we are based in los angeles , california but car owners and drivers can currently use the platform in all 50 states plus the district of columbia . we believe our unique revenue opportunity for both owners ( “ owners ” ) and drivers ( “ drivers ” ) is providing a safe , secure , and reliable marketplace . we categorize our operations into one reportable business segment : rental , consisting primarily of our vehicle rental operations in the united states . business and trends we primarily generate revenue by taking a fee from each rental processed on our platform and through insurance related fees . each rental transaction represents a driver renting a car from an owner . drivers pay a daily , weekly or monthly rental rate , plus direct insurance costs and a 10 % hyrecar fee , while owners receive their rental rate minus a 15 % hyrecar fee . gross billings are an important measure by which we evaluate and manage our business . we define gross billings as the amount billed to drivers , without any adjustments for amounts paid to owners , refunds or rebates . gross billings include transactions from both our revenues recorded on a net and a gross basis . it is important to note that gross billings is a non-u.s. gaap measure and as such , is not recorded in our financial statements as revenue . however , we use gross billings to asses our business growth , scale of operations and our ability to generate gross billings is strongly correlated to our ability to generate revenues . gross billings may also be used to calculate net revenue margin , defined as the company 's u.s. gaap reportable revenue over gross billings . using the definition of net revenue margin , hyrecar 's net revenue margin has increased to approximately 43.2 % ( $ 9,777,079 hyrecar 's 2018 u.s. gaap revenue over $ 22,645,941 2018 total gross billings ) . - 19 - our operating results are subject to variability due to seasonality , macroeconomic conditions and other factors . car rental volumes tend to be associated with driving holidays , where there is an influx of uber/lyft demand . thus far in 2018 , we have continued to operate in an uncertain and uneven economic environment marked by heightened geopolitical risks . nonetheless , we continue to anticipate that demand for vehicle rental and car sharing services will increase in 2018 , most likely against a backdrop of modest and uneven global economic growth . our objective is to focus on strategically accelerating our growth , strengthening our position as a leading provider of vehicle rental services to uber and lyft drivers , continuing to enhance our customers ' rental experience , and controlling costs and driving efficiency throughout the organization . we operate in a high growth industry and we expect to continue to face challenges and risks . we seek to mitigate our exposure to risks in numerous ways , including delivering upon our core strategic initiatives , continued growth of fleet levels to match changes in demand for vehicle rentals , and appropriate investments in technology . during 2018 : ● our net revenues totaled approximately $ 9,777,079 during the year ended december 31 , 2018 and increased 203.3 % compared to the total of $ 3,223,874 for the year ended december 31 , 2017 as a result of higher business levels as demonstrated by approximately 393,000 rental days and increased rental volumes . ● in the year ended december 31 , 2018 , our net loss was approximately $ 11,243,903 , as compared to $ 4,271,732 for the year ended december 31 , 2017 , representing an increase in net loss of $ 6,972,171. management 's plan we have incurred operating losses since inception and historically relied on debt and equity financing for working capital . throughout the next 12 months , the company intends to fund its operations through increased revenue from operations and the funds raised through the company 's ipo . we have increased our annualized run rate of rental days to approximately 550,000 through the first 60 days of 2019 , so based on increasing revenues and margins through the normal course of business , as well as our current capital , we believe the company 's has sufficient resources to operate its business . - 20 - components of our results of operations the following describes the various components that make up our results of operations , discussed below : revenue is earned from fees associated with matching drivers to owners of idle cars that meet the strict requirements imposed by ride-sharing services such as uber and lyft with drivers . a driver will typically rent a car through one transaction via our on-line marketplace . we recognize gaap reportable revenue primarily from a transaction fee and an insurance fee when a car is rented on our platform when ( a ) persuasive evidence that an agreement exists which occurs when the rental contract is signed electronically between the two parties involved ; ( b ) the services have been delivered ; ( c ) the prices are fixed and determinable and not subject to refund or adjustment ; and ( d ) collection of the amounts due is reasonably assured which occurs simultaneously when the booking is accepted and the credit card or account on file is charged . the company defers revenue where the earnings process is not yet complete . cost of revenues primarily include direct fees paid for driver insurance , merchant processing fees , and motor vehicle record fees incurred for paid driver applications . story_separator_special_tag in limited circumstances , the company provides contingent consideration in the form of a rebate or refund that is redeemable only if the customer completes a specific level of transaction over a specific time period . in such cases , the rebate or refund obligation is recognized as a reduction of revenues . measurement of the total rebate or refund obligation is based on management estimates using historical data . the following is a breakout of revenue components by subcategory for the years ended december 31 , 2018 and 2017. replace_table_token_3_th transaction fees and insurance fees are charged to a driver in a single transaction . drivers currently do not have an option to decline insurance at any point during the transaction . principal agent considerations in accordance with asc 605-45 , revenue recognition : principal agent considerations , we evaluate our service offerings to determine if we are acting as the principal or as an agent , which we consider in determining if revenue should be reported gross or net . our primary revenue source is a transaction fee made from a confirmed booking of a vehicle on our platform . key indicators that we evaluate to reach this determination include : ● the terms and conditions of our contracts ; ● whether we are paid a fixed percentage of the arrangement 's consideration or a fixed fee for each transaction ; ● the party which sets the pricing with the end-user , has the credit risk and provides customer support ; and ● the party responsible for delivery/fulfillment of the product or service to the end consumer . - 23 - we have determined that we act as the agent in the transaction for vehicle bookings , as we are not the primarily obligor of the arrangement and receive a fixed percentage of the transaction . therefore , revenue is recognized on a net basis . for other fees such as insurance fees and motor vehicle records ( application fees ) we have determined that revenue should be recorded on a gross basis . in such arrangements , the company sets pricing , has risk of economic loss , has certain credit risk , provides support services related to these transactions , and has decision making ability about service providers used . income taxes the company applies asc 740 “ income taxes ” ( “ asc 740 ” ) . deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial statement reported amounts at each period end , based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income . valuation allowances are established , when necessary , to reduce deferred tax assets to the amount expected to be realized . the provision for income taxes represents the tax expense for the period , if any , and the change during the period in deferred tax assets and liabilities . at december 31 , 2017 and 2016 , the company has established a full allowance against all deferred tax assets . asc 740 also provides criteria for the recognition , measurement , presentation and disclosure of uncertain tax positions . a tax benefit from an uncertain position is recognized only if it is “ more likely than not ” that the position is sustainable upon examination by the relevant taxing authority based on its technical merit . internal use software we incur software development costs to develop software programs to be used solely to meet our internal needs and cloud-based applications used to deliver our services . in accordance with asc 350-40 , internal-use software , we capitalize development costs related to these software applications once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the function intended . insurance reserve the company records a loss reserve for insurance deductible or damage that the company pays to car owners based on the company 's policy in relation to the insurance policy in effect at the time . this addition of the reserve is based on changes to the company 's insurance policy that occurred during the second quarter of 2018 in relation to the insurance policy in effect for car owners . this reserve represents an estimate for both reported accidents claims not yet paid , and claims incurred but not yet reported and are recorded on a non-discounted basis . the lag time in reported claims is minimal and as such represents a low risk of unreported claims being excluded from the loss reserve assessment . the adequacy of the reserve is monitored quarterly and is subject to adjustment in the future based upon changes in claims experience , including the number of incidents for which the company is ultimately responsible and changes in the cost per claim , or changes to the company 's policy as to what amounts of the deductible or claim will be paid by the company . liability insurance claims may take several years to completely settle , and the company has limited historical loss experience . because of the limited operational history , the company makes certain assumptions based on currently available information to estimate the reserves as well as third party claims adjuster data provided on existing claims . a number of factors can affect the actual cost of a claim , including the length of time the claim remains open , economic and healthcare cost trends and the results of related litigation . furthermore , claims may emerge in future periods for events that occurred in a prior period that differs from expectations . accordingly , actual losses may vary significantly from the estimated amounts reported in the financial statements . reserves are continually reviewed and adjusted as necessary as experience develops or new information becomes known

liquidity and capital resources at december 31 , 2018 , our cash balance totaled $ 6,764,870 compared to $ 213,944 at december 31 , 2017. this increase was a result of our ipo in which the company issued and sold 2,520,000 shares of common stock at $ 5.00 per share for gross proceeds of $ 12,600,000 , net of underwriters ' discounts and commissions totaling $ 1,260,000. accordingly , net proceeds from the ipo totaled $ 11,340,000 , before deducting offering costs of $ 569,665. as of march 28 , 2019 , our cash balance totaled over $ 6,000,000 , meaning that our quarterly cash burn has been reduced to approximately $ 500,000 for the first fiscal quarter of 2019. at december 31 , 2018 , our current assets totaled $ 7,075,311 and our current liabilities totaled $ 2,044,617 resulting in working capital of $ 5,030,694 compared to a working capital deficit of $ 1,337,331 at december 31 , 2017. this deficit resulted primarily from a lack of operating capital . throughout the next 12 months , the company intends to fund its operations through increased revenue from operations and the funds raised through the ipo . based on our current capital and ability to reduce cash burn if needed , as well as the increasing revenues through normal course of business , the company believes it has sufficient capital to operate for the next twelve ( 12 ) months . we do not have any contractual obligations for ongoing capital expenditures at this time .


 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 at december 31 , 2018 , our cash balance totaled $ 6,764,870 compared to $ 213,944 at december 31 , 2017. this increase was a result of our ipo in which the company issued and sold 2,520,000 shares of common stock at $ 5.00 per share for gross proceeds of $ 12,600,000 , net of underwriters ' discounts and commissions totaling $ 1,260,000. accordingly , net proceeds from the ipo totaled $ 11,340,000 , before deducting offering costs of $ 569,665. as of march 28 , 2019 , our cash balance totaled over $ 6,000,000 , meaning that our quarterly cash burn has been reduced to approximately $ 500,000 for the first fiscal quarter of 2019. at december 31 , 2018 , our current assets totaled $ 7,075,311 and our current liabilities totaled $ 2,044,617 resulting in working capital of $ 5,030,694 compared to a working capital deficit of $ 1,337,331 at december 31 , 2017. this deficit resulted primarily from a lack of operating capital . throughout the next 12 months , the company intends to fund its operations through increased revenue from operations and the funds raised through the ipo . based on our current capital and ability to reduce cash burn if needed , as well as the increasing revenues through normal course of business , the company believes it has sufficient capital to operate for the next twelve ( 12 ) months . we do not have any contractual obligations for ongoing capital expenditures at this time .
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 Suspicious Activity Report : we are based in los angeles , california but car owners and drivers can currently use the platform in all 50 states plus the district of columbia . we believe our unique revenue opportunity for both owners ( “ owners ” ) and drivers ( “ drivers ” ) is providing a safe , secure , and reliable marketplace . we categorize our operations into one reportable business segment : rental , consisting primarily of our vehicle rental operations in the united states . business and trends we primarily generate revenue by taking a fee from each rental processed on our platform and through insurance related fees . each rental transaction represents a driver renting a car from an owner . drivers pay a daily , weekly or monthly rental rate , plus direct insurance costs and a 10 % hyrecar fee , while owners receive their rental rate minus a 15 % hyrecar fee . gross billings are an important measure by which we evaluate and manage our business . we define gross billings as the amount billed to drivers , without any adjustments for amounts paid to owners , refunds or rebates . gross billings include transactions from both our revenues recorded on a net and a gross basis . it is important to note that gross billings is a non-u.s. gaap measure and as such , is not recorded in our financial statements as revenue . however , we use gross billings to asses our business growth , scale of operations and our ability to generate gross billings is strongly correlated to our ability to generate revenues . gross billings may also be used to calculate net revenue margin , defined as the company 's u.s. gaap reportable revenue over gross billings . using the definition of net revenue margin , hyrecar 's net revenue margin has increased to approximately 43.2 % ( $ 9,777,079 hyrecar 's 2018 u.s. gaap revenue over $ 22,645,941 2018 total gross billings ) . - 19 - our operating results are subject to variability due to seasonality , macroeconomic conditions and other factors . car rental volumes tend to be associated with driving holidays , where there is an influx of uber/lyft demand . thus far in 2018 , we have continued to operate in an uncertain and uneven economic environment marked by heightened geopolitical risks . nonetheless , we continue to anticipate that demand for vehicle rental and car sharing services will increase in 2018 , most likely against a backdrop of modest and uneven global economic growth . our objective is to focus on strategically accelerating our growth , strengthening our position as a leading provider of vehicle rental services to uber and lyft drivers , continuing to enhance our customers ' rental experience , and controlling costs and driving efficiency throughout the organization . we operate in a high growth industry and we expect to continue to face challenges and risks . we seek to mitigate our exposure to risks in numerous ways , including delivering upon our core strategic initiatives , continued growth of fleet levels to match changes in demand for vehicle rentals , and appropriate investments in technology . during 2018 : ● our net revenues totaled approximately $ 9,777,079 during the year ended december 31 , 2018 and increased 203.3 % compared to the total of $ 3,223,874 for the year ended december 31 , 2017 as a result of higher business levels as demonstrated by approximately 393,000 rental days and increased rental volumes . ● in the year ended december 31 , 2018 , our net loss was approximately $ 11,243,903 , as compared to $ 4,271,732 for the year ended december 31 , 2017 , representing an increase in net loss of $ 6,972,171. management 's plan we have incurred operating losses since inception and historically relied on debt and equity financing for working capital . throughout the next 12 months , the company intends to fund its operations through increased revenue from operations and the funds raised through the company 's ipo . we have increased our annualized run rate of rental days to approximately 550,000 through the first 60 days of 2019 , so based on increasing revenues and margins through the normal course of business , as well as our current capital , we believe the company 's has sufficient resources to operate its business . - 20 - components of our results of operations the following describes the various components that make up our results of operations , discussed below : revenue is earned from fees associated with matching drivers to owners of idle cars that meet the strict requirements imposed by ride-sharing services such as uber and lyft with drivers . a driver will typically rent a car through one transaction via our on-line marketplace . we recognize gaap reportable revenue primarily from a transaction fee and an insurance fee when a car is rented on our platform when ( a ) persuasive evidence that an agreement exists which occurs when the rental contract is signed electronically between the two parties involved ; ( b ) the services have been delivered ; ( c ) the prices are fixed and determinable and not subject to refund or adjustment ; and ( d ) collection of the amounts due is reasonably assured which occurs simultaneously when the booking is accepted and the credit card or account on file is charged . the company defers revenue where the earnings process is not yet complete . cost of revenues primarily include direct fees paid for driver insurance , merchant processing fees , and motor vehicle record fees incurred for paid driver applications . story_separator_special_tag in limited circumstances , the company provides contingent consideration in the form of a rebate or refund that is redeemable only if the customer completes a specific level of transaction over a specific time period . in such cases , the rebate or refund obligation is recognized as a reduction of revenues . measurement of the total rebate or refund obligation is based on management estimates using historical data . the following is a breakout of revenue components by subcategory for the years ended december 31 , 2018 and 2017. replace_table_token_3_th transaction fees and insurance fees are charged to a driver in a single transaction . drivers currently do not have an option to decline insurance at any point during the transaction . principal agent considerations in accordance with asc 605-45 , revenue recognition : principal agent considerations , we evaluate our service offerings to determine if we are acting as the principal or as an agent , which we consider in determining if revenue should be reported gross or net . our primary revenue source is a transaction fee made from a confirmed booking of a vehicle on our platform . key indicators that we evaluate to reach this determination include : ● the terms and conditions of our contracts ; ● whether we are paid a fixed percentage of the arrangement 's consideration or a fixed fee for each transaction ; ● the party which sets the pricing with the end-user , has the credit risk and provides customer support ; and ● the party responsible for delivery/fulfillment of the product or service to the end consumer . - 23 - we have determined that we act as the agent in the transaction for vehicle bookings , as we are not the primarily obligor of the arrangement and receive a fixed percentage of the transaction . therefore , revenue is recognized on a net basis . for other fees such as insurance fees and motor vehicle records ( application fees ) we have determined that revenue should be recorded on a gross basis . in such arrangements , the company sets pricing , has risk of economic loss , has certain credit risk , provides support services related to these transactions , and has decision making ability about service providers used . income taxes the company applies asc 740 “ income taxes ” ( “ asc 740 ” ) . deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial statement reported amounts at each period end , based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income . valuation allowances are established , when necessary , to reduce deferred tax assets to the amount expected to be realized . the provision for income taxes represents the tax expense for the period , if any , and the change during the period in deferred tax assets and liabilities . at december 31 , 2017 and 2016 , the company has established a full allowance against all deferred tax assets . asc 740 also provides criteria for the recognition , measurement , presentation and disclosure of uncertain tax positions . a tax benefit from an uncertain position is recognized only if it is “ more likely than not ” that the position is sustainable upon examination by the relevant taxing authority based on its technical merit . internal use software we incur software development costs to develop software programs to be used solely to meet our internal needs and cloud-based applications used to deliver our services . in accordance with asc 350-40 , internal-use software , we capitalize development costs related to these software applications once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the function intended . insurance reserve the company records a loss reserve for insurance deductible or damage that the company pays to car owners based on the company 's policy in relation to the insurance policy in effect at the time . this addition of the reserve is based on changes to the company 's insurance policy that occurred during the second quarter of 2018 in relation to the insurance policy in effect for car owners . this reserve represents an estimate for both reported accidents claims not yet paid , and claims incurred but not yet reported and are recorded on a non-discounted basis . the lag time in reported claims is minimal and as such represents a low risk of unreported claims being excluded from the loss reserve assessment . the adequacy of the reserve is monitored quarterly and is subject to adjustment in the future based upon changes in claims experience , including the number of incidents for which the company is ultimately responsible and changes in the cost per claim , or changes to the company 's policy as to what amounts of the deductible or claim will be paid by the company . liability insurance claims may take several years to completely settle , and the company has limited historical loss experience . because of the limited operational history , the company makes certain assumptions based on currently available information to estimate the reserves as well as third party claims adjuster data provided on existing claims . a number of factors can affect the actual cost of a claim , including the length of time the claim remains open , economic and healthcare cost trends and the results of related litigation . furthermore , claims may emerge in future periods for events that occurred in a prior period that differs from expectations . accordingly , actual losses may vary significantly from the estimated amounts reported in the financial statements . reserves are continually reviewed and adjusted as necessary as experience develops or new information becomes known

