, passage of title to the customer as indicated by shipping terms and fulfillment of all significant obligations , pursuant to the guidance provided by accounting standards codification topic 605. for sales to all customers , including manufacturer representatives , distributors or their third-party customers , these criteria are met at the time product is shipped . when other significant obligations remain after products are delivered , revenue is recognized only page 17 after such obligations are fulfilled . in addition , judgments are required in evaluating the credit worthiness of our customers . credit is not extended to customers and revenue is not recognized until we have determined that collectability is reasonably assured . the company estimates customer product returns based on historical return patterns and reduces sales and cost of sales accordingly . refer to note 2 of the notes to consolidated financial statements for further discussion related to the adoption of accounting standards update no . 2014-09 , revenue from contracts with customers ( topic 606 ) . allowance for doubtful accounts  the company maintains credit limits for all customers based upon several factors , including but not limited to financial condition and stability , payment history , published credit reports and use of credit references . management performs various analyses to evaluate accounts receivable balances to ensure recorded amounts reflect estimated net realizable value . this review includes accounts receivable agings , other operating trends and relevant business conditions , including general economic factors , as they relate to the company 's domestic and international customers . if these analyses lead management to the conclusion that potential significant accounts are uncollectible , a reserve is provided . inventories  inventories are valued at the lower of cost or net realizable value with cost determined on the average cost basis . costs included in inventories consist of materials , labor and manufacturing overhead , which are related to the purchase or production of inventories . write-downs , when required , are made to reduce excess inventories to their net realizable values . such estimates are based on assumptions regarding future demand and market conditions . if actual conditions become less favorable than the assumptions used , an additional inventory write-down may be required . deferred taxes  the company applies the asset and liability method in recording income taxes , under which deferred income tax assets and liabilities are determined , based on the differences between the financial reporting and tax basis of assets and liabilities and are measured using currently enacted tax rates and laws . additionally , deferred tax assets are evaluated and a valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized . management continues to review the level of the valuation allowance on a quarterly basis . there can be no assurance that the company 's future operations will produce sufficient earnings so that the deferred tax assets can be fully utilized . intangible assets  intangible and other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable . recoverability is determined by comparing the forecasted future undiscounted net cash flows from the operations to which the assets relate , based on management 's best estimates using the appropriate assumptions and projections at the time , to the carrying amount of the assets . if the carrying value is determined to be in excess of future operating cash flows , the asset is considered impaired and a loss is recognized equal to the amount by which the carrying amount exceeds the estimated fair value of the assets . recent accounting pronouncements refer to note 2 of the notes to consolidated financial statements for a discussion of recent accounting pronouncements . page 18 results of operations replace_table_token_3_th fiscal year ended may 31 , 2018 compared to fiscal year ended may 31 , 2017 net sales  net sales increased $ 1,490,420 , or 12.0 % , to $ 13,888,063 for the fiscal year ended may 31 , 2018 ( fiscal 2018 ) from $ 12,397,643 in the fiscal year ended may 31 , 2017 ( fiscal 2017 ) . the balancer segment focuses its sales efforts on end-users , rebuilders and original equipment manufacturers of grinding machines within the worldwide machine tool industry , with our primary target geographic markets being north america , asia , and europe . balancer segment sales increased $ 1,944,356 , or 27.5 % , to $ 9,026,830 in fiscal 2018 compared to $ 7,082,474 in fiscal 2017. this increase was attributed to stronger sales in each of our target markets . sales by geographic markets for the balancer segment for the years ended may 31 , 2018 and 2017 were as follows : replace_table_token_4_th the levels of demand for our balancer products in any of these geographic markets can not be forecasted with any certainty given current economic trends and the historical volatility experienced in this market . the measurement segment includes two main product lines : the acuity ® product line , which includes laser-based distance measurement and dimensional sizing laser sensors ; and the xact ® product line , which includes ultrasonic-based remote tank monitoring products and related monitoring revenues . measurement sales decreased $ 453,936 , or 8.5 % , to $ 4,861,233 in fiscal 2018 as compared to $ 5,315,169 in fiscal 2017. during fiscal 2017 , the company made the decision to no longer focus on and eventually phase out the sms and lasercheck product page 19 lines , which have historically been included in the measurement segment . story_separator_special_tag sales by product line for the measurement segment for fiscal 2018 compared to fiscal 2017 were as follows : replace_table_token_5_th future sales of laser-based or ultrasonic measurement products can not be forecasted with any certainty given the historical volatility experienced in these product markets . gross margin  in fiscal 2018 , gross margin increased to 43.7 % compared to 39.4 % in fiscal 2017. the variances in gross margin between the periods presented were primarily influenced by focused efforts to reduce product costs and targeted efforts to increase prices where possible , as well as shifts in the product sales mix from lower to higher margin product line sales . operating expenses  operating expenses increased $ 35,451 , or 0.6 % , to $ 5,909,942 in fiscal 2018 to $ 5,874,491 in fiscal 2017. the increase in operating expenses was in part due to the following : increases in research and development expenses ; increases in professional expenses ; and increases in other administrative expenses ; these increases were partially offset by : decreases in sales and commissions expense due to restructuring of some of the commissions programs ; decreases in patent expense ; and decreases in sales related travel and entertainment expenses . other income ( expense )  other income ( expense ) consists of interest income , interest expense , foreign currency exchange gain ( loss ) and other income ( expense ) . interest income was $ 10,955 in fiscal 2018 compared to $ 2,309 in fiscal 2017. fluctuations in interest income are impacted by the levels of our average cash and investment balances and changes in interest rates . interest expense , which is primarily related to the capital lease of a piece of manufacturing equipment , was $ 1,402 in fiscal 2018 compared to $ 2,982 in fiscal 2017. foreign currency exchange gain was $ 72,216 for the year ended may 31 , 2018 compared to foreign currency exchange loss of $ 63,744 for the year ended may 31 , 2017. the foreign currency exchange gain and loss fluctuates with the strength of foreign currencies against the u.s. dollar during the respective periods . provision for income taxes  the effective tax rate in fiscal 2018 was 11.0 % . the effective tax rate on consolidated net income in fiscal 2018 differs from the federal statutory tax rate primarily due to changes in the deferred tax valuation allowance and the impact of certain expenses not being deductible for income tax reporting purposes . the effective tax rate in fiscal 2017 was 2.7 % . the effective tax rate on consolidated net loss in fiscal 2017 differed from the federal statutory tax rate primarily due to changes in the deferred tax valuation allowance . page 20 net income ( loss )  net income was $ 210,639 , or $ 0.06 per fully diluted share , for the year ended may 31 , 2018 as compared to net loss of $ 1,073,364 , or $ ( 0.36 ) per fully diluted share , for the year ended may 31 , 2017. net income for fiscal 2018 was the result of the combination of increased sales in the balancing segment and increases in the overall gross margin . fiscal year ended may 31 , 2017 compared to fiscal year ended may 31 , 2016 net sales  for the fiscal year ended may 31 , 2017 , net sales increased $ 712,290 , or 6.1 % , to $ 12,397,643 from $ 11,685,353 for the fiscal year ended may 31 , 2016. balancer segment sales increased $ 119,728 , or 1.7 % , to $ 7,082,474 for fiscal 2017 as compared to $ 6,962,746 for fiscal 2016. this increase was primarily attributed to stronger sales in asia and other regions of the world , offset by lower shipments into north america in the early part of fiscal 2017. sales by geographic markets for the balancer segment for the years ended may 31 , 2017 and 2016 were as follows : replace_table_token_6_th measurement segment sales increased $ 592,562 , or 12.5 % , to $ 5,315,169 for fiscal 2017 as compared to $ 4,722,607 for fiscal 2016. during fiscal 2017 , the company made the decision to no longer focus on and eventually to phase out the sms and lasercheck product lines , which have historically been included in the measurement segment . sales by product line for the measurement segment for the years ended may 31 , 2017 and 2016 were as follows : replace_table_token_7_th gross margin  gross margin in fiscal 2017 decreased to 39.4 % compared to 41.7 % in fiscal 2016. the variances in gross margin between the periods presented were primarily influenced by shifts in the product sales mix from higher to lower margin product line sales . operating expenses  operating expenses decreased $ 429,278 , or 6.8 % , to $ 5,874,491 in fiscal 2017 to $ 6,303,769 in fiscal 2016. general , administrative and sales expenses decreased $ 397,770 , or 6.6 % , to $ 5,618,327 in fiscal 2017 as compared to $ 6,016,097 in the prior fiscal year . these decreases were primarily attributed to reductions in sales related payroll expense and reduction in specific sales-related travel and marketing where sales were not being generated commensurate with the costs being incurred . in addition , the overall decrease was impacted by reductions in administrative related payroll and other administrative expenses , offset in part by increases in professional expenses . other income ( expense )  other income ( expense ) consists of interest income , interest expense , foreign currency exchange gain ( loss ) and other income ( expense ) . interest income was $ 2,309 and $ 1,338 in fiscal 2017 and page 21 2016 , respectively . fluctuations in interest income are impacted by the levels of our average cash and investment balances and changes in interest rates . interest expense

liquidity and capital resources the company 's working capital increased $ 2,737,161 to $ 8,247,973 as of may 31 , 2018 compared to $ 5,510,812 as of may 31 , 2017. cash , cash equivalents and restricted cash increased $ 1,243,926 from $ 867,607 as of may 31 , 2017 to $ 2,111,533 as of may 31 , 2018. on december 20 , 2017 , the company completed its subscription rights offering ( the rights offering ) in which 998,635 common shares were issued , resulting in proceeds to the company , net of expenses , of $ 2,386,029 which is reflected in net cash provided by financing activities for the year ended may 31 , 2018. pursuant to the rights offering , the company issued one right for each common share to shareholders of record as of november 27 , 2017. holders of the rights were entitled to purchase common shares by submitting three rights and $ 2.50 for each share to be purchased . the new shares were issued on december 27 , 2017. cash used in operating activities was $ 1,002,849 in fiscal 2018 as compared to cash used in operating activities of $ 148,288 in fiscal 2017 and cash used in operations of $ 819,808 in fiscal 2016. with


 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 company 's working capital increased $ 2,737,161 to $ 8,247,973 as of may 31 , 2018 compared to $ 5,510,812 as of may 31 , 2017. cash , cash equivalents and restricted cash increased $ 1,243,926 from $ 867,607 as of may 31 , 2017 to $ 2,111,533 as of may 31 , 2018. on december 20 , 2017 , the company completed its subscription rights offering ( the rights offering ) in which 998,635 common shares were issued , resulting in proceeds to the company , net of expenses , of $ 2,386,029 which is reflected in net cash provided by financing activities for the year ended may 31 , 2018. pursuant to the rights offering , the company issued one right for each common share to shareholders of record as of november 27 , 2017. holders of the rights were entitled to purchase common shares by submitting three rights and $ 2.50 for each share to be purchased . the new shares were issued on december 27 , 2017. cash used in operating activities was $ 1,002,849 in fiscal 2018 as compared to cash used in operating activities of $ 148,288 in fiscal 2017 and cash used in operations of $ 819,808 in fiscal 2016. with
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 Suspicious Activity Report : , passage of title to the customer as indicated by shipping terms and fulfillment of all significant obligations , pursuant to the guidance provided by accounting standards codification topic 605. for sales to all customers , including manufacturer representatives , distributors or their third-party customers , these criteria are met at the time product is shipped . when other significant obligations remain after products are delivered , revenue is recognized only page 17 after such obligations are fulfilled . in addition , judgments are required in evaluating the credit worthiness of our customers . credit is not extended to customers and revenue is not recognized until we have determined that collectability is reasonably assured . the company estimates customer product returns based on historical return patterns and reduces sales and cost of sales accordingly . refer to note 2 of the notes to consolidated financial statements for further discussion related to the adoption of accounting standards update no . 2014-09 , revenue from contracts with customers ( topic 606 ) . allowance for doubtful accounts  the company maintains credit limits for all customers based upon several factors , including but not limited to financial condition and stability , payment history , published credit reports and use of credit references . management performs various analyses to evaluate accounts receivable balances to ensure recorded amounts reflect estimated net realizable value . this review includes accounts receivable agings , other operating trends and relevant business conditions , including general economic factors , as they relate to the company 's domestic and international customers . if these analyses lead management to the conclusion that potential significant accounts are uncollectible , a reserve is provided . inventories  inventories are valued at the lower of cost or net realizable value with cost determined on the average cost basis . costs included in inventories consist of materials , labor and manufacturing overhead , which are related to the purchase or production of inventories . write-downs , when required , are made to reduce excess inventories to their net realizable values . such estimates are based on assumptions regarding future demand and market conditions . if actual conditions become less favorable than the assumptions used , an additional inventory write-down may be required . deferred taxes  the company applies the asset and liability method in recording income taxes , under which deferred income tax assets and liabilities are determined , based on the differences between the financial reporting and tax basis of assets and liabilities and are measured using currently enacted tax rates and laws . additionally , deferred tax assets are evaluated and a valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized . management continues to review the level of the valuation allowance on a quarterly basis . there can be no assurance that the company 's future operations will produce sufficient earnings so that the deferred tax assets can be fully utilized . intangible assets  intangible and other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable . recoverability is determined by comparing the forecasted future undiscounted net cash flows from the operations to which the assets relate , based on management 's best estimates using the appropriate assumptions and projections at the time , to the carrying amount of the assets . if the carrying value is determined to be in excess of future operating cash flows , the asset is considered impaired and a loss is recognized equal to the amount by which the carrying amount exceeds the estimated fair value of the assets . recent accounting pronouncements refer to note 2 of the notes to consolidated financial statements for a discussion of recent accounting pronouncements . page 18 results of operations replace_table_token_3_th fiscal year ended may 31 , 2018 compared to fiscal year ended may 31 , 2017 net sales  net sales increased $ 1,490,420 , or 12.0 % , to $ 13,888,063 for the fiscal year ended may 31 , 2018 ( fiscal 2018 ) from $ 12,397,643 in the fiscal year ended may 31 , 2017 ( fiscal 2017 ) . the balancer segment focuses its sales efforts on end-users , rebuilders and original equipment manufacturers of grinding machines within the worldwide machine tool industry , with our primary target geographic markets being north america , asia , and europe . balancer segment sales increased $ 1,944,356 , or 27.5 % , to $ 9,026,830 in fiscal 2018 compared to $ 7,082,474 in fiscal 2017. this increase was attributed to stronger sales in each of our target markets . sales by geographic markets for the balancer segment for the years ended may 31 , 2018 and 2017 were as follows : replace_table_token_4_th the levels of demand for our balancer products in any of these geographic markets can not be forecasted with any certainty given current economic trends and the historical volatility experienced in this market . the measurement segment includes two main product lines : the acuity ® product line , which includes laser-based distance measurement and dimensional sizing laser sensors ; and the xact ® product line , which includes ultrasonic-based remote tank monitoring products and related monitoring revenues . measurement sales decreased $ 453,936 , or 8.5 % , to $ 4,861,233 in fiscal 2018 as compared to $ 5,315,169 in fiscal 2017. during fiscal 2017 , the company made the decision to no longer focus on and eventually phase out the sms and lasercheck product page 19 lines , which have historically been included in the measurement segment . story_separator_special_tag sales by product line for the measurement segment for fiscal 2018 compared to fiscal 2017 were as follows : replace_table_token_5_th future sales of laser-based or ultrasonic measurement products can not be forecasted with any certainty given the historical volatility experienced in these product markets . gross margin  in fiscal 2018 , gross margin increased to 43.7 % compared to 39.4 % in fiscal 2017. the variances in gross margin between the periods presented were primarily influenced by focused efforts to reduce product costs and targeted efforts to increase prices where possible , as well as shifts in the product sales mix from lower to higher margin product line sales . operating expenses  operating expenses increased $ 35,451 , or 0.6 % , to $ 5,909,942 in fiscal 2018 to $ 5,874,491 in fiscal 2017. the increase in operating expenses was in part due to the following : increases in research and development expenses ; increases in professional expenses ; and increases in other administrative expenses ; these increases were partially offset by : decreases in sales and commissions expense due to restructuring of some of the commissions programs ; decreases in patent expense ; and decreases in sales related travel and entertainment expenses . other income ( expense )  other income ( expense ) consists of interest income , interest expense , foreign currency exchange gain ( loss ) and other income ( expense ) . interest income was $ 10,955 in fiscal 2018 compared to $ 2,309 in fiscal 2017. fluctuations in interest income are impacted by the levels of our average cash and investment balances and changes in interest rates . interest expense , which is primarily related to the capital lease of a piece of manufacturing equipment , was $ 1,402 in fiscal 2018 compared to $ 2,982 in fiscal 2017. foreign currency exchange gain was $ 72,216 for the year ended may 31 , 2018 compared to foreign currency exchange loss of $ 63,744 for the year ended may 31 , 2017. the foreign currency exchange gain and loss fluctuates with the strength of foreign currencies against the u.s. dollar during the respective periods . provision for income taxes  the effective tax rate in fiscal 2018 was 11.0 % . the effective tax rate on consolidated net income in fiscal 2018 differs from the federal statutory tax rate primarily due to changes in the deferred tax valuation allowance and the impact of certain expenses not being deductible for income tax reporting purposes . the effective tax rate in fiscal 2017 was 2.7 % . the effective tax rate on consolidated net loss in fiscal 2017 differed from the federal statutory tax rate primarily due to changes in the deferred tax valuation allowance . page 20 net income ( loss )  net income was $ 210,639 , or $ 0.06 per fully diluted share , for the year ended may 31 , 2018 as compared to net loss of $ 1,073,364 , or $ ( 0.36 ) per fully diluted share , for the year ended may 31 , 2017. net income for fiscal 2018 was the result of the combination of increased sales in the balancing segment and increases in the overall gross margin . fiscal year ended may 31 , 2017 compared to fiscal year ended may 31 , 2016 net sales  for the fiscal year ended may 31 , 2017 , net sales increased $ 712,290 , or 6.1 % , to $ 12,397,643 from $ 11,685,353 for the fiscal year ended may 31 , 2016. balancer segment sales increased $ 119,728 , or 1.7 % , to $ 7,082,474 for fiscal 2017 as compared to $ 6,962,746 for fiscal 2016. this increase was primarily attributed to stronger sales in asia and other regions of the world , offset by lower shipments into north america in the early part of fiscal 2017. sales by geographic markets for the balancer segment for the years ended may 31 , 2017 and 2016 were as follows : replace_table_token_6_th measurement segment sales increased $ 592,562 , or 12.5 % , to $ 5,315,169 for fiscal 2017 as compared to $ 4,722,607 for fiscal 2016. during fiscal 2017 , the company made the decision to no longer focus on and eventually to phase out the sms and lasercheck product lines , which have historically been included in the measurement segment . sales by product line for the measurement segment for the years ended may 31 , 2017 and 2016 were as follows : replace_table_token_7_th gross margin  gross margin in fiscal 2017 decreased to 39.4 % compared to 41.7 % in fiscal 2016. the variances in gross margin between the periods presented were primarily influenced by shifts in the product sales mix from higher to lower margin product line sales . operating expenses  operating expenses decreased $ 429,278 , or 6.8 % , to $ 5,874,491 in fiscal 2017 to $ 6,303,769 in fiscal 2016. general , administrative and sales expenses decreased $ 397,770 , or 6.6 % , to $ 5,618,327 in fiscal 2017 as compared to $ 6,016,097 in the prior fiscal year . these decreases were primarily attributed to reductions in sales related payroll expense and reduction in specific sales-related travel and marketing where sales were not being generated commensurate with the costs being incurred . in addition , the overall decrease was impacted by reductions in administrative related payroll and other administrative expenses , offset in part by increases in professional expenses . other income ( expense )  other income ( expense ) consists of interest income , interest expense , foreign currency exchange gain ( loss ) and other income ( expense ) . interest income was $ 2,309 and $ 1,338 in fiscal 2017 and page 21 2016 , respectively . fluctuations in interest income are impacted by the levels of our average cash and investment balances and changes in interest rates . interest expense

