we use words such as “ anticipate , ” “ estimate , ” “ plan , ” “ project , ” “ continuing , ” “ ongoing , ” “ expect , ” “ believe , ” “ intend , ” “ may , ” “ will , ” “ should , ” “ could , ” and similar expressions to identify forward-looking statements . overview omvs was incorporated in florida on march 25 , 2010. omvs reincorporated into nevada on february 17 , 2015. omvs ' fiscal year end is february 28. omvs is located at 1 east liberty , 6 th floor , reno , nv 89501 and our telephone number is 702-990-3271. omvs ' prior business focus was transportation services and it was exploring the on-demand logistics market by developing a network of logistics partnerships . on august 28 , 2017 , omvs entered into a stock purchase agreement ( the “ stock purchase agreement ” ) with rad and steve reinharz , as sole stockholder of rad . pursuant to the terms of the stock purchase agreement , omvs acquired , on august 28 , 2017 , 10,000 shares of rad 's common stock , representing all of rad 's issued and outstanding capital stock , from mr. reinharz in exchange for the issuance by omvs of ( i ) 3,350,000 shares of its series e preferred stock and , ( ii ) 2,450 shares of its series f convertible preferred stock . as a result of the rad acquisition , rad is a wholly owned subsidiary of omvs . as a result of the closing of the rad acquisition , omvs has succeeded to the business of rad , in which it purchased all of the outstanding shares of capital stock of rad . as a result , omvs ' business going forward will consist of one segment activity which is the delivery of artificial intelligence and robotic solutions for operational , security and monitoring needs . - 17 - the rad acquisition is being treated as a reverse recapitalization effected by a share exchange for financial accounting and reporting purposes since substantially all of our prior operations were disposed of as part of the consummation of the transaction and therefore no goodwill or other intangible assets were recorded . rad is treated as the accounting acquirer as its stockholders control the company after the rad acquisition , even though the company was the legal acquirer . as a result , the assets and liabilities and the historical operations that are reflected in these financial statements are those of rad as if rad had always been the reporting company . results of operations the following table shows our results of operations for the year ended february 28 , 2018 , the two months ended february 28 , 2017 and period from inception ( july 26 , 2016 ) through december 31 , 2016. the historical results presented below are not necessarily indicative of the results that may be expected for any future period . replace_table_token_2_th revenue the company began to earn revenues of for the year ended february 28 , 2018 of $ 106,476 , but had no revenues for the period from inception ( july 26 , 2016 ) through december 31 , 2016 and for the two months ended february 28 , 2017 , since the company had just begun operations and was still in product development . operating expenses operating expenses for the year ended february 28 , 2018 , the two months ended february 28 , 2017 and period from inception ( july 26 , 2016 ) through december 31 , 2016 , were comprised of the following : replace_table_token_3_th - 18 - our operating expenses were comprised of general and administrative expenses , research and development , depreciation and amortization , and a loss on impairment of fixed assets . general and administrative expenses consisted primarily of professional services , automobile expenses , advertising , salaries and wages , travel expenses and rent . our operating expenses during the year ended february 28 , 2018 and the two months ended february 28 , 2017 were $ 3,578,301 and $ 81,203 , respectively . the overall $ 3,497,098 increase in operating expenses was primarily attributable to the following increases in operating expenses of : ● general and administrative expenses – $ 2,336,808 ● research and development – $ 472,847 ● depreciation and amortization – $ 123,887 ● loss on impairment of fixed assets – $ 563,556 the $ 3,497,098 increase in operating expenses are a result of the start of rad 's operations in 2017. our operating expenses during the year ended february 28 , 2018 and the period from inception ( july 26 , 2016 ) through december 31 , 2016 were $ 3,578,301 and $ 79,921 , respectively . the overall $ 3,498,380 increase in operating expenses was primarily attributable to the following increases in operating expenses of : ● general and administrative expenses – $ 2,342,315 ● research and development – $ 462,428 ● depreciation and amortization – $ 130,081 ● loss on impairment of fixed assets – $ 563,556 the $ 3,498,380 increase in operating expenses are a result of the start of rad 's operations in 2017. other income ( expense ) other income ( expense ) consisted of the change of fair value of derivative liabilities , gain on settlement of debt , and interest expense , amortization of debt issuance costs and discounts . story_separator_special_tag the company has elected to early adopt asu 2017-01 and to apply it to any transaction , which occurred prior to the issuance date that has not been reported in financial statements that have been issued or made available for issuance . recently issued accounting pronouncements in may 2014 , the fasb issued asu 2014-09 , revenue from contracts with customers ( topic 606 ) . the core principle of asu 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services . this standard is effective for fiscal years and interim reporting periods beginning after december 15 , 2016. in august 2015 , the fasb issued asu 2015-14 , revenue from contracts with customers ( topic 606 ) : deferral of the effective date . the amendments in this update deferred the effective date for implementation of asu 2014-09 by one year and is now effective for annual reporting periods beginning after december 15 , 2017. early application is permitted only as of annual reporting periods beginning after december 15 , 2016 including interim reporting periods within that period . topic 606 is effective for the company in the first quarter of fiscal 2019. the company is currently evaluating the new revenue recognition guidance . the company has completed its initial impact assessment and has commenced an in-depth evaluation of the adoption impact , which involves review of selected revenue arrangements . based on the company 's preliminary review , the company believes that the timing and measurement of revenue for its customers will be similar to the company 's current revenue recognition . however , this view is preliminary and could change based on further analysis associated with the conversion and implementation phases of our asu 2014-09 project . from march 2016 through september 2017 , the fasb issued asu 2016-08 , revenue from contracts with customers ( topic 606 ) : principal versus agent considerations ( reporting revenue gross versus net ) , asu 2016-10 , revenue from contracts with customers ( topic 606 ) : identifying performance obligations and licensing , asu 2016-11 , revenue recognition ( topic 605 ) and derivatives and hedging ( topic 815 ) : rescission of sec guidance because of accounting standards updates 2014-09 and 2014-16 pursuant to staff announcements at the march 3 , 2016 eitf meeting , asu no . 2016-12 , revenue from contracts with customers ( topic 606 ) : narrow-scope improvements and practical expedients , asu no . 2016-20 , technical corrections and improvements to topic 606 , revenue from contracts with customers and asu no . 2017-13 , revenue recognition ( topic 605 ) , revenue from contracts with customers ( topic 606 ) , leases ( topic 840 ) , and leases ( topic 842 ) : amendments to sec paragraphs pursuant to the staff announcement at the july 20 , 2017 eitf meeting and rescission of prior sec staff announcements and observer comments . these amendments are intended to improve and clarify the implementation guidance of topic 606. the effective date and transition requirements for the amendments are the same as the effective date and transition requirements of asu no . 2014-09 and asu no . 2015-14 . - 22 - in february 2016 , the fasb issued asu no . 2016-02 , leases ( topic 842 ) , which is effective for public entities for annual reporting periods beginning after december 15 , 2018. under asu 2016-02 , lessees will be required to recognize the following for all leases ( with the exception of short-term leases ) at the commencement date : 1 ) a lease liability , which is a lessee 's obligation to make lease payments arising from a lease , measured on a discounted basis , and 2 ) a right-of-use asset , which is an asset that represents the lessee 's right to use , or control the use of , a specified asset for the lease term . the company is currently evaluating the effects of asu 2016-02 on its consolidated financial statements . in august 2016 , the fasb issued asu 2016-15 , statement of cash flows ( topic 230 ) classification of certain cash receipts and cash payments . asu 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs , the maturing of a zero-coupon bond , the settlement of contingent liabilities arising from a business combination , proceeds from insurance settlements , distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization . asu 2016-15 designates the appropriate cash flow classification , including requirements to allocate certain components of these cash receipts and payments among operating , investing and financing activities . the guidance is effective for the company beginning after december 15 , 2017 , although early adoption is permitted . the company is currently evaluating the effects of asu 2016-15 on its consolidated financial statements . in november 2016 , the fasb issued asu no . 2016-18 , statement of cash flows ( topic 230 ) restricted cash a consensus of the fasb emerging issues task force . asu 2016-18 requires restricted cash and cash equivalents to be included with cash and cash equivalents on the statement cash flows . the new standard is expected to be effective for fiscal years , and interim periods within those years , beginning after december 15 , 2017 , with early adoption permitted . the company is currently evaluating the effects of asu 2016-18 on its consolidated financial statements . in july 2017 , the fasb issued asu 2017-11 , earnings per share ( topic 260 ) , distinguishing liabilities from equity ( topic 480 ) and derivatives and hedging ( topic 815 ) : i. accounting

net cash used in operating activities net cash used in operating activities for the year ended february 28 , 2018 was $ 3,309,230. this included a net loss of $ 24,249,001 , gain on settlement of debt of $ 1,175,028 and a change in operating assets of $ 89,010. these instances of decreases in cash are offset by a change in fair value of derivative financial instruments of $ 9,495,321 ( non-cash ) , interest expense related to derivative liability on excess of face value of debt change of $ 10,797,663 , amortization of debt discounts of $ 1,214,348 , a loss on impairment of fixed assets of $ 563,556 , stock-based compensation of $ 2,840 and depreciation and amortization of $ 130,081. net cash used in investing activities net cash used in investing activities for the year ended february 28 , 2018 , was $ 239,490 , which consisted primarily of capital expenditures of $ 228,371 , cash paid for security deposit of $ 30,141 and was offset by cash proceeds from the wesecure transaction of $ 17,000 and cash acquired in reverse capitalization of $ 2,022. net cash provided by financing activities net cash provided by financing activities for the year ended february 28 , 2018 , was $ 3,516,586 , which resulted from proceeds from the issuance of convertible notes of $ 2,558,345 , net borrowings from loan payable-related party $ 219,613 , loan from omvs to rad prior to reverse recapitalization of $ 752,500 , proceeds from vehicle loan $ 47,661 and was reduced by principal repayment on convertible note payable of $ 50,000 and payments on a vehicle loan of $ 11,533. off-balance sheet arrangements we do not have any outstanding off-balance sheet guarantees , interest rate swap transactions or foreign currency forward contracts .


 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.
     ```net cash used in operating activities net cash used in operating activities for the year ended february 28 , 2018 was $ 3,309,230. this included a net loss of $ 24,249,001 , gain on settlement of debt of $ 1,175,028 and a change in operating assets of $ 89,010. these instances of decreases in cash are offset by a change in fair value of derivative financial instruments of $ 9,495,321 ( non-cash ) , interest expense related to derivative liability on excess of face value of debt change of $ 10,797,663 , amortization of debt discounts of $ 1,214,348 , a loss on impairment of fixed assets of $ 563,556 , stock-based compensation of $ 2,840 and depreciation and amortization of $ 130,081. net cash used in investing activities net cash used in investing activities for the year ended february 28 , 2018 , was $ 239,490 , which consisted primarily of capital expenditures of $ 228,371 , cash paid for security deposit of $ 30,141 and was offset by cash proceeds from the wesecure transaction of $ 17,000 and cash acquired in reverse capitalization of $ 2,022. net cash provided by financing activities net cash provided by financing activities for the year ended february 28 , 2018 , was $ 3,516,586 , which resulted from proceeds from the issuance of convertible notes of $ 2,558,345 , net borrowings from loan payable-related party $ 219,613 , loan from omvs to rad prior to reverse recapitalization of $ 752,500 , proceeds from vehicle loan $ 47,661 and was reduced by principal repayment on convertible note payable of $ 50,000 and payments on a vehicle loan of $ 11,533. off-balance sheet arrangements we do not have any outstanding off-balance sheet guarantees , interest rate swap transactions or foreign currency forward contracts .
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 Suspicious Activity Report : we use words such as “ anticipate , ” “ estimate , ” “ plan , ” “ project , ” “ continuing , ” “ ongoing , ” “ expect , ” “ believe , ” “ intend , ” “ may , ” “ will , ” “ should , ” “ could , ” and similar expressions to identify forward-looking statements . overview omvs was incorporated in florida on march 25 , 2010. omvs reincorporated into nevada on february 17 , 2015. omvs ' fiscal year end is february 28. omvs is located at 1 east liberty , 6 th floor , reno , nv 89501 and our telephone number is 702-990-3271. omvs ' prior business focus was transportation services and it was exploring the on-demand logistics market by developing a network of logistics partnerships . on august 28 , 2017 , omvs entered into a stock purchase agreement ( the “ stock purchase agreement ” ) with rad and steve reinharz , as sole stockholder of rad . pursuant to the terms of the stock purchase agreement , omvs acquired , on august 28 , 2017 , 10,000 shares of rad 's common stock , representing all of rad 's issued and outstanding capital stock , from mr. reinharz in exchange for the issuance by omvs of ( i ) 3,350,000 shares of its series e preferred stock and , ( ii ) 2,450 shares of its series f convertible preferred stock . as a result of the rad acquisition , rad is a wholly owned subsidiary of omvs . as a result of the closing of the rad acquisition , omvs has succeeded to the business of rad , in which it purchased all of the outstanding shares of capital stock of rad . as a result , omvs ' business going forward will consist of one segment activity which is the delivery of artificial intelligence and robotic solutions for operational , security and monitoring needs . - 17 - the rad acquisition is being treated as a reverse recapitalization effected by a share exchange for financial accounting and reporting purposes since substantially all of our prior operations were disposed of as part of the consummation of the transaction and therefore no goodwill or other intangible assets were recorded . rad is treated as the accounting acquirer as its stockholders control the company after the rad acquisition , even though the company was the legal acquirer . as a result , the assets and liabilities and the historical operations that are reflected in these financial statements are those of rad as if rad had always been the reporting company . results of operations the following table shows our results of operations for the year ended february 28 , 2018 , the two months ended february 28 , 2017 and period from inception ( july 26 , 2016 ) through december 31 , 2016. the historical results presented below are not necessarily indicative of the results that may be expected for any future period . replace_table_token_2_th revenue the company began to earn revenues of for the year ended february 28 , 2018 of $ 106,476 , but had no revenues for the period from inception ( july 26 , 2016 ) through december 31 , 2016 and for the two months ended february 28 , 2017 , since the company had just begun operations and was still in product development . operating expenses operating expenses for the year ended february 28 , 2018 , the two months ended february 28 , 2017 and period from inception ( july 26 , 2016 ) through december 31 , 2016 , were comprised of the following : replace_table_token_3_th - 18 - our operating expenses were comprised of general and administrative expenses , research and development , depreciation and amortization , and a loss on impairment of fixed assets . general and administrative expenses consisted primarily of professional services , automobile expenses , advertising , salaries and wages , travel expenses and rent . our operating expenses during the year ended february 28 , 2018 and the two months ended february 28 , 2017 were $ 3,578,301 and $ 81,203 , respectively . the overall $ 3,497,098 increase in operating expenses was primarily attributable to the following increases in operating expenses of : ● general and administrative expenses – $ 2,336,808 ● research and development – $ 472,847 ● depreciation and amortization – $ 123,887 ● loss on impairment of fixed assets – $ 563,556 the $ 3,497,098 increase in operating expenses are a result of the start of rad 's operations in 2017. our operating expenses during the year ended february 28 , 2018 and the period from inception ( july 26 , 2016 ) through december 31 , 2016 were $ 3,578,301 and $ 79,921 , respectively . the overall $ 3,498,380 increase in operating expenses was primarily attributable to the following increases in operating expenses of : ● general and administrative expenses – $ 2,342,315 ● research and development – $ 462,428 ● depreciation and amortization – $ 130,081 ● loss on impairment of fixed assets – $ 563,556 the $ 3,498,380 increase in operating expenses are a result of the start of rad 's operations in 2017. other income ( expense ) other income ( expense ) consisted of the change of fair value of derivative liabilities , gain on settlement of debt , and interest expense , amortization of debt issuance costs and discounts . story_separator_special_tag the company has elected to early adopt asu 2017-01 and to apply it to any transaction , which occurred prior to the issuance date that has not been reported in financial statements that have been issued or made available for issuance . recently issued accounting pronouncements in may 2014 , the fasb issued asu 2014-09 , revenue from contracts with customers ( topic 606 ) . the core principle of asu 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services . this standard is effective for fiscal years and interim reporting periods beginning after december 15 , 2016. in august 2015 , the fasb issued asu 2015-14 , revenue from contracts with customers ( topic 606 ) : deferral of the effective date . the amendments in this update deferred the effective date for implementation of asu 2014-09 by one year and is now effective for annual reporting periods beginning after december 15 , 2017. early application is permitted only as of annual reporting periods beginning after december 15 , 2016 including interim reporting periods within that period . topic 606 is effective for the company in the first quarter of fiscal 2019. the company is currently evaluating the new revenue recognition guidance . the company has completed its initial impact assessment and has commenced an in-depth evaluation of the adoption impact , which involves review of selected revenue arrangements . based on the company 's preliminary review , the company believes that the timing and measurement of revenue for its customers will be similar to the company 's current revenue recognition . however , this view is preliminary and could change based on further analysis associated with the conversion and implementation phases of our asu 2014-09 project . from march 2016 through september 2017 , the fasb issued asu 2016-08 , revenue from contracts with customers ( topic 606 ) : principal versus agent considerations ( reporting revenue gross versus net ) , asu 2016-10 , revenue from contracts with customers ( topic 606 ) : identifying performance obligations and licensing , asu 2016-11 , revenue recognition ( topic 605 ) and derivatives and hedging ( topic 815 ) : rescission of sec guidance because of accounting standards updates 2014-09 and 2014-16 pursuant to staff announcements at the march 3 , 2016 eitf meeting , asu no . 2016-12 , revenue from contracts with customers ( topic 606 ) : narrow-scope improvements and practical expedients , asu no . 2016-20 , technical corrections and improvements to topic 606 , revenue from contracts with customers and asu no . 2017-13 , revenue recognition ( topic 605 ) , revenue from contracts with customers ( topic 606 ) , leases ( topic 840 ) , and leases ( topic 842 ) : amendments to sec paragraphs pursuant to the staff announcement at the july 20 , 2017 eitf meeting and rescission of prior sec staff announcements and observer comments . these amendments are intended to improve and clarify the implementation guidance of topic 606. the effective date and transition requirements for the amendments are the same as the effective date and transition requirements of asu no . 2014-09 and asu no . 2015-14 . - 22 - in february 2016 , the fasb issued asu no . 2016-02 , leases ( topic 842 ) , which is effective for public entities for annual reporting periods beginning after december 15 , 2018. under asu 2016-02 , lessees will be required to recognize the following for all leases ( with the exception of short-term leases ) at the commencement date : 1 ) a lease liability , which is a lessee 's obligation to make lease payments arising from a lease , measured on a discounted basis , and 2 ) a right-of-use asset , which is an asset that represents the lessee 's right to use , or control the use of , a specified asset for the lease term . the company is currently evaluating the effects of asu 2016-02 on its consolidated financial statements . in august 2016 , the fasb issued asu 2016-15 , statement of cash flows ( topic 230 ) classification of certain cash receipts and cash payments . asu 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayment or extinguishment costs , the maturing of a zero-coupon bond , the settlement of contingent liabilities arising from a business combination , proceeds from insurance settlements , distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization . asu 2016-15 designates the appropriate cash flow classification , including requirements to allocate certain components of these cash receipts and payments among operating , investing and financing activities . the guidance is effective for the company beginning after december 15 , 2017 , although early adoption is permitted . the company is currently evaluating the effects of asu 2016-15 on its consolidated financial statements . in november 2016 , the fasb issued asu no . 2016-18 , statement of cash flows ( topic 230 ) restricted cash a consensus of the fasb emerging issues task force . asu 2016-18 requires restricted cash and cash equivalents to be included with cash and cash equivalents on the statement cash flows . the new standard is expected to be effective for fiscal years , and interim periods within those years , beginning after december 15 , 2017 , with early adoption permitted . the company is currently evaluating the effects of asu 2016-18 on its consolidated financial statements . in july 2017 , the fasb issued asu 2017-11 , earnings per share ( topic 260 ) , distinguishing liabilities from equity ( topic 480 ) and derivatives and hedging ( topic 815 ) : i. accounting

