we market our products using a range of marketing mediums including in-store merchandising and promotions , experiential marketing , events , and sponsorships , digital marketing and social media , direct marketing , and traditional media including print , radio , outdoor , and tv . highlights we generate revenue through the commercialization of our portfolio of brands to consumers via our retailer partners . the following are highlights of our operating results for the year ended december 31 , 2016 ( successor ) , as well as for the nine months ended december 31 , 2015 ( successor ) and three months ended march 31 , 2015 ( predecessor ) on a standalone , pre-acquisition basis : the following are highlights of our operating results for the year ended december 31 , 2016 : ● revenue . during the year ended december 31 , 2016 ( successor ) , we generated revenue of $ 25,301,806. our revenue for the period is primarily attributed to our acquisition of the xing brands and the related increase in demand for xing products , as well as expanded distribution on the búcha live kombucha brand . the 2016 revenue reflects full year búcha , inc. results but only 6 months of xing performance as it was acquired june 30 , 2016 . ● gross margin . gross margin was 23 % , and gross profit was $ 5,796,226 for the year ended december 31 , 2016 ( successor ) . our margin during the year ended december 31 , 2016 was due to a trending improvement in cost of goods sold related to raw material sourcing . cost of goods sold remains the company 's most significant opportunity to improve net profitability . our cost of goods sold for the year ended december 31 , 2016 ( successor ) , was $ 19,505,580. as part of the newly integrated company , we are pursuing a top to bottom review of every cost input and pursuing all potential cost synergies from the combination of our prior business with the newly acquired xing brands . ● operating expenses . during the year ended december 31 , 2016 , our operating expenses were $ 9,422,983. our operating expenses related to an increased employee base in the xing division of our business , in addition to one-time expenses associated with the acquisition of xing that are not expected to be repeated in future periods . 19 we believe that as a result of the xing acquisition , our revenue and gross profit will continue to be higher than reported in prior periods . historically , prior to the acquisition , our cash generated from operations has not been sufficient to meet our expenses . the newly acquired xing brands , however , generated $ 222,680 of net income for the year ended december 31 , 2014 , and $ 772,308 in net income for the year ended december 31 , 2015. we believe that on a consolidated basis , and with the reductions in operating expenses for the búcha division , the integrated company will generate sufficient cash flow internally to meet its needs . in addition , as part of the financing of the acquisition , we entered into two credit agreements on june 30 , 2016 , whereby we are able to borrow up to $ 5,900,000 ( the “ revolving commitment amount ” ) under a revolving credit line , and whereby we borrowed an additional $ 4,800,000 under a loan . each loan amount under the revolving credit line shall accrue interest at an annual rate equal to the applicable margin , which ranges from 2.25 % to 3.00 % , plus the daily reset libor rate . for the revolving credit line , upon an event of default related to a bankruptcy event , the obligations of the lender shall immediately terminate and all loan amounts shall become due and payable . upon any other event of default under the revolving credit line , the lender may terminate or suspend the obligations of the lender to make loans under the agreement , or declare the loan to be due and payable , or both . during the continuance of an event of default , the loan ( s ) shall accrue interest at a rate of 5 % per annum . as of december 31 , 2016 , there was $ 5,650,000 outstanding . with respect to the $ 4,800,000 loan , of which $ 4,754,636 is outstanding , all amounts owed shall accrue interest at 4.04 % per annum , and the entire loan shall become due and payable on june 30 , 2021. upon an event of default under the loan , the lender may require that the entire loan become due and payable . the following are highlights of our operating results for the year ended december 31 , 2016 ( successor ) and the nine months ended december 31 , 2015 ( successor ) and the three months ended march 31 , 2015 ( predecessor ) : ● revenue . during the year ended december 31 , 2016 , we generated revenue of $ 25,301,806 , an increase of $ 22,880,054 over our revenues of $ 1,844,889 for the nine months ended december 31 , 2015 ( successor ) and $ 576,863 for the three months ended march 31 , 2015 ( predecessor ) combined revenue of $ 2,421,752 for the year ended december 31 , 2015 ( successor and predecessor ) . the change was attributable to our xing acquisition . ● gross margin . story_separator_special_tag the promissory note related to our xing acquisition accrues interest at a rate of 1.00 % per annum , which shall begin to accrue on january 1 , 2017. interest shall be due and payable in arrears on the first day of each month beginning on february 1 , 2017 through the maturity date . the maturity date of the promissory note is june 30 , 2017. working capital replace_table_token_4_th current assets are primarily comprised of accounts receivable and inventories , which accounts for 47.3 % and 44.2 % of our current assets as of december 31 , 2016 and which accounts for 49.4 % and 37.3 % of our current assets as of december 31 , 2015 , respectively . current liabilities are comprised of accounts payable and accrued expenses and , as of december 31 , 2016 , a current portion ( $ 4,562,179 ) of a note payable , which is due on june 30 , 2017. increases in our reported assets and liabilities are attributable to our june 30 , 2016 acquisition of xing 's net assets for $ 19,995,000. the purchase price was allocated to the net assets acquired as follows : replace_table_token_5_th the acquisition was consummated on june 30 , 2016 , and as such , the company assessed the fair value of the various net assets acquired . the company identified other intangible assets , such as customer lists that were recognized apart from goodwill , and recorded at fair value . the $ 4,506,227 of goodwill currently recognized is deductible for income tax purposes over the next fifteen years . story_separator_special_tag new roman , times , serif ; font-size : 10pt `` > we account for stock-based compensation to employees in accordance with fasb asc 718 , compensation—stock compensation . stock-based compensation to employees is measured at the grant date , based on the fair value of the award , and is recognized as expense over the requisite employee service period . we account for stock-based compensation to other than employees in accordance with fasb asc 505-50. equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services , based on the fair value of the equity instruments and is recognized as expense over the service period . we estimate the fair value of stock-based payments using the black-scholes option-pricing model for common stock options and warrants and the latest fair market price of the company 's common stock for common share issuances . acquisitions we entered into an asset purchase agreement on may 20 , 2016 , which closed on june 30 , 2016 , whereby we acquired substantially all of the operating assets of new age beverages , llc , new age properties , llc , aspen pure , llc and xing beverage , llc ( collectively , “ xing ” ) , which are companies engaged in the manufacture and sale of various teas and beverages . the transaction was disclosed in a form 8-k filed on may 23 , 2016 , and an amended form 8-k filed on june 30 , 2016. upon the closing of the acquisition , we received substantially all of the operating assets of xing , consisting of inventory , fixed assets and intellectual property in exchange for an aggregate purchase price of $ 19,995,000 , consisting of $ 6,995,000 worth of our common stock , consisting of 4,353,915 shares of common stock , $ 8,500,000 in cash , and a secured promissory note in an amount of $ 4,500,000. the promissory note shall accrue interest of 1 % per annum , beginning after six months from the closing date , and shall be secured by a second lien on our assets . the shares of common stock issued pursuant to the acquisition are subject to an additional leak out provision , which states that upon the date that is six months after closing date , the holders of the shares may only sell up to fifteen percent of the shares held by such shareholder each calendar quarter for an additional twelve month period , meaning that the leak out provision will expire 18 months from the closing of the acquisition . on april 1 , 2015 we entered into an asset purchase agreement whereby we acquired substantially all of the operating assets of b & r liquid adventure , llc a california limited liability company . upon the closing of the acquisition , we received substantially all of the operating assets of b & r , consisting of inventory , fixed assets and intellectual property in exchange for 1,479,290 shares of common stock valued at $ 500,000 , a cash payment of $ 260,000 , and a secured promissory note in an amount of $ 140,000. in addition , the company assumed $ 121,416 of scheduled liabilities . the shares of common stock issued pursuant to the acquisition are restricted under rule 144 , and are also subject to an additional leak out provision , which states that upon the date that is six months after closing , the holders of the shares may only sell up to fifteen percent of the shares held by such shareholder each calendar quarter for an additional twelve month period , meaning that the leak out provision will expire 18 months from the closing of the acquisition . capital expenditures other capital expenditures we expect to incur research and development costs , as well as marketing expenses in connection with the expansion of our business and the development of our products . going concern the report of our independent registered public accounting firm with respect to our december 31 , 2015 consolidated financial statements as provided in our form 10-k filed on april 7 , 2016 includes an explanatory paragraph stating that the recurring losses , an accumulated deficit and a working capital deficit at december 31 , 2015 raise substantial doubt about our ability to

cash flows replace_table_token_6_th 24 operating activities net cash provided by operating activities for the year ended december 31 , 2016 ( successor ) was $ 975,176. our net cash used in operating activities for the nine months ended december 31 , 2015 ( successor ) was ( $ 633,982 ) . net cash provided by operating activities for the three months ended march 31 , 2015 ( predecessor ) was $ 24,330. investing activities net cash used in investing activities is primarily driven by our acquisition of xing on december 31 , 2016 ( successor ) , whereby we paid $ 8,500,000 , and the acquisition of b & r liquid adventure on april 1 , 2015 ( successor ) , whereby we paid $ 400,000. net cash used in investing activities for the year ended december 31 , 2016 was $ ( 8,547,198 ) . net cash used in investing activities during the nine months ended december 31 , 2015 ( successor ) and three months ended march 31 , 2015 ( predecessor ) were ( $ 28,351 ) and ( $ 11,688 ) . the primary cause for the change from period to period was cash proceeds and cash payments on discontinued operations and the acquisition of b & r liquid adventure during the year ended december 31 , 2015 ( successor ) . financing activities for the year ended december 31 , 2016 ( successor ) , net cash provided by financing activities of $ 8,057,254 was due to us borrowing ( i ) $ 10,700,000 from us bank to finance the xing acquisition . the $ 10.7 million in debt was secured in two separate notes with u.s. bank ; one note for $ 4.8 million , which is secured by our denver , colorado property ; and another revolving note of $ 5.9 million , which is secured by the company 's inventories and receivables . $ 2,200,000 of the $ 10,700,000 was used to pay off the balance from the previous mortgagor and the remaining $ 8.5 million was used to fund the xing acquisition . there was additional debt of ( ii ) $ 200,000 from an unrelated party pursuant to a convertible note payable ( that has since been converted ) .


 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.
     ```cash flows replace_table_token_6_th 24 operating activities net cash provided by operating activities for the year ended december 31 , 2016 ( successor ) was $ 975,176. our net cash used in operating activities for the nine months ended december 31 , 2015 ( successor ) was ( $ 633,982 ) . net cash provided by operating activities for the three months ended march 31 , 2015 ( predecessor ) was $ 24,330. investing activities net cash used in investing activities is primarily driven by our acquisition of xing on december 31 , 2016 ( successor ) , whereby we paid $ 8,500,000 , and the acquisition of b & r liquid adventure on april 1 , 2015 ( successor ) , whereby we paid $ 400,000. net cash used in investing activities for the year ended december 31 , 2016 was $ ( 8,547,198 ) . net cash used in investing activities during the nine months ended december 31 , 2015 ( successor ) and three months ended march 31 , 2015 ( predecessor ) were ( $ 28,351 ) and ( $ 11,688 ) . the primary cause for the change from period to period was cash proceeds and cash payments on discontinued operations and the acquisition of b & r liquid adventure during the year ended december 31 , 2015 ( successor ) . financing activities for the year ended december 31 , 2016 ( successor ) , net cash provided by financing activities of $ 8,057,254 was due to us borrowing ( i ) $ 10,700,000 from us bank to finance the xing acquisition . the $ 10.7 million in debt was secured in two separate notes with u.s. bank ; one note for $ 4.8 million , which is secured by our denver , colorado property ; and another revolving note of $ 5.9 million , which is secured by the company 's inventories and receivables . $ 2,200,000 of the $ 10,700,000 was used to pay off the balance from the previous mortgagor and the remaining $ 8.5 million was used to fund the xing acquisition . there was additional debt of ( ii ) $ 200,000 from an unrelated party pursuant to a convertible note payable ( that has since been converted ) .
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 Suspicious Activity Report : we market our products using a range of marketing mediums including in-store merchandising and promotions , experiential marketing , events , and sponsorships , digital marketing and social media , direct marketing , and traditional media including print , radio , outdoor , and tv . highlights we generate revenue through the commercialization of our portfolio of brands to consumers via our retailer partners . the following are highlights of our operating results for the year ended december 31 , 2016 ( successor ) , as well as for the nine months ended december 31 , 2015 ( successor ) and three months ended march 31 , 2015 ( predecessor ) on a standalone , pre-acquisition basis : the following are highlights of our operating results for the year ended december 31 , 2016 : ● revenue . during the year ended december 31 , 2016 ( successor ) , we generated revenue of $ 25,301,806. our revenue for the period is primarily attributed to our acquisition of the xing brands and the related increase in demand for xing products , as well as expanded distribution on the búcha live kombucha brand . the 2016 revenue reflects full year búcha , inc. results but only 6 months of xing performance as it was acquired june 30 , 2016 . ● gross margin . gross margin was 23 % , and gross profit was $ 5,796,226 for the year ended december 31 , 2016 ( successor ) . our margin during the year ended december 31 , 2016 was due to a trending improvement in cost of goods sold related to raw material sourcing . cost of goods sold remains the company 's most significant opportunity to improve net profitability . our cost of goods sold for the year ended december 31 , 2016 ( successor ) , was $ 19,505,580. as part of the newly integrated company , we are pursuing a top to bottom review of every cost input and pursuing all potential cost synergies from the combination of our prior business with the newly acquired xing brands . ● operating expenses . during the year ended december 31 , 2016 , our operating expenses were $ 9,422,983. our operating expenses related to an increased employee base in the xing division of our business , in addition to one-time expenses associated with the acquisition of xing that are not expected to be repeated in future periods . 19 we believe that as a result of the xing acquisition , our revenue and gross profit will continue to be higher than reported in prior periods . historically , prior to the acquisition , our cash generated from operations has not been sufficient to meet our expenses . the newly acquired xing brands , however , generated $ 222,680 of net income for the year ended december 31 , 2014 , and $ 772,308 in net income for the year ended december 31 , 2015. we believe that on a consolidated basis , and with the reductions in operating expenses for the búcha division , the integrated company will generate sufficient cash flow internally to meet its needs . in addition , as part of the financing of the acquisition , we entered into two credit agreements on june 30 , 2016 , whereby we are able to borrow up to $ 5,900,000 ( the “ revolving commitment amount ” ) under a revolving credit line , and whereby we borrowed an additional $ 4,800,000 under a loan . each loan amount under the revolving credit line shall accrue interest at an annual rate equal to the applicable margin , which ranges from 2.25 % to 3.00 % , plus the daily reset libor rate . for the revolving credit line , upon an event of default related to a bankruptcy event , the obligations of the lender shall immediately terminate and all loan amounts shall become due and payable . upon any other event of default under the revolving credit line , the lender may terminate or suspend the obligations of the lender to make loans under the agreement , or declare the loan to be due and payable , or both . during the continuance of an event of default , the loan ( s ) shall accrue interest at a rate of 5 % per annum . as of december 31 , 2016 , there was $ 5,650,000 outstanding . with respect to the $ 4,800,000 loan , of which $ 4,754,636 is outstanding , all amounts owed shall accrue interest at 4.04 % per annum , and the entire loan shall become due and payable on june 30 , 2021. upon an event of default under the loan , the lender may require that the entire loan become due and payable . the following are highlights of our operating results for the year ended december 31 , 2016 ( successor ) and the nine months ended december 31 , 2015 ( successor ) and the three months ended march 31 , 2015 ( predecessor ) : ● revenue . during the year ended december 31 , 2016 , we generated revenue of $ 25,301,806 , an increase of $ 22,880,054 over our revenues of $ 1,844,889 for the nine months ended december 31 , 2015 ( successor ) and $ 576,863 for the three months ended march 31 , 2015 ( predecessor ) combined revenue of $ 2,421,752 for the year ended december 31 , 2015 ( successor and predecessor ) . the change was attributable to our xing acquisition . ● gross margin . story_separator_special_tag the promissory note related to our xing acquisition accrues interest at a rate of 1.00 % per annum , which shall begin to accrue on january 1 , 2017. interest shall be due and payable in arrears on the first day of each month beginning on february 1 , 2017 through the maturity date . the maturity date of the promissory note is june 30 , 2017. working capital replace_table_token_4_th current assets are primarily comprised of accounts receivable and inventories , which accounts for 47.3 % and 44.2 % of our current assets as of december 31 , 2016 and which accounts for 49.4 % and 37.3 % of our current assets as of december 31 , 2015 , respectively . current liabilities are comprised of accounts payable and accrued expenses and , as of december 31 , 2016 , a current portion ( $ 4,562,179 ) of a note payable , which is due on june 30 , 2017. increases in our reported assets and liabilities are attributable to our june 30 , 2016 acquisition of xing 's net assets for $ 19,995,000. the purchase price was allocated to the net assets acquired as follows : replace_table_token_5_th the acquisition was consummated on june 30 , 2016 , and as such , the company assessed the fair value of the various net assets acquired . the company identified other intangible assets , such as customer lists that were recognized apart from goodwill , and recorded at fair value . the $ 4,506,227 of goodwill currently recognized is deductible for income tax purposes over the next fifteen years . story_separator_special_tag new roman , times , serif ; font-size : 10pt `` > we account for stock-based compensation to employees in accordance with fasb asc 718 , compensation—stock compensation . stock-based compensation to employees is measured at the grant date , based on the fair value of the award , and is recognized as expense over the requisite employee service period . we account for stock-based compensation to other than employees in accordance with fasb asc 505-50. equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services , based on the fair value of the equity instruments and is recognized as expense over the service period . we estimate the fair value of stock-based payments using the black-scholes option-pricing model for common stock options and warrants and the latest fair market price of the company 's common stock for common share issuances . acquisitions we entered into an asset purchase agreement on may 20 , 2016 , which closed on june 30 , 2016 , whereby we acquired substantially all of the operating assets of new age beverages , llc , new age properties , llc , aspen pure , llc and xing beverage , llc ( collectively , “ xing ” ) , which are companies engaged in the manufacture and sale of various teas and beverages . the transaction was disclosed in a form 8-k filed on may 23 , 2016 , and an amended form 8-k filed on june 30 , 2016. upon the closing of the acquisition , we received substantially all of the operating assets of xing , consisting of inventory , fixed assets and intellectual property in exchange for an aggregate purchase price of $ 19,995,000 , consisting of $ 6,995,000 worth of our common stock , consisting of 4,353,915 shares of common stock , $ 8,500,000 in cash , and a secured promissory note in an amount of $ 4,500,000. the promissory note shall accrue interest of 1 % per annum , beginning after six months from the closing date , and shall be secured by a second lien on our assets . the shares of common stock issued pursuant to the acquisition are subject to an additional leak out provision , which states that upon the date that is six months after closing date , the holders of the shares may only sell up to fifteen percent of the shares held by such shareholder each calendar quarter for an additional twelve month period , meaning that the leak out provision will expire 18 months from the closing of the acquisition . on april 1 , 2015 we entered into an asset purchase agreement whereby we acquired substantially all of the operating assets of b & r liquid adventure , llc a california limited liability company . upon the closing of the acquisition , we received substantially all of the operating assets of b & r , consisting of inventory , fixed assets and intellectual property in exchange for 1,479,290 shares of common stock valued at $ 500,000 , a cash payment of $ 260,000 , and a secured promissory note in an amount of $ 140,000. in addition , the company assumed $ 121,416 of scheduled liabilities . the shares of common stock issued pursuant to the acquisition are restricted under rule 144 , and are also subject to an additional leak out provision , which states that upon the date that is six months after closing , the holders of the shares may only sell up to fifteen percent of the shares held by such shareholder each calendar quarter for an additional twelve month period , meaning that the leak out provision will expire 18 months from the closing of the acquisition . capital expenditures other capital expenditures we expect to incur research and development costs , as well as marketing expenses in connection with the expansion of our business and the development of our products . going concern the report of our independent registered public accounting firm with respect to our december 31 , 2015 consolidated financial statements as provided in our form 10-k filed on april 7 , 2016 includes an explanatory paragraph stating that the recurring losses , an accumulated deficit and a working capital deficit at december 31 , 2015 raise substantial doubt about our ability to

