pursuant to the purdue collaboration , purdue is conducting a phase 1b clinical trial in psoriasis patients in germany to evaluate the effect of higher concentrations of ast-005 gel on tnf mrna and downstream mrna expression . patient dosing is complete and no serious adverse events have been reported . we expect to have the topline results of the clinical trial in early 2018. our second therapeutic candidate , xcur17 , is an sna targeted to il-17ra for the treatment of mild to moderate psoriasis . we filed a cta for a phase 1 clinical trial of xcur17 in patients with psoriasis in germany in 88 the third quarter of 2017. our cta was approved in february 2018 and we expect the first patient in our phase 1 clinical trial to be dosed in early 2018. we expect this clinical trial to be completed in mid-2018 . our third therapeutic candidate , ast-008 , is an sna consisting of toll-like receptor 9 , or tlr9 , agonists designed for immuno-oncology applications . ast-008 has exhibited anti-tumor activity as both a monotherapy and in combination with certain checkpoint inhibitors across a range of preclinical models of solid and hematological cancers . in the third quarter of 2017 , we received an authorization from the mhra to conduct a phase 1 clinical trial with ast-008 . we began subject dosing in our phase 1 clinical trial for ast-008 in the fourth quarter of 2017. we expect this trial to be completed in mid-2018 . we ultimately plan to clinically advance ast-008 in combination with checkpoint inhibitors . since our inception in 2011 , we have devoted substantial resources to the research and development of snas and the protection and enhancement of our intellectual property . we have no products approved for sale and all of our $ 15.4 million in revenue through december 31 , 2017 has been earned through our research collaboration , license , and option agreement with purdue or as a primary contractor or as a subcontractor on government grants . in addition to our revenue , through december 31 , 2017 , we have funded our operations through private placements of preferred stock with gross proceeds totaling $ 42.8 million , sales of common stock in the private placement with gross proceeds totaling $ 31.5 million and debt financing totaling $ 6.0 million . as of december 31 , 2017 , our cash and cash equivalents were $ 25.8 million . since our inception , we have incurred significant operating losses . our net loss was $ 12.0 million and $ 16.9 million for the years ended december 31 , 2017 and 2016 , respectively . as of december 31 , 2017 , our accumulated deficit was $ 53.5 million . substantially all of our operating losses resulted from expenses incurred in connection with our research programs and from general and administrative costs associated with our operations . we expect to continue to incur significant and increasing losses in the foreseeable future . our net losses may fluctuate significantly from quarter to quarter and year to year . we anticipate that our expenses will increase substantially as we : conduct further preclinical studies and clinical trials of ast-008 and xcur17 ; increase research and development for the discovery and development of additional therapeutic candidates ; advance other therapeutic candidates into preclinical and clinical development ; increase our research and development to enhance our technology ; procure clinical trial materials ; seek regulatory approval for our therapeutic candidates that successfully complete clinical trials ; maintain , expand and protect our intellectual property portfolio ; add operational , financial and management information systems and personnel , including personnel to support our product development and planned future commercialization efforts ; and operate as a public company . we have not generated any commercial product revenue nor do we expect to generate substantial revenue from product sales unless and until we successfully complete development and obtain regulatory approval for one or more of our therapeutic candidates . successful therapeutic development and regulatory approval are subject to significant uncertainty and we expect will take at least five years . if we obtain regulatory approval for any of our therapeutic candidates , we expect to incur significant commercialization expenses related to product sales , marketing , manufacturing and distribution . other sources of revenue could include a combination of research and development 89 payments , license fees and other upfront payments , milestone payments , and royalties in connection with our current and any future collaborations and licenses . until such time , if ever , that we generate revenue from whatever source , we expect to finance our cash needs through a combination of public or private equity offerings , debt financings and research collaboration and license agreements . we may be unable to raise capital or enter into such other arrangements when needed or on favorable terms . 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 therapeutic candidates . basis of presentation the audited financial statements of exicure , inc. for the fiscal years ended december 31 , 2017 and 2016 , contained herein , include a summary of our significant accounting policies and should be read in conjunction with the discussion below . recent developments reverse merger on september 26 , 2017 , pursuant to the merger agreement , max-1 acquisition sub , inc. , a wholly-owned subsidiary of max-1 acquisition corporation , or max-1 , merged with and into exicure operating company ( f/k/a exicure , inc. ) , a privately-held delaware corporation referred to herein as exicure opco , with exicure opco remaining as the surviving entity and a wholly-owned operating subsidiary of max-1 , or the merger . story_separator_special_tag the expected volatility is based on calculated enterprise value volatilities for publicly traded companies in the same industry and general stage of development . the estimated forfeiture rates were based on historical experience for similar classes of employees . the dividend yield was based on expected dividends at the time of grant . common stock warrant liability freestanding warrants related to shares that are redeemable , contingently redeemable , or for purchases of common stock that are not indexed to the company 's own stock are classified as a liability on the company 's balance sheet . the common stock warrants are recorded at fair value , estimated using the black-scholes option-pricing model , and marked to market at each balance sheet date with changes in the fair value of the liability recorded in other income ( expense ) , net in the statements of operations . a 10 % change in the estimate of expected volatility at december 31 , 2017 would increase or decrease the aggregate fair value of the common stock warrant liability in the amount of $ 45,000 . a 10 % change in the estimate of fair value of the common stock at december 31 , 2017 would increase or decrease the aggregate fair value of the common stock warrant liability in the amount of $ 87,000 . recently adopted accounting pronouncements in march 2016 , the financial accounting standards board , or fasb , issued accounting standards update , or asu , 2016-09 , improvements to employee share-based payment accounting . asu 2016-09 changes several aspects of the accounting for share-based payment transactions , including the income tax consequences , classification of awards as either equity or liabilities , and classification on the statement of cash flows . asu 2016-09 requires all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement and treated as discrete items in the reporting period . further , excess tax benefits are required to be classified along with other income tax cash flows as an operating activity . the guidance was effective for the company in the first quarter of 2017. adoption of this guidance did not have a significant impact to the company 's financial statements . recent accounting pronouncements not yet adopted in may 2014 , the fasb , issued asu , 2014-09 ( asc 606 ) , revenue from contracts with customers . this asu , as amended by asu 2015-14 , affects any entity that either enters into contracts with customers to transfer goods and services or enters into contracts for the transfer of nonfinancial assets . asu 2014-09 will replace most existing revenue recognition guidance in gaap when it becomes effective . the standard 's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services . in doing so , companies will need to use more judgment and make more estimates than under the currently effective guidance . these may include identifying performance obligations in the contract , estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation . asu 2014-09 is effective for exicure in the first quarter of 2018 and early adoption is permitted beginning in the first quarter of 2017. the company intends to adopt this standard on january 1 , 2018 on a modified retrospective basis and continues to analyze and assess the impact , if any , of this standard on its financial statements . in february 2016 , fasb issued asu 2016-02 , leases ( topic 842 ) , which requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet . asu 2016-02 is to be applied using a modified retrospective approach at the beginning of the earliest comparative period in the financial statements . asu 2016-02 will be effective for the company beginning in the first quarter of 2019. early adoption is permitted . the company is currently evaluating the impact of adopting this standard on its financial statements . in august 2016 , the fasb issued asu 2016-15 , statement of cash flows ( topic 230 ) : classification of certain cash receipts and cash payments . asu 2016-15 addresses the classification of certain specific cash flow issues 94 including debt prepayment or extinguishment costs , settlement of certain debt instruments , contingent consideration payments made after a business combination , proceeds from the settlement of certain insurance claims and distributions received from equity method investees . asu 2016-15 is effective for the company in the first quarter of 2018 and early adoption is permitted . an entity that elects early adoption must adopt all of the amendments in the same period . the company is currently evaluating the impact of this guidance on its statement of cash flows . in may 2017 , the fasb issued asu 2017-09 , compensation - stock compensation ( topic 718 ) : scope of modification accounting . asu 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications . under the new guidance , modification accounting is required only if the fair value , the vesting conditions , or the classification of the award changes as a result of the change in terms or conditions . asu 2017-09 will be applied prospectively to awards modified on or after the adoption date . asu 2017-09 is effective for the company for fiscal years beginning after december 15 , 2017 , and interim periods within those fiscal years . early adoption is permitted . the company is currently evaluating the impact of this guidance on its financial statements . components of statements of operations revenue we have earned all of our revenue through december 31 ,

net cash used in operating activities was $ 19.8 million and $ 5.1 million for the years ended december 31 , 2017 and 2016 , respectively . the increase in cash used in operating activities of $ 14.7 million was primarily due to the cash impact of higher research and development expenses in the year ended december 31 , 2017 , the payment for legal and accounting services of approximately $ 1.5 million , which were incurred in support of a potential public offering that was abandoned during the second quarter of 2017 and also in support of registering the resale of 39,714,143 shares of our common stock issued in connection with the merger and the private placement , the payment of $ 1.5 million in connection with the northwestern university license agreements , as well as the prepayment of directors and officers liability insurance , partially offset by the receipt of the $ 10.0 million upfront payment in connection with the purdue collaboration in december 2016. investing activities net cash used in investing activities was $ 0.9 million and $ 0.4 million for the years ended december 31 , 2017 and 2016 , respectively . cash used in investing activities for each of the above-mentioned periods was primarily due to the purchase of scientific equipment . financing activities net cash provided by financing activities of $ 26.9 million during the year ended december 31 , 2017 is primarily due to the sale of common stock in the private placement . gross proceeds from the private placement of $ 31.5 million , less financing costs paid in 2017 of $ 3.7 million , were partially offset by the repayment of debt of $ 1.0 million . net cash provided by financing activities of $ 6.3 million during the year ended december 31 , 2016 is mostly due to net proceeds of $ 5.9 million from our february 2016 secured debt financing with hercules and $ 0.4 million from our january 2016 series c preferred stock offering . hercules loan and security agreement on february 17 , 2016 , we entered into a loan and security agreement with hercules .


 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.
     ```net cash used in operating activities was $ 19.8 million and $ 5.1 million for the years ended december 31 , 2017 and 2016 , respectively . the increase in cash used in operating activities of $ 14.7 million was primarily due to the cash impact of higher research and development expenses in the year ended december 31 , 2017 , the payment for legal and accounting services of approximately $ 1.5 million , which were incurred in support of a potential public offering that was abandoned during the second quarter of 2017 and also in support of registering the resale of 39,714,143 shares of our common stock issued in connection with the merger and the private placement , the payment of $ 1.5 million in connection with the northwestern university license agreements , as well as the prepayment of directors and officers liability insurance , partially offset by the receipt of the $ 10.0 million upfront payment in connection with the purdue collaboration in december 2016. investing activities net cash used in investing activities was $ 0.9 million and $ 0.4 million for the years ended december 31 , 2017 and 2016 , respectively . cash used in investing activities for each of the above-mentioned periods was primarily due to the purchase of scientific equipment . financing activities net cash provided by financing activities of $ 26.9 million during the year ended december 31 , 2017 is primarily due to the sale of common stock in the private placement . gross proceeds from the private placement of $ 31.5 million , less financing costs paid in 2017 of $ 3.7 million , were partially offset by the repayment of debt of $ 1.0 million . net cash provided by financing activities of $ 6.3 million during the year ended december 31 , 2016 is mostly due to net proceeds of $ 5.9 million from our february 2016 secured debt financing with hercules and $ 0.4 million from our january 2016 series c preferred stock offering . hercules loan and security agreement on february 17 , 2016 , we entered into a loan and security agreement with hercules .
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 Suspicious Activity Report : pursuant to the purdue collaboration , purdue is conducting a phase 1b clinical trial in psoriasis patients in germany to evaluate the effect of higher concentrations of ast-005 gel on tnf mrna and downstream mrna expression . patient dosing is complete and no serious adverse events have been reported . we expect to have the topline results of the clinical trial in early 2018. our second therapeutic candidate , xcur17 , is an sna targeted to il-17ra for the treatment of mild to moderate psoriasis . we filed a cta for a phase 1 clinical trial of xcur17 in patients with psoriasis in germany in 88 the third quarter of 2017. our cta was approved in february 2018 and we expect the first patient in our phase 1 clinical trial to be dosed in early 2018. we expect this clinical trial to be completed in mid-2018 . our third therapeutic candidate , ast-008 , is an sna consisting of toll-like receptor 9 , or tlr9 , agonists designed for immuno-oncology applications . ast-008 has exhibited anti-tumor activity as both a monotherapy and in combination with certain checkpoint inhibitors across a range of preclinical models of solid and hematological cancers . in the third quarter of 2017 , we received an authorization from the mhra to conduct a phase 1 clinical trial with ast-008 . we began subject dosing in our phase 1 clinical trial for ast-008 in the fourth quarter of 2017. we expect this trial to be completed in mid-2018 . we ultimately plan to clinically advance ast-008 in combination with checkpoint inhibitors . since our inception in 2011 , we have devoted substantial resources to the research and development of snas and the protection and enhancement of our intellectual property . we have no products approved for sale and all of our $ 15.4 million in revenue through december 31 , 2017 has been earned through our research collaboration , license , and option agreement with purdue or as a primary contractor or as a subcontractor on government grants . in addition to our revenue , through december 31 , 2017 , we have funded our operations through private placements of preferred stock with gross proceeds totaling $ 42.8 million , sales of common stock in the private placement with gross proceeds totaling $ 31.5 million and debt financing totaling $ 6.0 million . as of december 31 , 2017 , our cash and cash equivalents were $ 25.8 million . since our inception , we have incurred significant operating losses . our net loss was $ 12.0 million and $ 16.9 million for the years ended december 31 , 2017 and 2016 , respectively . as of december 31 , 2017 , our accumulated deficit was $ 53.5 million . substantially all of our operating losses resulted from expenses incurred in connection with our research programs and from general and administrative costs associated with our operations . we expect to continue to incur significant and increasing losses in the foreseeable future . our net losses may fluctuate significantly from quarter to quarter and year to year . we anticipate that our expenses will increase substantially as we : conduct further preclinical studies and clinical trials of ast-008 and xcur17 ; increase research and development for the discovery and development of additional therapeutic candidates ; advance other therapeutic candidates into preclinical and clinical development ; increase our research and development to enhance our technology ; procure clinical trial materials ; seek regulatory approval for our therapeutic candidates that successfully complete clinical trials ; maintain , expand and protect our intellectual property portfolio ; add operational , financial and management information systems and personnel , including personnel to support our product development and planned future commercialization efforts ; and operate as a public company . we have not generated any commercial product revenue nor do we expect to generate substantial revenue from product sales unless and until we successfully complete development and obtain regulatory approval for one or more of our therapeutic candidates . successful therapeutic development and regulatory approval are subject to significant uncertainty and we expect will take at least five years . if we obtain regulatory approval for any of our therapeutic candidates , we expect to incur significant commercialization expenses related to product sales , marketing , manufacturing and distribution . other sources of revenue could include a combination of research and development 89 payments , license fees and other upfront payments , milestone payments , and royalties in connection with our current and any future collaborations and licenses . until such time , if ever , that we generate revenue from whatever source , we expect to finance our cash needs through a combination of public or private equity offerings , debt financings and research collaboration and license agreements . we may be unable to raise capital or enter into such other arrangements when needed or on favorable terms . 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 therapeutic candidates . basis of presentation the audited financial statements of exicure , inc. for the fiscal years ended december 31 , 2017 and 2016 , contained herein , include a summary of our significant accounting policies and should be read in conjunction with the discussion below . recent developments reverse merger on september 26 , 2017 , pursuant to the merger agreement , max-1 acquisition sub , inc. , a wholly-owned subsidiary of max-1 acquisition corporation , or max-1 , merged with and into exicure operating company ( f/k/a exicure , inc. ) , a privately-held delaware corporation referred to herein as exicure opco , with exicure opco remaining as the surviving entity and a wholly-owned operating subsidiary of max-1 , or the merger . story_separator_special_tag the expected volatility is based on calculated enterprise value volatilities for publicly traded companies in the same industry and general stage of development . the estimated forfeiture rates were based on historical experience for similar classes of employees . the dividend yield was based on expected dividends at the time of grant . common stock warrant liability freestanding warrants related to shares that are redeemable , contingently redeemable , or for purchases of common stock that are not indexed to the company 's own stock are classified as a liability on the company 's balance sheet . the common stock warrants are recorded at fair value , estimated using the black-scholes option-pricing model , and marked to market at each balance sheet date with changes in the fair value of the liability recorded in other income ( expense ) , net in the statements of operations . a 10 % change in the estimate of expected volatility at december 31 , 2017 would increase or decrease the aggregate fair value of the common stock warrant liability in the amount of $ 45,000 . a 10 % change in the estimate of fair value of the common stock at december 31 , 2017 would increase or decrease the aggregate fair value of the common stock warrant liability in the amount of $ 87,000 . recently adopted accounting pronouncements in march 2016 , the financial accounting standards board , or fasb , issued accounting standards update , or asu , 2016-09 , improvements to employee share-based payment accounting . asu 2016-09 changes several aspects of the accounting for share-based payment transactions , including the income tax consequences , classification of awards as either equity or liabilities , and classification on the statement of cash flows . asu 2016-09 requires all excess tax benefits and tax deficiencies to be recognized as income tax expense or benefit in the income statement and treated as discrete items in the reporting period . further , excess tax benefits are required to be classified along with other income tax cash flows as an operating activity . the guidance was effective for the company in the first quarter of 2017. adoption of this guidance did not have a significant impact to the company 's financial statements . recent accounting pronouncements not yet adopted in may 2014 , the fasb , issued asu , 2014-09 ( asc 606 ) , revenue from contracts with customers . this asu , as amended by asu 2015-14 , affects any entity that either enters into contracts with customers to transfer goods and services or enters into contracts for the transfer of nonfinancial assets . asu 2014-09 will replace most existing revenue recognition guidance in gaap when it becomes effective . the standard 's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services . in doing so , companies will need to use more judgment and make more estimates than under the currently effective guidance . these may include identifying performance obligations in the contract , estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation . asu 2014-09 is effective for exicure in the first quarter of 2018 and early adoption is permitted beginning in the first quarter of 2017. the company intends to adopt this standard on january 1 , 2018 on a modified retrospective basis and continues to analyze and assess the impact , if any , of this standard on its financial statements . in february 2016 , fasb issued asu 2016-02 , leases ( topic 842 ) , which requires lessees to recognize right-of-use assets and lease liabilities on the balance sheet . asu 2016-02 is to be applied using a modified retrospective approach at the beginning of the earliest comparative period in the financial statements . asu 2016-02 will be effective for the company beginning in the first quarter of 2019. early adoption is permitted . the company is currently evaluating the impact of adopting this standard on its financial statements . in august 2016 , the fasb issued asu 2016-15 , statement of cash flows ( topic 230 ) : classification of certain cash receipts and cash payments . asu 2016-15 addresses the classification of certain specific cash flow issues 94 including debt prepayment or extinguishment costs , settlement of certain debt instruments , contingent consideration payments made after a business combination , proceeds from the settlement of certain insurance claims and distributions received from equity method investees . asu 2016-15 is effective for the company in the first quarter of 2018 and early adoption is permitted . an entity that elects early adoption must adopt all of the amendments in the same period . the company is currently evaluating the impact of this guidance on its statement of cash flows . in may 2017 , the fasb issued asu 2017-09 , compensation - stock compensation ( topic 718 ) : scope of modification accounting . asu 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications . under the new guidance , modification accounting is required only if the fair value , the vesting conditions , or the classification of the award changes as a result of the change in terms or conditions . asu 2017-09 will be applied prospectively to awards modified on or after the adoption date . asu 2017-09 is effective for the company for fiscal years beginning after december 15 , 2017 , and interim periods within those fiscal years . early adoption is permitted . the company is currently evaluating the impact of this guidance on its financial statements . components of statements of operations revenue we have earned all of our revenue through december 31 ,

