we also will pay 8 % on net sales made after october 31 , 2017 , payable up to a maximum aggregate payment of an additional $ 2.5 million . based upon the estimated expiration date , per our projections we could stop selling this product mid-fiscal 2019 , thus , we impaired the non-tangible assets related to this product . in october 2015 , we entered into an asset purchase agreement with fsc laboratories , inc. , or fsc . pursuant to the agreement , we purchased assets related to fsc 's product known as primsol ( trimethoprim solution ) , including certain intellectual property and contracts , inventory , work in progress and all marketing and sales assets and materials related solely to primsol ( together , the “ primsol business ” ) , and assumed certain of fsc 's liabilities , including those related to the sale and marketing of primsol arising after the closing . we paid $ 500,000 at closing for the primsol business and we paid an additional $ 142,000 , of which $ 102,000 went to inventory and $ 40,000 towards the primsol business , for the transfer of the primsol-related product inventory . we also paid $ 500,000 on april 1 , 2016 and $ 500,000 on july 1 , 2016 , and paid $ 250,000 in november 2016 ( together , the “ installment payments ” ) , for a total purchase price of $ 1,892,000. during fiscal 2017 we sold our prismol product which was used in the treatment of urinary tract infections . in april 2016 , we entered into a license and supply agreement to acquire the exclusive u.s. rights to natesto nasal gel from acerus pharmaceuticals corporation , or acerus , which rights we received on july 1 , 2016. we paid acerus an upfront fee of $ 2.0 million upon execution of the agreement . in october 2016 we paid an additional $ 2.0 million and in january of 2017 , we paid the final upfront payment of $ 4.0 million . we also purchased on april 28 , 2016 , an aggregate of 12,245,411 shares of acerus common stock for cdn . $ 2,535,000 ( approximately us $ 2.0 million ) , with a purchase price per share equal to cdn . $ 0.207 or approximately us $ 0.16 per share . we also agreed to make various payments based upon certain sales milestones up to an aggregate of $ 37.5 million based on net sales of natesto . during the term of the agreement , we will purchase all of our natesto product needs from acerus at a designated price . in our third fiscal quarter of 2017. we sold all of the shares of common stock of acerus pharmaceutics corporation that we acquired in april 2016 for approximately $ 2.0 million as a condition to our licensing of natesto . acerus common stock is traded on the toronto stock exchange . the gross proceeds from the sale of the acerus shares was approximately $ 1.1 million . 68 in may 2016 , we sold in an underwritten public offering 78,125 shares of our common stock , par value $ 0.0001 per share , and warrants to purchase up to an aggregate 78,125 shares of common stock at a combined public offering price of $ 96.00 per share and related warrant . each warrant is exercisable for five years from issuance and has an exercise price equal to $ 120.00. in addition , we granted the underwriters a 45-day option to purchase up to an additional 11,719 shares of common stock and or 11,719 additional warrants . the underwriters elected a partial exercise of their over-allotment option to purchase 8,542 warrants . the net cash proceeds from the sale of the shares and warrants were approximately $ 6.6 million , after deducting underwriting discounts and commissions and estimated offering expenses . in july 2016 , aytu issued 50,000 shares of restricted stock to executive officers and directors . in july 2016 , we entered into a purchase agreement ( the “ purchase agreement ” ) , together with a registration rights agreement ( the “ registration rights agreement ” ) , with lincoln park capital fund , llc ( “ lincoln park ” ) , an illinois limited liability company . upon signing the purchase agreement , lincoln park agreed to purchase 6,684 shares of our common stock for $ 500,000 as an initial purchase under the agreement . we also issued as a commitment fee to lincoln park of 2,625 shares of common stock . during fiscal 2017 , lincoln park purchased 10,000 common shares for $ 240,000. as part of our august 2017 private placement financing , we terminated the purchase agreement , effective august 16 , 2017. on october 27 , 2016 , we priced an underwritten public offering of 286,749 shares of our common stock and warrants to purchase up to an aggregate of 286,749 shares of our common stock at a combined public offering price of $ 30.00 per share and related warrant . the gross proceeds from the offering to aytu was $ 8.6 million , before deducting the underwriting discount and estimated offering expenses payable by aytu , but excluding the exercise of any warrants . the company also granted the representative of the underwriters a 45-day option to purchase up to an additional 43,013 shares and or 43,013 additional warrants . the shares of common stock were immediately separable from the warrants and were issued separately . the warrants are exercisable immediately upon issuance , expire five years after the date of issuance and have an exercise price of $ 37.20 per share . on november 2 , 2016 , we completed the public offering . story_separator_special_tag although it is difficult to predict our liquidity requirements , based upon our current operating plan , as of the date of this report , we believe we will have sufficient cash to meet our projected operating requirements into the first half of fiscal 2019 , at which point we anticipate nearing or reaching cash-flow breakeven . see “ liquidity and capital resources . ” we have only begun to generate material revenues from the commercialization of our product candidates in the last fiscal year . we have recognized approximately $ 3.2 million in revenue from natesto , prostascint , primsol , mioxsys and fiera sales during fiscal 2017. we have incurred accumulated net losses since our inception , and at june 30 , 2017 , we had an accumulated deficit of $ 69.1 million . our net loss was $ 22.5 million for fiscal 2017 and we used $ 13.8 million in cash from operations during that year . significant accounting policies and estimates information regarding our significant accounting policies and estimates is contained in note 2 to the financial statements . newly issued accounting pronouncements information regarding the recently issued accounting standards ( adopted and not adopted as of june 30 , 2017 ) is contained in note 2 to the financial statements . results of operations—june 30 , 2017 compared to june 30 , 2016 results of operations for the year ended june 30 , 2017 ( “ fiscal 2017 ” ) and the year ended june 30 , 2016 ( “ fiscal 2016 ” ) reflected losses of approximately $ 22.5 million and $ 28.2 million , respectively . revenue product and service revenue the total product and service revenue recognized during 2017 was $ 3.2 million , related to the sales of our products natesto , prostascint , and primsol , the mioxsys and redoxsys systems , as well as products in the fiera line . the product and service revenue in fiscal 2016 was $ 2.1 million , which was from the prostascint and primsol product lines , as well as the redoxsys and mioxsys systems . the increase in product revenue of over 57 % from fiscal 2016 to 2017 is due to our acquisitions and ensuing sales of the natesto and fiera products , which occurred late in fiscal 2016 and late fiscal 2017 , respectively , and expanded marketing of our commercial products . 70 as is customary in the pharmaceutical industry , our gross product sales are subject to a variety of deductions in arriving at reported net product sales . provisions for these deductions are recorded concurrently with the recognition of gross product sales revenue and include discounts , chargebacks , distributor fees , processing fees , as well as allowances for returns and medicaid rebates . provision balances relating to estimated amounts payable to direct customers are netted against accounts receivable and balances relating to indirect customers are included in accounts payable and accrued liabilities . the provisions recorded to reduce gross product sales and net product sales are as follows : replace_table_token_3_th license revenue during fiscal 2017 and fiscal 2016 , we recognized $ 0 and $ 512,000 , respectively , in license revenue . in 2012 , we received a payment of $ 500,000 for our license agreement of our former product candidate zertane with a korean pharmaceutical company . this payment was deferred and was being recognized over 10 years . in 2014 , we received a payment of $ 250,000 for our license agreement of zertane with a canadian-based supplier . this payment was deferred and was being recognized over seven years . at june 30 , 2016 , aytu determined that the zertane asset has no value as aytu does not have the resources to complete the necessary clinical trials and bring it to market before the patents expire . therefore , the remaining unamortized deferred revenue of $ 426,000 which was outstanding as of the date it was determined not to proceed with the clinical trials was recognized as of june 30 , 2016. expenses cost of sales the cost of sales of $ 1.4 million and $ 1.0 million recognized for fiscal 2017 and fiscal 2016 , respectively , are related to the natesto , prostascint and primsol products , the mioxsys and redoxsys systems , as well as products in the fiera line . we expect to see cost of sales to continue to increase in the year ending june 30 , 2018 ( “ fiscal 2018 ” ) as we expect our sales of our current products to continue to grow . research and development research and development costs consist of clinical trials and sponsored research , labor , stock-based compensation , sponsored research – related party and consultants and other . these costs relate solely to research and development without an allocation of general and administrative expenses and are summarized as follows : replace_table_token_4_th comparison of years ended june 30 , 2017 and 2016 research and development expenses decreased $ 5.0 million , or 78.7 % , in fiscal 2017 compared to fiscal 2016. this was due primarily to placing the contract for our manufacturing tech transfer on hold for our prostascint product , as well as shifting our focus to our existing commercialized products . we expect that the research and development expenses will decrease in fiscal 2018 as compared to fiscal 2017 due to the fact that we will continue to focus on our existing products . 71 general and administrative general and administrative expenses consist of personnel costs for employees in executive , business development and operational functions and director fees ; stock-based compensation ; patents and intellectual property ; professional fees including legal , auditing , accounting , investor relations , shareholder expense and printing and filing of sec reports ; occupancy , travel and other including rent , governmental and regulatory compliance , insurance , and professional subscriptions . these costs are summarized

net cash used in operating activities during fiscal 2017 , our operating activities used $ 13.8 million in cash . the use of cash was approximately $ 8.7 million lower than the net loss due primarily to non-cash charges for asset impairment , stock-based compensation , issuance of restricted stock , depreciation , amortization and accretion , amortization of prepaid research and development related party , common stock issued to executives , warrants issued to initial investors , and an increase in accounts payable . these charges were offset by a decrease in accrued compensation , accrued liabilities , and accounts receivable , a gain on the sale of an asset , and derivative income . during fiscal 2016 , our operating activities used $ 10.7 million in cash . the use of cash was approximately $ 17.5 million lower than the net loss due primarily to non-cash charges for asset impairment , amortization of the beneficial conversion feature , stock-based compensation , depreciation , amortization and accretion , unrecognized loss on investment , noncash interest expense , amortization of prepaid research and development related party , an increase in accounts payable and accrued liabilities and an increase accrued compensation offset by an increase to inventory and a decrease to deferred revenue . 72 net cash used in investing activities during fiscal 2017 , cash was received through the sale of primsol , the sale of our investment in acerus and the merger with nuelle , inc. cash was used to make additional required payments for natesto and primsol , and to purchase fixed assets . during fiscal 2016 , cash was used to acquire natesto , our investment in acerus common stock , primsol , the purchase of fixed assets as well as the refund of a deposit for office space .


 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 during fiscal 2017 , our operating activities used $ 13.8 million in cash . the use of cash was approximately $ 8.7 million lower than the net loss due primarily to non-cash charges for asset impairment , stock-based compensation , issuance of restricted stock , depreciation , amortization and accretion , amortization of prepaid research and development related party , common stock issued to executives , warrants issued to initial investors , and an increase in accounts payable . these charges were offset by a decrease in accrued compensation , accrued liabilities , and accounts receivable , a gain on the sale of an asset , and derivative income . during fiscal 2016 , our operating activities used $ 10.7 million in cash . the use of cash was approximately $ 17.5 million lower than the net loss due primarily to non-cash charges for asset impairment , amortization of the beneficial conversion feature , stock-based compensation , depreciation , amortization and accretion , unrecognized loss on investment , noncash interest expense , amortization of prepaid research and development related party , an increase in accounts payable and accrued liabilities and an increase accrued compensation offset by an increase to inventory and a decrease to deferred revenue . 72 net cash used in investing activities during fiscal 2017 , cash was received through the sale of primsol , the sale of our investment in acerus and the merger with nuelle , inc. cash was used to make additional required payments for natesto and primsol , and to purchase fixed assets . during fiscal 2016 , cash was used to acquire natesto , our investment in acerus common stock , primsol , the purchase of fixed assets as well as the refund of a deposit for office space .
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 Suspicious Activity Report : we also will pay 8 % on net sales made after october 31 , 2017 , payable up to a maximum aggregate payment of an additional $ 2.5 million . based upon the estimated expiration date , per our projections we could stop selling this product mid-fiscal 2019 , thus , we impaired the non-tangible assets related to this product . in october 2015 , we entered into an asset purchase agreement with fsc laboratories , inc. , or fsc . pursuant to the agreement , we purchased assets related to fsc 's product known as primsol ( trimethoprim solution ) , including certain intellectual property and contracts , inventory , work in progress and all marketing and sales assets and materials related solely to primsol ( together , the “ primsol business ” ) , and assumed certain of fsc 's liabilities , including those related to the sale and marketing of primsol arising after the closing . we paid $ 500,000 at closing for the primsol business and we paid an additional $ 142,000 , of which $ 102,000 went to inventory and $ 40,000 towards the primsol business , for the transfer of the primsol-related product inventory . we also paid $ 500,000 on april 1 , 2016 and $ 500,000 on july 1 , 2016 , and paid $ 250,000 in november 2016 ( together , the “ installment payments ” ) , for a total purchase price of $ 1,892,000. during fiscal 2017 we sold our prismol product which was used in the treatment of urinary tract infections . in april 2016 , we entered into a license and supply agreement to acquire the exclusive u.s. rights to natesto nasal gel from acerus pharmaceuticals corporation , or acerus , which rights we received on july 1 , 2016. we paid acerus an upfront fee of $ 2.0 million upon execution of the agreement . in october 2016 we paid an additional $ 2.0 million and in january of 2017 , we paid the final upfront payment of $ 4.0 million . we also purchased on april 28 , 2016 , an aggregate of 12,245,411 shares of acerus common stock for cdn . $ 2,535,000 ( approximately us $ 2.0 million ) , with a purchase price per share equal to cdn . $ 0.207 or approximately us $ 0.16 per share . we also agreed to make various payments based upon certain sales milestones up to an aggregate of $ 37.5 million based on net sales of natesto . during the term of the agreement , we will purchase all of our natesto product needs from acerus at a designated price . in our third fiscal quarter of 2017. we sold all of the shares of common stock of acerus pharmaceutics corporation that we acquired in april 2016 for approximately $ 2.0 million as a condition to our licensing of natesto . acerus common stock is traded on the toronto stock exchange . the gross proceeds from the sale of the acerus shares was approximately $ 1.1 million . 68 in may 2016 , we sold in an underwritten public offering 78,125 shares of our common stock , par value $ 0.0001 per share , and warrants to purchase up to an aggregate 78,125 shares of common stock at a combined public offering price of $ 96.00 per share and related warrant . each warrant is exercisable for five years from issuance and has an exercise price equal to $ 120.00. in addition , we granted the underwriters a 45-day option to purchase up to an additional 11,719 shares of common stock and or 11,719 additional warrants . the underwriters elected a partial exercise of their over-allotment option to purchase 8,542 warrants . the net cash proceeds from the sale of the shares and warrants were approximately $ 6.6 million , after deducting underwriting discounts and commissions and estimated offering expenses . in july 2016 , aytu issued 50,000 shares of restricted stock to executive officers and directors . in july 2016 , we entered into a purchase agreement ( the “ purchase agreement ” ) , together with a registration rights agreement ( the “ registration rights agreement ” ) , with lincoln park capital fund , llc ( “ lincoln park ” ) , an illinois limited liability company . upon signing the purchase agreement , lincoln park agreed to purchase 6,684 shares of our common stock for $ 500,000 as an initial purchase under the agreement . we also issued as a commitment fee to lincoln park of 2,625 shares of common stock . during fiscal 2017 , lincoln park purchased 10,000 common shares for $ 240,000. as part of our august 2017 private placement financing , we terminated the purchase agreement , effective august 16 , 2017. on october 27 , 2016 , we priced an underwritten public offering of 286,749 shares of our common stock and warrants to purchase up to an aggregate of 286,749 shares of our common stock at a combined public offering price of $ 30.00 per share and related warrant . the gross proceeds from the offering to aytu was $ 8.6 million , before deducting the underwriting discount and estimated offering expenses payable by aytu , but excluding the exercise of any warrants . the company also granted the representative of the underwriters a 45-day option to purchase up to an additional 43,013 shares and or 43,013 additional warrants . the shares of common stock were immediately separable from the warrants and were issued separately . the warrants are exercisable immediately upon issuance , expire five years after the date of issuance and have an exercise price of $ 37.20 per share . on november 2 , 2016 , we completed the public offering . story_separator_special_tag although it is difficult to predict our liquidity requirements , based upon our current operating plan , as of the date of this report , we believe we will have sufficient cash to meet our projected operating requirements into the first half of fiscal 2019 , at which point we anticipate nearing or reaching cash-flow breakeven . see “ liquidity and capital resources . ” we have only begun to generate material revenues from the commercialization of our product candidates in the last fiscal year . we have recognized approximately $ 3.2 million in revenue from natesto , prostascint , primsol , mioxsys and fiera sales during fiscal 2017. we have incurred accumulated net losses since our inception , and at june 30 , 2017 , we had an accumulated deficit of $ 69.1 million . our net loss was $ 22.5 million for fiscal 2017 and we used $ 13.8 million in cash from operations during that year . significant accounting policies and estimates information regarding our significant accounting policies and estimates is contained in note 2 to the financial statements . newly issued accounting pronouncements information regarding the recently issued accounting standards ( adopted and not adopted as of june 30 , 2017 ) is contained in note 2 to the financial statements . results of operations—june 30 , 2017 compared to june 30 , 2016 results of operations for the year ended june 30 , 2017 ( “ fiscal 2017 ” ) and the year ended june 30 , 2016 ( “ fiscal 2016 ” ) reflected losses of approximately $ 22.5 million and $ 28.2 million , respectively . revenue product and service revenue the total product and service revenue recognized during 2017 was $ 3.2 million , related to the sales of our products natesto , prostascint , and primsol , the mioxsys and redoxsys systems , as well as products in the fiera line . the product and service revenue in fiscal 2016 was $ 2.1 million , which was from the prostascint and primsol product lines , as well as the redoxsys and mioxsys systems . the increase in product revenue of over 57 % from fiscal 2016 to 2017 is due to our acquisitions and ensuing sales of the natesto and fiera products , which occurred late in fiscal 2016 and late fiscal 2017 , respectively , and expanded marketing of our commercial products . 70 as is customary in the pharmaceutical industry , our gross product sales are subject to a variety of deductions in arriving at reported net product sales . provisions for these deductions are recorded concurrently with the recognition of gross product sales revenue and include discounts , chargebacks , distributor fees , processing fees , as well as allowances for returns and medicaid rebates . provision balances relating to estimated amounts payable to direct customers are netted against accounts receivable and balances relating to indirect customers are included in accounts payable and accrued liabilities . the provisions recorded to reduce gross product sales and net product sales are as follows : replace_table_token_3_th license revenue during fiscal 2017 and fiscal 2016 , we recognized $ 0 and $ 512,000 , respectively , in license revenue . in 2012 , we received a payment of $ 500,000 for our license agreement of our former product candidate zertane with a korean pharmaceutical company . this payment was deferred and was being recognized over 10 years . in 2014 , we received a payment of $ 250,000 for our license agreement of zertane with a canadian-based supplier . this payment was deferred and was being recognized over seven years . at june 30 , 2016 , aytu determined that the zertane asset has no value as aytu does not have the resources to complete the necessary clinical trials and bring it to market before the patents expire . therefore , the remaining unamortized deferred revenue of $ 426,000 which was outstanding as of the date it was determined not to proceed with the clinical trials was recognized as of june 30 , 2016. expenses cost of sales the cost of sales of $ 1.4 million and $ 1.0 million recognized for fiscal 2017 and fiscal 2016 , respectively , are related to the natesto , prostascint and primsol products , the mioxsys and redoxsys systems , as well as products in the fiera line . we expect to see cost of sales to continue to increase in the year ending june 30 , 2018 ( “ fiscal 2018 ” ) as we expect our sales of our current products to continue to grow . research and development research and development costs consist of clinical trials and sponsored research , labor , stock-based compensation , sponsored research – related party and consultants and other . these costs relate solely to research and development without an allocation of general and administrative expenses and are summarized as follows : replace_table_token_4_th comparison of years ended june 30 , 2017 and 2016 research and development expenses decreased $ 5.0 million , or 78.7 % , in fiscal 2017 compared to fiscal 2016. this was due primarily to placing the contract for our manufacturing tech transfer on hold for our prostascint product , as well as shifting our focus to our existing commercialized products . we expect that the research and development expenses will decrease in fiscal 2018 as compared to fiscal 2017 due to the fact that we will continue to focus on our existing products . 71 general and administrative general and administrative expenses consist of personnel costs for employees in executive , business development and operational functions and director fees ; stock-based compensation ; patents and intellectual property ; professional fees including legal , auditing , accounting , investor relations , shareholder expense and printing and filing of sec reports ; occupancy , travel and other including rent , governmental and regulatory compliance , insurance , and professional subscriptions . these costs are summarized

