our fulfillment solution provides fulfillment automation and replaces or augments an organization 's existing trading partner electronic communication infrastructure , enabling suppliers to have visibility into the journey of an order and comply with retailers ' rule books and enabling the electronic exchange of information among numerous trading partners through various protocols . trading partner analytics . our analytics solution consists of data analytics applications that enable our customers to improve their visibility across , and analysis of , their supply chains . when focused on point-of-sale data , for example , retailers and suppliers can ensure inventory is located where demand is highest . retailers improve their visibility into supplier performance and their understanding of product sell-through . trading partner assortment . today 's retail marketplace requires the management of tens and even hundreds of individual attributes associated with each item a retailer or supplier sells today . this information can include digital images/video , customer facing descriptions and measurements and warehouse information . our assortment product provides robust , extensible management of this information , enabling accurate orders and rapid fulfillment . trading partner sourcing . through retail universe , our social network for the retail industry , retailers can source providers of new items , suppliers can connect with new retailers and the broader retailing community can make connections to expand their business networks and grow . trading partner community development . our community development solution provides communication programs based on our best practices . these programs enable organizations , from large and small retailers and suppliers to emerging providers of value-added products and services , to establish trading partner relationships with new trading partners to expand their businesses . 32 other trading partner solutions . we provide a number of peripheral solutions such as barcode labeling , planogram services and our scan and pack application , which helps trading partners process information to streamline the picking and packaging process . cost of revenues and operating expenses cost of revenues . cost of revenues consist primarily of personnel costs for our customer success and implementation teams , customer support personnel and application support personnel . cost of revenues also includes our cost of network services , which is primarily data center costs for the locations where we keep the equipment that serves our customers and connectivity costs that facilitate electronic data transmission between our customers and their trading partners . sales and marketing expenses . sales and marketing expenses consist primarily of personnel costs for our sales , marketing and product management teams , commissions earned by our sales personnel and marketing costs . in order to expand our business , we will continue to add resources to our sales and marketing efforts over time . research and development expenses . research and development expenses consist primarily of personnel costs for development of new and maintenance of existing solutions , net of amounts capitalized as developed software . our research and development group is also responsible for enhancing existing solutions and applications as well as internal tools and developing new information maps that integrate our customers to their trading partners in compliance with those trading partners ' requirements . general and administrative expenses . general and administrative expenses consist primarily of personnel costs for finance , human resources and internal information technology support , as well as legal , accounting and other fees , such as credit card processing fees . overhead allocation . we allocate overhead expenses such as rent , certain employee benefit costs , office supplies and depreciation of general office assets to cost of revenues and operating expenses categories based on headcount . other metrics recurring revenue customers . as of december 31 , 2017 , we had approximately 26,000 customers with contracts to pay us monthly fees , which we refer to as recurring revenue customers . we report recurring revenue customers at the end of a period . a small portion of our recurring revenue customers consist of separate units within a larger organization . we treat each of these units , which may include divisions , departments , affiliates and franchises , as distinct customers . average recurring revenues per recurring revenue customer . we calculate average recurring revenues per recurring revenue customer , which we also refer to as wallet share , by dividing the recurring revenues from recurring revenue customers for the period by the average of the beginning and ending number of recurring revenue customers for the period . for interim periods , we annualize this number by multiplying the quotient calculated above by the quotient of 12 divided by the number of months in the period . we anticipate that average recurring revenues per recurring revenue customer will continue to increase as we increase the number of solutions we offer and increase the penetration of those solutions across our customer base . non-gaap financial measures . to supplement our financial statements , we also provide investors with adjusted ebitda and non-gaap income per share , both of which are non-gaap financial measures . we believe that these non-gaap measures provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations . our management uses these non-gaap measures to compare the company 's performance to that of prior periods for trend analyses and planning purposes . adjusted ebitda is also used for purposes of determining executive and senior management incentive compensation . these measures are also presented to our board of directors . these non-gaap measures should not be considered a substitute for , or superior to , financial measures calculated in accordance with gaap . these non-gaap financial measures exclude significant expenses and income that are required by gaap to be recorded in the company 's financial statements and are subject to inherent limitations . story_separator_special_tag as a percentage of revenues , research and development expenses were 11.4 % for 2016 and 11.3 % for 2015 . general and administrative expenses . general and administrative expenses for 2016 increased $ 4.0 million , or 16.2 % , to $ 28.8 million from $ 24.8 million for 2015. this increase was primarily due to increased headcount in 2016 which resulted in higher personnel-related costs of $ 1.4 million and stock-based compensation expense of $ 0.9 million . we also incurred higher expenses for software subscription and maintenance of $ 1.0 million . we also had increases in our provision for doubtful accounts , credit card fees and legal fees offset by lower charitable contributions in 2016 as compared to 2015. as a percentage of revenues , general and administrative expenses were 14.9 % for 2016 and 15.7 % for 2015. amortization of intangible assets . amortization of intangible assets for 2016 increased $ 1.4 million from 2015. this increase was due to the impact of amortization from the intangible assets acquired in the toolbox solutions acquisition in january 2016. other income ( expense ) , net . other income ( expense ) , net for 2016 included a $ 1.0 million adjustment to the fair value of the toolbox solutions share-based earn-out liability due to a change in our estimate of probability of attainment . income tax expense . our provisions for income taxes for 2016 and 2015 were $ 3.1 million and $ 2.4 million , respectively , and included current federal , state and foreign income taxes as well as deferred federal and state income taxes . the increase in income tax expense in 2016 was primarily due to the increase in pretax book income of $ 1.8 million . see note j to our consolidated financial statements , included in this annual report on form 10-k , for additional information regarding our income taxes . adjusted ebitda . adjusted ebitda , which is a non-gaap measure of financial performance , consists of net income plus depreciation and amortization , interest expense , interest income , income tax expense , stock-based compensation expense and other adjustments as necessary for a fair presentation . other adjustments included the impact of an earn-out adjustment related to the toolbox acquisition in 2016 , as well as the impact of use tax refunds in 2015 related to items previously expensed . the following table provides a reconciliation of net income to adjusted ebitda ( in thousands ) : replace_table_token_14_th non-gaap income per share . non-gaap income per share , which is also a non-gaap measure of financial performance , consists of net income plus stock-based compensation expense and amortization expense related to intangible assets divided by the weighted average number of shares of common stock outstanding during each period . pursuant to a compliance and disclosure interpretation published by the sec in may 2016 , related to the use of non-gaap financial measures , in 2017 , we began including an adjustment to non-gaap income to reflect the income tax effects of the adjustments to gaap net income . to quantify the tax effects , we recalculated income tax expense excluding the direct book and tax effects of the specific items constituting the non-gaap adjustments . the difference between this recalculated income tax expense and gaap income tax expense is presented as the income tax effect of the non-gaap adjustments . 39 the following table provides a reconciliation of net income to non-gaap income per share ( in thousands , except per share amounts ) : replace_table_token_15_th liquidity and capital resources at december 31 , 2017 , our principal sources of liquidity were cash and cash equivalents , certificates of deposit and marketable securities totaling $ 168.5 million and accounts receivable , net of allowance for doubtful accounts of $ 24.9 million compared to cash and cash equivalents and marketable securities totaling $ 146.4 million and accounts receivable , net of allowance for doubtful accounts of $ 20.7 million at december 31 , 2016. certificates of deposit and marketable securities are invested in accordance with our investment policy , with a goal of maintaining liquidity and capital preservation . our cash equivalents and marketable securities are held in highly liquid money market funds , commercial paper , federal agency securities and corporate debt securities . story_separator_special_tag style= `` margin-top:6pt ; margin-bottom:0pt ; text-indent:5.24 % ; font-size:10pt ; font-family : times new roman ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > on december 22 , 2017 , the securities and exchange commission ( “ sec ” ) staff issued staff accounting bulletin no . 118 ( “ sab 118 ” ) to address the application of u.s. gaap related to the enactment of the tax act . this guidance was adopted in the fourth quarter of 2017. recent accounting pronouncements in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers ( topic 606 ) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . this guidance will replace most existing revenue recognition guidance in gaap when it becomes effective . these new requirements are effective for annual reporting periods beginning after december 15 , 2017 , and interim periods within those annual periods . the new revenue recognition standard will not materially impact our recognition of the primary fees received from customers for our cloud-based supply chain solutions . the adoption of the new standard will impact our accounting for certain upfront set-up fees and the periods over which the related revenues are recognized , as well as the timing of cost recognition for some sales commissions . when compared to

net cash flows from operating activities net cash provided by operating activities was $ 31.1 million for 2017 compared to $ 18.8 million for 2016. the increase in operating cash flows as compared to 2016 was driven by a $ 19.1 million increase in non-cash expenses and a $ 1.3 million increase in changes in assets and liabilities , primarily due to increases in deferred revenues and other current and non-current assets and accounts payable , partially offset by decreases in net income of $ 8.2 million , accounts receivable , deferred costs and deferred rent as compared to 2016. net cash provided by operating activities was $ 18.8 million for 2016 compared to $ 14.4 million for 2015. the increase in operating cash flows as compared to 2015 was driven by a $ 1.1 million increase in net income , a $ 0.8 million increase in non-cash expenses and a $ 2.5 million increase , primarily due to increases in deferred revenues , accrued expenses and accounts payable , partially offset by increases in deferred costs and deferred rent as compared to 2015. cash flows from investing activities net cash used in investing activities was $ 22.6 million for 2017 compared to $ 34.1 million for 2016. the decrease in cash used in investing activities as compared to 2016 was primarily due to the prior year acquisition of toolbox solutions for $ 18.0 million and $ 18.0 million of increased maturities of investments , partially offset by $ 24.7 million increased purchases of investments . for the years ended december 31 , 2017 and 2016 , we had capital expenditures of $ 7.3 million and $ 8.0 million , respectively . our capital expenditures are for supporting our business growth and existing customer base , as well as for our internal use such as equipment for our employees . 40 net cash used in investing ac tivities was $ 34.1 million for 2016 compared to $ 31.3 million for 2 015 .


 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.
     ```net cash flows from operating activities net cash provided by operating activities was $ 31.1 million for 2017 compared to $ 18.8 million for 2016. the increase in operating cash flows as compared to 2016 was driven by a $ 19.1 million increase in non-cash expenses and a $ 1.3 million increase in changes in assets and liabilities , primarily due to increases in deferred revenues and other current and non-current assets and accounts payable , partially offset by decreases in net income of $ 8.2 million , accounts receivable , deferred costs and deferred rent as compared to 2016. net cash provided by operating activities was $ 18.8 million for 2016 compared to $ 14.4 million for 2015. the increase in operating cash flows as compared to 2015 was driven by a $ 1.1 million increase in net income , a $ 0.8 million increase in non-cash expenses and a $ 2.5 million increase , primarily due to increases in deferred revenues , accrued expenses and accounts payable , partially offset by increases in deferred costs and deferred rent as compared to 2015. cash flows from investing activities net cash used in investing activities was $ 22.6 million for 2017 compared to $ 34.1 million for 2016. the decrease in cash used in investing activities as compared to 2016 was primarily due to the prior year acquisition of toolbox solutions for $ 18.0 million and $ 18.0 million of increased maturities of investments , partially offset by $ 24.7 million increased purchases of investments . for the years ended december 31 , 2017 and 2016 , we had capital expenditures of $ 7.3 million and $ 8.0 million , respectively . our capital expenditures are for supporting our business growth and existing customer base , as well as for our internal use such as equipment for our employees . 40 net cash used in investing ac tivities was $ 34.1 million for 2016 compared to $ 31.3 million for 2 015 .
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 Suspicious Activity Report : our fulfillment solution provides fulfillment automation and replaces or augments an organization 's existing trading partner electronic communication infrastructure , enabling suppliers to have visibility into the journey of an order and comply with retailers ' rule books and enabling the electronic exchange of information among numerous trading partners through various protocols . trading partner analytics . our analytics solution consists of data analytics applications that enable our customers to improve their visibility across , and analysis of , their supply chains . when focused on point-of-sale data , for example , retailers and suppliers can ensure inventory is located where demand is highest . retailers improve their visibility into supplier performance and their understanding of product sell-through . trading partner assortment . today 's retail marketplace requires the management of tens and even hundreds of individual attributes associated with each item a retailer or supplier sells today . this information can include digital images/video , customer facing descriptions and measurements and warehouse information . our assortment product provides robust , extensible management of this information , enabling accurate orders and rapid fulfillment . trading partner sourcing . through retail universe , our social network for the retail industry , retailers can source providers of new items , suppliers can connect with new retailers and the broader retailing community can make connections to expand their business networks and grow . trading partner community development . our community development solution provides communication programs based on our best practices . these programs enable organizations , from large and small retailers and suppliers to emerging providers of value-added products and services , to establish trading partner relationships with new trading partners to expand their businesses . 32 other trading partner solutions . we provide a number of peripheral solutions such as barcode labeling , planogram services and our scan and pack application , which helps trading partners process information to streamline the picking and packaging process . cost of revenues and operating expenses cost of revenues . cost of revenues consist primarily of personnel costs for our customer success and implementation teams , customer support personnel and application support personnel . cost of revenues also includes our cost of network services , which is primarily data center costs for the locations where we keep the equipment that serves our customers and connectivity costs that facilitate electronic data transmission between our customers and their trading partners . sales and marketing expenses . sales and marketing expenses consist primarily of personnel costs for our sales , marketing and product management teams , commissions earned by our sales personnel and marketing costs . in order to expand our business , we will continue to add resources to our sales and marketing efforts over time . research and development expenses . research and development expenses consist primarily of personnel costs for development of new and maintenance of existing solutions , net of amounts capitalized as developed software . our research and development group is also responsible for enhancing existing solutions and applications as well as internal tools and developing new information maps that integrate our customers to their trading partners in compliance with those trading partners ' requirements . general and administrative expenses . general and administrative expenses consist primarily of personnel costs for finance , human resources and internal information technology support , as well as legal , accounting and other fees , such as credit card processing fees . overhead allocation . we allocate overhead expenses such as rent , certain employee benefit costs , office supplies and depreciation of general office assets to cost of revenues and operating expenses categories based on headcount . other metrics recurring revenue customers . as of december 31 , 2017 , we had approximately 26,000 customers with contracts to pay us monthly fees , which we refer to as recurring revenue customers . we report recurring revenue customers at the end of a period . a small portion of our recurring revenue customers consist of separate units within a larger organization . we treat each of these units , which may include divisions , departments , affiliates and franchises , as distinct customers . average recurring revenues per recurring revenue customer . we calculate average recurring revenues per recurring revenue customer , which we also refer to as wallet share , by dividing the recurring revenues from recurring revenue customers for the period by the average of the beginning and ending number of recurring revenue customers for the period . for interim periods , we annualize this number by multiplying the quotient calculated above by the quotient of 12 divided by the number of months in the period . we anticipate that average recurring revenues per recurring revenue customer will continue to increase as we increase the number of solutions we offer and increase the penetration of those solutions across our customer base . non-gaap financial measures . to supplement our financial statements , we also provide investors with adjusted ebitda and non-gaap income per share , both of which are non-gaap financial measures . we believe that these non-gaap measures provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations . our management uses these non-gaap measures to compare the company 's performance to that of prior periods for trend analyses and planning purposes . adjusted ebitda is also used for purposes of determining executive and senior management incentive compensation . these measures are also presented to our board of directors . these non-gaap measures should not be considered a substitute for , or superior to , financial measures calculated in accordance with gaap . these non-gaap financial measures exclude significant expenses and income that are required by gaap to be recorded in the company 's financial statements and are subject to inherent limitations . story_separator_special_tag as a percentage of revenues , research and development expenses were 11.4 % for 2016 and 11.3 % for 2015 . general and administrative expenses . general and administrative expenses for 2016 increased $ 4.0 million , or 16.2 % , to $ 28.8 million from $ 24.8 million for 2015. this increase was primarily due to increased headcount in 2016 which resulted in higher personnel-related costs of $ 1.4 million and stock-based compensation expense of $ 0.9 million . we also incurred higher expenses for software subscription and maintenance of $ 1.0 million . we also had increases in our provision for doubtful accounts , credit card fees and legal fees offset by lower charitable contributions in 2016 as compared to 2015. as a percentage of revenues , general and administrative expenses were 14.9 % for 2016 and 15.7 % for 2015. amortization of intangible assets . amortization of intangible assets for 2016 increased $ 1.4 million from 2015. this increase was due to the impact of amortization from the intangible assets acquired in the toolbox solutions acquisition in january 2016. other income ( expense ) , net . other income ( expense ) , net for 2016 included a $ 1.0 million adjustment to the fair value of the toolbox solutions share-based earn-out liability due to a change in our estimate of probability of attainment . income tax expense . our provisions for income taxes for 2016 and 2015 were $ 3.1 million and $ 2.4 million , respectively , and included current federal , state and foreign income taxes as well as deferred federal and state income taxes . the increase in income tax expense in 2016 was primarily due to the increase in pretax book income of $ 1.8 million . see note j to our consolidated financial statements , included in this annual report on form 10-k , for additional information regarding our income taxes . adjusted ebitda . adjusted ebitda , which is a non-gaap measure of financial performance , consists of net income plus depreciation and amortization , interest expense , interest income , income tax expense , stock-based compensation expense and other adjustments as necessary for a fair presentation . other adjustments included the impact of an earn-out adjustment related to the toolbox acquisition in 2016 , as well as the impact of use tax refunds in 2015 related to items previously expensed . the following table provides a reconciliation of net income to adjusted ebitda ( in thousands ) : replace_table_token_14_th non-gaap income per share . non-gaap income per share , which is also a non-gaap measure of financial performance , consists of net income plus stock-based compensation expense and amortization expense related to intangible assets divided by the weighted average number of shares of common stock outstanding during each period . pursuant to a compliance and disclosure interpretation published by the sec in may 2016 , related to the use of non-gaap financial measures , in 2017 , we began including an adjustment to non-gaap income to reflect the income tax effects of the adjustments to gaap net income . to quantify the tax effects , we recalculated income tax expense excluding the direct book and tax effects of the specific items constituting the non-gaap adjustments . the difference between this recalculated income tax expense and gaap income tax expense is presented as the income tax effect of the non-gaap adjustments . 39 the following table provides a reconciliation of net income to non-gaap income per share ( in thousands , except per share amounts ) : replace_table_token_15_th liquidity and capital resources at december 31 , 2017 , our principal sources of liquidity were cash and cash equivalents , certificates of deposit and marketable securities totaling $ 168.5 million and accounts receivable , net of allowance for doubtful accounts of $ 24.9 million compared to cash and cash equivalents and marketable securities totaling $ 146.4 million and accounts receivable , net of allowance for doubtful accounts of $ 20.7 million at december 31 , 2016. certificates of deposit and marketable securities are invested in accordance with our investment policy , with a goal of maintaining liquidity and capital preservation . our cash equivalents and marketable securities are held in highly liquid money market funds , commercial paper , federal agency securities and corporate debt securities . story_separator_special_tag style= `` margin-top:6pt ; margin-bottom:0pt ; text-indent:5.24 % ; font-size:10pt ; font-family : times new roman ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > on december 22 , 2017 , the securities and exchange commission ( “ sec ” ) staff issued staff accounting bulletin no . 118 ( “ sab 118 ” ) to address the application of u.s. gaap related to the enactment of the tax act . this guidance was adopted in the fourth quarter of 2017. recent accounting pronouncements in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers ( topic 606 ) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . this guidance will replace most existing revenue recognition guidance in gaap when it becomes effective . these new requirements are effective for annual reporting periods beginning after december 15 , 2017 , and interim periods within those annual periods . the new revenue recognition standard will not materially impact our recognition of the primary fees received from customers for our cloud-based supply chain solutions . the adoption of the new standard will impact our accounting for certain upfront set-up fees and the periods over which the related revenues are recognized , as well as the timing of cost recognition for some sales commissions . when compared to

