms . adam consists of an array of drug-coated titanium microprojections mounted on an adhesive backing that is pressed on to the skin using a reusable handheld applicator . the microprojections penetrate the stratum corneum and allow the drug to be absorbed into the microcapillary system of the skin . we focus on developing products based on our adam technology for indications in which rapid onset , ease of use and stability offer significant therapeutic and practical advantages , for markets where there is a need for more effective therapies . our development efforts are focused on our product candidate , m207 . m207 is our proprietary formulation of zolmitriptan delivered utilizing our adam technology . zolmitriptan is one of a class of serotonin receptor 50 index to financial statements agonists known as triptans and is used as an acute treatment for migraine . migraine is a debilitating neurological disease , symptoms of which include moderate to severe headache pain , nausea and vomiting , and abnormal sensitivity to light and sound . the objective of m207 is to provide faster onset of efficacy and sustained freedom from migraine symptoms by delivering rapid absorption while avoiding gi tract . feedback from the united states food and drug administration , or fda , on m207 's regulatory path has also been encouraging . the agency has indicated that one positive pivotal efficacy study , in addition to the required safety study , would be sufficient for approval of m207 for the treatment of migraine . we have no product sales to date , and we will not have product sales unless and until we receive approval from the united states food and drug administration ( fda ) or equivalent foreign regulatory bodies , to market and sell our product candidate . accordingly , our success depends not only on the development , but also on our ability to finance the development of the product . we will require substantial additional funding to complete development and seek regulatory approval for these products . additionally , we currently have no sales , marketing or distribution capabilities and thus our ability to market our products in the future will depend in part on our ability to develop such capabilities either alone or with collaboration partners . critical accounting policies and significant judgments and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our audited consolidated financial statements , which have been prepared in accordance with united states generally accepted accounting principles . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported revenue generated and expenses incurred during the reporting periods . our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results could differ from these estimates under different assumptions or conditions . while our significant accounting policies are described in more detail in the notes to our consolidated financial statements included elsewhere in this annual report on form 10-k , we believe that the accounting policies discussed below are those that are most critical to understanding our historical and future performance , as these policies relate to the more significant areas involving management 's judgments and estimates . we are an emerging growth company as defined in the jumpstart our business startups act of 2012 , or the jobs act . emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies . we have irrevocably elected not to avail ourselves of this exemption from new or revised accounting standards , and , therefore , will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies . research and development expenses research and development costs are charged to expense as incurred and consist of costs related to ( i ) servicing our collaborative development efforts with other pharmaceutical companies , ( ii ) furthering our research and development efforts , and ( iii ) designing and manufacturing our intracutaneous applicator for our clinical and nonclinical studies . research and development costs include salaries and related employee benefits , costs associated with clinical trials , nonclinical research and development activities , regulatory activities , costs of active pharmaceutical ingredients and raw materials , research and development related overhead expenses , fees paid to contract research organizations that conduct clinical trials on behalf of the company , and fees paid to contract manufacturing organizations that conduct manufacturing activities on behalf of the company . stock-based compensation we account for its stock-based compensation , recorded as an expense , based on the fair value of the stock- based awards at the grant date that are ultimately expected to vest . story_separator_special_tag other adverse market developments ; the costs of maintaining , expanding , and protecting our intellectual property portfolio , including potential litigation costs and liabilities ; the resources we devote to marketing , and , if approved , commercializing our product candidates ; our ability to draw funds from our loan and security agreement ; and the costs associated with being a public company . if we are unable to raise additional funds when needed , we may be required to suspend , delay , reduce , or terminate our development programs and clinical trials . we may also be required to sell or license to others technologies or clinical product candidates or programs , if any , that we would prefer to develop and commercialize ourselves . this raises substantial doubt about our ability to continue as a going concern . as of december 31 , 2017 , we had an accumulated deficit of $ 225.9 million and we do not have sufficient cash resources to meet our plans in the next twelve months following the issuance of these financial statements . the following table shows a summary of our cash flows for the years ended december 31 , 2017 and 2016 : replace_table_token_14_th operating cash flow : net cash used in operating activities was $ 27.1 million and $ 25.7 million for the years ended december 31 , 2017 and 2016 , respectively . net cash used during 2017 was primarily due to the costs of completion of the zotrip trial , and start up and initiation costs related to our long-term safety study , in addition to other professional fees and administrative expenses incurred in the course of continuing operations . net cash used in 2016 was primarily the result of clinical and non-clinical development costs of the zotrip trial , personnel costs related to hiring key personnel with critical manufacturing know-how to ramp up our production of clinical trial material of our phase 2 and phase 3 clinical trials , professional fees and administrative expenses incurred in the course of continuing operations . investing cash flow : net cash used by investing activities was $ 1.2 million for the year ended december 31 , 2017 , and net cash provided by investing activities was $ 30.3 million for the year ended december 31 , 2016. net cash used by investing activities during 2017 was mostly the result of purchases of property and equipment . net cash provided by investing activities during 2016 resulted primarily from $ 30.2 million in proceeds from maturities of our investments in marketable securities . financing cash flow : net cash provided by financing activities was $ 25.0 million and $ 3.8 million for the years ended december 31 , 2017 and 2016 , respectively . net cash provided by financing activities for 2017 was primarily due to proceeds from a registered public offering of $ 26.6 million , net of underwriter 's discounts , 57 index to financial statements commissions , and offering expenses and proceeds of $ 4.0 million from the exercise of warrants to purchase 136,301 shares of common stock . these increases were partially offset by payments on the hercules term loan of approximately $ 5.8 million . net cash generated from financing activities during 2016 included $ 6.6 million of net proceeds from our private investment in public equity ( pipe ) financing , partially offset by $ 2.9 million in repayment of loan principal and accrued interest to hercules . contractual obligations the following table summarizes our contractual obligations as of december 31 , 2017 : replace_table_token_15_th ( 1 ) short and long-term debt obligations secured financing with hercules in june 2014 , we entered into a loan and security agreement with hercules capital inc. for a $ 4.0 million term loan facility . in june 2015 , we entered into a first amendment to the loan and security agreement with hercules to increase the aggregate principal amount of the loan to $ 15.0 million . upon the execution of the first amendment to the loan and security agreement , we used approximately $ 11.4 million of the hercules term loan to prepay all amounts owing under the secured promissory note held by bmv direct sotrs lp , an affiliate of biomed realty holdings , inc. the first amendment to the loan and security agreement with hercules provides that the $ 15.0 million principal balance will be subject to a 12-month interest-only period beginning july 1 , 2015 , followed by equal monthly installment payments of principal and interest , with all outstanding amounts due and payable on december 1 , 2018. the outstanding principal balance bears interest at a variable rate of the greater of ( i ) 7.95 % , or ( ii ) 7.95 % plus the prime rate as quoted in the wall street journal minus 5.25 % . in addition , we paid a $ 100,000 legacy end of term charge on june 1 , 2017 and is required to pay a $ 351,135 end of term charge on the earlier of loan maturity or at the date we prepay the hercules term loan . we may prepay all , but not less than all , of hercules term loan with no prepayment charge . the hercules term loan is secured by a first priority security interest and lien in and to all of our tangible and intangible properties and assets , including intellectual properties . the loan and security agreement with hercules contains customary conditions related to borrowing , events of default , and covenants , including covenants limiting our ability to dispose of collateralized assets , undergo a change of control , incur debt or incur liens , subject to certain exceptions . the loan and security agreement also requires us to comply with certain basic affirmative covenants , such as maintenance of financial records , insurance and prompt payment of taxes . ( 2 ) operating leases we

