our lead product candidate , immunopulse® il-12 , uses our electroporation device to deliver a dna-encoded interleukin-12 ( “ il-12 ” ) , called tavokinogene telseplasmid ( “ tavo ” ) , with the aim of reversing the immunosuppressive microenvironment in the treated tumor . the activation of the appropriate inflammatory response can drive a systemic anti-tumor response against untreated tumors in other parts of the body . in february 2017 , we received fast track designation from the u.s. food and drug administration ( “ fda ” ) for tavo in metastatic melanoma , which could qualify tavo for expedited fda review , a rolling biologics license application review and certain other benefits . we have ongoing development of tavo in both monotherapy and combination programs and intend to continue to pursue other ongoing or potential new trials and studies related to tavo , in various tumor types including melanoma , tnbc and head and neck cancers . in addition , we are also developing our next-generation electroporation device and applicator , and pursuing discovery research to identify other product candidates that , in addition to il-12 , can be encoded into propriety plasmid-dna , delivered intratumorally using electroporation . 61 results of operations for the year ended july 31 , 2018 compared to the year ended july 31 , 2017 the unaudited financial data for the year ended july 31 , 2018 and july 31 , 2017 is presented in the following table and the results of these two periods are included in the discussion thereafter . replace_table_token_1_th revenue we have not generated any revenue since our inception , and we do not anticipate generating meaningful , or any , revenue in the near term . research and development expenses our research and development expenses increased by $ 5.4 million , from $ 12.0 million in the year ended july 31 , 2017 to $ 17.4 million in the year ended july 31 , 2018. this increase was largely due to increases of : ( i ) $ 3.4 million in outside services costs related to the development of our next-generation electroporation device , clinical research organization costs , as well as clinical consulting costs to primarily support our pisces/keynote-695 study ; ( ii ) $ 2.3 million increase in plasmid manufacturing costs to support clinical trial supply readiness , and , ( iii ) $ 0.4 million in patient-related treatment costs ; these increases were net of ( iv ) $ 0.7 million in a research and development tax credit against our clinical trial costs incurred in australia . we expect research and development to continue to account for a significant portion of our total expenses in the future as we continue to develop our pipeline of product candidates and electroporation devices . [ note : the research and development tax credit relates to a tax credit from australian government based on research and development expenses incurred by our wholly-owned subsidiary in australia . the tax credit does not depend on the company 's generation of future taxable income or ongoing tax status or position . accordingly , the credit is not considered an element of income tax accounting under asc 740 . ] 62 general and administrative our general and administrative expenses increased by $ 9.0 million , from $ 9.7 million in the year ended july 31 , 2017 to $ 18.7 million in the year ended july 31 , 2018. this increase was largely due to increases of : ( i ) $ 4.1 million in stock-based compensation expense primarily related to option and rsu grants to our current directors and executives , as well as acceleration of the vesting of stock based compensation to previous executives ; ( ii ) $ 2.5 million in cash for services and non-cash stock options granted to third-party firms to provide certain investor relations and advisory consulting services ; ( iii ) $ 2.3 million in compensation costs , including severance expense for former executives ; and , ( iv ) $ 0.2 million in other general and administrative-related costs . other income ( expense ) , net other income ( expense ) , net , increased by $ 0.1 million , from other income net of $ 0.2 million in the year ended july 31 , 2017 to other income net of $ 0.3 million in the year ended july 31 , 2018. this increase was primarily due to interest-bearing cash and marketable securities investment accounts . loss on disposal of property and equipment loss on disposal of property and equipment increased by $ 0.9 million , from $ 0 in the year ended july 31 , 2017 to $ 0.9 million in the year ended july 31 , 2018. this increase was due to the loss on disposal of property and equipment related to our move to a smaller facility in san diego , california . warrant inducement expense the warrants issued in connection with our november 2017 warrant exercise inducement offering were considered inducement warrants and the fair value of the inducement warrants of $ 2.5 million is classified as equity and expensed as warrant inducement expense . ( see note 6 ) . provision for income taxes we recorded an income tax provision of $ 680 and $ 1,391 in the year ended july 31 , 2018 and 2017 , respectively , comprised solely of minimum state taxes because of a net tax loss in both periods . story_separator_special_tag stock to the investors that participated in our october 2017 offerings ( described below ) , in consideration for such investors ' agreement to waive certain covenants we made to such investors . story_separator_special_tag on october 9 , 2018 , the company received total proceeds , before expenses , of $ 8.0 million in cash from the offering and issued alpha holdings 5,333,333 shares of common stock . there were no underwriting or placement agent fees associated with the offering . the second closing of 4,666,667 shares of common stock is expected to occur on or before december 15 , 2018. critical accounting policies investment securities securities available for sale are recorded at fair value and unrealized gains and losses are reported , net of taxes , in accumulated other comprehensive income ( loss ) included in stockholders ' equity . securities held to maturity are recorded at amortized cost based on the company 's positive intent and ability to hold these securities to maturity . realized gains and losses from sales of securities available for sale are determined on a specific identification basis and are included in other revenue – net . management evaluates whether securities available for sale and securities held to maturity are other-than-temporarily impaired ( “ otti ” ) on a quarterly basis . debt securities with unrealized losses are considered otti if the company intends to sell the security or if it is more likely than not that the company will be required to sell such security prior to any anticipated recovery . if management determines that a security is otti under these circumstances , the impairment recognized in earnings is measured as the entire difference between the amortized cost and the then-current fair value . accounting for long-lived assets we assess the impairment of long-lived assets , consisting of property and equipment , periodically and whenever events or circumstances indicate that the carrying value may not be recoverable . examples of such circumstances may include : ( 1 ) the asset 's ability to continue to generate income from operations and positive cash flow in future periods ; ( 2 ) loss of legal ownership or title to an asset ; ( 3 ) significant changes in our strategic business objectives and utilization of the assets ; and ( 4 ) the impact of significant negative industry or economic trends . if a change were to occur in any of these or similar factors , the likelihood of a material change in our net loss would increase . 68 recoverability of assets to be held and used in operations is measured by a comparison of the carrying amount of an asset to the future net cash flows expected to be generated by the assets . although we believe the factors used by management to evaluate future net cash flows are reasonable , this evaluation requires a high degree of judgment , and results could vary if the actual amounts are materially different than management 's estimates . in addition , we base estimates of useful lives and related amortization or depreciation expense on our subjective estimate of the period the assets will generate revenue or otherwise be used by us . if long-lived assets are considered impaired , the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets . assets to be disposed of are reported at the lower of the carrying amount or fair value , less selling costs . equity-based awards the company grants equity-based awards ( typically stock options or restricted stock units ) under our stock-based compensation plan and outside of our stock-based compensation plan , with terms generally similar to the terms under our stock-based compensation plan . the company estimates the fair value of stock option awards using the black-scholes option valuation model . for employees and directors , the fair value of the award is measured on the grant date and for non-employees , the fair value of the award is generally re-measured on vesting dates and interim financial reporting dates until the service period is complete . the fair value amount is then recognized over the period during which services are required to be provided in exchange for the award , usually the vesting period . the black-scholes option valuation model requires the input of subjective assumptions , including price volatility of the underlying stock , risk-free interest rate , dividend yield , and expected life of the option . the company estimates the fair value of restricted stock unit awards based on the closing price of the company 's common stock on the date of issuance . changes in assumptions used under the black-scholes option valuation model could materially affect the company 's net loss and net loss per share . employee stock purchase plan employees may elect to participate in our stockholder approved employee stock purchase plan . the stock purchase plan allows for the purchase of our common stock at not less than 85 % of the lesser of ( i ) the fair market value of a share of stock on the beginning date of the offering period or ( ii ) the fair market value of a share of stock on the purchase date of the offering period , subject to a share and dollar limit as defined in the plan and subject to the applicable legal requirements . there are two 6-month offering periods during each fiscal year , ending on january 31 and july 31. in accordance with applicable accounting guidance , the fair value of awards under the stock purchase plan is calculated at the beginning of each offering period . we estimate the fair value of the awards using the black-scholes option valuation model . the black-scholes option valuation model requires the input of subjective assumptions , including price volatility of the underlying stock , risk-free interest rate , dividend yield , and the offering period . this fair value is then amortized at the beginning of the offering period . stock-based compensation expense is based on awards expected to be purchased at the beginning of

liquidity and capital resources working capital the following table and subsequent discussion summarize our working capital as of each of the periods presented : replace_table_token_2_th 63 current assets current assets as of july 31 , 2018 increased to $ 28.6 million , from $ 12.5 million as of july 31 , 2017. this increase was primarily due to an increase in cash , cash equivalents and short-term investment securities from $ 11.4 million as of july 31 , 2017 to $ 27.0 million as of july 31 , 2018 , which is attributable to the net proceeds received from our october 2017 offerings , november 2017 warrant exercise inducement offering and february 2018 offering ( see “ sources of capital ” below ) . current liabilities current liabilities as of july 31 , 2018 increased to $ 5.8 million , from $ 3.4 million as of july 31 , 2017. this increase was primarily due to an increase in accrued clinical and r & d related costs and an increase in accrued compensation . cash flow cash used in operating activities net cash used in operating activities for the year ended july 31 , 2018 was $ 23.2 million , as compared to $ 17.3 million for the year ended july 31 , 2017. the $ 5.9 million increase in cash used in operating activities was primarily attributable to an increase in cash used to support our operating activities , including but not limited to , our clinical trials , an increase in r & d activities and general working capital requirements . cash used in investing activities net cash used in investing activities for the year ended july 31 , 2018 was $ 23.3 million , as compared to $ 22,000 for the year ended july 31 , 2017. the increase was related to our movement of cash from a bank interest-earning account to two short-term investment accounts . we have an investment policy which is administered by management and reviewed by the board of directors . we believe our investment policy is conservative and maximizes returns , while minimizes risk , since we rely on the cash to fund operations .


 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 working capital the following table and subsequent discussion summarize our working capital as of each of the periods presented : replace_table_token_2_th 63 current assets current assets as of july 31 , 2018 increased to $ 28.6 million , from $ 12.5 million as of july 31 , 2017. this increase was primarily due to an increase in cash , cash equivalents and short-term investment securities from $ 11.4 million as of july 31 , 2017 to $ 27.0 million as of july 31 , 2018 , which is attributable to the net proceeds received from our october 2017 offerings , november 2017 warrant exercise inducement offering and february 2018 offering ( see “ sources of capital ” below ) . current liabilities current liabilities as of july 31 , 2018 increased to $ 5.8 million , from $ 3.4 million as of july 31 , 2017. this increase was primarily due to an increase in accrued clinical and r & d related costs and an increase in accrued compensation . cash flow cash used in operating activities net cash used in operating activities for the year ended july 31 , 2018 was $ 23.2 million , as compared to $ 17.3 million for the year ended july 31 , 2017. the $ 5.9 million increase in cash used in operating activities was primarily attributable to an increase in cash used to support our operating activities , including but not limited to , our clinical trials , an increase in r & d activities and general working capital requirements . cash used in investing activities net cash used in investing activities for the year ended july 31 , 2018 was $ 23.3 million , as compared to $ 22,000 for the year ended july 31 , 2017. the increase was related to our movement of cash from a bank interest-earning account to two short-term investment accounts . we have an investment policy which is administered by management and reviewed by the board of directors . we believe our investment policy is conservative and maximizes returns , while minimizes risk , since we rely on the cash to fund operations .
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 Suspicious Activity Report : our lead product candidate , immunopulse® il-12 , uses our electroporation device to deliver a dna-encoded interleukin-12 ( “ il-12 ” ) , called tavokinogene telseplasmid ( “ tavo ” ) , with the aim of reversing the immunosuppressive microenvironment in the treated tumor . the activation of the appropriate inflammatory response can drive a systemic anti-tumor response against untreated tumors in other parts of the body . in february 2017 , we received fast track designation from the u.s. food and drug administration ( “ fda ” ) for tavo in metastatic melanoma , which could qualify tavo for expedited fda review , a rolling biologics license application review and certain other benefits . we have ongoing development of tavo in both monotherapy and combination programs and intend to continue to pursue other ongoing or potential new trials and studies related to tavo , in various tumor types including melanoma , tnbc and head and neck cancers . in addition , we are also developing our next-generation electroporation device and applicator , and pursuing discovery research to identify other product candidates that , in addition to il-12 , can be encoded into propriety plasmid-dna , delivered intratumorally using electroporation . 61 results of operations for the year ended july 31 , 2018 compared to the year ended july 31 , 2017 the unaudited financial data for the year ended july 31 , 2018 and july 31 , 2017 is presented in the following table and the results of these two periods are included in the discussion thereafter . replace_table_token_1_th revenue we have not generated any revenue since our inception , and we do not anticipate generating meaningful , or any , revenue in the near term . research and development expenses our research and development expenses increased by $ 5.4 million , from $ 12.0 million in the year ended july 31 , 2017 to $ 17.4 million in the year ended july 31 , 2018. this increase was largely due to increases of : ( i ) $ 3.4 million in outside services costs related to the development of our next-generation electroporation device , clinical research organization costs , as well as clinical consulting costs to primarily support our pisces/keynote-695 study ; ( ii ) $ 2.3 million increase in plasmid manufacturing costs to support clinical trial supply readiness , and , ( iii ) $ 0.4 million in patient-related treatment costs ; these increases were net of ( iv ) $ 0.7 million in a research and development tax credit against our clinical trial costs incurred in australia . we expect research and development to continue to account for a significant portion of our total expenses in the future as we continue to develop our pipeline of product candidates and electroporation devices . [ note : the research and development tax credit relates to a tax credit from australian government based on research and development expenses incurred by our wholly-owned subsidiary in australia . the tax credit does not depend on the company 's generation of future taxable income or ongoing tax status or position . accordingly , the credit is not considered an element of income tax accounting under asc 740 . ] 62 general and administrative our general and administrative expenses increased by $ 9.0 million , from $ 9.7 million in the year ended july 31 , 2017 to $ 18.7 million in the year ended july 31 , 2018. this increase was largely due to increases of : ( i ) $ 4.1 million in stock-based compensation expense primarily related to option and rsu grants to our current directors and executives , as well as acceleration of the vesting of stock based compensation to previous executives ; ( ii ) $ 2.5 million in cash for services and non-cash stock options granted to third-party firms to provide certain investor relations and advisory consulting services ; ( iii ) $ 2.3 million in compensation costs , including severance expense for former executives ; and , ( iv ) $ 0.2 million in other general and administrative-related costs . other income ( expense ) , net other income ( expense ) , net , increased by $ 0.1 million , from other income net of $ 0.2 million in the year ended july 31 , 2017 to other income net of $ 0.3 million in the year ended july 31 , 2018. this increase was primarily due to interest-bearing cash and marketable securities investment accounts . loss on disposal of property and equipment loss on disposal of property and equipment increased by $ 0.9 million , from $ 0 in the year ended july 31 , 2017 to $ 0.9 million in the year ended july 31 , 2018. this increase was due to the loss on disposal of property and equipment related to our move to a smaller facility in san diego , california . warrant inducement expense the warrants issued in connection with our november 2017 warrant exercise inducement offering were considered inducement warrants and the fair value of the inducement warrants of $ 2.5 million is classified as equity and expensed as warrant inducement expense . ( see note 6 ) . provision for income taxes we recorded an income tax provision of $ 680 and $ 1,391 in the year ended july 31 , 2018 and 2017 , respectively , comprised solely of minimum state taxes because of a net tax loss in both periods . story_separator_special_tag stock to the investors that participated in our october 2017 offerings ( described below ) , in consideration for such investors ' agreement to waive certain covenants we made to such investors . story_separator_special_tag on october 9 , 2018 , the company received total proceeds , before expenses , of $ 8.0 million in cash from the offering and issued alpha holdings 5,333,333 shares of common stock . there were no underwriting or placement agent fees associated with the offering . the second closing of 4,666,667 shares of common stock is expected to occur on or before december 15 , 2018. critical accounting policies investment securities securities available for sale are recorded at fair value and unrealized gains and losses are reported , net of taxes , in accumulated other comprehensive income ( loss ) included in stockholders ' equity . securities held to maturity are recorded at amortized cost based on the company 's positive intent and ability to hold these securities to maturity . realized gains and losses from sales of securities available for sale are determined on a specific identification basis and are included in other revenue – net . management evaluates whether securities available for sale and securities held to maturity are other-than-temporarily impaired ( “ otti ” ) on a quarterly basis . debt securities with unrealized losses are considered otti if the company intends to sell the security or if it is more likely than not that the company will be required to sell such security prior to any anticipated recovery . if management determines that a security is otti under these circumstances , the impairment recognized in earnings is measured as the entire difference between the amortized cost and the then-current fair value . accounting for long-lived assets we assess the impairment of long-lived assets , consisting of property and equipment , periodically and whenever events or circumstances indicate that the carrying value may not be recoverable . examples of such circumstances may include : ( 1 ) the asset 's ability to continue to generate income from operations and positive cash flow in future periods ; ( 2 ) loss of legal ownership or title to an asset ; ( 3 ) significant changes in our strategic business objectives and utilization of the assets ; and ( 4 ) the impact of significant negative industry or economic trends . if a change were to occur in any of these or similar factors , the likelihood of a material change in our net loss would increase . 68 recoverability of assets to be held and used in operations is measured by a comparison of the carrying amount of an asset to the future net cash flows expected to be generated by the assets . although we believe the factors used by management to evaluate future net cash flows are reasonable , this evaluation requires a high degree of judgment , and results could vary if the actual amounts are materially different than management 's estimates . in addition , we base estimates of useful lives and related amortization or depreciation expense on our subjective estimate of the period the assets will generate revenue or otherwise be used by us . if long-lived assets are considered impaired , the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets . assets to be disposed of are reported at the lower of the carrying amount or fair value , less selling costs . equity-based awards the company grants equity-based awards ( typically stock options or restricted stock units ) under our stock-based compensation plan and outside of our stock-based compensation plan , with terms generally similar to the terms under our stock-based compensation plan . the company estimates the fair value of stock option awards using the black-scholes option valuation model . for employees and directors , the fair value of the award is measured on the grant date and for non-employees , the fair value of the award is generally re-measured on vesting dates and interim financial reporting dates until the service period is complete . the fair value amount is then recognized over the period during which services are required to be provided in exchange for the award , usually the vesting period . the black-scholes option valuation model requires the input of subjective assumptions , including price volatility of the underlying stock , risk-free interest rate , dividend yield , and expected life of the option . the company estimates the fair value of restricted stock unit awards based on the closing price of the company 's common stock on the date of issuance . changes in assumptions used under the black-scholes option valuation model could materially affect the company 's net loss and net loss per share . employee stock purchase plan employees may elect to participate in our stockholder approved employee stock purchase plan . the stock purchase plan allows for the purchase of our common stock at not less than 85 % of the lesser of ( i ) the fair market value of a share of stock on the beginning date of the offering period or ( ii ) the fair market value of a share of stock on the purchase date of the offering period , subject to a share and dollar limit as defined in the plan and subject to the applicable legal requirements . there are two 6-month offering periods during each fiscal year , ending on january 31 and july 31. in accordance with applicable accounting guidance , the fair value of awards under the stock purchase plan is calculated at the beginning of each offering period . we estimate the fair value of the awards using the black-scholes option valuation model . the black-scholes option valuation model requires the input of subjective assumptions , including price volatility of the underlying stock , risk-free interest rate , dividend yield , and the offering period . this fair value is then amortized at the beginning of the offering period . stock-based compensation expense is based on awards expected to be purchased at the beginning of

