AKAO 2017 Annual Report

97 Cash Flows The following table sets forth the primary sources and uses of cash and cash equivalents for each of the periods presented below: Year Ended December 31, 2017 2016 2015 (in thousands) Net cash provided by (used in): Operating activities ..................................................................... $ (95,255) $ (46,903) $ (21,088) Investing activities ...................................................................... 468 10,368 5,232 Financing activities ..................................................................... 130,411 135,462 17,262 Net increase in cash, cash equivalents and restricted cash............... $ 35,624 $ 98,927 $ 1,406 Operating Activities Net cash used in operating activities was $95.3 million, $46.9 million and $21.1 million for the years ended December 31, 2017, 2016 and 2015, respectively. The primary use of cash was to fund our operations related to the research and development of our product candidates and to prepare for commercialization of plazomicin. Our net loss from operations in the year ended December 31, 2017 of $125.6 million was adjusted by a non-cash charge of $1.9 million for the change of the warrant and derivative liabilities, $0.2 million for amortization of discount on short-term investments, and partially offset by non-cash charges of $1.3 million for depreciation and amortization, $0.8 million for non-cash interest expense, $14.2 million for stock-based compensation, and a change in net operating assets and liabilities of $16.1 million. The change in net operating assets and liabilities was primarily due to a decrease in contract receivable, partially offset by an increase in prepaid expenses and other assets, as a result of commitments and deferred research and development costs related to our commercial validation and manufacturing for plazomicin, an increase in accounts payable and accrued liabilities and deferred revenue, as a result of the Advance Funds received under the grant agreement with the Gates Foundation Cash used for the year ended December 31, 2016 is primarily comprised of our net loss of $71.2 million, partially offset non-cash charges of $19.9 million for the change of the warrant and derivative liabilities, $0.4 million for depreciation and amortization, $0.3 million for amortization of premium on short-term investments, $0.7 million for non-cash interest expense, $3.8 million for stock-based compensation, and a change in net operating assets and liabilities of $0.9 million. The change in net operating assets and liabilities was primarily due to an increase in contract receivable, prepaid expenses and other assets and other liabilities partially offset by an increase in accounts payable and accrued liabilities, as a result of costs for our ongoing Phase 3 EPIC trial and the timing of our payments. Cash used for the year ended December 31, 2015 is primarily comprised of our net loss of $27.1 million, partially offset by non-cash charges for stock-based compensation expense, depreciation and amortization expense, amortization of premium on short-term investments and non-cash interest expense of $4.2 million and a net change in operating assets and liabilities of $1.8 million. Investing Activities Net cash provided by investing activities was $0.5 million for the year ended December 31, 2017 and consisted primarily of maturities of short-term investments of $129.4 million, partially offset by purchases of short- term securities of $121.8 million and purchases of property and equipment of $7.1 million. Net cash provided by investing activities was $10.4 million for the year ended December 31, 2016 and consisted primarily of maturities of short-term investments of $42.2 million, partially offset by purchases of short- term securities of $31.0 million and purchases of property and equipment of $0.9 million. Net cash provided by investing activities was $5.2 million for the year ended December 31, 2015 and consisted primarily of maturities of short-term investments of $47.7 million, partially offset by purchases of short- term investments of $41.8 million and purchases of property and equipment of $0.6 million.