the standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in prior accounting guidance . asu 2014-09 provides alternative methods of initial adoption , and was effective for fiscal years beginning after december 15 , 2016 , and interim periods within those annual periods . early adoption was not permitted . in august , 2015 , the fasb issued asu no . 2015-14 , “ revenue from contracts with customers : deferral of the effective date ” . the amendment in this asu defers the effective date of asu no . 2014-09 for all entities for one year . public business entities , certain not-for-profit entities , and certain employee benefit plans should apply the guidance in asu 2014-09 to fiscal years beginning after december 15 , 2017 , including interim reporting periods within that fiscal year . earlier application is permitted only as of fiscal years beginning after december 31 , 2016 , including interim reporting periods with that fiscal year . we are currently reviewing the revised guidance and assessing the potential impact on our consolidated financial statements . 25 in july 2015 , the fasb issued asu no . 2015-11 , “ simplifying the measurement of inventory , ” that requires inventory be measured at the lower of cost and net realizable value and options that currently exist for market value be eliminated . the standard defines net realizable value as estimated selling prices in the ordinary course of business , less reasonably predictable costs of completion , disposal , and transportation and is effective for fiscal years beginning after december 15 , 2016 and interim periods within those fiscal years with early adoption permitted . the guidance should be applied prospectively . we do not believe that the adoption of asu 2015-11 will have a significant impact on our consolidated financial statements . in november 2015 , the fasb issued asu no . 2015-17 , “ balance sheet classification of deferred taxes , ” that requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position . the current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this amendment . the new guidance is effective for fiscal years , and interim periods within those years , beginning after december 15 , 2016. early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities . we do not believe that the adoption of asu 2015-17 will have a significant impact on our consolidated financial statements . in january 2016 , the fasb issued asu no . 2016-01 , “ recognition and measurement of financial assets and financial liabilities , ” that modifies certain aspects of the recognition , measurement , presentation , and disclosure of financial instruments . the accounting standard update is effective for fiscal years , and interim periods within those years , beginning after december 15 , 2017 , and early adoption is permitted . we are currently assessing the impact that adopting this new accounting guidance will have on our consolidated financial statements . in february 2016 , the fasb issued asu no . 2016-02 , “ leases ” , that discusses how an entity should account for lease assets and lease liabilities . the guidance specifies that an entity who is a lessee under lease agreements should recognize lease assets and lease liabilities for those leases classified as operating leases under previous fasb guidance . accounting for leases by lessors is largely unchanged under the new guidance . the guidance is effective for us beginning in the first quarter of 2019. early adoption is permitted . in transition , lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach . we are evaluating the impact of adopting this guidance on our consolidated financial statements . in march 2016 , the fasb issued asu 2016-08 , “ principal versus agent considerations ( reporting revenue gross versus net ) , ” which clarifies the implementation guidance on principal versus agent considerations . the amendments in this update do not change the core principle of asu 2014-09. the effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of asu 2014-09. as discussed above , asu 2015-14 defers the effective date of asu 2014-09 by one year . we are currently assessing the impact that adopting this new accounting guidance will have on our consolidated financial statements . in march 2016 , the fasb issued asu 2016-09 , “ improvements to employee share-based payment accounting , ” which simplifies several aspects of the accounting for share-based payment transactions , including the income tax consequences , classification of awards as either equity or liabilities , and classification on the statement of cash flows . the guidance is effective for us beginning in the first quarter of fiscal year 2017. early adoption is permitted . we are evaluating the impact of adopting this guidance on our consolidated financial statements . in april 2016 , the fasb issued asu 2016-10 , “ identifying performance obligations and licensing , ” which clarifies the implementation guidance for performance obligations and licensing . the amendments in this update do not change the core principle of asu 2014-09. the effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of asu 2014-09. as discussed above , asu 2015-14 defers the effective date of asu 2014-09 by one year . we are currently assessing the impact that adopting this new accounting guidance will have on our consolidated financial statements . story_separator_special_tag $ 884,000 for the year ended december 31 , 2015. the increase of approximately $ 142,000 , or 16 % , in cost of goods sold was primarily related to an increase in the number of filters sold . research and development research and development expenses were approximately $ 1,079,000 and $ 826,000 for the years ended december 31 , 2016 and december 31 , 2015 , respectively . this increase of approximately $ 253,000 , or 31 % , is primarily due to an increase in full-time research and development employees . depreciation and amortization expense depreciation and amortization expense was approximately $ 230,000 for the year ended december 31 , 2016 compared to approximately $ 212,000 for the year ended december 31 , 2015 , representing an increase of approximately 8 % related to equipment expenditures for the year ended december 31 , 2016. selling , general and administrative expenses selling , general and administrative expenses were approximately $ 2,854,000 for the year ended december 31 , 2016 compared to approximately $ 3,443,000 for the year ended december 31 , 2015 , representing a decrease of $ 589,000 , or 17 % . the decrease was primarily due to a decrease in legal and auditor expenses of approximately $ 280,000 , a decrease in regulatory expenses of approximately $ 220,000 , which were incurred in 2015 related to standard operating procedure updates , a decrease in severance expense of approximately $ 175,000 incurred in 2015 and a decrease of approximately $ 120,000 in direct compensation and investor relations expenses . these decreases were partially offset by an increase in selling , general and administrative personnel of approximately $ 280,000. interest expense the table below summarizes interest expense for the years ended december 31 , 2016 and 2015 : replace_table_token_1_th interest income interest income of approximately $ 5,000 for the year ended december 31 , 2016 is as result of interest income recognized on a lease receivable . 29 change in fair value of warrant liability we classified certain warrants as liabilities at their fair value and adjusted the warrant liability to fair value at each reporting period . this liability was subject to re-measurement at each balance sheet date until exercised , and any change in fair value is recognized in our consolidated statement of operations and comprehensive income ( loss ) . the fair value of such warrants issued was estimated using a binomial options pricing model . the change in fair value of the warrant liability resulted in income of approximately $ 2,099,000 for the year ended december 31 , 2015. these liability classified warrants were exercised in full on september 29 , 2015. warrant modification expense during the year ended december 31 , 2015 , the modification of the exercise price of the liability-classified warrants resulted in an increase in the warrant liability , immediately before exercise , of approximately $ 1,761,000. other income/expense other expense for the year ended december 31 , 2016 of approximately $ 4,000 is related to foreign currency gains of approximately $ 2,000 and miscellaneous other income of approximately $ 2,000. other income of approximately $ 37,000 for the year ended december 31 , 2015 is due to foreign currency gains . off-balance sheet arrangements we did not have any off-balance sheet arrangements as of december 31 , 2016 or 2015. story_separator_special_tag 0 ; margin-bottom : 0 ; text-align : center `` > as of the date of this annual report on form 10-k , we expect that our existing cash balances and projected increase in product sales from the launch of new products , as well as the approximately $ 1.2 million raised in a pipe offering in march 2017 , will allow us to fund our operations at least into 2018 , if not longer , depending on the timing and market acceptance of our new products . this assumption excludes the impact of future cash receipts from recurring operations . our cash flow currently is not , and historically has not been , sufficient to meet our obligations and commitments . we must seek and obtain additional financing to fund our operations . if we can not raise sufficient capital , in connection with offerings of our common stock or through other means , we will be forced to curtail our planned activities and operations or cease operations entirely and you will lose all of your investment in us . there can be no assurance that we could raise sufficient capital on a timely basis or on satisfactory terms or at all . net cash used in operating activities was approximately $ 2,112,000 for the year ended december 31 , 2016 compared to approximately $ 3,815,000 for the year ended december 31 , 2015. our net loss was approximately $ 3,027,000 for the year ended december 31 , 2016 compared to a net loss of approximately $ 3,426,000 , excluding the noncash impacts of the change in fair value of the warrant liability and the warrant modification , for the year ended december 31 , 2015 , a decrease of approximately $ 399,000. the most significant items contributing to the net decrease of approximately $ 1,703,000 in cash used in operating activities during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 are highlighted below : ● our inventory decreased by approximately $ 103,000 during the 2016 period compared to an increase of approximately $ 405,000 during the 2015 period as a result of managing inventory levels ; ● our accounts receivable increased by approximately $ 17,000 during the 2016 period compared to an increase of approximately $ 302,000 during the 2015 period as a result of timing of receipts ; ● our prepaid expenses and other current assets increased by approximately $ 10,000 during the 2016 period compared to an increase of approximately $ 144,000 during the 2015 period as a result of decreased deposits ; ● our accounts

liquidity and capital resources the following table summarizes our liquidity and capital resources as of december 31 , 2016 and 2015 and is intended to supplement the more detailed discussion that follows . the amounts stated are expressed in thousands . replace_table_token_2_th our future liquidity sources and requirements will depend on many factors , including : ● the availability of additional financing , through the sale of equity securities or otherwise , on commercially reasonable terms or at all ; ● the market acceptance of our products , and our ability to effectively and efficiently produce and market our products ; ● the continued progress in , and the costs of , clinical studies and other research and development programs ; ● the costs involved in filing and enforcing patent claims and the status of competitive products ; and ● the cost of litigation , including potential patent litigation and any other actual or threatened litigation . we expect to put our current capital resources to the following uses : ● for the marketing and sales of our water-filtration products ; ● to pursue business development opportunities with respect to our chronic renal treatment system ; and ● for working capital purposes . we operate under an investment , risk management and accounting policy adopted by our board of directors . such policy limits the types of instruments or securities in which we may invest our excess funds : u.s. treasury securities ; certificates of deposit issued by money center banks ; money funds by money center banks ; repurchase agreements ; and eurodollar certificates of deposit issued by money center banks . this policy provides that our primary objectives for investments shall be the preservation of principal and achieving sufficient liquidity to meet our forecasted cash requirements . in addition , provided that such primary objectives are met , we may seek to achieve the maximum yield available under such constraints .


 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 the following table summarizes our liquidity and capital resources as of december 31 , 2016 and 2015 and is intended to supplement the more detailed discussion that follows . the amounts stated are expressed in thousands . replace_table_token_2_th our future liquidity sources and requirements will depend on many factors , including : ● the availability of additional financing , through the sale of equity securities or otherwise , on commercially reasonable terms or at all ; ● the market acceptance of our products , and our ability to effectively and efficiently produce and market our products ; ● the continued progress in , and the costs of , clinical studies and other research and development programs ; ● the costs involved in filing and enforcing patent claims and the status of competitive products ; and ● the cost of litigation , including potential patent litigation and any other actual or threatened litigation . we expect to put our current capital resources to the following uses : ● for the marketing and sales of our water-filtration products ; ● to pursue business development opportunities with respect to our chronic renal treatment system ; and ● for working capital purposes . we operate under an investment , risk management and accounting policy adopted by our board of directors . such policy limits the types of instruments or securities in which we may invest our excess funds : u.s. treasury securities ; certificates of deposit issued by money center banks ; money funds by money center banks ; repurchase agreements ; and eurodollar certificates of deposit issued by money center banks . this policy provides that our primary objectives for investments shall be the preservation of principal and achieving sufficient liquidity to meet our forecasted cash requirements . in addition , provided that such primary objectives are met , we may seek to achieve the maximum yield available under such constraints .
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 Suspicious Activity Report : the standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in prior accounting guidance . asu 2014-09 provides alternative methods of initial adoption , and was effective for fiscal years beginning after december 15 , 2016 , and interim periods within those annual periods . early adoption was not permitted . in august , 2015 , the fasb issued asu no . 2015-14 , “ revenue from contracts with customers : deferral of the effective date ” . the amendment in this asu defers the effective date of asu no . 2014-09 for all entities for one year . public business entities , certain not-for-profit entities , and certain employee benefit plans should apply the guidance in asu 2014-09 to fiscal years beginning after december 15 , 2017 , including interim reporting periods within that fiscal year . earlier application is permitted only as of fiscal years beginning after december 31 , 2016 , including interim reporting periods with that fiscal year . we are currently reviewing the revised guidance and assessing the potential impact on our consolidated financial statements . 25 in july 2015 , the fasb issued asu no . 2015-11 , “ simplifying the measurement of inventory , ” that requires inventory be measured at the lower of cost and net realizable value and options that currently exist for market value be eliminated . the standard defines net realizable value as estimated selling prices in the ordinary course of business , less reasonably predictable costs of completion , disposal , and transportation and is effective for fiscal years beginning after december 15 , 2016 and interim periods within those fiscal years with early adoption permitted . the guidance should be applied prospectively . we do not believe that the adoption of asu 2015-11 will have a significant impact on our consolidated financial statements . in november 2015 , the fasb issued asu no . 2015-17 , “ balance sheet classification of deferred taxes , ” that requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position . the current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this amendment . the new guidance is effective for fiscal years , and interim periods within those years , beginning after december 15 , 2016. early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities . we do not believe that the adoption of asu 2015-17 will have a significant impact on our consolidated financial statements . in january 2016 , the fasb issued asu no . 2016-01 , “ recognition and measurement of financial assets and financial liabilities , ” that modifies certain aspects of the recognition , measurement , presentation , and disclosure of financial instruments . the accounting standard update is effective for fiscal years , and interim periods within those years , beginning after december 15 , 2017 , and early adoption is permitted . we are currently assessing the impact that adopting this new accounting guidance will have on our consolidated financial statements . in february 2016 , the fasb issued asu no . 2016-02 , “ leases ” , that discusses how an entity should account for lease assets and lease liabilities . the guidance specifies that an entity who is a lessee under lease agreements should recognize lease assets and lease liabilities for those leases classified as operating leases under previous fasb guidance . accounting for leases by lessors is largely unchanged under the new guidance . the guidance is effective for us beginning in the first quarter of 2019. early adoption is permitted . in transition , lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach . we are evaluating the impact of adopting this guidance on our consolidated financial statements . in march 2016 , the fasb issued asu 2016-08 , “ principal versus agent considerations ( reporting revenue gross versus net ) , ” which clarifies the implementation guidance on principal versus agent considerations . the amendments in this update do not change the core principle of asu 2014-09. the effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of asu 2014-09. as discussed above , asu 2015-14 defers the effective date of asu 2014-09 by one year . we are currently assessing the impact that adopting this new accounting guidance will have on our consolidated financial statements . in march 2016 , the fasb issued asu 2016-09 , “ improvements to employee share-based payment accounting , ” which simplifies several aspects of the accounting for share-based payment transactions , including the income tax consequences , classification of awards as either equity or liabilities , and classification on the statement of cash flows . the guidance is effective for us beginning in the first quarter of fiscal year 2017. early adoption is permitted . we are evaluating the impact of adopting this guidance on our consolidated financial statements . in april 2016 , the fasb issued asu 2016-10 , “ identifying performance obligations and licensing , ” which clarifies the implementation guidance for performance obligations and licensing . the amendments in this update do not change the core principle of asu 2014-09. the effective date and transition requirements for the amendments in this update are the same as the effective date and transition requirements of asu 2014-09. as discussed above , asu 2015-14 defers the effective date of asu 2014-09 by one year . we are currently assessing the impact that adopting this new accounting guidance will have on our consolidated financial statements . story_separator_special_tag $ 884,000 for the year ended december 31 , 2015. the increase of approximately $ 142,000 , or 16 % , in cost of goods sold was primarily related to an increase in the number of filters sold . research and development research and development expenses were approximately $ 1,079,000 and $ 826,000 for the years ended december 31 , 2016 and december 31 , 2015 , respectively . this increase of approximately $ 253,000 , or 31 % , is primarily due to an increase in full-time research and development employees . depreciation and amortization expense depreciation and amortization expense was approximately $ 230,000 for the year ended december 31 , 2016 compared to approximately $ 212,000 for the year ended december 31 , 2015 , representing an increase of approximately 8 % related to equipment expenditures for the year ended december 31 , 2016. selling , general and administrative expenses selling , general and administrative expenses were approximately $ 2,854,000 for the year ended december 31 , 2016 compared to approximately $ 3,443,000 for the year ended december 31 , 2015 , representing a decrease of $ 589,000 , or 17 % . the decrease was primarily due to a decrease in legal and auditor expenses of approximately $ 280,000 , a decrease in regulatory expenses of approximately $ 220,000 , which were incurred in 2015 related to standard operating procedure updates , a decrease in severance expense of approximately $ 175,000 incurred in 2015 and a decrease of approximately $ 120,000 in direct compensation and investor relations expenses . these decreases were partially offset by an increase in selling , general and administrative personnel of approximately $ 280,000. interest expense the table below summarizes interest expense for the years ended december 31 , 2016 and 2015 : replace_table_token_1_th interest income interest income of approximately $ 5,000 for the year ended december 31 , 2016 is as result of interest income recognized on a lease receivable . 29 change in fair value of warrant liability we classified certain warrants as liabilities at their fair value and adjusted the warrant liability to fair value at each reporting period . this liability was subject to re-measurement at each balance sheet date until exercised , and any change in fair value is recognized in our consolidated statement of operations and comprehensive income ( loss ) . the fair value of such warrants issued was estimated using a binomial options pricing model . the change in fair value of the warrant liability resulted in income of approximately $ 2,099,000 for the year ended december 31 , 2015. these liability classified warrants were exercised in full on september 29 , 2015. warrant modification expense during the year ended december 31 , 2015 , the modification of the exercise price of the liability-classified warrants resulted in an increase in the warrant liability , immediately before exercise , of approximately $ 1,761,000. other income/expense other expense for the year ended december 31 , 2016 of approximately $ 4,000 is related to foreign currency gains of approximately $ 2,000 and miscellaneous other income of approximately $ 2,000. other income of approximately $ 37,000 for the year ended december 31 , 2015 is due to foreign currency gains . off-balance sheet arrangements we did not have any off-balance sheet arrangements as of december 31 , 2016 or 2015. story_separator_special_tag 0 ; margin-bottom : 0 ; text-align : center `` > as of the date of this annual report on form 10-k , we expect that our existing cash balances and projected increase in product sales from the launch of new products , as well as the approximately $ 1.2 million raised in a pipe offering in march 2017 , will allow us to fund our operations at least into 2018 , if not longer , depending on the timing and market acceptance of our new products . this assumption excludes the impact of future cash receipts from recurring operations . our cash flow currently is not , and historically has not been , sufficient to meet our obligations and commitments . we must seek and obtain additional financing to fund our operations . if we can not raise sufficient capital , in connection with offerings of our common stock or through other means , we will be forced to curtail our planned activities and operations or cease operations entirely and you will lose all of your investment in us . there can be no assurance that we could raise sufficient capital on a timely basis or on satisfactory terms or at all . net cash used in operating activities was approximately $ 2,112,000 for the year ended december 31 , 2016 compared to approximately $ 3,815,000 for the year ended december 31 , 2015. our net loss was approximately $ 3,027,000 for the year ended december 31 , 2016 compared to a net loss of approximately $ 3,426,000 , excluding the noncash impacts of the change in fair value of the warrant liability and the warrant modification , for the year ended december 31 , 2015 , a decrease of approximately $ 399,000. the most significant items contributing to the net decrease of approximately $ 1,703,000 in cash used in operating activities during the year ended december 31 , 2016 compared to the year ended december 31 , 2015 are highlighted below : ● our inventory decreased by approximately $ 103,000 during the 2016 period compared to an increase of approximately $ 405,000 during the 2015 period as a result of managing inventory levels ; ● our accounts receivable increased by approximately $ 17,000 during the 2016 period compared to an increase of approximately $ 302,000 during the 2015 period as a result of timing of receipts ; ● our prepaid expenses and other current assets increased by approximately $ 10,000 during the 2016 period compared to an increase of approximately $ 144,000 during the 2015 period as a result of decreased deposits ; ● our accounts

