we will pay each sales consultant $ 420 per month , together with incentive compensation for any new business they generate , in an amount equal to 25 % of the gross profit of such business . in addition , we executed a new 3 year lease for the premises in conifer , colorado . at a rate of $ 2,400 per month . 16 on september 1 , 2015 , we signed a 5 year lease , at a rate of $ 3,780 to open our colorado springs , colorado store . on october 28 , 2015 , we purchase approximately $ 169,000 of inventory , at cost , from sweet leaf hydroponics inc. , a retail store located in santa rosa , california . in connection therewith , we also acquired some equipment from the seller for $ 25,000. we have entered into a one-year agreement with one of the principals to act as a sales consultant for us for a period of one year , at a cost of $ 1,000 per month . we executed a two year lease with the landlord of sweet leaf hydroponics inc. for $ 5,300 per month through december 2017. we also issued this consultant 25,000 three ( 3 ) year options , exercisable at a price of $ .60 per share , as additional compensation under his consulting agreement . on november 28 , 2015 , the company acquired $ 35,000 of inventory of greenhouse tech inc. , a retail store located in colorado . the company engaged the principal of greenhouse tech as a sales consultant for 1 year , at $ 13 per hour and 20 % of the gross profits on all sales generated by sales consultant . on march 1 , 2016 , we signed a 3 year lease , at a rate of $ 3,650 for the first year , 4,498 square feet , located in denver , colorado . on july 15 , 2016 , the company entered into a new lease agreement for its canon city , colorado location . the canon city store completed its move to its new location on july 25 , 2016. the new store is approximately 4,427 square feet . on july 19 , 2016 the company entered into a 2 year lease agreement for its tenth retail store in fairplay , colorado . the store began operations in fairplay , colorado on august 1 , 2016. in december 2016 , the company consolidated all the operations and business of the store in fairplay , colorado into the store in conifer , colorado . effective as of december 31 , 2016 , the lease agreement for the retail store in fairplay , colorado was terminated . on september 27 , 2016 , the company entered into a commercial lease to rent certain premises located in castle rock , colorado , to be effective from october 1 , 2016 to september 30 , 2019. the lease requires monthly payments of $ 1,775 through september 30 , 2017 ; $ 1,980 through september 30 , 2018 and $ 2,138 through september 30 , 2019. this eleventh store of the company began operations on october 1 , 2016. on october 6 , 2016 , the company closed on the 2106 private placement , pursuant to which it sold 1,000,000 units to 8 accredited investors at a price of $ .70 per unit , with each unit consisting of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $ .70 per share . the warrants have a five year life for gross proceeds of $ 700,000. effective as of october 19 , 2016 , the company has been approved to start trading its common stock on the otcqb marketplace under the ticker symbol of “ grwg ” . the lease of the company store in las vegas , nevada commenced on november 15 , 2016 and continues through february 28 , 2022 and requires monthly payments of $ 6,776 through february 28 , 2018 , with annual increases of 4 % for the balance of the term of the lease . on january 30 , 2017 , the company entered into a commercial lease to rent certain premises located in trinidad , colorado , to be effective from march 1 , 2017 to february 28 , 2022. this 7,383 square feet premises is used by the company to open a new store to replace and consolidate its existing 3,000 square feet store in trinidad as part of the company 's expansion plan . on february 1 , 2017 , the company entered into a commercial lease to rent certain 12,837 square feet premises located in denver , colorado , to be effective from february 1 , 2017 to february 1 , 2022. the premises is used by the company to open a new store and as the company 's principal offices . 17 on february 1 , 2017 , the company 's wholly-owned subsidiary , growgeneration california corp. ( “ growgeneration california ” ) entered into an asset purchase agreement ( “ asset purchase agreement ” ) with an individual to purchase certain assets from the seller in connection with a retail hydroponic and garden supply business located in santa rosa , ca . the assets subject to the sale under the asset purchase agreement included inventories , fixed assets , tangible personal property , intangible personal property , receivables and a custom list . story_separator_special_tag in addition to the cash consideration for the purchase of such assets , growgeneration california also agreed to make certain cash payments and 25,000 shares of common stock of the company to the seller contingent on the achievement of revenue goals by the business in 2017 , 2018 and 2019. the closing of the asset purchase took place on february 8 , 2017. in connection with the purchase of the assets , growgeneration california also entered into a commercial lease , effective from march 1 , 2017 to february 28 , 2022 , to rent the premises where the former business was located . in connection therewith , we closed our existing store in santa rosa and consolidated those operations with the growgeneration california operations opened at the new location . on march 10 , 2017 , the company closed a private placement of a total of 825,000 units of the company 's securities to 4 accredited investors . each unit consists of ( i ) one share of the company 's common stock and ( ii ) one 5 year warrant to purchase one share of common stock at an exercise price of $ 2.75 per share . the company raised an aggregate of $ 1,650,000 gross proceeds in the offering . results of operations the following table sets forth information from our statements of operations for the years ended december 31 , 2016 and 2015 : replace_table_token_2_th revenue net revenue for the year ended december 31 , 2016 increased $ 4,525,325 to $ 7,980,471 , as compared to $ 3,455,146 for the year ended december 31 , 2015. the increase was due to revenue from the retail stores that we acquired and opened during that period and the growth from our existing stores . cost of goods sold cost of sales for the year ended december 31 , 2016 increased by $ 3,424,358 to $ 5,776,194 , as compared to $ 2,351,836 for the year ended december 31 , 2015. the increase was due to an increase in the company 's revenue . gross profit was $ 2,204,277 for the year ended december 31 , 2016 , as compared to $ 1,103,310 for the year ended december 31 , 2015. the increase of $ 1,100,967 was due to an increase in the company 's revenue . 18 general and administrative expenses general and administrative expenses for the year ended december 31 , 2016 increased by $ 1,012,340 to $ 2,630,270 , as compared to $ 1,617,930 for the year ended december 31 , 2015. the increase was mainly due to increased payroll expenses , rent expense , professional fees , broker commissions , travel expense and non-cash expenses . non-cash general and administrative expenses for the year ended december 31 , 2016 increased by $ 47,946 to $ 304,123 , as compared to $ 256,177 for the year ended december 31 , 2015. the increase was mainly due to increase in bad debt , depreciation expense and an increase in stock and stock option expense totaling $ 304,123 , with ( i ) depreciation of $ 52,962 , ( ii ) stock and stock option compensation , broker commissions of $ 184,333 , and ( iii ) bad debt expense of $ 66,828. net income net loss for the year ended december 31 , 2016 decreased by $ 97,512 to $ ( 431,246 ) , as compared to $ ( 528,750 ) for the year ended december 31 , 2015. the decrease was mainly due to an increase in sales and less non-cash expenses . for the year ended december 31 , 2015 , the company had a total of 5 stores , opened more than a year , that generated net revenue of $ 2,917,188 , as compared to net revenue of $ 4,355,786 , for the company 's 5 same stores in the year of 2016. for the fourth quarter of 2016 , the company had 6 same stores which generated net revenue of $ 1,476,963 , as compared to the same stores in 2015 which generated net revenue of $ 1,020,348. in 2015 , the company opened 3 new stores that generated net revenue of $ 514,429. these same 3 stores generated net revenue of $ 2,427,542 in 2016. in 2016 , the company opened 2 new stores that generated net revenue of $ 1,197,143. replace_table_token_3_th operating activities net cash used in operating activities for the year ended december 31 , 2016 increased by $ 335,268 to $ 1,470,907 , as compared to $ 1,135,639 for the year ended december 31 , 2015. the increase was mainly due to an increase in inventory , accounts receivables and accounts payable . story_separator_special_tag financial liabilities measured at fair value . the amendments are effective for annual reporting periods after december 15 , 2017 , including interim periods within those fiscal years . early adoption is permitted . the company is currently evaluating the potential impact of the adoption of this standard . in april 2015 , the fasb issued asu 2015-03 , interest- imputation of interest ( subtopic 835-30 ) . this guidance is to simplify the presentation of debt issuance costs by recognizing a debt liability in the balance sheet as a direct deduction from that debt liability consistent with the presentation of a debt discount . the amendments in this update are effective for financial statements issued for fiscal years beginning after december 15 , 2015 , and interim periods within those fiscal years . the company has adopted this standard and the adoption did not have a material impact on the company 's financial position . in august 2014 , the fasb issued asu 2014-15 , presentation of financial statements – going concern ( subtopic 205-40 ) : disclosure of uncertainties about an entity 's ability to continue as a going concern , which is intended to define management 's responsibility to evaluate whether there is substantial doubt about an organization 's ability to

liquidity and capital resources as of the date of this report , the company had cash of approximately $ 1,200,000. as of the year ended december 31 , 2016 , the company had net working capital of approximately $ 2,764,655 , which consists of $ 606,644 in cash , $ 391,235 in accounts receivables and $ 2,574,438 in inventory . we will need to obtain additional financing in the future to continue to acquire and open new stores . we have financed our operations through the issuance of the sale of common stock and warrant exercises . the following table sets forth a summary of our approximate cash flows for the periods indicated : replace_table_token_4_th net cash used in operating activities was $ 1,470,907 for the year ended december 31 , 2016 , compared to $ 1,135,639 provided by operating activities for 2015. the increase in cash used in operating activities in the year ended december 31 , 2016 was primarily caused by an increase in inventory of $ 1,256,799 and the increase of accounts receivables of $ 395,208 for operating activities . 19 net cash used in investing activities was $ 331,580 for the year ended december 31 , 2016 , compared to $ 253,717 provided by operating activities for the year ended december 31 , 2015. the increase in net cash used in investing activities for the year ended december 31 , 2016 was primarily due to the purchasing of capital assets .


 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 as of the date of this report , the company had cash of approximately $ 1,200,000. as of the year ended december 31 , 2016 , the company had net working capital of approximately $ 2,764,655 , which consists of $ 606,644 in cash , $ 391,235 in accounts receivables and $ 2,574,438 in inventory . we will need to obtain additional financing in the future to continue to acquire and open new stores . we have financed our operations through the issuance of the sale of common stock and warrant exercises . the following table sets forth a summary of our approximate cash flows for the periods indicated : replace_table_token_4_th net cash used in operating activities was $ 1,470,907 for the year ended december 31 , 2016 , compared to $ 1,135,639 provided by operating activities for 2015. the increase in cash used in operating activities in the year ended december 31 , 2016 was primarily caused by an increase in inventory of $ 1,256,799 and the increase of accounts receivables of $ 395,208 for operating activities . 19 net cash used in investing activities was $ 331,580 for the year ended december 31 , 2016 , compared to $ 253,717 provided by operating activities for the year ended december 31 , 2015. the increase in net cash used in investing activities for the year ended december 31 , 2016 was primarily due to the purchasing of capital assets .
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 Suspicious Activity Report : we will pay each sales consultant $ 420 per month , together with incentive compensation for any new business they generate , in an amount equal to 25 % of the gross profit of such business . in addition , we executed a new 3 year lease for the premises in conifer , colorado . at a rate of $ 2,400 per month . 16 on september 1 , 2015 , we signed a 5 year lease , at a rate of $ 3,780 to open our colorado springs , colorado store . on october 28 , 2015 , we purchase approximately $ 169,000 of inventory , at cost , from sweet leaf hydroponics inc. , a retail store located in santa rosa , california . in connection therewith , we also acquired some equipment from the seller for $ 25,000. we have entered into a one-year agreement with one of the principals to act as a sales consultant for us for a period of one year , at a cost of $ 1,000 per month . we executed a two year lease with the landlord of sweet leaf hydroponics inc. for $ 5,300 per month through december 2017. we also issued this consultant 25,000 three ( 3 ) year options , exercisable at a price of $ .60 per share , as additional compensation under his consulting agreement . on november 28 , 2015 , the company acquired $ 35,000 of inventory of greenhouse tech inc. , a retail store located in colorado . the company engaged the principal of greenhouse tech as a sales consultant for 1 year , at $ 13 per hour and 20 % of the gross profits on all sales generated by sales consultant . on march 1 , 2016 , we signed a 3 year lease , at a rate of $ 3,650 for the first year , 4,498 square feet , located in denver , colorado . on july 15 , 2016 , the company entered into a new lease agreement for its canon city , colorado location . the canon city store completed its move to its new location on july 25 , 2016. the new store is approximately 4,427 square feet . on july 19 , 2016 the company entered into a 2 year lease agreement for its tenth retail store in fairplay , colorado . the store began operations in fairplay , colorado on august 1 , 2016. in december 2016 , the company consolidated all the operations and business of the store in fairplay , colorado into the store in conifer , colorado . effective as of december 31 , 2016 , the lease agreement for the retail store in fairplay , colorado was terminated . on september 27 , 2016 , the company entered into a commercial lease to rent certain premises located in castle rock , colorado , to be effective from october 1 , 2016 to september 30 , 2019. the lease requires monthly payments of $ 1,775 through september 30 , 2017 ; $ 1,980 through september 30 , 2018 and $ 2,138 through september 30 , 2019. this eleventh store of the company began operations on october 1 , 2016. on october 6 , 2016 , the company closed on the 2106 private placement , pursuant to which it sold 1,000,000 units to 8 accredited investors at a price of $ .70 per unit , with each unit consisting of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $ .70 per share . the warrants have a five year life for gross proceeds of $ 700,000. effective as of october 19 , 2016 , the company has been approved to start trading its common stock on the otcqb marketplace under the ticker symbol of “ grwg ” . the lease of the company store in las vegas , nevada commenced on november 15 , 2016 and continues through february 28 , 2022 and requires monthly payments of $ 6,776 through february 28 , 2018 , with annual increases of 4 % for the balance of the term of the lease . on january 30 , 2017 , the company entered into a commercial lease to rent certain premises located in trinidad , colorado , to be effective from march 1 , 2017 to february 28 , 2022. this 7,383 square feet premises is used by the company to open a new store to replace and consolidate its existing 3,000 square feet store in trinidad as part of the company 's expansion plan . on february 1 , 2017 , the company entered into a commercial lease to rent certain 12,837 square feet premises located in denver , colorado , to be effective from february 1 , 2017 to february 1 , 2022. the premises is used by the company to open a new store and as the company 's principal offices . 17 on february 1 , 2017 , the company 's wholly-owned subsidiary , growgeneration california corp. ( “ growgeneration california ” ) entered into an asset purchase agreement ( “ asset purchase agreement ” ) with an individual to purchase certain assets from the seller in connection with a retail hydroponic and garden supply business located in santa rosa , ca . the assets subject to the sale under the asset purchase agreement included inventories , fixed assets , tangible personal property , intangible personal property , receivables and a custom list . story_separator_special_tag in addition to the cash consideration for the purchase of such assets , growgeneration california also agreed to make certain cash payments and 25,000 shares of common stock of the company to the seller contingent on the achievement of revenue goals by the business in 2017 , 2018 and 2019. the closing of the asset purchase took place on february 8 , 2017. in connection with the purchase of the assets , growgeneration california also entered into a commercial lease , effective from march 1 , 2017 to february 28 , 2022 , to rent the premises where the former business was located . in connection therewith , we closed our existing store in santa rosa and consolidated those operations with the growgeneration california operations opened at the new location . on march 10 , 2017 , the company closed a private placement of a total of 825,000 units of the company 's securities to 4 accredited investors . each unit consists of ( i ) one share of the company 's common stock and ( ii ) one 5 year warrant to purchase one share of common stock at an exercise price of $ 2.75 per share . the company raised an aggregate of $ 1,650,000 gross proceeds in the offering . results of operations the following table sets forth information from our statements of operations for the years ended december 31 , 2016 and 2015 : replace_table_token_2_th revenue net revenue for the year ended december 31 , 2016 increased $ 4,525,325 to $ 7,980,471 , as compared to $ 3,455,146 for the year ended december 31 , 2015. the increase was due to revenue from the retail stores that we acquired and opened during that period and the growth from our existing stores . cost of goods sold cost of sales for the year ended december 31 , 2016 increased by $ 3,424,358 to $ 5,776,194 , as compared to $ 2,351,836 for the year ended december 31 , 2015. the increase was due to an increase in the company 's revenue . gross profit was $ 2,204,277 for the year ended december 31 , 2016 , as compared to $ 1,103,310 for the year ended december 31 , 2015. the increase of $ 1,100,967 was due to an increase in the company 's revenue . 18 general and administrative expenses general and administrative expenses for the year ended december 31 , 2016 increased by $ 1,012,340 to $ 2,630,270 , as compared to $ 1,617,930 for the year ended december 31 , 2015. the increase was mainly due to increased payroll expenses , rent expense , professional fees , broker commissions , travel expense and non-cash expenses . non-cash general and administrative expenses for the year ended december 31 , 2016 increased by $ 47,946 to $ 304,123 , as compared to $ 256,177 for the year ended december 31 , 2015. the increase was mainly due to increase in bad debt , depreciation expense and an increase in stock and stock option expense totaling $ 304,123 , with ( i ) depreciation of $ 52,962 , ( ii ) stock and stock option compensation , broker commissions of $ 184,333 , and ( iii ) bad debt expense of $ 66,828. net income net loss for the year ended december 31 , 2016 decreased by $ 97,512 to $ ( 431,246 ) , as compared to $ ( 528,750 ) for the year ended december 31 , 2015. the decrease was mainly due to an increase in sales and less non-cash expenses . for the year ended december 31 , 2015 , the company had a total of 5 stores , opened more than a year , that generated net revenue of $ 2,917,188 , as compared to net revenue of $ 4,355,786 , for the company 's 5 same stores in the year of 2016. for the fourth quarter of 2016 , the company had 6 same stores which generated net revenue of $ 1,476,963 , as compared to the same stores in 2015 which generated net revenue of $ 1,020,348. in 2015 , the company opened 3 new stores that generated net revenue of $ 514,429. these same 3 stores generated net revenue of $ 2,427,542 in 2016. in 2016 , the company opened 2 new stores that generated net revenue of $ 1,197,143. replace_table_token_3_th operating activities net cash used in operating activities for the year ended december 31 , 2016 increased by $ 335,268 to $ 1,470,907 , as compared to $ 1,135,639 for the year ended december 31 , 2015. the increase was mainly due to an increase in inventory , accounts receivables and accounts payable . story_separator_special_tag financial liabilities measured at fair value . the amendments are effective for annual reporting periods after december 15 , 2017 , including interim periods within those fiscal years . early adoption is permitted . the company is currently evaluating the potential impact of the adoption of this standard . in april 2015 , the fasb issued asu 2015-03 , interest- imputation of interest ( subtopic 835-30 ) . this guidance is to simplify the presentation of debt issuance costs by recognizing a debt liability in the balance sheet as a direct deduction from that debt liability consistent with the presentation of a debt discount . the amendments in this update are effective for financial statements issued for fiscal years beginning after december 15 , 2015 , and interim periods within those fiscal years . the company has adopted this standard and the adoption did not have a material impact on the company 's financial position . in august 2014 , the fasb issued asu 2014-15 , presentation of financial statements – going concern ( subtopic 205-40 ) : disclosure of uncertainties about an entity 's ability to continue as a going concern , which is intended to define management 's responsibility to evaluate whether there is substantial doubt about an organization 's ability to

