forward-looking statements can be identified by the use of forward-looking terminology , such as `` anticipate `` , `` believe `` , `` expect `` , `` plan `` , `` intend `` , `` seek `` , `` estimate `` , `` project `` , `` could `` , `` may `` or the negative thereof or other variations thereon , or by discussions of strategy that involve risks and uncertainties . management wishes to caution the readers of the forward-looking statements that any such statements that are contained in this report reflect our current beliefs with respect to future events and involve known and unknown risks , uncertainties and other factors , including , but not limited to , economic , competitive , regulatory , technological , key employees , and general business factors affecting our operations , markets , growth , services , products , licenses and other factors , some of which are described in this report including in “ risk factors ” in item 1a and some of which are discussed in our other filings with the securities and exchange commission . these forward-looking statements are only estimates or predictions . no assurances can be given regarding the achievement of future results , as actual results may differ materially as a result of risks facing our company , and actual events may differ from the assumptions underlying the statements that have been made regarding anticipated events . these risk factors should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue . all written and oral forward looking statements made in connection with this report that are attributable to our company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements . given these uncertainties , we caution investors not to unduly rely on our forward-looking statements . we do not undertake any obligation to review or confirm analysts ' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events , except as required by applicable law or regulation . business overview & recent developments in november 2014 , we received a good manufacturing practices ( “ gmp ” ) certificate issued by the china food and drug administration ( “ cfda ” ) for dried powder and liquid injectable product lines produced at our new manufacturing facility , and since then we have restarted production of products with those formulations after a suspension of production from year end 2013 due to our inability to meet a gmp upgrade deadline . gmp compliance timing issues also caused us to miss certain drug bids ( generally with terms of around two years ) in several chinese provinces prior to november 2014. these missed bids negatively impacted our previously-established market share in those provinces , and reduced our overall sales in 2015 and 2016. nevertheless , we continue to concentrate on enhancing the fundamentals of our business . in january and december 2015 , we completed upgrades to our manufacturing facilities and received new gmp certificates for our tablet and capsule product lines and for the cephalosporin product lines at our old factories . upgrades to our oral solution product lines were completed ahead of the deadline , which has positioned us to better meet market demand . 51 in order to comply with requests from the central committee of the communist party of china and state council to use the strictest standards to monitor and regulate food and drug production and to further rectify and standardize drug distribution , cfda issued the “ notice of rectification against illegal operations regarding drug logistics & distribution ” on may 3 , 2016. because it had become the top priority for pharmaceutical distributors , including our distributors , to comply with this government policy , our distributors ' time and efforts were focused on passing cfda inspection , which delayed their ordinary promotion efforts and purchase and distribution activities , which further negatively impacted the sales performance of our company during the second and third quarters of 2016. increasing our sales remains our top priority . through the continued implementation of sales promotion , the company realized sales increases in the fourth quarter of 2016 compared to the previous quarter . management will continue to vigorously promote sales by actively participating in the recent opening of the new provincial drug tender and participation in drug exhibitions . in order to support our existing products package we remain focused on pipeline development . we have experienced delays in obtaining approval for certain products in our pipeline because of revisions of and enhancements to cfda approval criteria and processes . these revisions have resulted in additional supplemental materials and trials , higher costs , and longer approval times for certain applications . on march 5 , 2016 , the chinese state council issued `` opinions on carrying out consistency evaluations of the quality and efficacy of generic drugs `` ( the “ opinions ” ) . the opinions define the object of evaluations and establish deadlines , determine selection criteria for reference drugs , call for a rational selection of evaluation methods , and identify pharmaceutical manufacturers as the principle generic drug consistency evaluation , and sets forth corresponding incentives . subsequently , the cfda issued “ comments from the general office of the state council on the consistency evaluations of the efficacy and quality of generic drug ” in may 2016 , in order to further elaborate on assessment processes and related technical rules . story_separator_special_tag going forward , we expect to see continued pricing pressure on most of our products . however , new products could help support overall gross margin once they are launched . selling expenses our selling expenses for the year ended december 31 , 2016 were $ 4.0 million , a decrease of $ 0.3 million , compared to $ 4.3 million for the year ended december 31 , 2015. selling expenses accounted for 25.9 % of the total revenue in 2016 compared to 21.1 % in 2015. the increase was mainly the result of additional marketing , consulting and product promotional efforts in certain chinese provinces . because of adjustments in our sales practices resulting from healthcare reform policies , despite the overall decrease in sales , we require additional personnel and expenses to support our sales and the collection of accounts receivable . 55 general and administrative expenses our general and administrative expenses for the year ended december 31 , 2016 were $ 2.3 million , which represented an increase of $ 0.4 million compared to $ 1.9 million in 2015. general and administrative expenses accounted for 14.6 % and 9.3 % of our total revenues in 2016 and 2015 , respectively . research and development expenses our research and development expenses for the year ended december 31 , 2016 were $ 0.4 million , compared to $ 1.0 million in 2015. research and development expenses accounted for 2.4 % and 4.7 % of our total revenues in 2016 and 2015 , respectively . the consistency evaluations discussed under the “ business overview & recent developments ” section here of is expected to have a significant impact on all generic products not only in our pipeline , but also throughout the existing chinese market . because of the continuous introduction of detailed implementation rules under this policy , our pipeline did not have any further development in 2016. but , we are still actively adapting to this policy , and have filed reagent references with the cfda for several key products in 2016. bad debt expenses our bad debt expenses for the year ended december 31 , 2016 was $ 1.1 million , which represented a decrease of $ 4.9 million compared to $ 6.0 million in 2015. during 2015 , we also recognized bad debt expenses of $ 4.1 million related to advances made to suppliers based on our evaluations of the realization likelihood of payments . the decline in our bad debt expenses was mainly the result of the decline in our revenues in recent years , which also led to the corresponding decline in the net amount of accounts receivable aging over one year ( according to our current accounting policy , we are required to recognize a bad debt allowance 70 % of the accounts receivable that are between 365 days to 720 days old ) . in general , our normal credit or payment terms extended to customers are for 90 days . this has not changed in recent years . due to the peculiarity of the chinese pharmaceutical market environment , deferred payments to pharmaceutical companies by state-owned hospitals and local medicine distributors are a normal phenomenon . our customers are primarily pharmaceutical distributors that sell our products to mostly government-backed hospitals . therefore , the aging of our receivables from our customers tends to be longer-term . the amount of net accounts receivable that were past due ( or the amount of accounts receivable that were more than 90 days old ) was $ 3.9 million and $ 5.1 million as of december 31 , 2016 and 2015 , respectively . the following table illustrates our gross accounts receivable aging distribution in terms of percentage of total accounts receivable as of december 31 , 2016 and 2015 : 56 replace_table_token_6_th our bad debt allowance estimate is currently 10 % of accounts receivable that are less than 365 days old , 70 % of accounts receivable that are between 365 days and 720 days old , and 100 % of accounts receivable that are greater than 720 days old . we recognize bad debt expenses per actual write-offs as well as changes of allowance for doubtful accounts . to the extent that our current allowance for doubtful accounts is higher than that of the previous period , we recognize a bad debt expense for the difference during the current period , and when the current allowance is lower than that of the previous period , we recognize a bad debt benefit for the difference . the allowance for doubtful accounts was $ 15.7 million and $ 29.4 million as of december 31 , 2016 and december 31 , 2015 , respectively . the changes in the allowances for doubtful accounts during the years ended december 31 , 2016 and 2015 were as follows : replace_table_token_7_th impairment of intangible assets our impairments for the year ended december 31 , 2016 were $ 4.0 million , compared to $ 0.1 million in 2015. as a pharmaceutical company , we have been focusing on the development and maintenance of our intangible assets , mainly in the form of medical formulas . because of recently implemented government policies such as consistency evaluations , our management made certain assessments regarding the impairment of our intangible assets as in 2016 , and identified five formulas that would likely be unable to generate positive cash flow in the foreseeable future and therefore recognized impairment loss on them accordingly . loss from operations our operating loss for the year ended december 31 , 2016 was $ 8.2 million , compared to an operating loss of $ 14.3 million in 2015 . 57 net interest expense net interest expense for the year ended december 31 , 2016 was $ 0.7 million , compared to $ 1.0 million in 2015. the decrease is primarily due to overall decreased debt levels due to repayment of the line of credit as discussed in note 7

liquidity and capital resources our principal sources of liquidity are cash generated from operations and short-term bank loans . our cash and cash equivalents were $ 2.7 million , representing 3.3 % of our total assets as of december 31 , 2016 , as compared to $ 6.2 million , representing 6.4 % of our total assets as of december 31 , 2015. all of the $ 2.7 million of cash and cash equivalents as of december 31 , 2016 , is considered to be reinvested indefinitely in our chinese subsidiary , helpson , and are not expected to be available for payment of dividends or for other payments to our parent company or to its shareholders . during 2016 , we repaid in full the balance at december 31 , 2015 of approximately $ 4.6 million under our line of credit as discussed in note 7 of the consolidated financial statements . we entered into an eight-year construction loan facility on september 21 , 2013. the total loan facility amount is rmb80,000,000 ( approximately $ 13 million ) , which had been fully utilized through may 7 , 2014. we 've accumulatively repaid the principle of rmb 11 million ( approximately $ 1.6 million ) of the construction loans per the payback schedule as of december 31 , 2016. the current portion of the construction loan facility is $ 1.4 million as of december 31 , 2016. the cash flow generated from operating activities was used to fund our daily operating expenses as well as repayment of our loan facility . 58 based on our current operating plan , management believes that cash provided by operations will be sufficient to meet our working capital needs and our anticipated capital expenditures , including expenditures for new formula acquisitions and the remaining new gmp upgrade related construction and equipment in our existing facility for the next twelve months . however , if circumstances change and we do not follow our operating plan as expected , we may be required to seek additional capital and or to reduce certain discretionary spending , which could have a material adverse effect on our ability to achieve our business objectives .


 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 our principal sources of liquidity are cash generated from operations and short-term bank loans . our cash and cash equivalents were $ 2.7 million , representing 3.3 % of our total assets as of december 31 , 2016 , as compared to $ 6.2 million , representing 6.4 % of our total assets as of december 31 , 2015. all of the $ 2.7 million of cash and cash equivalents as of december 31 , 2016 , is considered to be reinvested indefinitely in our chinese subsidiary , helpson , and are not expected to be available for payment of dividends or for other payments to our parent company or to its shareholders . during 2016 , we repaid in full the balance at december 31 , 2015 of approximately $ 4.6 million under our line of credit as discussed in note 7 of the consolidated financial statements . we entered into an eight-year construction loan facility on september 21 , 2013. the total loan facility amount is rmb80,000,000 ( approximately $ 13 million ) , which had been fully utilized through may 7 , 2014. we 've accumulatively repaid the principle of rmb 11 million ( approximately $ 1.6 million ) of the construction loans per the payback schedule as of december 31 , 2016. the current portion of the construction loan facility is $ 1.4 million as of december 31 , 2016. the cash flow generated from operating activities was used to fund our daily operating expenses as well as repayment of our loan facility . 58 based on our current operating plan , management believes that cash provided by operations will be sufficient to meet our working capital needs and our anticipated capital expenditures , including expenditures for new formula acquisitions and the remaining new gmp upgrade related construction and equipment in our existing facility for the next twelve months . however , if circumstances change and we do not follow our operating plan as expected , we may be required to seek additional capital and or to reduce certain discretionary spending , which could have a material adverse effect on our ability to achieve our business objectives .
```    
 Suspicious Activity Report : forward-looking statements can be identified by the use of forward-looking terminology , such as `` anticipate `` , `` believe `` , `` expect `` , `` plan `` , `` intend `` , `` seek `` , `` estimate `` , `` project `` , `` could `` , `` may `` or the negative thereof or other variations thereon , or by discussions of strategy that involve risks and uncertainties . management wishes to caution the readers of the forward-looking statements that any such statements that are contained in this report reflect our current beliefs with respect to future events and involve known and unknown risks , uncertainties and other factors , including , but not limited to , economic , competitive , regulatory , technological , key employees , and general business factors affecting our operations , markets , growth , services , products , licenses and other factors , some of which are described in this report including in “ risk factors ” in item 1a and some of which are discussed in our other filings with the securities and exchange commission . these forward-looking statements are only estimates or predictions . no assurances can be given regarding the achievement of future results , as actual results may differ materially as a result of risks facing our company , and actual events may differ from the assumptions underlying the statements that have been made regarding anticipated events . these risk factors should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue . all written and oral forward looking statements made in connection with this report that are attributable to our company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements . given these uncertainties , we caution investors not to unduly rely on our forward-looking statements . we do not undertake any obligation to review or confirm analysts ' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events , except as required by applicable law or regulation . business overview & recent developments in november 2014 , we received a good manufacturing practices ( “ gmp ” ) certificate issued by the china food and drug administration ( “ cfda ” ) for dried powder and liquid injectable product lines produced at our new manufacturing facility , and since then we have restarted production of products with those formulations after a suspension of production from year end 2013 due to our inability to meet a gmp upgrade deadline . gmp compliance timing issues also caused us to miss certain drug bids ( generally with terms of around two years ) in several chinese provinces prior to november 2014. these missed bids negatively impacted our previously-established market share in those provinces , and reduced our overall sales in 2015 and 2016. nevertheless , we continue to concentrate on enhancing the fundamentals of our business . in january and december 2015 , we completed upgrades to our manufacturing facilities and received new gmp certificates for our tablet and capsule product lines and for the cephalosporin product lines at our old factories . upgrades to our oral solution product lines were completed ahead of the deadline , which has positioned us to better meet market demand . 51 in order to comply with requests from the central committee of the communist party of china and state council to use the strictest standards to monitor and regulate food and drug production and to further rectify and standardize drug distribution , cfda issued the “ notice of rectification against illegal operations regarding drug logistics & distribution ” on may 3 , 2016. because it had become the top priority for pharmaceutical distributors , including our distributors , to comply with this government policy , our distributors ' time and efforts were focused on passing cfda inspection , which delayed their ordinary promotion efforts and purchase and distribution activities , which further negatively impacted the sales performance of our company during the second and third quarters of 2016. increasing our sales remains our top priority . through the continued implementation of sales promotion , the company realized sales increases in the fourth quarter of 2016 compared to the previous quarter . management will continue to vigorously promote sales by actively participating in the recent opening of the new provincial drug tender and participation in drug exhibitions . in order to support our existing products package we remain focused on pipeline development . we have experienced delays in obtaining approval for certain products in our pipeline because of revisions of and enhancements to cfda approval criteria and processes . these revisions have resulted in additional supplemental materials and trials , higher costs , and longer approval times for certain applications . on march 5 , 2016 , the chinese state council issued `` opinions on carrying out consistency evaluations of the quality and efficacy of generic drugs `` ( the “ opinions ” ) . the opinions define the object of evaluations and establish deadlines , determine selection criteria for reference drugs , call for a rational selection of evaluation methods , and identify pharmaceutical manufacturers as the principle generic drug consistency evaluation , and sets forth corresponding incentives . subsequently , the cfda issued “ comments from the general office of the state council on the consistency evaluations of the efficacy and quality of generic drug ” in may 2016 , in order to further elaborate on assessment processes and related technical rules . story_separator_special_tag going forward , we expect to see continued pricing pressure on most of our products . however , new products could help support overall gross margin once they are launched . selling expenses our selling expenses for the year ended december 31 , 2016 were $ 4.0 million , a decrease of $ 0.3 million , compared to $ 4.3 million for the year ended december 31 , 2015. selling expenses accounted for 25.9 % of the total revenue in 2016 compared to 21.1 % in 2015. the increase was mainly the result of additional marketing , consulting and product promotional efforts in certain chinese provinces . because of adjustments in our sales practices resulting from healthcare reform policies , despite the overall decrease in sales , we require additional personnel and expenses to support our sales and the collection of accounts receivable . 55 general and administrative expenses our general and administrative expenses for the year ended december 31 , 2016 were $ 2.3 million , which represented an increase of $ 0.4 million compared to $ 1.9 million in 2015. general and administrative expenses accounted for 14.6 % and 9.3 % of our total revenues in 2016 and 2015 , respectively . research and development expenses our research and development expenses for the year ended december 31 , 2016 were $ 0.4 million , compared to $ 1.0 million in 2015. research and development expenses accounted for 2.4 % and 4.7 % of our total revenues in 2016 and 2015 , respectively . the consistency evaluations discussed under the “ business overview & recent developments ” section here of is expected to have a significant impact on all generic products not only in our pipeline , but also throughout the existing chinese market . because of the continuous introduction of detailed implementation rules under this policy , our pipeline did not have any further development in 2016. but , we are still actively adapting to this policy , and have filed reagent references with the cfda for several key products in 2016. bad debt expenses our bad debt expenses for the year ended december 31 , 2016 was $ 1.1 million , which represented a decrease of $ 4.9 million compared to $ 6.0 million in 2015. during 2015 , we also recognized bad debt expenses of $ 4.1 million related to advances made to suppliers based on our evaluations of the realization likelihood of payments . the decline in our bad debt expenses was mainly the result of the decline in our revenues in recent years , which also led to the corresponding decline in the net amount of accounts receivable aging over one year ( according to our current accounting policy , we are required to recognize a bad debt allowance 70 % of the accounts receivable that are between 365 days to 720 days old ) . in general , our normal credit or payment terms extended to customers are for 90 days . this has not changed in recent years . due to the peculiarity of the chinese pharmaceutical market environment , deferred payments to pharmaceutical companies by state-owned hospitals and local medicine distributors are a normal phenomenon . our customers are primarily pharmaceutical distributors that sell our products to mostly government-backed hospitals . therefore , the aging of our receivables from our customers tends to be longer-term . the amount of net accounts receivable that were past due ( or the amount of accounts receivable that were more than 90 days old ) was $ 3.9 million and $ 5.1 million as of december 31 , 2016 and 2015 , respectively . the following table illustrates our gross accounts receivable aging distribution in terms of percentage of total accounts receivable as of december 31 , 2016 and 2015 : 56 replace_table_token_6_th our bad debt allowance estimate is currently 10 % of accounts receivable that are less than 365 days old , 70 % of accounts receivable that are between 365 days and 720 days old , and 100 % of accounts receivable that are greater than 720 days old . we recognize bad debt expenses per actual write-offs as well as changes of allowance for doubtful accounts . to the extent that our current allowance for doubtful accounts is higher than that of the previous period , we recognize a bad debt expense for the difference during the current period , and when the current allowance is lower than that of the previous period , we recognize a bad debt benefit for the difference . the allowance for doubtful accounts was $ 15.7 million and $ 29.4 million as of december 31 , 2016 and december 31 , 2015 , respectively . the changes in the allowances for doubtful accounts during the years ended december 31 , 2016 and 2015 were as follows : replace_table_token_7_th impairment of intangible assets our impairments for the year ended december 31 , 2016 were $ 4.0 million , compared to $ 0.1 million in 2015. as a pharmaceutical company , we have been focusing on the development and maintenance of our intangible assets , mainly in the form of medical formulas . because of recently implemented government policies such as consistency evaluations , our management made certain assessments regarding the impairment of our intangible assets as in 2016 , and identified five formulas that would likely be unable to generate positive cash flow in the foreseeable future and therefore recognized impairment loss on them accordingly . loss from operations our operating loss for the year ended december 31 , 2016 was $ 8.2 million , compared to an operating loss of $ 14.3 million in 2015 . 57 net interest expense net interest expense for the year ended december 31 , 2016 was $ 0.7 million , compared to $ 1.0 million in 2015. the decrease is primarily due to overall decreased debt levels due to repayment of the line of credit as discussed in note 7

