importantly , we continually evaluate various strategic options that we believe may enable us to enhance stockholder value , including the possible separation of these two distinct businesses . avid—our cdmo business avid provides fully-integrated cgmp services from cell line development to commercial biomanufacturing of large molecules , such as monoclonal antibodies and recombinant proteins for third-party customers while also supporting peregrine 's internal drug development business . we believe this integration offers considerable time and cost efficiencies for our internal drug development business . 30 we have been developing and manufacturing biologics since 1993 in our franklin biomanufacturing facility ( the “ franklin facility ” ) located at our current headquarters in tustin , california and formed avid in 2002 to offer these services to third-party customers using . in march 2016 , we expanded our manufacturing capacity through the launch of our myford biomanufacturing facility ( the “ myford facility ” ) , which doubled our manufacturing capacity . the 42,000 square foot facility , which is our second biomanufacturing facility , can accommodate single-use bioreactors up to the 2,000-liter manufacturing scale . the myford facility was designed to accommodate a fully disposable biomanufacturing process for products in late stage clinical development to commercial . to date , myford facility has been utilized to complete a number of process validation runs for our third-party customers , which may lead to future commercial production , and has supported the process validation of our internal product , bavituximab . the myford facility is located adjacent to our franklin facility . as we look to expand our cdmo business , in february 2017 , we leased an additional 42,000 square feet of vacant warehouse space within the same building as our existing myford facility . the proximity of this space will allow us to utilize existing manufacturing infrastructure that we believe should enhance our manufacturing efficiencies and reduce the overall cost and timeframe to construct a third biomanufacturing facility . although we previously anticipated that the new manufacturing facility would be constructed and ready for manufacturing activities by mid-calendar year 2018 , due to unanticipated changes in and or timing of customer demand ( as discussed above ) , we have decided to defer construction of this third facility until demand from existing or potential new customers is expected to exceed the current capacity at our franklin facility and myford facility . additionally , commencement of construction is also subject to our ability to raise sufficient additional capital to support this expansion effort . as a result , we presently do not expect to commence construction of this third facility prior to april 30 , 2018. peregrine—our research and development business peregrine is developing therapeutics designed to fight cancer by reversing the immunosuppressive environment that tumors establish in order to proliferate . by doing so , these therapeutics allow the immune system to recognize and destroy tumor cells . bavituximab is our lead immunotherapy candidate and currently we are collaborating with the national comprehensive cancer network® ( “ nccn ” ) and memorial sloan kettering cancer center ( “ mskcc ” ) , to evaluate the potential of bavituximab in combination with immune stimulating therapies . clinical development strategy in june 2016 , we announced a clinical development strategy focused on conducting small , early stage studies of bavituximab in combination with immune stimulating therapies . these trials may be conducted independently , in conjunction with our collaborators , or through investigator sponsored trials ( “ ists ” ) . the goal of these trials is to generate compelling clinical and translational data demonstrating bavituximab 's immunotherapeutic mechanism of action in a combination treatment setting . additionally , we are in the process of completing an extensive review and analysis of the available data from the discontinued phase iii sunrise trial discussed below and testing the numerous collected samples for potential biomarkers in order to determine if certain subgroups may have benefited more from the bavituximab treatment . we believe such information will assist us in guiding the bavituximab clinical program . in keeping with this strategy , we are evaluating options to advance clinical development bavituximab in an efficient and cost-effective way . we believe this strategy will allow us to ( i ) continue our research and development activities while avoiding costly , later stage clinical trials , thereby allowing us to achieve profitability sooner , and ( ii ) generate additional data that we believe , if positive , could create future potential value , including attracting potential licensing partners or re-engaging our collaboration with astrazeneca . 31 nccn collaboration in january 2016 , we announced that we entered into a research collaboration with nccn , a not-for-profit alliance of 27 of the world 's leading cancer centers , to expand the clinical research and development of bavituximab for the treatment of a range of tumors . under this research collaboration , we are funding three ists and related correlative studies with bavituximab at nccn member institutions and their affiliate community hospitals through a $ 2 million research grant to nccn 's oncology research program . nccn is responsible for oversight and monitoring of the three clinical studies awarded under the research grant . in september 2016 , nccn announced that investigators at the following nccn-affiliated institutions received the grant award : 1. moffitt cancer center—a phase i trial of sorafenib and bavituximab plus stereotactic body radiation therapy for unresectable hepatitis c associated hepatocellular carcinoma . this trial is open for enrollment . 2. massachusetts general hospital cancer center—phase i/ii clinical trial of bavituximab with radiation and temozolomide for patients with newly diagnosed glioblastoma . this trial is open for enrollment . 3. the sidney kimmel comprehensive cancer center at johns hopkins—phase ii study of pembrolizumab and bavituximab for progressive recurrent/metastatic squamous cell carcinoma of the head and neck . story_separator_special_tag revenue is recognized for these “ bill-and-hold ” arrangements in accordance with the authoritative guidance , which requires , among other things , the existence of a valid business purpose for the arrangement ; the “ bill-and-hold ” arrangement is at the request of the customer ; title and risk of ownership must pass to the customer ; the product is complete and ready for shipment ; a fixed delivery date that is reasonable and consistent with the customer 's business practices ; the product has been separated from our inventory ; and no further performance obligations by us exist . in addition , we also follow the authoritative guidance when reporting revenue as gross when we act as a principal versus reporting revenue as net when we act as an agent . for transactions in which we act as a principal , have discretion to choose suppliers , bear credit and inventory risk and perform a substantive part of the services , revenue is recorded at the gross amount billed to a customer and costs associated with these reimbursements are reflected as a component of cost of sales for contract manufacturing services . any amounts received prior to satisfying our revenue recognition criteria are recorded as deferred revenue or customer deposits in the accompanying consolidated financial statements . we also record a provision for estimated contract losses , if any , in the period in which they are determined . research and development expenses research and development expenses primarily include ( i ) payroll and related costs , including share-based compensation associated with research and development personnel , ( ii ) costs related to clinical trials and preclinical testing of our technologies under development , ( iii ) costs to develop and manufacture the product candidates , including raw materials and supplies , product testing , depreciation , and facility related expenses , ( iv ) expenses for research services provided by universities and contract laboratories , including sponsored research funding , and ( v ) other research and development expenses . research and development expenses are charged to expense as incurred when these expenditures relate to our research and development efforts and have no alternative future uses . clinical trial costs are a significant component of our research and development expenses . we have a history of contracting with third parties that perform various clinical trial activities on our behalf in the ongoing development of our product candidates . the financial terms of these contracts are subject to negotiations and may vary from contract to contract and may result in uneven payment flow . expenses related to clinical trials are accrued based on our estimates and or representations from third parties ( including clinical research organizations ) regarding services performed . if the contracted amounts are modified ( for instance , as a result of changes in the clinical trial protocol or scope of work to be performed ) , we modify our accruals accordingly on a prospective basis . revisions in the scope of a contract are charged to expense in the period in which the facts that give rise to the revision become reasonably certain . there were no material adjustments for a change in estimate to research and development expenses in the accompanying consolidated financial statements in any of the three years ended april 30 , 2017. under certain research and development agreements , we are obligated to make certain advance payments , including nonrefundable amounts , for goods or services that will be used or rendered for future research and development activities and are deferred and capitalized as prepaid research and development expenses . these advance payments are recognized as an expense in the period the related goods are delivered or the related services are performed . we assess our prepaid research and development expenses for impairment when events or changes in circumstances indicate that the carrying amount of the prepaid expense may not be recoverable or provide future economic benefit . 37 in addition , under certain in-licensing agreements associated with the research and development of our product candidates , we are obligated to pay certain milestone payments based on potential clinical development and regulatory milestones ( as described in note 4 to the accompanying consolidated financial statements ) . these milestone payments have no alternative future uses ( in other research and development projects or otherwise ) and therefore have no separate economic values and are expensed as research and development costs at the time the costs are incurred . we have no in-licensed product candidates that have alternative future uses in research and development projects or otherwise . in addition , we do not perform any research and development activities for any unrelated entities . share-based compensation we account for stock options and other share-based awards granted under our equity compensation plans in accordance with the authoritative guidance for share-based compensation . the estimated fair value of share-based payments to employees in exchange for services is measured at the grant date , using a fair value based method , such as a black-scholes option valuation model , and is recognized as expense on a straight-line basis over the requisite service periods . the fair value of modifications to share-based awards , if any , is generally estimated using a black-scholes option valuation model , unless a lattice model is required . share-based compensation expense recognized during the period is based on the value of the portion of the share-based payment that is ultimately expected to vest during the period and is reduced for estimated forfeitures . the authoritative guidance requires forfeitures to be estimated at the time of grant and revised , if necessary , in subsequent periods if actual forfeitures differ from those estimates . as of april 30 , 2017 , there were no outstanding share-based awards with market or performance conditions . the estimated fair value of stock options are measured at the grant date , using a

cash used in operating activities . net cash used in operating activities represents our ( i ) net loss , as reported , ( ii ) less non-cash operating expenses , and ( iii ) net changes in the timing of cash flows as reflected by the changes in operating assets and liabilities , as described in the below table : replace_table_token_8_th net cash used in operating activities increased $ 195,000 to $ 39,786,000 for fiscal year 2017 compared to net cash used in operating activities of $ 39,591,000 for fiscal year 2016. this increase in net cash used in operating activities was due to a net change in operating assets and liabilities of $ 27,068,000 due to the timing of cash receipts and expenditures primarily associated with customer deposits , deferred revenue , accrued clinical trial and related fees , inventories , and trade and other receivables , offset by a decrease of $ 26,873,000 in net loss reported for fiscal year 2017 after deducting non-cash operating expenses as described in the above table . net cash used in operating activities increased $ 3,572,000 to $ 39,591,000 for fiscal year 2016 compared to net cash used in operating activities of $ 36,019,000 for fiscal year 2015. this increase in net cash used in operating activities was due to an increase of $ 6,592,000 in net loss reported for fiscal year 2016 after deducting non-cash operating expenses as described in the above table , offset by a net change in operating assets and liabilities of $ 3,020,000 due to the timing of cash receipts and expenditures . cash used in investing activities . net cash used in investing activities for the fiscal years ended april 30 , 2017 , 2016 , and 2015 , was $ 2,992,000 , $ 8,791,000 , and $ 8,449,000 , respectively .


 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.
     ```cash used in operating activities . net cash used in operating activities represents our ( i ) net loss , as reported , ( ii ) less non-cash operating expenses , and ( iii ) net changes in the timing of cash flows as reflected by the changes in operating assets and liabilities , as described in the below table : replace_table_token_8_th net cash used in operating activities increased $ 195,000 to $ 39,786,000 for fiscal year 2017 compared to net cash used in operating activities of $ 39,591,000 for fiscal year 2016. this increase in net cash used in operating activities was due to a net change in operating assets and liabilities of $ 27,068,000 due to the timing of cash receipts and expenditures primarily associated with customer deposits , deferred revenue , accrued clinical trial and related fees , inventories , and trade and other receivables , offset by a decrease of $ 26,873,000 in net loss reported for fiscal year 2017 after deducting non-cash operating expenses as described in the above table . net cash used in operating activities increased $ 3,572,000 to $ 39,591,000 for fiscal year 2016 compared to net cash used in operating activities of $ 36,019,000 for fiscal year 2015. this increase in net cash used in operating activities was due to an increase of $ 6,592,000 in net loss reported for fiscal year 2016 after deducting non-cash operating expenses as described in the above table , offset by a net change in operating assets and liabilities of $ 3,020,000 due to the timing of cash receipts and expenditures . cash used in investing activities . net cash used in investing activities for the fiscal years ended april 30 , 2017 , 2016 , and 2015 , was $ 2,992,000 , $ 8,791,000 , and $ 8,449,000 , respectively .
```    
 Suspicious Activity Report : importantly , we continually evaluate various strategic options that we believe may enable us to enhance stockholder value , including the possible separation of these two distinct businesses . avid—our cdmo business avid provides fully-integrated cgmp services from cell line development to commercial biomanufacturing of large molecules , such as monoclonal antibodies and recombinant proteins for third-party customers while also supporting peregrine 's internal drug development business . we believe this integration offers considerable time and cost efficiencies for our internal drug development business . 30 we have been developing and manufacturing biologics since 1993 in our franklin biomanufacturing facility ( the “ franklin facility ” ) located at our current headquarters in tustin , california and formed avid in 2002 to offer these services to third-party customers using . in march 2016 , we expanded our manufacturing capacity through the launch of our myford biomanufacturing facility ( the “ myford facility ” ) , which doubled our manufacturing capacity . the 42,000 square foot facility , which is our second biomanufacturing facility , can accommodate single-use bioreactors up to the 2,000-liter manufacturing scale . the myford facility was designed to accommodate a fully disposable biomanufacturing process for products in late stage clinical development to commercial . to date , myford facility has been utilized to complete a number of process validation runs for our third-party customers , which may lead to future commercial production , and has supported the process validation of our internal product , bavituximab . the myford facility is located adjacent to our franklin facility . as we look to expand our cdmo business , in february 2017 , we leased an additional 42,000 square feet of vacant warehouse space within the same building as our existing myford facility . the proximity of this space will allow us to utilize existing manufacturing infrastructure that we believe should enhance our manufacturing efficiencies and reduce the overall cost and timeframe to construct a third biomanufacturing facility . although we previously anticipated that the new manufacturing facility would be constructed and ready for manufacturing activities by mid-calendar year 2018 , due to unanticipated changes in and or timing of customer demand ( as discussed above ) , we have decided to defer construction of this third facility until demand from existing or potential new customers is expected to exceed the current capacity at our franklin facility and myford facility . additionally , commencement of construction is also subject to our ability to raise sufficient additional capital to support this expansion effort . as a result , we presently do not expect to commence construction of this third facility prior to april 30 , 2018. peregrine—our research and development business peregrine is developing therapeutics designed to fight cancer by reversing the immunosuppressive environment that tumors establish in order to proliferate . by doing so , these therapeutics allow the immune system to recognize and destroy tumor cells . bavituximab is our lead immunotherapy candidate and currently we are collaborating with the national comprehensive cancer network® ( “ nccn ” ) and memorial sloan kettering cancer center ( “ mskcc ” ) , to evaluate the potential of bavituximab in combination with immune stimulating therapies . clinical development strategy in june 2016 , we announced a clinical development strategy focused on conducting small , early stage studies of bavituximab in combination with immune stimulating therapies . these trials may be conducted independently , in conjunction with our collaborators , or through investigator sponsored trials ( “ ists ” ) . the goal of these trials is to generate compelling clinical and translational data demonstrating bavituximab 's immunotherapeutic mechanism of action in a combination treatment setting . additionally , we are in the process of completing an extensive review and analysis of the available data from the discontinued phase iii sunrise trial discussed below and testing the numerous collected samples for potential biomarkers in order to determine if certain subgroups may have benefited more from the bavituximab treatment . we believe such information will assist us in guiding the bavituximab clinical program . in keeping with this strategy , we are evaluating options to advance clinical development bavituximab in an efficient and cost-effective way . we believe this strategy will allow us to ( i ) continue our research and development activities while avoiding costly , later stage clinical trials , thereby allowing us to achieve profitability sooner , and ( ii ) generate additional data that we believe , if positive , could create future potential value , including attracting potential licensing partners or re-engaging our collaboration with astrazeneca . 31 nccn collaboration in january 2016 , we announced that we entered into a research collaboration with nccn , a not-for-profit alliance of 27 of the world 's leading cancer centers , to expand the clinical research and development of bavituximab for the treatment of a range of tumors . under this research collaboration , we are funding three ists and related correlative studies with bavituximab at nccn member institutions and their affiliate community hospitals through a $ 2 million research grant to nccn 's oncology research program . nccn is responsible for oversight and monitoring of the three clinical studies awarded under the research grant . in september 2016 , nccn announced that investigators at the following nccn-affiliated institutions received the grant award : 1. moffitt cancer center—a phase i trial of sorafenib and bavituximab plus stereotactic body radiation therapy for unresectable hepatitis c associated hepatocellular carcinoma . this trial is open for enrollment . 2. massachusetts general hospital cancer center—phase i/ii clinical trial of bavituximab with radiation and temozolomide for patients with newly diagnosed glioblastoma . this trial is open for enrollment . 3. the sidney kimmel comprehensive cancer center at johns hopkins—phase ii study of pembrolizumab and bavituximab for progressive recurrent/metastatic squamous cell carcinoma of the head and neck . story_separator_special_tag revenue is recognized for these “ bill-and-hold ” arrangements in accordance with the authoritative guidance , which requires , among other things , the existence of a valid business purpose for the arrangement ; the “ bill-and-hold ” arrangement is at the request of the customer ; title and risk of ownership must pass to the customer ; the product is complete and ready for shipment ; a fixed delivery date that is reasonable and consistent with the customer 's business practices ; the product has been separated from our inventory ; and no further performance obligations by us exist . in addition , we also follow the authoritative guidance when reporting revenue as gross when we act as a principal versus reporting revenue as net when we act as an agent . for transactions in which we act as a principal , have discretion to choose suppliers , bear credit and inventory risk and perform a substantive part of the services , revenue is recorded at the gross amount billed to a customer and costs associated with these reimbursements are reflected as a component of cost of sales for contract manufacturing services . any amounts received prior to satisfying our revenue recognition criteria are recorded as deferred revenue or customer deposits in the accompanying consolidated financial statements . we also record a provision for estimated contract losses , if any , in the period in which they are determined . research and development expenses research and development expenses primarily include ( i ) payroll and related costs , including share-based compensation associated with research and development personnel , ( ii ) costs related to clinical trials and preclinical testing of our technologies under development , ( iii ) costs to develop and manufacture the product candidates , including raw materials and supplies , product testing , depreciation , and facility related expenses , ( iv ) expenses for research services provided by universities and contract laboratories , including sponsored research funding , and ( v ) other research and development expenses . research and development expenses are charged to expense as incurred when these expenditures relate to our research and development efforts and have no alternative future uses . clinical trial costs are a significant component of our research and development expenses . we have a history of contracting with third parties that perform various clinical trial activities on our behalf in the ongoing development of our product candidates . the financial terms of these contracts are subject to negotiations and may vary from contract to contract and may result in uneven payment flow . expenses related to clinical trials are accrued based on our estimates and or representations from third parties ( including clinical research organizations ) regarding services performed . if the contracted amounts are modified ( for instance , as a result of changes in the clinical trial protocol or scope of work to be performed ) , we modify our accruals accordingly on a prospective basis . revisions in the scope of a contract are charged to expense in the period in which the facts that give rise to the revision become reasonably certain . there were no material adjustments for a change in estimate to research and development expenses in the accompanying consolidated financial statements in any of the three years ended april 30 , 2017. under certain research and development agreements , we are obligated to make certain advance payments , including nonrefundable amounts , for goods or services that will be used or rendered for future research and development activities and are deferred and capitalized as prepaid research and development expenses . these advance payments are recognized as an expense in the period the related goods are delivered or the related services are performed . we assess our prepaid research and development expenses for impairment when events or changes in circumstances indicate that the carrying amount of the prepaid expense may not be recoverable or provide future economic benefit . 37 in addition , under certain in-licensing agreements associated with the research and development of our product candidates , we are obligated to pay certain milestone payments based on potential clinical development and regulatory milestones ( as described in note 4 to the accompanying consolidated financial statements ) . these milestone payments have no alternative future uses ( in other research and development projects or otherwise ) and therefore have no separate economic values and are expensed as research and development costs at the time the costs are incurred . we have no in-licensed product candidates that have alternative future uses in research and development projects or otherwise . in addition , we do not perform any research and development activities for any unrelated entities . share-based compensation we account for stock options and other share-based awards granted under our equity compensation plans in accordance with the authoritative guidance for share-based compensation . the estimated fair value of share-based payments to employees in exchange for services is measured at the grant date , using a fair value based method , such as a black-scholes option valuation model , and is recognized as expense on a straight-line basis over the requisite service periods . the fair value of modifications to share-based awards , if any , is generally estimated using a black-scholes option valuation model , unless a lattice model is required . share-based compensation expense recognized during the period is based on the value of the portion of the share-based payment that is ultimately expected to vest during the period and is reduced for estimated forfeitures . the authoritative guidance requires forfeitures to be estimated at the time of grant and revised , if necessary , in subsequent periods if actual forfeitures differ from those estimates . as of april 30 , 2017 , there were no outstanding share-based awards with market or performance conditions . the estimated fair value of stock options are measured at the grant date , using a

