we are currently conducting a phase 2 clinical trial of vk2809 in approximately 60 patients with hypercholesterolemia and fatty liver disease and expect to report initial results from this phase 2 clinical trial in the second half of 2018. in october 2017 , we announced positive final results from an eight-week study of vk2809 in an in vivo model of non-alcoholic steatohepatitis , or nash . treatment with vk2809 resulted in : ( 1 ) statistically significant reductions in several key measures of steatosis , including liver triglyceride content and total liver lipid content , ( 2 ) fibrotic activity , including total liver fibrosis , type i collagen and hydroxyproline , relative to vehicle controls , and ( 3 ) statistically significant changes in the expression of key genes associated with nash development and progression , relative to vehicle control , suggesting improved lipid and cholesterol metabolism , improved lipid metabolism and insulin sensitivity and reduced fibrotic activity . in february 2017 , we announced that we are commencing efforts to utilize vk2809 to potentially help patients who suffer from glycogen storage disease type ia , or gsd ia . gsd ia is a rare , orphan genetic disease caused by a deficiency of glucose-6-phosphatase , or g6pc , an enzyme responsible for the liver 's production of free glucose from glycogen and gluconeogenesis . approximately 2,000 patients in the u.s. suffer from gsd ia . we have conducted a proof-of-concept study utilizing vk2809 in an in vivo model of gsd ia . data demonstrated that treatment with vk2809 led to statistically significant reductions in key metabolic markers of gsd ia . vk2809 's potential to rapidly reduce hepatic triglyceride levels , as demonstrated in this initial evaluation in a gsd ia model , provides support for the continued investigation of the compound in this indication . we 62 expect to initiate a phase 1 human proof-of-concept clinical trial to evaluate vk2809 in patients with gsd ia in the first half of 2018. we are also developing vk0214 for x-linked adrenoleukodystrophy , or x-ald , a rare x-linked , inherited neurological disorder characterized by a breakdown in the protective barriers surrounding brain and nerve cells . the disease , for which there is no approved treatment , is caused by mutations in a peroxisomal transporter of very long chain fatty acids , or vlcfa , known as abcd1 . as a result , transporter function is impaired and patients are unable to efficiently metabolize vlcfa . the trß receptor is known to regulate expression of an alternative vlcfa transporter , known as abcd2 . various preclinical models have demonstrated that increased expression of abcd2 can lead to normalization of vlcfa metabolism . preliminary data suggest that vk0214 stimulates abcd2 expression in an in vitro model and reduces vlcfa levels in an in vivo model of x-ald . pending completion of certain toxicology studies , we expect to file an ind to conduct a proof-of-concept study in patients with x-ald in the in the second half of 2018. we were incorporated under the laws of the state of delaware on september 24 , 2012. since our incorporation , we have devoted most of our efforts towards conducting certain clinical trials and preclinical studies related to our vk5211 , vk2809 and vk0214 programs , as well as efforts towards raising capital and building infrastructure . we obtained exclusive worldwide rights to our vk5211 , vk2809 and vk0214 programs and certain other assets pursuant to an exclusive license agreement with ligand pharmaceuticals incorporated , or ligand . the terms of this license agreement are detailed in the master license agreement which we entered into on may 21 , 2014 with ligand , as amended , or the master license agreement . a summary of the master license agreement can be found under the heading “ agreements with ligand— master license agreement ” under part i , “ item 1. business ” of this annual report on form 10-k. financial operations overview revenues to date , we have not generated any revenue . we do not expect to receive any revenue from any drug candidates that we develop unless and until we obtain regulatory approval for , and commercialize , our drug candidates or enter into collaborative agreements with third parties . research and development expenses during the year ended december 31 , 2016 , we charged $ 9,000,499 to research and development expense related to our efforts to conduct phase 2 clinical trials for vk5211 and vk2809 and in vivo studies for vk0214 . during the year ended december 31 , 2017 , we charged $ 13,741,186 to research and development expense related to our continued efforts to conduct phase 2 clinical trials for vk5211 and vk2809 and in vivo studies for vk0214 . we expect that our ongoing research and development expenses will consist of costs incurred for the development of our drug candidates , including , but not limited to : employee and consultant-related expenses , which will include salaries , benefits and stock-based compensation , and certain consultant fees and travel expenses ; expenses incurred under agreements with investigative sites and contract research organizations , or cros , which will conduct a substantial portion of our research and development activities on our behalf ; payments to third-party manufacturers , which will produce our active pharmaceutical ingredients and finished products ; license fees paid to third parties for use of their intellectual property ; and facilities , depreciation and other allocated expenses , which will include direct and allocated expenses for rent and maintenance of facilities and equipment , depreciation of leasehold improvements , equipment and laboratory and other supplies . we expense all research and development costs as incurred . the process of conducting the necessary clinical research to obtain regulatory approval is costly and time consuming and the successful development of our drug candidates is highly uncertain . story_separator_special_tag results of operations comparison of the years ended december 31 , 2017 and 2016 research and development expenses the following table summarizes our research and development expenses for the years ended december 31 , 2017 and 2016. year ended december 31 , $ change % change 2017 2016 research and development expenses $ 13,741,186 $ 9,000,499 $ 4,740,687 52.7 % the increase in research and development expenses during the year ended december 31 , 2017 as compared to the year ended december 31 , 2016 was primarily due to an increase in expenses of $ 3,672,401 related to clinical trial activity for our vk5211 and vk2809 programs and pre-clinical efforts for our vk0214 program , $ 676,588 related primarily to manufacturing for our drug candidates and $ 327,677 related to services provided by third party consultants , offset by a decrease in expenses of $ 128,629 related to stock based compensation expense . general and administrative expenses the following table summarizes our general and administrative expenses for the years ended december 31 , 2017 and 2016. year ended december 31 , $ change % change 2017 2016 general and administrative expenses $ 5,329,003 $ 4,846,776 $ 482,227 9.9 % the increase in general and administrative expenses during the year ended december 31 , 2017 as compared to the year ended december 31 , 2016 was primarily due to increases in salaries and benefits related expenses of $ 662,605 , consultant expenses of $ 53,479 , franchise taxes of $ 40,627 and patent expenses of $ 35,916 , offset by decreases in stock-based compensation expense of $ 214,233 and legal expenses of $ 142,042. other income ( expense ) the following table summarizes our other income ( expense ) for the years ended december 31 , 2017 and 2016. year ended december 31 , $ change % change 2017 2016 other income ( expense ) $ ( 1,507,476 ) $ ( 884,547 ) $ ( 622,929 ) 70.4 % other income ( expense ) recognized during the year ended december 31 , 2017 consisted primarily of expenses of $ 571,044 related to the amortization of financing costs , $ 1,282,631 related to the amortization of the ligand note discount and $ 96,872 of interest expenses related to the ligand note offset by income of $ 344,928 related to the change in fair value of the ligand note 's conversion feature and $ 98,142 of interest income related to our short-term investments . other income ( expense ) recognized during the year ended december 31 , 2016 consisted primarily of expenses of $ 1,788,088 related to the amortization of the ligand note discount , $ 105,551 of interest expenses related to the ligand note and $ 138,701 of amortization expenses related to the equity distribution agreement , dated june 20 , 2016 , or the distribution agreement , with maxim group llc , or maxim , and the common stock purchase agreement , or the purchase agreement , with aspire capital fund , llc , or aspire capital , offset by income of $ 1,064,170 related to the change in fair value of the ligand note 's conversion feature . story_separator_special_tag roman ; font-size:10pt ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > 68 purchases as set forth in the commitment purchase agreement . in addition to regular purchases , as described above , we may also direct lpc to purchase additional amounts as accelerated purchases or as additional purchases if the closing sale price of the common stock is not below certain threshold prices , as set forth in the commitment purchase agreement . in all instances , we may not sell shares of its common stock to lpc under the commitment purchase agreement if it would result in lpc beneficially owning more than 4.99 % of the common stock . as consideration for lpc 's commitment to purchase shares of common stock pursuant to the commitment purchase agreement , we issued to lpc 100,000 shares of common stock . during the fourth quarter of 2017 , we sold to lpc in accordance with the terms of the agreement 343,051 shares of our common stock for aggregate proceeds of $ 802,112. on december 11 , 2017 , we closed an underwritten public offering of 5,900,000 shares of our common stock , including 769,565 shares sold pursuant to the underwriter 's full exercise of their option to purchase additional shares to cover over-allotments , at a public offering price of $ 2.50 per share , for total net proceeds of $ 13,449,252 after deducting underwriting discounts and commissions and estimated offering expenses payable by us . the following table summarizes our cash flows for the periods indicated below : replace_table_token_4_th cash used in operating activities during the year ended december 31 , 2017 , cash used in operating activities of $ 14,757,767 primarily reflected our net losses for the period , offset by non-cash charges such as amortization of discount charged to interest expense on the ligand note , amortization of investment premiums , amortization of financing costs , stock-based compensation and changes in our working capital accounts , primarily consisting of an increase in accrued expenses , accounts payable offset by a decrease in the fair value of the debt conversion feature liability for the ligand note and a decrease in prepaid expenses . during the year ended december 31 , 2016 , cash used in operating activities of $ 11,071,263 primarily reflected our net losses for the period , offset by non-cash charges such as amortization of discount charged to interest expense on the ligand note , amortization of investment premiums , amortization of financing costs , stock-based compensation and changes in our working capital accounts , primarily consisting of an increase in accrued expenses offset by a decrease in the fair value of the debt conversion feature liability for the ligand note and a decrease in accounts payable and

liquidity and capital resources we have incurred losses and negative cash flows from operations and have not generated any revenues since our inception . as of december 31 , 2017 , we had cash , cash equivalents and short term investments of $ 20,575,956. in addition , in february 2018 we raised an additional $ 63,250,000 in gross proceeds through a public offering of 12,650,000 shares of our common stock at $ 5.00 per share . as such , we believe our cash , cash equivalents and short-term investments , including the proceeds received in february 2018 , 67 will be sufficient to fund our operations through at least the first quarter of 2019 , which is more than one year after the date our december 31 , 2017 financial statements were issued . our primary use of cash is to fund operating expenses , which to date have consisted of the cost to obtain the license of intellectual property from ligand , certain research and development expenses related to furthering the development of vk5211 , vk2809 and vk0214 efforts and general and administrative expenses . since we have not generated any revenues to date , we have incurred operating losses since our inception . cash used to fund operating expenses is impacted by the timing of payment of these expenses , as reflected in the change in our outstanding accounts payable and accrued expenses . on june 20 , 2016 , we entered into the distribution agreement with maxim , pursuant to which we were able to offer and sell , from time to time , through maxim , up to 3,748,726 shares of our common stock . effective july 26 , 2017 , the distribution agreement terminated automatically in accordance with the terms thereof . all shares of our common stock offered and sold pursuant to the distribution agreement were issued pursuant to our registration statement on form s-3 ( file no . 333-212134 ) filed with the sec on june 20 , 2016 and the prospectus relating to shares issued pursuant to the distribution agreement that forms a part of the registration statement on form s-3 .


 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 we have incurred losses and negative cash flows from operations and have not generated any revenues since our inception . as of december 31 , 2017 , we had cash , cash equivalents and short term investments of $ 20,575,956. in addition , in february 2018 we raised an additional $ 63,250,000 in gross proceeds through a public offering of 12,650,000 shares of our common stock at $ 5.00 per share . as such , we believe our cash , cash equivalents and short-term investments , including the proceeds received in february 2018 , 67 will be sufficient to fund our operations through at least the first quarter of 2019 , which is more than one year after the date our december 31 , 2017 financial statements were issued . our primary use of cash is to fund operating expenses , which to date have consisted of the cost to obtain the license of intellectual property from ligand , certain research and development expenses related to furthering the development of vk5211 , vk2809 and vk0214 efforts and general and administrative expenses . since we have not generated any revenues to date , we have incurred operating losses since our inception . cash used to fund operating expenses is impacted by the timing of payment of these expenses , as reflected in the change in our outstanding accounts payable and accrued expenses . on june 20 , 2016 , we entered into the distribution agreement with maxim , pursuant to which we were able to offer and sell , from time to time , through maxim , up to 3,748,726 shares of our common stock . effective july 26 , 2017 , the distribution agreement terminated automatically in accordance with the terms thereof . all shares of our common stock offered and sold pursuant to the distribution agreement were issued pursuant to our registration statement on form s-3 ( file no . 333-212134 ) filed with the sec on june 20 , 2016 and the prospectus relating to shares issued pursuant to the distribution agreement that forms a part of the registration statement on form s-3 .
```    
 Suspicious Activity Report : we are currently conducting a phase 2 clinical trial of vk2809 in approximately 60 patients with hypercholesterolemia and fatty liver disease and expect to report initial results from this phase 2 clinical trial in the second half of 2018. in october 2017 , we announced positive final results from an eight-week study of vk2809 in an in vivo model of non-alcoholic steatohepatitis , or nash . treatment with vk2809 resulted in : ( 1 ) statistically significant reductions in several key measures of steatosis , including liver triglyceride content and total liver lipid content , ( 2 ) fibrotic activity , including total liver fibrosis , type i collagen and hydroxyproline , relative to vehicle controls , and ( 3 ) statistically significant changes in the expression of key genes associated with nash development and progression , relative to vehicle control , suggesting improved lipid and cholesterol metabolism , improved lipid metabolism and insulin sensitivity and reduced fibrotic activity . in february 2017 , we announced that we are commencing efforts to utilize vk2809 to potentially help patients who suffer from glycogen storage disease type ia , or gsd ia . gsd ia is a rare , orphan genetic disease caused by a deficiency of glucose-6-phosphatase , or g6pc , an enzyme responsible for the liver 's production of free glucose from glycogen and gluconeogenesis . approximately 2,000 patients in the u.s. suffer from gsd ia . we have conducted a proof-of-concept study utilizing vk2809 in an in vivo model of gsd ia . data demonstrated that treatment with vk2809 led to statistically significant reductions in key metabolic markers of gsd ia . vk2809 's potential to rapidly reduce hepatic triglyceride levels , as demonstrated in this initial evaluation in a gsd ia model , provides support for the continued investigation of the compound in this indication . we 62 expect to initiate a phase 1 human proof-of-concept clinical trial to evaluate vk2809 in patients with gsd ia in the first half of 2018. we are also developing vk0214 for x-linked adrenoleukodystrophy , or x-ald , a rare x-linked , inherited neurological disorder characterized by a breakdown in the protective barriers surrounding brain and nerve cells . the disease , for which there is no approved treatment , is caused by mutations in a peroxisomal transporter of very long chain fatty acids , or vlcfa , known as abcd1 . as a result , transporter function is impaired and patients are unable to efficiently metabolize vlcfa . the trß receptor is known to regulate expression of an alternative vlcfa transporter , known as abcd2 . various preclinical models have demonstrated that increased expression of abcd2 can lead to normalization of vlcfa metabolism . preliminary data suggest that vk0214 stimulates abcd2 expression in an in vitro model and reduces vlcfa levels in an in vivo model of x-ald . pending completion of certain toxicology studies , we expect to file an ind to conduct a proof-of-concept study in patients with x-ald in the in the second half of 2018. we were incorporated under the laws of the state of delaware on september 24 , 2012. since our incorporation , we have devoted most of our efforts towards conducting certain clinical trials and preclinical studies related to our vk5211 , vk2809 and vk0214 programs , as well as efforts towards raising capital and building infrastructure . we obtained exclusive worldwide rights to our vk5211 , vk2809 and vk0214 programs and certain other assets pursuant to an exclusive license agreement with ligand pharmaceuticals incorporated , or ligand . the terms of this license agreement are detailed in the master license agreement which we entered into on may 21 , 2014 with ligand , as amended , or the master license agreement . a summary of the master license agreement can be found under the heading “ agreements with ligand— master license agreement ” under part i , “ item 1. business ” of this annual report on form 10-k. financial operations overview revenues to date , we have not generated any revenue . we do not expect to receive any revenue from any drug candidates that we develop unless and until we obtain regulatory approval for , and commercialize , our drug candidates or enter into collaborative agreements with third parties . research and development expenses during the year ended december 31 , 2016 , we charged $ 9,000,499 to research and development expense related to our efforts to conduct phase 2 clinical trials for vk5211 and vk2809 and in vivo studies for vk0214 . during the year ended december 31 , 2017 , we charged $ 13,741,186 to research and development expense related to our continued efforts to conduct phase 2 clinical trials for vk5211 and vk2809 and in vivo studies for vk0214 . we expect that our ongoing research and development expenses will consist of costs incurred for the development of our drug candidates , including , but not limited to : employee and consultant-related expenses , which will include salaries , benefits and stock-based compensation , and certain consultant fees and travel expenses ; expenses incurred under agreements with investigative sites and contract research organizations , or cros , which will conduct a substantial portion of our research and development activities on our behalf ; payments to third-party manufacturers , which will produce our active pharmaceutical ingredients and finished products ; license fees paid to third parties for use of their intellectual property ; and facilities , depreciation and other allocated expenses , which will include direct and allocated expenses for rent and maintenance of facilities and equipment , depreciation of leasehold improvements , equipment and laboratory and other supplies . we expense all research and development costs as incurred . the process of conducting the necessary clinical research to obtain regulatory approval is costly and time consuming and the successful development of our drug candidates is highly uncertain . story_separator_special_tag results of operations comparison of the years ended december 31 , 2017 and 2016 research and development expenses the following table summarizes our research and development expenses for the years ended december 31 , 2017 and 2016. year ended december 31 , $ change % change 2017 2016 research and development expenses $ 13,741,186 $ 9,000,499 $ 4,740,687 52.7 % the increase in research and development expenses during the year ended december 31 , 2017 as compared to the year ended december 31 , 2016 was primarily due to an increase in expenses of $ 3,672,401 related to clinical trial activity for our vk5211 and vk2809 programs and pre-clinical efforts for our vk0214 program , $ 676,588 related primarily to manufacturing for our drug candidates and $ 327,677 related to services provided by third party consultants , offset by a decrease in expenses of $ 128,629 related to stock based compensation expense . general and administrative expenses the following table summarizes our general and administrative expenses for the years ended december 31 , 2017 and 2016. year ended december 31 , $ change % change 2017 2016 general and administrative expenses $ 5,329,003 $ 4,846,776 $ 482,227 9.9 % the increase in general and administrative expenses during the year ended december 31 , 2017 as compared to the year ended december 31 , 2016 was primarily due to increases in salaries and benefits related expenses of $ 662,605 , consultant expenses of $ 53,479 , franchise taxes of $ 40,627 and patent expenses of $ 35,916 , offset by decreases in stock-based compensation expense of $ 214,233 and legal expenses of $ 142,042. other income ( expense ) the following table summarizes our other income ( expense ) for the years ended december 31 , 2017 and 2016. year ended december 31 , $ change % change 2017 2016 other income ( expense ) $ ( 1,507,476 ) $ ( 884,547 ) $ ( 622,929 ) 70.4 % other income ( expense ) recognized during the year ended december 31 , 2017 consisted primarily of expenses of $ 571,044 related to the amortization of financing costs , $ 1,282,631 related to the amortization of the ligand note discount and $ 96,872 of interest expenses related to the ligand note offset by income of $ 344,928 related to the change in fair value of the ligand note 's conversion feature and $ 98,142 of interest income related to our short-term investments . other income ( expense ) recognized during the year ended december 31 , 2016 consisted primarily of expenses of $ 1,788,088 related to the amortization of the ligand note discount , $ 105,551 of interest expenses related to the ligand note and $ 138,701 of amortization expenses related to the equity distribution agreement , dated june 20 , 2016 , or the distribution agreement , with maxim group llc , or maxim , and the common stock purchase agreement , or the purchase agreement , with aspire capital fund , llc , or aspire capital , offset by income of $ 1,064,170 related to the change in fair value of the ligand note 's conversion feature . story_separator_special_tag roman ; font-size:10pt ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > 68 purchases as set forth in the commitment purchase agreement . in addition to regular purchases , as described above , we may also direct lpc to purchase additional amounts as accelerated purchases or as additional purchases if the closing sale price of the common stock is not below certain threshold prices , as set forth in the commitment purchase agreement . in all instances , we may not sell shares of its common stock to lpc under the commitment purchase agreement if it would result in lpc beneficially owning more than 4.99 % of the common stock . as consideration for lpc 's commitment to purchase shares of common stock pursuant to the commitment purchase agreement , we issued to lpc 100,000 shares of common stock . during the fourth quarter of 2017 , we sold to lpc in accordance with the terms of the agreement 343,051 shares of our common stock for aggregate proceeds of $ 802,112. on december 11 , 2017 , we closed an underwritten public offering of 5,900,000 shares of our common stock , including 769,565 shares sold pursuant to the underwriter 's full exercise of their option to purchase additional shares to cover over-allotments , at a public offering price of $ 2.50 per share , for total net proceeds of $ 13,449,252 after deducting underwriting discounts and commissions and estimated offering expenses payable by us . the following table summarizes our cash flows for the periods indicated below : replace_table_token_4_th cash used in operating activities during the year ended december 31 , 2017 , cash used in operating activities of $ 14,757,767 primarily reflected our net losses for the period , offset by non-cash charges such as amortization of discount charged to interest expense on the ligand note , amortization of investment premiums , amortization of financing costs , stock-based compensation and changes in our working capital accounts , primarily consisting of an increase in accrued expenses , accounts payable offset by a decrease in the fair value of the debt conversion feature liability for the ligand note and a decrease in prepaid expenses . during the year ended december 31 , 2016 , cash used in operating activities of $ 11,071,263 primarily reflected our net losses for the period , offset by non-cash charges such as amortization of discount charged to interest expense on the ligand note , amortization of investment premiums , amortization of financing costs , stock-based compensation and changes in our working capital accounts , primarily consisting of an increase in accrued expenses offset by a decrease in the fair value of the debt conversion feature liability for the ligand note and a decrease in accounts payable and

