greater variability in these environmental factors more commonly occur in our winter growing season . 16 our products are sold as consumer packaged goods through natural products distributors , retailers and online channels , and direct to consumers , primarily in the u.s. , as well as in bulk form to manufacturers , formulators and distributors worldwide in the health foods and nutritional supplements markets . we will continue to focus on growing the market for our high quality , higher margin consumer products by emphasizing the higher nutritional content of our hawaiian spirulina and the benefits of our natural astaxanthin . we generated 23 % , 28 % and 29 % of our revenues outside of the united states during the years ended march 31 , 2018 , 2017 and 2016 , respectively . competing in a global marketplace , we are influenced by the general economic conditions of the countries in which our customers operate , including adherence to our customers ' local governmental regulations and requirements . since all sales are made in u.s. currency , we have no material foreign exchange exposure . our production levels have a significant impact on our gross profit margin , as well as our ability to meet customer demand . because our processes are agricultural and a large percentage of our production costs are fixed , it is important to maintain production volumes to support the minimal resource levels required to sustain a large-scale open culture agricultural facility . our production costs include customary variables such as availability and costs of personnel , raw materials , energy , water and freight . these variables fluctuate based on changes in the local , national and world economies . more complex variables include cultivation methods , feeding formulations and harvesting processes , all of which include efforts to anticipate the extent of weather and environmental events and make timely and sufficient adjustments . although the variability of such costs can not be fully anticipated , we have focused increased effort in this area in order to produce both spirulina and astaxanthin at levels sufficient to fully absorb production costs into inventory . fresh water is critical for our natural astaxanthin and spirulina production , and while we have not experienced any long-term constraint on fresh water availability , future availability could be negatively impacted by significant growth in the local population as well as by throughput constraints on the water delivery infrastructure owned by the county of hawaii . given the criticality of fresh water to our operations and the community , we recycle fresh water where possible and have developed additional water recycling systems in our efforts to utilize fresh water efficiently . both fresh and sea water require electricity for pumping ; and electricity , our single largest expenditure , depends on the cost of fuel which is , in turn , tied to the global price of crude oil . complex biological processes in the cultivation and processing of our microalgae are influenced by factors beyond our control—the weather , for example . as a result , we can not assure that adequate production levels will be consistent period over period . to the extent that our production levels are not sufficient to absorb these costs on a period basis , we recognize abnormal and non-inventoriable production costs , including fixed cost variances from normal production capacity , as an expense in the period incurred . abnormal amounts of freight , handling costs and wasted material ( spoilage ) are recognized as current-period charges and fixed production overhead costs are allocated to inventory based on the normal capacity of production facilities . normal capacity is defined as “ the production expected to be achieved over a number of periods or seasons under normal circumstances , taking into account the loss of capacity resulting from planned maintenance . ” to offset increased production costs , we seek ways to increase production efficiencies in volume yield , potency , and quality consistent with our commitment to produce high-value , high-quality products . we utilize several third-party contractors for encapsulation of our gelcaps and for the packaging of our finished nutrex hawaii products . although these services are available from a limited number of sources , we believe that we have the ability to use other parties if any of the current contractors become unavailable . fiscal 201 8 summary : ● net sales for the year were $ 34.1 million , an increase of 6.5 % from the prior year , driven primarily by a 13.6 % increase in sales of our packaged products , offset by a 23.3 % decrease in sales of bulk products . ● fiscal 2018 pretax income was $ 0.9 million compared to pretax loss of $ 1.2 million in fiscal 2017. the improvement in pretax was the result of increased sales and margins , along with a decrease in legal costs of $ 1.5 million compared to fiscal 2017 . ● cash provided by operating activities was $ 1.5 million , an increase of $ 0.3 million from fiscal 2017 due primarily to the increase in net income , partially offset by growth in inventory and receivables . cash at march 31 , 2018 decreased $ 0.1 million compared to last year due to slightly higher spending on equipment and leasehold improvements compared to fiscal 2017 . 17 our fourth quarter was impacted by a variety of unexpected events , which occurred in concert to have an adverse effect on our production of spirulina . first , several fresh water pumps owned by the county of hawaii were disabled , and the county instituted restrictions on fresh water supply . story_separator_special_tag revenues are generated through the sale of finished products , and will be recognized at the point in time when control of the merchandise is transferred to the customer and in an amount that considers the impact of estimated returns , discounts and other allowances that are variable in nature . we continue to implement changes to our business processes and controls to support the recognition and disclosure requirements under the new guidance . we have concluded that the impact of adoption of asc 606 as of april 1 , 2018 is not material to our financial statements . application of critical accounting policies and estimates our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states ( “ gaap ” ) . the preparation of financial statements in conformity with those accounting principles requires management to make judgments and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes . actual results could differ from those estimates . management regularly re-evaluates its judgments and estimates which are based upon historical experience and on various other assumptions that are believed to be reasonable under the circumstances . management believes that of its significant accounting policies , policies that may involve a higher degree of judgment and complexity are inventory valuations , valuation of equipment and leasehold improvements and long-lived assets , and income taxes . revenue - we recognize revenues when the customer takes ownership and assumes the risk of loss . we have determined that transfer of title and risk of loss generally occurs when product is received by the customer , except in instances where the shipment terms are explicitly fob origin , and accordingly we recognize revenue at the point of delivery to the customer . for shipments with terms of fob origin where transfer of title and risk of loss occurs at the point of shipping , revenue is recognized upon shipment to the customer . sales returns and allowances are estimated and recorded as a reduction to sales in the period in which sales are recorded . we record net shipping charges and sales tax in cost of goods sold . inventory - we record inventories at the lower of cost or net realizable value . cost is defined as the sum of the applicable expenditures and charges directly or indirectly incurred in bringing inventories to their existing condition and location . cost for inventory purposes may be determined under any one of several assumptions as to the flow of cost factors , such as first-in , first-out ; average cost ; and last-in , first-out . our inventories are stated using the first-in , first-out method . inventory values are subject to many critical estimates , including production levels and capacity , changes in the prices paid for raw materials , supplies , and labor , changes in yield , potency , and quality of biomass , changes in processing or production methods , and changes in the carrying value of our inventories resulting from the prices our customers are willing to pay for our products . such estimates are revised quarterly . changes in management 's estimates could result in increases or decreases in the recorded amounts of inventory and cost of sales . to the extent that our production levels are not sufficient to absorb all production costs on a period basis , we recognize abnormal production costs , including fixed cost variances from normal production capacity , as an expense in the period incurred . abnormal amounts of freight , handling costs and wasted material ( spoilage ) are recognized as current-period charges and fixed production overhead costs are allocated to inventory based on the normal capacity of production facilities . normal capacity is defined as “ the production expected to be achieved over a number of periods or seasons under normal circumstances , taking into account the loss of capacity resulting from planned maintenance . ” changes in management 's estimates could result in increases or decreases in the recorded amounts of inventory and cost of sales . management reviews inventory levels , inventory turnover , product age and product marketability quarterly to evaluate recoverability and determine if a reserve for inventory is deemed necessary . at march 31 , 2018 an inventory reserve in the amount of $ 5,000 has been recorded , compared to $ 3,000 as of march 31 , 2017 . 23 equipment and leasehold improvements - equipment and leasehold improvements are reported at cost less accumulated depreciation and amortization . self-constructed leasehold improvements include design , construction and supervision costs . these costs are recorded in construction in progress and are transferred to equipment and leasehold improvements when construction is completed and the facilities are placed in service . long-lived assets , such as property , plant and equipment and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated future cash flows , an impairment charge is recognized to the extent that the carrying amount exceeds the asset 's fair value . we have not recognized any impairment of long lived assets as of march 31 , 2018 or 2017. stock-based compensation - we provide compensation benefits in the form of stock options , restricted stock units and restricted stock grants to employees and non-employee directors . our stock-based compensation expense is based on the fair value of awards , adjusted for estimated forfeitures , and amortized on a straight-line basis over the

cash flows the following table summarizes our cash flows from operating , investing and financing activities for each of the past three fiscal years ( $ in thousands ) : replace_table_token_6_th cash provided by operating activities in fiscal 2018 was the result of $ 1.0 million in net income and non-cash charges of $ 2.5 million , totaling $ 3.5 million . this was offset by an increase in working capital of $ 2.0 million . the increase in working capital was primarily the result of a $ 1.1 million increase in astaxanthin safety stock levels and a $ 0.5 million increase in accounts receivable due to the timing of sales relative to the prior year . cash provided by operating activities in fiscal 2017 was the result of a net loss of $ 1.2 million offset by non-cash charges of $ 2.3 million , totaling $ 1.1 million and a $ 0.1 million decrease in working capital . cash used in investing activities in fiscal years 2018 and 2017 includes costs for leasehold improvements and equipment acquisitions as our kona facility . cash used in financing activities in fiscal 2018 consists of a $ 0.7 million in principal payments on debt in the normal course of business , offset by $ 0.2 million in proceeds from equipment financing . cash used in financing activities during fiscal 2017 included proceeds of $ 0.6 million , net , from our line of credit , offset by payments on long-term debt and payments in lieu of stock issuance and settlement of taxes related to the former ceo separation agreement . . effect of recently issued accounting standards and estimates in may 2017 , the financial accounting standards board ( `` fasb '' ) issued accounting standards update ( `` asu '' ) 2017-09 , compensation-stock compensation ( topic 718 ) scope of modification accounting . asu 2017-09 will clarify and reduce both ( i ) diversity in practice and ( ii ) cost and complexity when applying the guidance in topic 718 , to a change to the terms and conditions of a share-based payment award .


 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 flows the following table summarizes our cash flows from operating , investing and financing activities for each of the past three fiscal years ( $ in thousands ) : replace_table_token_6_th cash provided by operating activities in fiscal 2018 was the result of $ 1.0 million in net income and non-cash charges of $ 2.5 million , totaling $ 3.5 million . this was offset by an increase in working capital of $ 2.0 million . the increase in working capital was primarily the result of a $ 1.1 million increase in astaxanthin safety stock levels and a $ 0.5 million increase in accounts receivable due to the timing of sales relative to the prior year . cash provided by operating activities in fiscal 2017 was the result of a net loss of $ 1.2 million offset by non-cash charges of $ 2.3 million , totaling $ 1.1 million and a $ 0.1 million decrease in working capital . cash used in investing activities in fiscal years 2018 and 2017 includes costs for leasehold improvements and equipment acquisitions as our kona facility . cash used in financing activities in fiscal 2018 consists of a $ 0.7 million in principal payments on debt in the normal course of business , offset by $ 0.2 million in proceeds from equipment financing . cash used in financing activities during fiscal 2017 included proceeds of $ 0.6 million , net , from our line of credit , offset by payments on long-term debt and payments in lieu of stock issuance and settlement of taxes related to the former ceo separation agreement . . effect of recently issued accounting standards and estimates in may 2017 , the financial accounting standards board ( `` fasb '' ) issued accounting standards update ( `` asu '' ) 2017-09 , compensation-stock compensation ( topic 718 ) scope of modification accounting . asu 2017-09 will clarify and reduce both ( i ) diversity in practice and ( ii ) cost and complexity when applying the guidance in topic 718 , to a change to the terms and conditions of a share-based payment award .
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 Suspicious Activity Report : greater variability in these environmental factors more commonly occur in our winter growing season . 16 our products are sold as consumer packaged goods through natural products distributors , retailers and online channels , and direct to consumers , primarily in the u.s. , as well as in bulk form to manufacturers , formulators and distributors worldwide in the health foods and nutritional supplements markets . we will continue to focus on growing the market for our high quality , higher margin consumer products by emphasizing the higher nutritional content of our hawaiian spirulina and the benefits of our natural astaxanthin . we generated 23 % , 28 % and 29 % of our revenues outside of the united states during the years ended march 31 , 2018 , 2017 and 2016 , respectively . competing in a global marketplace , we are influenced by the general economic conditions of the countries in which our customers operate , including adherence to our customers ' local governmental regulations and requirements . since all sales are made in u.s. currency , we have no material foreign exchange exposure . our production levels have a significant impact on our gross profit margin , as well as our ability to meet customer demand . because our processes are agricultural and a large percentage of our production costs are fixed , it is important to maintain production volumes to support the minimal resource levels required to sustain a large-scale open culture agricultural facility . our production costs include customary variables such as availability and costs of personnel , raw materials , energy , water and freight . these variables fluctuate based on changes in the local , national and world economies . more complex variables include cultivation methods , feeding formulations and harvesting processes , all of which include efforts to anticipate the extent of weather and environmental events and make timely and sufficient adjustments . although the variability of such costs can not be fully anticipated , we have focused increased effort in this area in order to produce both spirulina and astaxanthin at levels sufficient to fully absorb production costs into inventory . fresh water is critical for our natural astaxanthin and spirulina production , and while we have not experienced any long-term constraint on fresh water availability , future availability could be negatively impacted by significant growth in the local population as well as by throughput constraints on the water delivery infrastructure owned by the county of hawaii . given the criticality of fresh water to our operations and the community , we recycle fresh water where possible and have developed additional water recycling systems in our efforts to utilize fresh water efficiently . both fresh and sea water require electricity for pumping ; and electricity , our single largest expenditure , depends on the cost of fuel which is , in turn , tied to the global price of crude oil . complex biological processes in the cultivation and processing of our microalgae are influenced by factors beyond our control—the weather , for example . as a result , we can not assure that adequate production levels will be consistent period over period . to the extent that our production levels are not sufficient to absorb these costs on a period basis , we recognize abnormal and non-inventoriable production costs , including fixed cost variances from normal production capacity , as an expense in the period incurred . abnormal amounts of freight , handling costs and wasted material ( spoilage ) are recognized as current-period charges and fixed production overhead costs are allocated to inventory based on the normal capacity of production facilities . normal capacity is defined as “ the production expected to be achieved over a number of periods or seasons under normal circumstances , taking into account the loss of capacity resulting from planned maintenance . ” to offset increased production costs , we seek ways to increase production efficiencies in volume yield , potency , and quality consistent with our commitment to produce high-value , high-quality products . we utilize several third-party contractors for encapsulation of our gelcaps and for the packaging of our finished nutrex hawaii products . although these services are available from a limited number of sources , we believe that we have the ability to use other parties if any of the current contractors become unavailable . fiscal 201 8 summary : ● net sales for the year were $ 34.1 million , an increase of 6.5 % from the prior year , driven primarily by a 13.6 % increase in sales of our packaged products , offset by a 23.3 % decrease in sales of bulk products . ● fiscal 2018 pretax income was $ 0.9 million compared to pretax loss of $ 1.2 million in fiscal 2017. the improvement in pretax was the result of increased sales and margins , along with a decrease in legal costs of $ 1.5 million compared to fiscal 2017 . ● cash provided by operating activities was $ 1.5 million , an increase of $ 0.3 million from fiscal 2017 due primarily to the increase in net income , partially offset by growth in inventory and receivables . cash at march 31 , 2018 decreased $ 0.1 million compared to last year due to slightly higher spending on equipment and leasehold improvements compared to fiscal 2017 . 17 our fourth quarter was impacted by a variety of unexpected events , which occurred in concert to have an adverse effect on our production of spirulina . first , several fresh water pumps owned by the county of hawaii were disabled , and the county instituted restrictions on fresh water supply . story_separator_special_tag revenues are generated through the sale of finished products , and will be recognized at the point in time when control of the merchandise is transferred to the customer and in an amount that considers the impact of estimated returns , discounts and other allowances that are variable in nature . we continue to implement changes to our business processes and controls to support the recognition and disclosure requirements under the new guidance . we have concluded that the impact of adoption of asc 606 as of april 1 , 2018 is not material to our financial statements . application of critical accounting policies and estimates our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states ( “ gaap ” ) . the preparation of financial statements in conformity with those accounting principles requires management to make judgments and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes . actual results could differ from those estimates . management regularly re-evaluates its judgments and estimates which are based upon historical experience and on various other assumptions that are believed to be reasonable under the circumstances . management believes that of its significant accounting policies , policies that may involve a higher degree of judgment and complexity are inventory valuations , valuation of equipment and leasehold improvements and long-lived assets , and income taxes . revenue - we recognize revenues when the customer takes ownership and assumes the risk of loss . we have determined that transfer of title and risk of loss generally occurs when product is received by the customer , except in instances where the shipment terms are explicitly fob origin , and accordingly we recognize revenue at the point of delivery to the customer . for shipments with terms of fob origin where transfer of title and risk of loss occurs at the point of shipping , revenue is recognized upon shipment to the customer . sales returns and allowances are estimated and recorded as a reduction to sales in the period in which sales are recorded . we record net shipping charges and sales tax in cost of goods sold . inventory - we record inventories at the lower of cost or net realizable value . cost is defined as the sum of the applicable expenditures and charges directly or indirectly incurred in bringing inventories to their existing condition and location . cost for inventory purposes may be determined under any one of several assumptions as to the flow of cost factors , such as first-in , first-out ; average cost ; and last-in , first-out . our inventories are stated using the first-in , first-out method . inventory values are subject to many critical estimates , including production levels and capacity , changes in the prices paid for raw materials , supplies , and labor , changes in yield , potency , and quality of biomass , changes in processing or production methods , and changes in the carrying value of our inventories resulting from the prices our customers are willing to pay for our products . such estimates are revised quarterly . changes in management 's estimates could result in increases or decreases in the recorded amounts of inventory and cost of sales . to the extent that our production levels are not sufficient to absorb all production costs on a period basis , we recognize abnormal production costs , including fixed cost variances from normal production capacity , as an expense in the period incurred . abnormal amounts of freight , handling costs and wasted material ( spoilage ) are recognized as current-period charges and fixed production overhead costs are allocated to inventory based on the normal capacity of production facilities . normal capacity is defined as “ the production expected to be achieved over a number of periods or seasons under normal circumstances , taking into account the loss of capacity resulting from planned maintenance . ” changes in management 's estimates could result in increases or decreases in the recorded amounts of inventory and cost of sales . management reviews inventory levels , inventory turnover , product age and product marketability quarterly to evaluate recoverability and determine if a reserve for inventory is deemed necessary . at march 31 , 2018 an inventory reserve in the amount of $ 5,000 has been recorded , compared to $ 3,000 as of march 31 , 2017 . 23 equipment and leasehold improvements - equipment and leasehold improvements are reported at cost less accumulated depreciation and amortization . self-constructed leasehold improvements include design , construction and supervision costs . these costs are recorded in construction in progress and are transferred to equipment and leasehold improvements when construction is completed and the facilities are placed in service . long-lived assets , such as property , plant and equipment and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated future cash flows , an impairment charge is recognized to the extent that the carrying amount exceeds the asset 's fair value . we have not recognized any impairment of long lived assets as of march 31 , 2018 or 2017. stock-based compensation - we provide compensation benefits in the form of stock options , restricted stock units and restricted stock grants to employees and non-employee directors . our stock-based compensation expense is based on the fair value of awards , adjusted for estimated forfeitures , and amortized on a straight-line basis over the

