dpc is a new , proprietary method , to secure users , devices , accounts , locations and servers over any communication media by sharing key identifiers , including biometric-enabled identifiers , between end-points by passing dynamic pairing codes ( random numbers ) between end-points to establish sessions and or transactions without exposing identifiers or keys . the recent high-level breaches of personal credit card data raises serious concerns among consumers about the safety of their money . these consumers are also resistant to letting technology companies learn even more about their personal purchasing habits . our plan also anticipates that we will use our core biometric facial and voice recognition algorithms to develop security applications ( both cloud based and locally hosted ) that can be used for companies ( for industrial uses , such as enterprise computer networks ) as well as individuals ( for consumer uses , such as smart phones , tablets or personal computers ) , law enforcement , the defense industry , and the u.s. department of defense . we are an emerging growth entity and have incurred net losses since our inception . in order to execute our long-term strategic plan to develop and commercialize our core products we will need to raise additional funds through public or private equity offerings , debt financings , or other means . we can give no assurance that the cash raised subsequent to december 31 , 2015 or any additional funds raised will be sufficient to execute our business plan . these conditions raise substantial doubt about our ability to continue as a going concern . we can give no assurance that additional funds will be available on reasonable terms , or available at all , or that it will generate sufficient revenue to alleviate these conditions . we commenced shipping of the wocket® at the end of the second quarter of 2015 , primarily to tech savvy consumers . the implementation of the emv chip point of sale ( “ pos ” ) terminals in the united states has limited the number of pos systems that the wocket® works at , so we have postponed the full launch of the product in the united states until we are able to implement near field communication ( “ nfc ” ) technology on the wocket® as well as our dynamic magnetic stripe technology . nfc is a similar technology to applepay and googlepay and works at many emv enabled pos terminals . we are also pursuing the sale of the wocket® in certain overseas markets that have not implemented chip cards and where the wocket® works extremely well . we intend to relaunch wocket® in the united states once nfc is operational . current wocket inventory is hardware enabled for this purpose and we are finalizing the software arrangements with banks and major payment companies to implement this technology . we anticipate relaunching the wocket® in the united states with nfc capability in the third quarter of 2016 and will accelerate efforts to export the product to suitable overseas markets 21 results of operations year ended december 31 , 2015 , compared with the year ended december 31 , 2014 . revenue . our revenues for the year ended december 31 , 2015 were $ 616,854 and we had no revenues for the year ended december 31 , 2014. our revenues for the year ended december 31 , 2015 are related to shipments of the wocket® to our early access pre-order customers as well as new customer orders placed in 2015. in addition , the revenues for the year ended december 31 , 2 015 included resale sales of the wocket® to wholesale customers who resell the wocket® through their respective distribution channels . the aggregate dollar amount of these resale sales was $ 167,466. the selling price per unit as it relates to wholesale sales was considerably lower than our direct selling price to our individual customers which negatively impacted our gross profit margin . the sales prices to wholesale customers were significantly discounted in order to accelerate product awareness and adoption of the wocket® . cost of revenue . our cost of revenue includes our direct product cost to both our individual customers as well as our wholesale customers . during 2015 , our gross margin on sales to our wholesale customers was considerably lower than the gross margin resulting from sales to our individual customers as discussed above . our cost of revenue also includes a write off of excess and obsolete inventory of $ 343,216 resulting from our transition to version 2 of the wocket® which now includes nfc technology . we also recorded an unfavorable book-to-physical inventory adjustment of $ 131,209 as well as scrap adjustments of $ 375,699 relating primarily to low early stage production yield . in addition , we recorded a lower of cost or market adjustment of $ 149,000 in anticipation of our future sales to wholesale customers . we expect that our future selling price to wholesale customers will continue to be less on a per unit basis as compared to our selling price per unit to our direct individual customers . operating expenses . operating expenses for the year ended december 31 , 2015 totaled $ 9,717,327 and consisted of research and development expenses of $ 2,728,518 , selling and marketing expenses of $ 3,423,567 and general and administrative expenses of $ 3,565,242. the research and development expenses related primarily to salaries and consulting services of $ 1,446,657 , as well as test materials and prototypes of $ 608,768 necessary for the design , development and manufacturing of the wocket® . story_separator_special_tag such registration statement was declared effective with the sec on may 14 , 2015. in connection with the sale of the april convertible notes and the april warrants , the company entered into a security agreement , dated april 24 , 2015 ( the “ april security agreement ” ) , between the company , 3d-id and the collateral agent thereto . pursuant to the security agreement , the april purchasers were granted a security interest in certain personal property of the company and 3d-id to secure the payment and performance of all obligations of the company and 3d-id under the april convertible notes , april warrants , april purchase agreement , april registration rights agreement and april security agreement . in addition , in connection with the april security agreement , 3d-id executed a subsidiary guaranty , pursuant to which it agreed to guarantee and act as surety for payment of the april convertible notes and other obligations of the company under the april warrants , april purchase agreement , april registration rights agreement and april security agreement . as described below , the april purchasers exchanged the april convertible notes into the convertible notes that were issued on december 8 , 2015. as a result , the company incurred a loss on extinguishment of the april convertible notes of $ 635,986 which resulted primarily from the write off of the remaining unamortized note discount and deferred debt issue costs on extinguishment . in order to obtain their consent to issue the december notes on december 8 , 2015 , and to effect the exchange , the company issued to each of the april purchasers additional december notes with a face value of $ 500,000. on december 8 , 2015 , the total outstanding face amount of these convertible notes was $ 2,134,850. on december 28 , 2015 , the note holders accelerated installment repayments in an aggregate amount of $ 350,000 which the company satisfied by an issuance of common stock as a result of a waiver by the holders which allowed the company to issue common stock when the contractual conversion rate is below $ 0.25. as a result of this installment , the outstanding amount of the convertible notes held by the april purchasers was $ 1,784,850 on december 31 , 2015. july 2015 private placement on july 27 , 2015 , the company entered into a securities purchase agreement with an accredited investor ( the “ july purchaser ” ) pursuant to which the company sold an aggregate of $ 222,222 in principal amount of the 8 % original issue discount convertible notes ( the “ 8 % convertible notes ” ) for an aggregate purchase price of $ 200,000. the company received net proceeds of $ 200,000 from the sale of the 8 % convertible notes . the 8 % convertible notes mature on september 11 , 2015 ( the “ maturity date ” ) , less any amounts converted or redeemed prior to the maturity date . the 8 % convertible notes bear interest at a rate of 8 % per annum , subject to increase to the lesser of 24 % per annum or the maximum rate permitted under applicable law upon the occurrence of certain events of default . the 8 % convertible notes are convertible at any time , in whole or in part , at the option of the holders into shares of common stock at a conversion price of $ 3.50 per share , which is subject to adjustment for stock dividends , stock splits , combinations or similar events . the company agreed that if it effected a registered offering either utilizing form s-1 or form s-3 ( a “ registered offering ” ) , the holder shall have the right to convert the entire amount of the subscription amount into such registered offering . the july purchaser converted the entire subscription amount into the august offering described below . the conversion price used to convert the entire purchase price into common stock was equivalent to the equity offering price of $ 1.75 on august 4 , 2015 and not the conversion price of $ 3.50 stipulated in the securities purchase agreement . as a result of the change in the conversion price , the company recorded additional inducement expense of $ 100,000 at the time of conversion . august 2015 offerings on august 4 , 2015 , the company closed with certain purchasers ( the “ august 2015 purchasers ” ) a public offering ( the “ august offering ” ) providing for the issuance and sale by the company of 1,721,429 shares of the company 's common stock at a price to the public of $ 1.75 per share ( the “ registered shares ” ) for an aggregate purchase price of $ 3,012,500 . 26 in connection with the sale of the registered shares , the company also entered into a warrant purchase agreement ( the “ warrant purchase agreement ” ) with the august 2015 purchasers providing for the issuance and sale by the company of warrants to purchase 860,716 shares of the company 's common stock at a purchase price of $ 0.0000001 per warrant ( the “ august 2015 warrants ” ) . each august 2015 warrant shall be initially exercisable on the six ( 6 ) month anniversary of the issuance date an exercise price equal to $ 2.35 per share and have a term of exercise equal to five ( 5 ) years from the date on which first exercisable . the registered shares were offered by the company pursuant to an effective shelf registration statement on form s-3 , which was initially filed with the sec on april 24 , 2015 and declared effective on may 14 , 2015 ( file no . 333-203637 ) . pursuant to a registration rights agreement , dated july 30 , 2015 , by and between the company and the august 2015

cash and working capital we have incurred net losses of $ 13,076,854 and $ 7,076,609 for the years ended december 31 , 2015 and 2014 , respectively . as of december 31 , 2015 the company had cash and stockholders ' equity of $ 418,991 and $ 881,333 , respectively . at december 31 , 2015 , the company had working capital of $ 508,119. during the year ended december 31 , 2015 , the company raised net proceeds of approximately $ 8,076,657 through the issuance of common stock , warrants , notes , and $ 650,000 from the exercise of common stock warrants . cash used in operating activities our primary ongoing uses of operating cash relate to payments to subcontractors and vendors for research and development , salaries and related expenses and professional fees . our vendors and subcontractors generally provide us with normal trade payment terms . during the year ended december 31 , 2015 , net cash used in operating activities amounted to $ 8,620,672 and was comprised of net loss of $ 13,076,854 , positive adjustments to reconcile net loss to net cash used in operating activities of $ 4,933,745 and changes in operating assets and liabilities of negative $ 477,563 as compared to $ 5,161,002 for the year ended december 31 , 2014 , comprised of a net loss of $ 7,076,609 , positive adjustments to reconcile net loss to net cash used in operating activities of $ 2,631,811 and changes in operating assets and liabilities of negative $ 716,204. cash used in investing activities during the year ended december 31 , 2015 , net cash used in investing activities amounted to $ 1,888,281 and was comprised of the purchases of equipment and production tooling and molds of $ 381,767 and changes in restricted cash of $ 1,506,514 which is primarily attributable to the cash proceeds received as a result of the transaction with wvh


 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 and working capital we have incurred net losses of $ 13,076,854 and $ 7,076,609 for the years ended december 31 , 2015 and 2014 , respectively . as of december 31 , 2015 the company had cash and stockholders ' equity of $ 418,991 and $ 881,333 , respectively . at december 31 , 2015 , the company had working capital of $ 508,119. during the year ended december 31 , 2015 , the company raised net proceeds of approximately $ 8,076,657 through the issuance of common stock , warrants , notes , and $ 650,000 from the exercise of common stock warrants . cash used in operating activities our primary ongoing uses of operating cash relate to payments to subcontractors and vendors for research and development , salaries and related expenses and professional fees . our vendors and subcontractors generally provide us with normal trade payment terms . during the year ended december 31 , 2015 , net cash used in operating activities amounted to $ 8,620,672 and was comprised of net loss of $ 13,076,854 , positive adjustments to reconcile net loss to net cash used in operating activities of $ 4,933,745 and changes in operating assets and liabilities of negative $ 477,563 as compared to $ 5,161,002 for the year ended december 31 , 2014 , comprised of a net loss of $ 7,076,609 , positive adjustments to reconcile net loss to net cash used in operating activities of $ 2,631,811 and changes in operating assets and liabilities of negative $ 716,204. cash used in investing activities during the year ended december 31 , 2015 , net cash used in investing activities amounted to $ 1,888,281 and was comprised of the purchases of equipment and production tooling and molds of $ 381,767 and changes in restricted cash of $ 1,506,514 which is primarily attributable to the cash proceeds received as a result of the transaction with wvh
```    
 Suspicious Activity Report : dpc is a new , proprietary method , to secure users , devices , accounts , locations and servers over any communication media by sharing key identifiers , including biometric-enabled identifiers , between end-points by passing dynamic pairing codes ( random numbers ) between end-points to establish sessions and or transactions without exposing identifiers or keys . the recent high-level breaches of personal credit card data raises serious concerns among consumers about the safety of their money . these consumers are also resistant to letting technology companies learn even more about their personal purchasing habits . our plan also anticipates that we will use our core biometric facial and voice recognition algorithms to develop security applications ( both cloud based and locally hosted ) that can be used for companies ( for industrial uses , such as enterprise computer networks ) as well as individuals ( for consumer uses , such as smart phones , tablets or personal computers ) , law enforcement , the defense industry , and the u.s. department of defense . we are an emerging growth entity and have incurred net losses since our inception . in order to execute our long-term strategic plan to develop and commercialize our core products we will need to raise additional funds through public or private equity offerings , debt financings , or other means . we can give no assurance that the cash raised subsequent to december 31 , 2015 or any additional funds raised will be sufficient to execute our business plan . these conditions raise substantial doubt about our ability to continue as a going concern . we can give no assurance that additional funds will be available on reasonable terms , or available at all , or that it will generate sufficient revenue to alleviate these conditions . we commenced shipping of the wocket® at the end of the second quarter of 2015 , primarily to tech savvy consumers . the implementation of the emv chip point of sale ( “ pos ” ) terminals in the united states has limited the number of pos systems that the wocket® works at , so we have postponed the full launch of the product in the united states until we are able to implement near field communication ( “ nfc ” ) technology on the wocket® as well as our dynamic magnetic stripe technology . nfc is a similar technology to applepay and googlepay and works at many emv enabled pos terminals . we are also pursuing the sale of the wocket® in certain overseas markets that have not implemented chip cards and where the wocket® works extremely well . we intend to relaunch wocket® in the united states once nfc is operational . current wocket inventory is hardware enabled for this purpose and we are finalizing the software arrangements with banks and major payment companies to implement this technology . we anticipate relaunching the wocket® in the united states with nfc capability in the third quarter of 2016 and will accelerate efforts to export the product to suitable overseas markets 21 results of operations year ended december 31 , 2015 , compared with the year ended december 31 , 2014 . revenue . our revenues for the year ended december 31 , 2015 were $ 616,854 and we had no revenues for the year ended december 31 , 2014. our revenues for the year ended december 31 , 2015 are related to shipments of the wocket® to our early access pre-order customers as well as new customer orders placed in 2015. in addition , the revenues for the year ended december 31 , 2 015 included resale sales of the wocket® to wholesale customers who resell the wocket® through their respective distribution channels . the aggregate dollar amount of these resale sales was $ 167,466. the selling price per unit as it relates to wholesale sales was considerably lower than our direct selling price to our individual customers which negatively impacted our gross profit margin . the sales prices to wholesale customers were significantly discounted in order to accelerate product awareness and adoption of the wocket® . cost of revenue . our cost of revenue includes our direct product cost to both our individual customers as well as our wholesale customers . during 2015 , our gross margin on sales to our wholesale customers was considerably lower than the gross margin resulting from sales to our individual customers as discussed above . our cost of revenue also includes a write off of excess and obsolete inventory of $ 343,216 resulting from our transition to version 2 of the wocket® which now includes nfc technology . we also recorded an unfavorable book-to-physical inventory adjustment of $ 131,209 as well as scrap adjustments of $ 375,699 relating primarily to low early stage production yield . in addition , we recorded a lower of cost or market adjustment of $ 149,000 in anticipation of our future sales to wholesale customers . we expect that our future selling price to wholesale customers will continue to be less on a per unit basis as compared to our selling price per unit to our direct individual customers . operating expenses . operating expenses for the year ended december 31 , 2015 totaled $ 9,717,327 and consisted of research and development expenses of $ 2,728,518 , selling and marketing expenses of $ 3,423,567 and general and administrative expenses of $ 3,565,242. the research and development expenses related primarily to salaries and consulting services of $ 1,446,657 , as well as test materials and prototypes of $ 608,768 necessary for the design , development and manufacturing of the wocket® . story_separator_special_tag such registration statement was declared effective with the sec on may 14 , 2015. in connection with the sale of the april convertible notes and the april warrants , the company entered into a security agreement , dated april 24 , 2015 ( the “ april security agreement ” ) , between the company , 3d-id and the collateral agent thereto . pursuant to the security agreement , the april purchasers were granted a security interest in certain personal property of the company and 3d-id to secure the payment and performance of all obligations of the company and 3d-id under the april convertible notes , april warrants , april purchase agreement , april registration rights agreement and april security agreement . in addition , in connection with the april security agreement , 3d-id executed a subsidiary guaranty , pursuant to which it agreed to guarantee and act as surety for payment of the april convertible notes and other obligations of the company under the april warrants , april purchase agreement , april registration rights agreement and april security agreement . as described below , the april purchasers exchanged the april convertible notes into the convertible notes that were issued on december 8 , 2015. as a result , the company incurred a loss on extinguishment of the april convertible notes of $ 635,986 which resulted primarily from the write off of the remaining unamortized note discount and deferred debt issue costs on extinguishment . in order to obtain their consent to issue the december notes on december 8 , 2015 , and to effect the exchange , the company issued to each of the april purchasers additional december notes with a face value of $ 500,000. on december 8 , 2015 , the total outstanding face amount of these convertible notes was $ 2,134,850. on december 28 , 2015 , the note holders accelerated installment repayments in an aggregate amount of $ 350,000 which the company satisfied by an issuance of common stock as a result of a waiver by the holders which allowed the company to issue common stock when the contractual conversion rate is below $ 0.25. as a result of this installment , the outstanding amount of the convertible notes held by the april purchasers was $ 1,784,850 on december 31 , 2015. july 2015 private placement on july 27 , 2015 , the company entered into a securities purchase agreement with an accredited investor ( the “ july purchaser ” ) pursuant to which the company sold an aggregate of $ 222,222 in principal amount of the 8 % original issue discount convertible notes ( the “ 8 % convertible notes ” ) for an aggregate purchase price of $ 200,000. the company received net proceeds of $ 200,000 from the sale of the 8 % convertible notes . the 8 % convertible notes mature on september 11 , 2015 ( the “ maturity date ” ) , less any amounts converted or redeemed prior to the maturity date . the 8 % convertible notes bear interest at a rate of 8 % per annum , subject to increase to the lesser of 24 % per annum or the maximum rate permitted under applicable law upon the occurrence of certain events of default . the 8 % convertible notes are convertible at any time , in whole or in part , at the option of the holders into shares of common stock at a conversion price of $ 3.50 per share , which is subject to adjustment for stock dividends , stock splits , combinations or similar events . the company agreed that if it effected a registered offering either utilizing form s-1 or form s-3 ( a “ registered offering ” ) , the holder shall have the right to convert the entire amount of the subscription amount into such registered offering . the july purchaser converted the entire subscription amount into the august offering described below . the conversion price used to convert the entire purchase price into common stock was equivalent to the equity offering price of $ 1.75 on august 4 , 2015 and not the conversion price of $ 3.50 stipulated in the securities purchase agreement . as a result of the change in the conversion price , the company recorded additional inducement expense of $ 100,000 at the time of conversion . august 2015 offerings on august 4 , 2015 , the company closed with certain purchasers ( the “ august 2015 purchasers ” ) a public offering ( the “ august offering ” ) providing for the issuance and sale by the company of 1,721,429 shares of the company 's common stock at a price to the public of $ 1.75 per share ( the “ registered shares ” ) for an aggregate purchase price of $ 3,012,500 . 26 in connection with the sale of the registered shares , the company also entered into a warrant purchase agreement ( the “ warrant purchase agreement ” ) with the august 2015 purchasers providing for the issuance and sale by the company of warrants to purchase 860,716 shares of the company 's common stock at a purchase price of $ 0.0000001 per warrant ( the “ august 2015 warrants ” ) . each august 2015 warrant shall be initially exercisable on the six ( 6 ) month anniversary of the issuance date an exercise price equal to $ 2.35 per share and have a term of exercise equal to five ( 5 ) years from the date on which first exercisable . the registered shares were offered by the company pursuant to an effective shelf registration statement on form s-3 , which was initially filed with the sec on april 24 , 2015 and declared effective on may 14 , 2015 ( file no . 333-203637 ) . pursuant to a registration rights agreement , dated july 30 , 2015 , by and between the company and the august 2015

