56 research and development expenses research and development expenses consists of costs incurred in connection with the development of our product candidates , including : fees paid to consultants and clinical research organizations , or cros , including in connection with our non-clinical and clinical trials , and other related clinical trial fees , such as for investigator grants , patient screening , laboratory work , clinical trial database management , clinical trial material management and statistical compilation and analysis ; licensing fees ; costs related to acquiring clinical trial materials ; costs related to compliance with regulatory requirements ; and costs related to salaries , benefits , bonuses and stock-based compensation granted to employees in research and development functions . we expense research and development costs as they are incurred . the historic direct costs relating to each of our product candidates are summarized as follows ( in thousands ) : replace_table_token_5_th ( 1 ) the expense for the years ended december 31 , 2016 , 2015 and 2014 excludes non cash stock-based compensation expense of $ 1.036 million , $ 0.604 million and $ 13.099 million , respectively . ( 2 ) the expense for the year ended december 31 , 2014 includes a $ 22.0 million license fee paid to janssen which has no alternative future use . ( 3 ) as a result of the acquisition of mind ‑ nrg by us in february 2014 , the functional currency of mind ‑ nrg changed to the u.s. dollar and exchange rate gains and losses have been included in the results of operations . the expense for the year ended december 31 , 2014 was derived from a combination of mind ‑ nrg 's unaudited financial statements up to the date of the mind ‑ nrg acquisition , as converted in u.s. dollars using the average exchange rate of 1.1076 , and our financial statements subsequent to the mind ‑ nrg acquisition . in the future , we expect research and development expenses to be our largest category of operating expenses and to increase as we continue our planned pre-clinical and clinical trials for our product candidates and as we hire additional research and development staff . completion dates and completion costs can vary significantly for each product candidate and are difficult to predict . we anticipate we will make determinations as to which programs to pursue and how much funding to direct to each program on an ongoing basis in response to the scientific and clinical success or failure of each product candidate , the estimated costs to continue the development program relative to our available resources , as well as an ongoing assessment as to each product candidate 's commercial potential . we will need to raise additional capital or may seek additional product collaborations in the future in order to complete the development and commercialization of our product candidates . we test goodwill and in-process research and development for impairment annually on november 30 or more frequently if changes in circumstances or the occurrence of events suggest impairment exists . the test for impairment of in-process research and development requires us to make several estimates about fair value , most of which are based on projected future cash flows . changes in these estimates may result in the recognition of an impairment loss in our results of operations . an impairment analysis is performed whenever events or changes in circumstances indicate that the carrying amount of any individual asset may not be recoverable . for example , if we or our counterparties fail to perform our respective obligations under an agreement , or if we lack sufficient funding to develop our product candidates , an impairment may result . in addition , any significant change in market conditions , estimates or judgments used to determine expected future cash flows that indicate a reduction in carrying value may give rise to impairment in the period that the change becomes known . general and administrative expenses general and administrative expenses consist principally of costs for functions in executive , finance , legal , auditing and taxes . our general and administrative expenses include salaries , bonuses , facility and information system costs and professional fees for auditing , accounting , consulting and legal services . general and administrative costs also include non-cash stock-based compensation expense as part of our compensation strategy to attract and retain qualified staff . 57 we expect to continue to incur general and administrative expenses related to operating as a publicly-traded company , including increased audit and legal fees , costs of compliance with securities , corporate governance and other regul ations , investor relations expenses and higher insurance premiums . in addition , we expect to incur additional costs as we hire personnel and enhance our infrastructure to support the anticipated growth of our business . foreign exchange ( losses ) gains foreign exchange ( losses ) gains are comprised primarily of losses and gains of foreign currency transactions related to clinical trial expenses denominated in euros . since our current clinical trials are conducted in europe , we incur certain expenses in euros and record these expenses in u.s. dollars at the time the liability is incurred . changes in the applicable foreign currency rate between the date an expense is recorded and the payment date is recorded as a foreign currency loss or gain . we expect to continue to incur future expenses denominated in euros as certain of our planned clinical trials are expected to be conducted in europe . investment income investment income consists of income earned on our cash equivalents and marketable securities . story_separator_special_tag if we are unable to obtain additional financing , future oper ations would need to be scaled back or discontinued . based on our current operating plan and existing cash , we expect to be able to fund our operations into the second quarter of 2018. the timing of future capital requirements depends upon many factors inc luding the size and timing of future clinical trials , the timing and scope of any strategic partnering activity and the progress of other research and development activities . on july 6 , 2016 , we and janssen agreed that “ decision point 2 ” had been reached as defined under the co-development agreement . as neither party have exercised their right to withdraw from the agreement , we have paid janssen $ 3.5 million and have incurred direct expenses of $ 0.2 million related to development activities under the current phase of development . we expect to pay up to an additional $ 15.3 million to janssen as costs are incurred for the completion of certain phase ii clinical trials in accordance with the terms of the co-development agreement . during the years ended december 31 , 2016 , 2015 and 2014 , we recorded an expense in research and development expenses of $ 6.2 million , $ 2.5 million and $ 2.4 million , respectively , for certain development activities in accordance with the terms of the co-development agreement . a number of supportive activities and studies are underway in anticipation of the next phase of clinical trials with min-202 in both insomnia disorder and mdd . under our $ 10.0 million term a loan , we made principal repayments of approximately $ 1.6 million . we expect to make additional principal repayments of approximately $ 4.9 million in 2017 and $ 3.5 million in 2018 , in accordance with the terms of the agreement . cash flows the tables below set forth our significant sources and uses of cash for the periods set forth below . replace_table_token_7_th story_separator_special_tag normal ; `` > while our significant accounting policies are more fully described in note 2 to our financial statements appearing elsewhere in this form 10-k , we believe that the following accounting policies are the most critical for fully understanding and evaluating our financial condition and results of operations . stock-based compensation we recognize compensation expenses relating to stock-based payment transactions in operating results using a fair-value measurement method , in accordance with asc topic 718 compensation-stock compensation . asc-718 requires all stock-based payments to employees , including grants of employee stock options , to be recognized in operating results as compensation expense based on fair value over the requisite service period of the awards . we determine the fair value of stock-based awards using the black-scholes option-pricing model which uses both historical and current market data to estimate fair value . the method incorporates various assumptions such as the risk-free interest rate , expected volatility , expected dividend yield , expected forfeiture rate and expected life of the options . the fair value of restricted stock units is equal to the closing price of our common stock on the date of grant . the most critical assumptions using in the black scholes option-pricing model are the expected life of options and the expected volatility . the expected life of options granted to employees is estimated using the “ simplified ” method as defined by the securities and exchange commission 's staff accounting bulletin no . 107 , share-based payment . the expected life of options granted to non-employees is the contractual term of the option . the expected volatility for all options is determined by examining the historical volatilities for industry peer companies , as the company did not have sufficient trading history for its common stock . grants to non-employees are accounted for in accordance with asc topic 505-50 equity — based payments to non-employees . the date of expense recognition for grants to non-employees is the earlier of the date at which a commitment for performance by the counterparty to earn the equity instrument is reached or the date at which the counterparty 's performance is complete . we determine the fair value of stock-based awards granted to non-employees similar to the way fair value of awards are determined for employees except that certain assumptions used in the black-scholes option-pricing model , such as expected life of the option , may be different and the fair value of each unvested award is adjusted at the end of each period for any change in fair value from the previous valuation until the award vests . prior to the ipo , we utilized various valuation methodologies in accordance with the framework of the 2013 american institute of certified public accountants technical practice aid , valuation of privately-held company equity securities issued as compensation , to estimate the fair value of its common stock . the methodologies included a probability-weighted expected return methodology that determined an estimated value under an ipo scenario and a sale scenario based upon an assessment of the probability of occurrence of each scenario . each valuation methodology includes estimates and assumptions that require our judgment . these estimates include assumptions regarding future performance , including the successful completion of preclinical studies and clinical trials and the time to complete an ipo or sale . research and development costs costs incurred in connection with research and development activities are expensed as incurred . these costs include licensing fees to use certain technology in our research and development projects as well as fees paid to consultants and various entities that perform certain research and testing on our behalf . we determine our expenses related to clinical studies based on our estimates of the services received and efforts expended pursuant to contracts with multiple research institutions and contract research organizations that conduct and manage clinical studies on our behalf . the financial terms of these agreements are subject to

net cash used in operating activities net cash used in operating activities of approximately $ 25.7 million during the year ended december 31 , 2016 was primarily due to our net loss of $ 31.0 million and a decrease in accrued expenses and other current liabilities of $ 1.7 million , partially offset by stock-based compensation expense of $ 3.6 million , an increase in accrued collaborative expenses of $ 2.5 million , a decrease in prepaid expenses and other current assets of $ 0.4 million , amortization of investments and debt discount of $ 0.4 million and an increase in accounts payable $ 0.1 million . net cash used in operating activities of approximately $ 24.3 million during the year ended december 31 , 2015 was primarily due to our net loss of $ 27.1 million and an increase in prepaid expenses of $ 0.4 million , partially offset by stock-based compensation expense of $ 2.2 million , amortization of investments and debt discount of $ 0.6 million and an increase in accounts payable and accrued expenses $ 0.4 million . net cash used in operating activities of approximately $ 36.0 million during the year ended december 31 , 2014 was due primarily to our net loss of $ 56.9 million , partially offset by stock-based compensation expense of $ 18.0 million , amortization of debt discount interest expense of $ 2.0 million and a $ 1.7 million increase in accounts payable and accrued expenses . cash used in operating activities in 2014 included a $ 22.0 million license fee paid to janssen pursuant to our co-development agreement for min-202 .


 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 net cash used in operating activities of approximately $ 25.7 million during the year ended december 31 , 2016 was primarily due to our net loss of $ 31.0 million and a decrease in accrued expenses and other current liabilities of $ 1.7 million , partially offset by stock-based compensation expense of $ 3.6 million , an increase in accrued collaborative expenses of $ 2.5 million , a decrease in prepaid expenses and other current assets of $ 0.4 million , amortization of investments and debt discount of $ 0.4 million and an increase in accounts payable $ 0.1 million . net cash used in operating activities of approximately $ 24.3 million during the year ended december 31 , 2015 was primarily due to our net loss of $ 27.1 million and an increase in prepaid expenses of $ 0.4 million , partially offset by stock-based compensation expense of $ 2.2 million , amortization of investments and debt discount of $ 0.6 million and an increase in accounts payable and accrued expenses $ 0.4 million . net cash used in operating activities of approximately $ 36.0 million during the year ended december 31 , 2014 was due primarily to our net loss of $ 56.9 million , partially offset by stock-based compensation expense of $ 18.0 million , amortization of debt discount interest expense of $ 2.0 million and a $ 1.7 million increase in accounts payable and accrued expenses . cash used in operating activities in 2014 included a $ 22.0 million license fee paid to janssen pursuant to our co-development agreement for min-202 .
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 Suspicious Activity Report : 56 research and development expenses research and development expenses consists of costs incurred in connection with the development of our product candidates , including : fees paid to consultants and clinical research organizations , or cros , including in connection with our non-clinical and clinical trials , and other related clinical trial fees , such as for investigator grants , patient screening , laboratory work , clinical trial database management , clinical trial material management and statistical compilation and analysis ; licensing fees ; costs related to acquiring clinical trial materials ; costs related to compliance with regulatory requirements ; and costs related to salaries , benefits , bonuses and stock-based compensation granted to employees in research and development functions . we expense research and development costs as they are incurred . the historic direct costs relating to each of our product candidates are summarized as follows ( in thousands ) : replace_table_token_5_th ( 1 ) the expense for the years ended december 31 , 2016 , 2015 and 2014 excludes non cash stock-based compensation expense of $ 1.036 million , $ 0.604 million and $ 13.099 million , respectively . ( 2 ) the expense for the year ended december 31 , 2014 includes a $ 22.0 million license fee paid to janssen which has no alternative future use . ( 3 ) as a result of the acquisition of mind ‑ nrg by us in february 2014 , the functional currency of mind ‑ nrg changed to the u.s. dollar and exchange rate gains and losses have been included in the results of operations . the expense for the year ended december 31 , 2014 was derived from a combination of mind ‑ nrg 's unaudited financial statements up to the date of the mind ‑ nrg acquisition , as converted in u.s. dollars using the average exchange rate of 1.1076 , and our financial statements subsequent to the mind ‑ nrg acquisition . in the future , we expect research and development expenses to be our largest category of operating expenses and to increase as we continue our planned pre-clinical and clinical trials for our product candidates and as we hire additional research and development staff . completion dates and completion costs can vary significantly for each product candidate and are difficult to predict . we anticipate we will make determinations as to which programs to pursue and how much funding to direct to each program on an ongoing basis in response to the scientific and clinical success or failure of each product candidate , the estimated costs to continue the development program relative to our available resources , as well as an ongoing assessment as to each product candidate 's commercial potential . we will need to raise additional capital or may seek additional product collaborations in the future in order to complete the development and commercialization of our product candidates . we test goodwill and in-process research and development for impairment annually on november 30 or more frequently if changes in circumstances or the occurrence of events suggest impairment exists . the test for impairment of in-process research and development requires us to make several estimates about fair value , most of which are based on projected future cash flows . changes in these estimates may result in the recognition of an impairment loss in our results of operations . an impairment analysis is performed whenever events or changes in circumstances indicate that the carrying amount of any individual asset may not be recoverable . for example , if we or our counterparties fail to perform our respective obligations under an agreement , or if we lack sufficient funding to develop our product candidates , an impairment may result . in addition , any significant change in market conditions , estimates or judgments used to determine expected future cash flows that indicate a reduction in carrying value may give rise to impairment in the period that the change becomes known . general and administrative expenses general and administrative expenses consist principally of costs for functions in executive , finance , legal , auditing and taxes . our general and administrative expenses include salaries , bonuses , facility and information system costs and professional fees for auditing , accounting , consulting and legal services . general and administrative costs also include non-cash stock-based compensation expense as part of our compensation strategy to attract and retain qualified staff . 57 we expect to continue to incur general and administrative expenses related to operating as a publicly-traded company , including increased audit and legal fees , costs of compliance with securities , corporate governance and other regul ations , investor relations expenses and higher insurance premiums . in addition , we expect to incur additional costs as we hire personnel and enhance our infrastructure to support the anticipated growth of our business . foreign exchange ( losses ) gains foreign exchange ( losses ) gains are comprised primarily of losses and gains of foreign currency transactions related to clinical trial expenses denominated in euros . since our current clinical trials are conducted in europe , we incur certain expenses in euros and record these expenses in u.s. dollars at the time the liability is incurred . changes in the applicable foreign currency rate between the date an expense is recorded and the payment date is recorded as a foreign currency loss or gain . we expect to continue to incur future expenses denominated in euros as certain of our planned clinical trials are expected to be conducted in europe . investment income investment income consists of income earned on our cash equivalents and marketable securities . story_separator_special_tag if we are unable to obtain additional financing , future oper ations would need to be scaled back or discontinued . based on our current operating plan and existing cash , we expect to be able to fund our operations into the second quarter of 2018. the timing of future capital requirements depends upon many factors inc luding the size and timing of future clinical trials , the timing and scope of any strategic partnering activity and the progress of other research and development activities . on july 6 , 2016 , we and janssen agreed that “ decision point 2 ” had been reached as defined under the co-development agreement . as neither party have exercised their right to withdraw from the agreement , we have paid janssen $ 3.5 million and have incurred direct expenses of $ 0.2 million related to development activities under the current phase of development . we expect to pay up to an additional $ 15.3 million to janssen as costs are incurred for the completion of certain phase ii clinical trials in accordance with the terms of the co-development agreement . during the years ended december 31 , 2016 , 2015 and 2014 , we recorded an expense in research and development expenses of $ 6.2 million , $ 2.5 million and $ 2.4 million , respectively , for certain development activities in accordance with the terms of the co-development agreement . a number of supportive activities and studies are underway in anticipation of the next phase of clinical trials with min-202 in both insomnia disorder and mdd . under our $ 10.0 million term a loan , we made principal repayments of approximately $ 1.6 million . we expect to make additional principal repayments of approximately $ 4.9 million in 2017 and $ 3.5 million in 2018 , in accordance with the terms of the agreement . cash flows the tables below set forth our significant sources and uses of cash for the periods set forth below . replace_table_token_7_th story_separator_special_tag normal ; `` > while our significant accounting policies are more fully described in note 2 to our financial statements appearing elsewhere in this form 10-k , we believe that the following accounting policies are the most critical for fully understanding and evaluating our financial condition and results of operations . stock-based compensation we recognize compensation expenses relating to stock-based payment transactions in operating results using a fair-value measurement method , in accordance with asc topic 718 compensation-stock compensation . asc-718 requires all stock-based payments to employees , including grants of employee stock options , to be recognized in operating results as compensation expense based on fair value over the requisite service period of the awards . we determine the fair value of stock-based awards using the black-scholes option-pricing model which uses both historical and current market data to estimate fair value . the method incorporates various assumptions such as the risk-free interest rate , expected volatility , expected dividend yield , expected forfeiture rate and expected life of the options . the fair value of restricted stock units is equal to the closing price of our common stock on the date of grant . the most critical assumptions using in the black scholes option-pricing model are the expected life of options and the expected volatility . the expected life of options granted to employees is estimated using the “ simplified ” method as defined by the securities and exchange commission 's staff accounting bulletin no . 107 , share-based payment . the expected life of options granted to non-employees is the contractual term of the option . the expected volatility for all options is determined by examining the historical volatilities for industry peer companies , as the company did not have sufficient trading history for its common stock . grants to non-employees are accounted for in accordance with asc topic 505-50 equity — based payments to non-employees . the date of expense recognition for grants to non-employees is the earlier of the date at which a commitment for performance by the counterparty to earn the equity instrument is reached or the date at which the counterparty 's performance is complete . we determine the fair value of stock-based awards granted to non-employees similar to the way fair value of awards are determined for employees except that certain assumptions used in the black-scholes option-pricing model , such as expected life of the option , may be different and the fair value of each unvested award is adjusted at the end of each period for any change in fair value from the previous valuation until the award vests . prior to the ipo , we utilized various valuation methodologies in accordance with the framework of the 2013 american institute of certified public accountants technical practice aid , valuation of privately-held company equity securities issued as compensation , to estimate the fair value of its common stock . the methodologies included a probability-weighted expected return methodology that determined an estimated value under an ipo scenario and a sale scenario based upon an assessment of the probability of occurrence of each scenario . each valuation methodology includes estimates and assumptions that require our judgment . these estimates include assumptions regarding future performance , including the successful completion of preclinical studies and clinical trials and the time to complete an ipo or sale . research and development costs costs incurred in connection with research and development activities are expensed as incurred . these costs include licensing fees to use certain technology in our research and development projects as well as fees paid to consultants and various entities that perform certain research and testing on our behalf . we determine our expenses related to clinical studies based on our estimates of the services received and efforts expended pursuant to contracts with multiple research institutions and contract research organizations that conduct and manage clinical studies on our behalf . the financial terms of these agreements are subject to

