additionally , the company regularly evaluates inventory for obsolescence and marketability and if it determines that the inventory is obsolete , or no longer suitable for use or marketable , the cost of that inventory is recognized in its cost of sales at the time of such determination . vineyard development - the company capitalizes internal vineyard development costs prior to the vineyard land becoming fully productive . these costs consist primarily of the costs of the vines and expenditures related to labor and materials to prepare the land and construct vine trellises . amortization of such costs as annual crop costs is done on a straight-line basis for the estimated economic useful life of the vineyard , which is estimated to be 30 years . the company regularly evaluates the recoverability of capitalized costs . amortization of vineyard development costs are included in capitalized crop costs that in turn are included in inventory costs and ultimately become a component of cost of goods sold . depletions - the company pays depletion allowances to the company 's distributors based on their sales to their customers . the company sets these allowances on a monthly basis and the company 's distributors bill them back on a monthly basis . all depletion expenses associated with a given month are recognized in that month as a reduction of revenues . the company also reimburses for samples used by distributors up to 1.5 % of product sold to the distributors . sample expenses are recognized at the time the company is billed by the distributor as a selling , general and administrative expense . shipping - amounts paid by customers to the company for shipping and handling expenses are included in the net revenue . expenses incurred for outbound shipping and handling charges are included in selling , general and administrative expense . the company 's gross margins may not be comparable to other companies in the same industry as other companies may include shipping and handling expenses as a cost of goods sold . income taxes – the company accounts for income taxes using the asset and liability approach . this requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and the tax basis of assets and liabilities at the applicable tax rates . the company evaluates deferred tax assets , and records a valuation allowance against those assets , if available evidence suggests that some of those assets will not be realized . the effect of uncertain tax positions would be recorded in the financial statements only after determining a more likely than not probability that the uncertain tax positions would withstand an examination by tax authorities based on the technical merits of the position . the tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement . as facts and circumstances change , management reassesses these probabilities and would record any changes in the financial statements as appropriate . 21 overview the company generates revenue from the sales of wine to wholesalers and direct to consumers . direct to consumer sales primarily include sales through the company 's tasting rooms and wine club . direct to consumer sales are more profitable to the company due to prices received being closer to retail than those prices paid by wholesalers . the company continues to emphasize growth in direct to consumer sales through use of the hospitality center and growth in wine club membership . the company had 6,714 wine club memberships for the year ended december 31 , 2016 , a net increase of 344 when compared to 2015. periodically , the company will also sell grapes or bulk wine , which primarily consists of inventory that does not meet company standards or is in excess to production targets . however , this activity is not a significant part of the company 's activities . the company sold approximately 134,700 and 121,800 cases of produced wine during the years ended december 31 , 2016 and 2015 , respectively , an increase of 12,900 cases , or 10.6 % in the current year over the prior year . the increase in wine sales was the result of growth in both retail sales and sales through distributors . cost of sales includes grape costs , whether purchased or grown at company vineyards , crush costs , winemaking and processing costs , bottling , packaging , warehousing and shipping and handling costs associated with purchased production materials . for grapes grown at company vineyards , costs include farming expenditures and amortization of vineyard development costs . the company expects cost of sales to decrease , as a percentage of net sales , over the next several years , as higher yield vintages are released . at december 31 , 2016 , wine inventory includes approximately 72,400 cases of bottled wine and 407,600 gallons of bulk wine in various stages of the aging process . case wine is expected to be sold over the next 12 to 24 months and generally before the release date of the next vintage . the winery bottled approximately 141,416 cases during the year ended december 31 , 2016. results of operations the company had net sales of $ 19,425,412 and $ 17,938,872 for the years december 31 , 2016 and 2015 , respectively , an increase of $ 1,486,540 or 8.3 % , for the year ended december 31 , 2016 over the prior year period . story_separator_special_tag the statesman journal , published in salem , oregon , featured an article titled , “ oregon wine industry honors the best , ” which announced the company 's vineyard manager , efren loeza earned the inaugural oregon wine board vineyard excellence award at the 2016 oregon wine symposium . kelly mitchell of the huffington post published an online feature story about the company titled “ perfecting pinot in the willamette valley , ” and writing , “ today willamette valley vineyards is a leader , not only in the production of top pinot noir , but in the employing practices to offset environmental impact of the business . ” the oregonian named the company as `` one of the most elegant wineries in oregon `` in the january 2016 article . seasonal and quarterly results the company has historically experienced and expects to continue experiencing seasonal fluctuations in its revenue and net income . typically , first quarter sales are the lowest of any given year , and sales volumes increase progressively through the fourth quarter mostly because of consumer buying habits . the following table sets forth certain information regarding the company 's revenue , excluding excise taxes , from the winery 's operations for the three and twelve months ended december 31 , 2016 and 2015 : replace_table_token_7_th 2016 compared to 2015 retail sales for the years ended december 31 , 2016 and 2015 were $ 6,932,424 and $ 6,291,039 , respectively , an increase of $ 641,385 , or 10.2 % , for the year ended december 31 , 2016 over the prior year period . this increase was primarily driven broad based growth in each major retail category . bulk wine/miscellaneous sales for the years ended december 31 , 2016 and 2015 were $ 245,097 and $ 777,538 , respectively , a decrease of $ 532,441. this decrease was primarily the result of increased sales of bulk wine in 2015 , mainly due to higher yields in the 2014 and 2015 grape harvests , which resulted in wine quantities that were in excess of company needs . these excess bulk wine quantities were not present in 2016. in-state sales for the years ended december 31 , 2016 and 2015 were $ 3,810,841 and $ 3,350,048 , respectively , an increase of $ 460,793 , or 13.8 % , for the year ended december 31 , 3016 over the prior year period . management believes this increase is primarily due to increased visibility of our products in the oregon market . 27 out-of-state sales for the years ended december 31 , 2016 and 2015 were $ 8,937,097 and $ 7,940,977 , respectively , an increase of $ 996,120 , or 12.5 % . management believes this increase is primarily related to an increase in sales efforts outside of oregon in 2016. the company pays alcohol excise taxes to both the olcc and to the ttb . these taxes are based on product sales volumes . the company is liable for the taxes upon the removal of product from the company 's warehouse on a per gallon basis . the company also pays taxes on the grape harvest on a per ton basis to the olcc for the oregon wine board . the company 's excise taxes for the years ended december 31 , 2016 and 2015 were $ 500,047 and $ 420,730 , an increase of $ 79,317 , or 18.9 % , for the year ended december 31 , 2016 over the prior year period . this increase was due primarily to increased wine sales in 2016. cost of sales was $ 7,204,884 and $ 7,092,111 for the years ended december 31 , 2016 and 2015 , respectively , an increase of $ 112,773 , or 1.6 % , for the year ended december 31 , 2016 over the prior year period . the increase in cost of sales can be attributed mainly to the overall increase in product sales partially offset by higher sales margins . as a percentage of net sales revenue , gross profit was 62.9 % and 60.5 % in the years ended december 31 , 2016 and 2015 , respectively , an increase of 4.0 % , for the year ended december 31 , 2016 over the prior year period . this increase in the gross profit percentage is primarily a result of the release of higher margin vintages in 2016. the company continued its focus in 2016 on improved distribution of higher margin products through distributors nationwide and through direct sales and strives to minimize increases in grape and production costs . selling , general and administrative expenses were $ 8,053,127 and $ 7,573,801 for the years ended december 31 , 2016 and 2015 , respectively , an increase of $ 479,326 , or 6.3 % , for the year ended december 31 , 2016 over the prior year period . this increase was the primarily the result of increased sales efforts and operating costs associated with retail and administrative operations offset partially by receipt of a legal settlement of $ 110,000 in 2016. interest income was $ 9,851 and $ 2,237 for the years ended december 31 , 2016 and 2015 , respectively , an increase of $ 7,614 or 340.4 % . the increase in interest income is primarily due to increased balances of cash on hand in the company 's accounts as a result of the proceeds received from sale of preferred stock in 2016. interest expense was $ 291,370 and $ 311,188 for the years ended december 31 , 2016 and 2015 , respectively , a decrease of $ 19,818 , or 6.4 % , for the year ended december 31 , 2016 over the prior year period . the decrease in interest expense was mainly due to the reduced balances on company loans . other income , net , was $ 221,403 and $ 213,239 for the years ended december 31 , 2016 and

liquidity and capital resources at december 31 , 2016 , the company had a working capital balance of $ 16.4 million and a current ratio of 5.59:1. the company had cash balances of $ 5,706,351 , at december 31 , 2016. total cash provided from operating activities for the years ended december 31 , 2016 was $ 3,087,913. these results were primarily due to income from operations , increased by non-cash operating expenses , such as depreciation , and decreased by an increase in inventory . total cash used in investing activities for the years ended december 31 , 2016 was $ 5,328,419. these results were primarily due to additions to property and equipment and general vineyard development . total cash provided from financing activities for the years ended december 31 , 2016 was $ 3,936,193. these results were primarily due to cash received in connection with the issuance of preferred stock partially offset by the repurchase of common stock and payment of a preferred stock dividend . at december 31 , 2016 , the line of credit balance was $ 0 on a maximum borrowing amount of $ 2,000,000. the company has a loan agreement with umpqua bank that contains , among other things , certain restrictive financial covenants with respect to total equity , debt-to-equity and debt coverage that must be maintained by the company on a quarterly basis .


 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 at december 31 , 2016 , the company had a working capital balance of $ 16.4 million and a current ratio of 5.59:1. the company had cash balances of $ 5,706,351 , at december 31 , 2016. total cash provided from operating activities for the years ended december 31 , 2016 was $ 3,087,913. these results were primarily due to income from operations , increased by non-cash operating expenses , such as depreciation , and decreased by an increase in inventory . total cash used in investing activities for the years ended december 31 , 2016 was $ 5,328,419. these results were primarily due to additions to property and equipment and general vineyard development . total cash provided from financing activities for the years ended december 31 , 2016 was $ 3,936,193. these results were primarily due to cash received in connection with the issuance of preferred stock partially offset by the repurchase of common stock and payment of a preferred stock dividend . at december 31 , 2016 , the line of credit balance was $ 0 on a maximum borrowing amount of $ 2,000,000. the company has a loan agreement with umpqua bank that contains , among other things , certain restrictive financial covenants with respect to total equity , debt-to-equity and debt coverage that must be maintained by the company on a quarterly basis .
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 Suspicious Activity Report : additionally , the company regularly evaluates inventory for obsolescence and marketability and if it determines that the inventory is obsolete , or no longer suitable for use or marketable , the cost of that inventory is recognized in its cost of sales at the time of such determination . vineyard development - the company capitalizes internal vineyard development costs prior to the vineyard land becoming fully productive . these costs consist primarily of the costs of the vines and expenditures related to labor and materials to prepare the land and construct vine trellises . amortization of such costs as annual crop costs is done on a straight-line basis for the estimated economic useful life of the vineyard , which is estimated to be 30 years . the company regularly evaluates the recoverability of capitalized costs . amortization of vineyard development costs are included in capitalized crop costs that in turn are included in inventory costs and ultimately become a component of cost of goods sold . depletions - the company pays depletion allowances to the company 's distributors based on their sales to their customers . the company sets these allowances on a monthly basis and the company 's distributors bill them back on a monthly basis . all depletion expenses associated with a given month are recognized in that month as a reduction of revenues . the company also reimburses for samples used by distributors up to 1.5 % of product sold to the distributors . sample expenses are recognized at the time the company is billed by the distributor as a selling , general and administrative expense . shipping - amounts paid by customers to the company for shipping and handling expenses are included in the net revenue . expenses incurred for outbound shipping and handling charges are included in selling , general and administrative expense . the company 's gross margins may not be comparable to other companies in the same industry as other companies may include shipping and handling expenses as a cost of goods sold . income taxes – the company accounts for income taxes using the asset and liability approach . this requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and the tax basis of assets and liabilities at the applicable tax rates . the company evaluates deferred tax assets , and records a valuation allowance against those assets , if available evidence suggests that some of those assets will not be realized . the effect of uncertain tax positions would be recorded in the financial statements only after determining a more likely than not probability that the uncertain tax positions would withstand an examination by tax authorities based on the technical merits of the position . the tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement . as facts and circumstances change , management reassesses these probabilities and would record any changes in the financial statements as appropriate . 21 overview the company generates revenue from the sales of wine to wholesalers and direct to consumers . direct to consumer sales primarily include sales through the company 's tasting rooms and wine club . direct to consumer sales are more profitable to the company due to prices received being closer to retail than those prices paid by wholesalers . the company continues to emphasize growth in direct to consumer sales through use of the hospitality center and growth in wine club membership . the company had 6,714 wine club memberships for the year ended december 31 , 2016 , a net increase of 344 when compared to 2015. periodically , the company will also sell grapes or bulk wine , which primarily consists of inventory that does not meet company standards or is in excess to production targets . however , this activity is not a significant part of the company 's activities . the company sold approximately 134,700 and 121,800 cases of produced wine during the years ended december 31 , 2016 and 2015 , respectively , an increase of 12,900 cases , or 10.6 % in the current year over the prior year . the increase in wine sales was the result of growth in both retail sales and sales through distributors . cost of sales includes grape costs , whether purchased or grown at company vineyards , crush costs , winemaking and processing costs , bottling , packaging , warehousing and shipping and handling costs associated with purchased production materials . for grapes grown at company vineyards , costs include farming expenditures and amortization of vineyard development costs . the company expects cost of sales to decrease , as a percentage of net sales , over the next several years , as higher yield vintages are released . at december 31 , 2016 , wine inventory includes approximately 72,400 cases of bottled wine and 407,600 gallons of bulk wine in various stages of the aging process . case wine is expected to be sold over the next 12 to 24 months and generally before the release date of the next vintage . the winery bottled approximately 141,416 cases during the year ended december 31 , 2016. results of operations the company had net sales of $ 19,425,412 and $ 17,938,872 for the years december 31 , 2016 and 2015 , respectively , an increase of $ 1,486,540 or 8.3 % , for the year ended december 31 , 2016 over the prior year period . story_separator_special_tag the statesman journal , published in salem , oregon , featured an article titled , “ oregon wine industry honors the best , ” which announced the company 's vineyard manager , efren loeza earned the inaugural oregon wine board vineyard excellence award at the 2016 oregon wine symposium . kelly mitchell of the huffington post published an online feature story about the company titled “ perfecting pinot in the willamette valley , ” and writing , “ today willamette valley vineyards is a leader , not only in the production of top pinot noir , but in the employing practices to offset environmental impact of the business . ” the oregonian named the company as `` one of the most elegant wineries in oregon `` in the january 2016 article . seasonal and quarterly results the company has historically experienced and expects to continue experiencing seasonal fluctuations in its revenue and net income . typically , first quarter sales are the lowest of any given year , and sales volumes increase progressively through the fourth quarter mostly because of consumer buying habits . the following table sets forth certain information regarding the company 's revenue , excluding excise taxes , from the winery 's operations for the three and twelve months ended december 31 , 2016 and 2015 : replace_table_token_7_th 2016 compared to 2015 retail sales for the years ended december 31 , 2016 and 2015 were $ 6,932,424 and $ 6,291,039 , respectively , an increase of $ 641,385 , or 10.2 % , for the year ended december 31 , 2016 over the prior year period . this increase was primarily driven broad based growth in each major retail category . bulk wine/miscellaneous sales for the years ended december 31 , 2016 and 2015 were $ 245,097 and $ 777,538 , respectively , a decrease of $ 532,441. this decrease was primarily the result of increased sales of bulk wine in 2015 , mainly due to higher yields in the 2014 and 2015 grape harvests , which resulted in wine quantities that were in excess of company needs . these excess bulk wine quantities were not present in 2016. in-state sales for the years ended december 31 , 2016 and 2015 were $ 3,810,841 and $ 3,350,048 , respectively , an increase of $ 460,793 , or 13.8 % , for the year ended december 31 , 3016 over the prior year period . management believes this increase is primarily due to increased visibility of our products in the oregon market . 27 out-of-state sales for the years ended december 31 , 2016 and 2015 were $ 8,937,097 and $ 7,940,977 , respectively , an increase of $ 996,120 , or 12.5 % . management believes this increase is primarily related to an increase in sales efforts outside of oregon in 2016. the company pays alcohol excise taxes to both the olcc and to the ttb . these taxes are based on product sales volumes . the company is liable for the taxes upon the removal of product from the company 's warehouse on a per gallon basis . the company also pays taxes on the grape harvest on a per ton basis to the olcc for the oregon wine board . the company 's excise taxes for the years ended december 31 , 2016 and 2015 were $ 500,047 and $ 420,730 , an increase of $ 79,317 , or 18.9 % , for the year ended december 31 , 2016 over the prior year period . this increase was due primarily to increased wine sales in 2016. cost of sales was $ 7,204,884 and $ 7,092,111 for the years ended december 31 , 2016 and 2015 , respectively , an increase of $ 112,773 , or 1.6 % , for the year ended december 31 , 2016 over the prior year period . the increase in cost of sales can be attributed mainly to the overall increase in product sales partially offset by higher sales margins . as a percentage of net sales revenue , gross profit was 62.9 % and 60.5 % in the years ended december 31 , 2016 and 2015 , respectively , an increase of 4.0 % , for the year ended december 31 , 2016 over the prior year period . this increase in the gross profit percentage is primarily a result of the release of higher margin vintages in 2016. the company continued its focus in 2016 on improved distribution of higher margin products through distributors nationwide and through direct sales and strives to minimize increases in grape and production costs . selling , general and administrative expenses were $ 8,053,127 and $ 7,573,801 for the years ended december 31 , 2016 and 2015 , respectively , an increase of $ 479,326 , or 6.3 % , for the year ended december 31 , 2016 over the prior year period . this increase was the primarily the result of increased sales efforts and operating costs associated with retail and administrative operations offset partially by receipt of a legal settlement of $ 110,000 in 2016. interest income was $ 9,851 and $ 2,237 for the years ended december 31 , 2016 and 2015 , respectively , an increase of $ 7,614 or 340.4 % . the increase in interest income is primarily due to increased balances of cash on hand in the company 's accounts as a result of the proceeds received from sale of preferred stock in 2016. interest expense was $ 291,370 and $ 311,188 for the years ended december 31 , 2016 and 2015 , respectively , a decrease of $ 19,818 , or 6.4 % , for the year ended december 31 , 2016 over the prior year period . the decrease in interest expense was mainly due to the reduced balances on company loans . other income , net , was $ 221,403 and $ 213,239 for the years ended december 31 , 2016 and

