we expect our expenses and capital requirements will increase substantially in connection with our ongoing activities , as we : initiate and expand clinical trials for pulmazole for abpa , and other indications for immunocompromised at-risk patients ; seek regulatory approval for our product candidates ; hire personnel to support our product development , commercialization and administrative efforts ; and advance the research and development related activities for inhaled therapeutic products in our pipeline . 38 we will not generate product sales unless and until we successfully complete clinical developments and obtain regulatory approvals for our product candidates . additionally , we currently utilize third-party contract research organizations ( cros ) to carry out our clinical development activities and third-party contract manufacturing organizations ( cmos ) to carry out our clinical manufacturing activities ; we do not yet have a commercial organization . if we obtain regulatory approval for any of our product candidates , we expect to incur significant expenses related to developing our internal commercialization capability to support product sales , marketing and distribution . accordingly , we anticipate that we will seek to fund our operations through public or private equity or debt financings or other sources , potentially including collaborative commercial arrangements . likewise , we intend to seek to limit our commercialization costs by partnering with other companies with complementary capabilities or larger infrastructure including sales and marketing . because of the numerous risks and uncertainties associated with product development , we are unable to predict the timing or amount of increased expenses or when or if we will be able to achieve or maintain profitability . even if we are able to generate product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . financial overview to date , we have not generated any product sales . our 2017 revenue resulted from an award from cystic fibrosis foundation therapeutics ( cfft ) , the nonprofit drug discovery and development affiliate of the cystic fibrosis foundation , to support the development of pulmazole for the treatment of allergic bronchopulmonary aspergillosis ( abpa ) in patients with asthma and cystic fibrosis . our 2016 revenue resulted from the long-acting muscarinic agent collaboration agreement that we entered into with mylan in 2015. under the agreement , we were eligible to receive reimbursement for third-party out of pocket expenses directly related to clinical trials . the collaboration agreement concluded in 2016. research and development expenses research and development expenses consist primarily of costs incurred for the research and development of our preclinical and clinical candidates , and include : employee-related expenses , including salaries , benefits and stock-based compensation expense ; expenses incurred under agreements with cros or cmos , and consultants that conduct our clinical trials and preclinical activities ; the cost of acquiring , developing and manufacturing clinical trial materials and lab supplies ; facility , depreciation and other expenses , which include direct and allocated expenses for rent , maintenance of our facility , insurance and other supplies ; and costs associated with preclinical activities and regulatory operations . we expense research and development costs to operations as incurred . we recognize costs for certain development activities , such as clinical trials , based on an evaluation of the progress to completion of specific tasks using data such as patient enrollment , clinical site activations or information provided to us by our vendors . research and development activities are central to our business model . we utilize a combination of internal and external efforts to advance product development from early stage work to clinical trial manufacturing and clinical trial support . external efforts include work with consultants and substantial work at cros and cmos . we support an internal research and development team and facility for our pipeline programs . to move these programs forward along our development timelines , a large portion , approximately 69 % , of our staff are research 39 and development employees . in addition , we maintain a 12,000 square foot research and development facility which includes capital equipment for the manufacture and characterization of our isperse powders for our pipeline programs . as we identify opportunities for isperse in respiratory indications , we anticipate additional head count , capital , and development costs will be incurred to support these programs . because of the numerous risks and uncertainties associated with product development , however , we can not determine with certainty the duration and completion costs of these or other current or future preclinical studies and clinical trials . the duration , costs and timing of clinical trials and development of our product candidates will depend on a variety of factors , including the uncertainties of future clinical and preclinical studies , uncertainties in clinical trial enrollment rates and significant and changing government regulation . in addition , the probability of success for each product candidate will depend on numerous factors , including competition , manufacturing capability and commercial viability . general and administrative expenses general and administrative expenses consist principally of salaries and related costs such as stock-based compensation for personnel and consultants in executive , finance , business development , corporate communications and human resource functions , facility costs not otherwise included in research and development expenses , patent filing fees and professional legal fees . other general and administrative expenses include travel expenses and professional fees for consulting , auditing and tax services . we anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support our continued research and development and potential commercialization of our product candidates . story_separator_special_tag the closing of the sale of the shares under the second purchase agreement occurred on february 8 , 2017. net of commissions , fees and other issuance costs totaling $ 727 , aggregate net proceeds of the two noted registered direct offerings were $ 7,598. the shares issued in the offerings were offered and sold by us pursuant to 46 an effective shelf registration statement on form s-3 , which was filed with the securities and exchange commission on july 15 , 2016 , and subsequently declared effective on august 3 , 2016 ( file no . 333-212546 ) , and a related prospectus . at-the-market offering on march 17 , 2017 , we entered into an at-the-market sales agreement ( the sales agreement ) with btig , llc ( btig ) to act as our sales agent with respect to the issuance and sale of up to $ 11,000,000 of shares of our common stock , from time to time in an at-the-market public offering ( the offering ) . sales of common stock under the sales agreement are made pursuant to an effective shelf registration statement on form s-3 , which was filed with the securities and exchange commission on july 15 , 2016 , and subsequently declared effective on august 3 , 2016 ( file no . 333-212546 ) , and a related prospectus . btig acts as our sales agent on a commercially reasonable efforts basis , consistent with its normal trading and sales practices and applicable state and federal laws , rules and regulations and the rules of the nasdaq global market . if expressly authorized by us , btig may also sell the company 's common stock in privately negotiated transactions . there is no specific date on which the offering will end , there are no minimum sale requirements and there are no arrangements to place any of the proceeds of this offering in an escrow , trust or similar account . btig is entitled to compensation at a fixed commission rate of 3.0 % of the gross proceeds from the sale of the company 's common stock pursuant to the sales agreement . during 2017 , we sold 3,103,360 shares of its common stock under the sales agreement at an average selling price of approximately $ 2.93 per share which resulted in gross proceeds of approximately $ 9,096 and net proceeds of approximately $ 8,712 after payment of 3 % commission to btig and other issuance costs . term loan and warrant on june 11 , 2015 pulmatrix operating company inc. entered into a loan and security agreement ( lsa ) with hercules , for the term loan in a principal amount of $ 7.0 million . on june 15 , 2015 , following the effective time of the merger with pulmatrix operating company inc. , we signed a joinder agreement with hercules to make our company a co-borrower under the lsa . the term loan is secured by substantially all of our and our subsidiary 's assets , excluding our and our subsidiary 's intellectual property . the term loan bears interest at a floating annual rate equal to the greater of ( i ) 9.50 % and ( ii ) the sum of ( a ) the prime rate as reported by the wall street journal minus 3.25 % plus ( b ) 9.50 % . we are required to make interest payments in cash on the first business day of each month , beginning on july 1 , 2015. beginning on august 1 , 2016 , we are required to make monthly payments on the first business day of each month consisting of principal and interest based upon a 30-month amortization schedule , and any remaining unpaid principal and interest will be due on the maturity date of july 1 , 2018. upon repayment of the term loan , we are also required to pay an end of term fee to the lenders of approximately $ 0.2 million . we may elect to prepay all , but not less than all , of the outstanding principal balance of the term loan , subject to a prepayment fee of 1 %  3 % , depending on the date of repayment . contingent on the occurrence of several events , including that our closing stock price exceed $ 11.73 per share for the seven days preceding a payment date , we may elect to pay , in whole or in part , any regularly scheduled installment of principal up to an aggregate maximum amount of $ 1.0 million by converting a portion of the principal into shares of our common stock at a price of $ 11.73 per share . hercules may elect to receive payments of any regularly scheduled amounts of principal in shares of our common stock based on a price of $ 11.73 per share , subject to an aggregate maximum principal amount of $ 1.0 million . the credit facility includes affirmative and negative covenants . the affirmative covenants include , among others , covenants requiring us to maintain legal existence and governmental approvals and to deliver certain financial reports and maintain insurance coverage . the negative covenants include , among others , restrictions on 47 transferring collateral , incurring additional indebtedness , engaging in mergers or acquisitions , paying dividends or making other distributions , making investments , creating liens , selling assets , and suffering a change in control , in each case subject to certain exceptions . in general , the term loan prohibits us from ( i ) repurchasing or redeeming any class of capital stock , including common stock or ( ii ) declaring or paying any cash dividend or making cash distribution on any class of capital stock , including common stock . as of december 31 , 2017 , and 2016 , we were in compliance with all covenants . the credit facility also includes events of default ,

liquidity and capital resources through december 31 , 2017 , we have incurred an accumulated deficit of $ 174.0 million , primarily as a result of expenses incurred through a combination of research and development activities related to our various product candidates and general and administrative expenses supporting those activities , as well as a net loss of $ 18.0 million and negative operating cash flows . our total cash and cash equivalents balance as of december 31 , 2017 was $ 3.6 million . we expect to continue incurring losses and negative cash flows from operations until our products reach commercial profitability . as a result of these expected losses and negative cash flows from operations , along with our current cash position , we only have sufficient resources to fund operations into the second quarter of 2018. therefore , there is substantial doubt about our ability to continue as a going concern . our plans include the continued commercialization of our products and raising capital through the sale of additional equity securities or capital inflows from strategic partnerships . there are no assurances , however , that we will be successful in obtaining the level of financing needed for our operations . if we are unsuccessful in commercializing our products and raising capital , we may need to reduce activities , curtail or cease operations . during 2017 , we closed two registered direct offerings and periodically sold shares of common stock pursuant to at-the-market offering described below that resulted in net proceeds of approximately $ 16.3 million . we anticipate that we will continue to incur losses , and that such losses will increase over the next several years due to development costs associated with our isperse pipeline programs . we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need additional capital to fund our operations , which we may raise through a combination of equity offerings , debt financings , other third-party funding and other collaborations and strategic alliances .


 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 through december 31 , 2017 , we have incurred an accumulated deficit of $ 174.0 million , primarily as a result of expenses incurred through a combination of research and development activities related to our various product candidates and general and administrative expenses supporting those activities , as well as a net loss of $ 18.0 million and negative operating cash flows . our total cash and cash equivalents balance as of december 31 , 2017 was $ 3.6 million . we expect to continue incurring losses and negative cash flows from operations until our products reach commercial profitability . as a result of these expected losses and negative cash flows from operations , along with our current cash position , we only have sufficient resources to fund operations into the second quarter of 2018. therefore , there is substantial doubt about our ability to continue as a going concern . our plans include the continued commercialization of our products and raising capital through the sale of additional equity securities or capital inflows from strategic partnerships . there are no assurances , however , that we will be successful in obtaining the level of financing needed for our operations . if we are unsuccessful in commercializing our products and raising capital , we may need to reduce activities , curtail or cease operations . during 2017 , we closed two registered direct offerings and periodically sold shares of common stock pursuant to at-the-market offering described below that resulted in net proceeds of approximately $ 16.3 million . we anticipate that we will continue to incur losses , and that such losses will increase over the next several years due to development costs associated with our isperse pipeline programs . we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need additional capital to fund our operations , which we may raise through a combination of equity offerings , debt financings , other third-party funding and other collaborations and strategic alliances .
```    
 Suspicious Activity Report : we expect our expenses and capital requirements will increase substantially in connection with our ongoing activities , as we : initiate and expand clinical trials for pulmazole for abpa , and other indications for immunocompromised at-risk patients ; seek regulatory approval for our product candidates ; hire personnel to support our product development , commercialization and administrative efforts ; and advance the research and development related activities for inhaled therapeutic products in our pipeline . 38 we will not generate product sales unless and until we successfully complete clinical developments and obtain regulatory approvals for our product candidates . additionally , we currently utilize third-party contract research organizations ( cros ) to carry out our clinical development activities and third-party contract manufacturing organizations ( cmos ) to carry out our clinical manufacturing activities ; we do not yet have a commercial organization . if we obtain regulatory approval for any of our product candidates , we expect to incur significant expenses related to developing our internal commercialization capability to support product sales , marketing and distribution . accordingly , we anticipate that we will seek to fund our operations through public or private equity or debt financings or other sources , potentially including collaborative commercial arrangements . likewise , we intend to seek to limit our commercialization costs by partnering with other companies with complementary capabilities or larger infrastructure including sales and marketing . because of the numerous risks and uncertainties associated with product development , we are unable to predict the timing or amount of increased expenses or when or if we will be able to achieve or maintain profitability . even if we are able to generate product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . financial overview to date , we have not generated any product sales . our 2017 revenue resulted from an award from cystic fibrosis foundation therapeutics ( cfft ) , the nonprofit drug discovery and development affiliate of the cystic fibrosis foundation , to support the development of pulmazole for the treatment of allergic bronchopulmonary aspergillosis ( abpa ) in patients with asthma and cystic fibrosis . our 2016 revenue resulted from the long-acting muscarinic agent collaboration agreement that we entered into with mylan in 2015. under the agreement , we were eligible to receive reimbursement for third-party out of pocket expenses directly related to clinical trials . the collaboration agreement concluded in 2016. research and development expenses research and development expenses consist primarily of costs incurred for the research and development of our preclinical and clinical candidates , and include : employee-related expenses , including salaries , benefits and stock-based compensation expense ; expenses incurred under agreements with cros or cmos , and consultants that conduct our clinical trials and preclinical activities ; the cost of acquiring , developing and manufacturing clinical trial materials and lab supplies ; facility , depreciation and other expenses , which include direct and allocated expenses for rent , maintenance of our facility , insurance and other supplies ; and costs associated with preclinical activities and regulatory operations . we expense research and development costs to operations as incurred . we recognize costs for certain development activities , such as clinical trials , based on an evaluation of the progress to completion of specific tasks using data such as patient enrollment , clinical site activations or information provided to us by our vendors . research and development activities are central to our business model . we utilize a combination of internal and external efforts to advance product development from early stage work to clinical trial manufacturing and clinical trial support . external efforts include work with consultants and substantial work at cros and cmos . we support an internal research and development team and facility for our pipeline programs . to move these programs forward along our development timelines , a large portion , approximately 69 % , of our staff are research 39 and development employees . in addition , we maintain a 12,000 square foot research and development facility which includes capital equipment for the manufacture and characterization of our isperse powders for our pipeline programs . as we identify opportunities for isperse in respiratory indications , we anticipate additional head count , capital , and development costs will be incurred to support these programs . because of the numerous risks and uncertainties associated with product development , however , we can not determine with certainty the duration and completion costs of these or other current or future preclinical studies and clinical trials . the duration , costs and timing of clinical trials and development of our product candidates will depend on a variety of factors , including the uncertainties of future clinical and preclinical studies , uncertainties in clinical trial enrollment rates and significant and changing government regulation . in addition , the probability of success for each product candidate will depend on numerous factors , including competition , manufacturing capability and commercial viability . general and administrative expenses general and administrative expenses consist principally of salaries and related costs such as stock-based compensation for personnel and consultants in executive , finance , business development , corporate communications and human resource functions , facility costs not otherwise included in research and development expenses , patent filing fees and professional legal fees . other general and administrative expenses include travel expenses and professional fees for consulting , auditing and tax services . we anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support our continued research and development and potential commercialization of our product candidates . story_separator_special_tag the closing of the sale of the shares under the second purchase agreement occurred on february 8 , 2017. net of commissions , fees and other issuance costs totaling $ 727 , aggregate net proceeds of the two noted registered direct offerings were $ 7,598. the shares issued in the offerings were offered and sold by us pursuant to 46 an effective shelf registration statement on form s-3 , which was filed with the securities and exchange commission on july 15 , 2016 , and subsequently declared effective on august 3 , 2016 ( file no . 333-212546 ) , and a related prospectus . at-the-market offering on march 17 , 2017 , we entered into an at-the-market sales agreement ( the sales agreement ) with btig , llc ( btig ) to act as our sales agent with respect to the issuance and sale of up to $ 11,000,000 of shares of our common stock , from time to time in an at-the-market public offering ( the offering ) . sales of common stock under the sales agreement are made pursuant to an effective shelf registration statement on form s-3 , which was filed with the securities and exchange commission on july 15 , 2016 , and subsequently declared effective on august 3 , 2016 ( file no . 333-212546 ) , and a related prospectus . btig acts as our sales agent on a commercially reasonable efforts basis , consistent with its normal trading and sales practices and applicable state and federal laws , rules and regulations and the rules of the nasdaq global market . if expressly authorized by us , btig may also sell the company 's common stock in privately negotiated transactions . there is no specific date on which the offering will end , there are no minimum sale requirements and there are no arrangements to place any of the proceeds of this offering in an escrow , trust or similar account . btig is entitled to compensation at a fixed commission rate of 3.0 % of the gross proceeds from the sale of the company 's common stock pursuant to the sales agreement . during 2017 , we sold 3,103,360 shares of its common stock under the sales agreement at an average selling price of approximately $ 2.93 per share which resulted in gross proceeds of approximately $ 9,096 and net proceeds of approximately $ 8,712 after payment of 3 % commission to btig and other issuance costs . term loan and warrant on june 11 , 2015 pulmatrix operating company inc. entered into a loan and security agreement ( lsa ) with hercules , for the term loan in a principal amount of $ 7.0 million . on june 15 , 2015 , following the effective time of the merger with pulmatrix operating company inc. , we signed a joinder agreement with hercules to make our company a co-borrower under the lsa . the term loan is secured by substantially all of our and our subsidiary 's assets , excluding our and our subsidiary 's intellectual property . the term loan bears interest at a floating annual rate equal to the greater of ( i ) 9.50 % and ( ii ) the sum of ( a ) the prime rate as reported by the wall street journal minus 3.25 % plus ( b ) 9.50 % . we are required to make interest payments in cash on the first business day of each month , beginning on july 1 , 2015. beginning on august 1 , 2016 , we are required to make monthly payments on the first business day of each month consisting of principal and interest based upon a 30-month amortization schedule , and any remaining unpaid principal and interest will be due on the maturity date of july 1 , 2018. upon repayment of the term loan , we are also required to pay an end of term fee to the lenders of approximately $ 0.2 million . we may elect to prepay all , but not less than all , of the outstanding principal balance of the term loan , subject to a prepayment fee of 1 %  3 % , depending on the date of repayment . contingent on the occurrence of several events , including that our closing stock price exceed $ 11.73 per share for the seven days preceding a payment date , we may elect to pay , in whole or in part , any regularly scheduled installment of principal up to an aggregate maximum amount of $ 1.0 million by converting a portion of the principal into shares of our common stock at a price of $ 11.73 per share . hercules may elect to receive payments of any regularly scheduled amounts of principal in shares of our common stock based on a price of $ 11.73 per share , subject to an aggregate maximum principal amount of $ 1.0 million . the credit facility includes affirmative and negative covenants . the affirmative covenants include , among others , covenants requiring us to maintain legal existence and governmental approvals and to deliver certain financial reports and maintain insurance coverage . the negative covenants include , among others , restrictions on 47 transferring collateral , incurring additional indebtedness , engaging in mergers or acquisitions , paying dividends or making other distributions , making investments , creating liens , selling assets , and suffering a change in control , in each case subject to certain exceptions . in general , the term loan prohibits us from ( i ) repurchasing or redeeming any class of capital stock , including common stock or ( ii ) declaring or paying any cash dividend or making cash distribution on any class of capital stock , including common stock . as of december 31 , 2017 , and 2016 , we were in compliance with all covenants . the credit facility also includes events of default ,

