imt 's products in this market are sold under the brand name imt . 20 vislink : xg technology originally announced the acquisition of vislink on october 20 , 2016 in a $ 16 million binding asset purchase agreement . on february 2 , 2017 , xg completed the acquisition and assumed full legal ownership of vislink . vislink specializes in the wireless capture , delivery and management of secure , high-quality , live video from the field to the point of usage . vislink designs and manufactures products encompassing microwave radio components , satellite communication , cellular and wireless camera systems , and associated amplifier items . vislink serves two core markets : broadcast & media , and law enforcement , public safety & surveillance . in the broadcast & media market , vislink provides broadcast communication links for the collection of live news , sports and entertainment events . customers in this market include national broadcasters , multi-channel broadcasters , network owners and station groups , sports and live broadcasters and hosted service providers . in the law enforcement , public safety & surveillance markets , vislink provides secure video communications and mission-critical solutions for law enforcement , defense and homeland security applications . its public safety & surveillance customers include metropolitan , regional and national law enforcement agencies as well as domestic and international defense agencies and organizations . while our intent is to merge vislink 's operations with those of imt , the vislink brand and its legacy brands , including gigawave , link , advent and mrc , will be preserved . imt has assumed all the vislink product warranties and will continue to support all the vislink and imt product offerings . vislink 's business in the americas will become part of imt , and their business in the rest of the world will be handled by vislink 's existing uk operation . imt is maintaining all the existing physical facilities around the world , including offices in colchester in the uk , billerica ( massachusetts ) , anaheim ( california ) , singapore , dubai , and imt 's newest factory in hackettstown ( nj ) . xmax : xmax is a secure , rapid-deploy mobile broadband system that delivers mission-assured wireless connectivity in demanding operating environments . xmax was specifically designed to serve as an expeditionary and critical communications network for use in unpredictable scenarios and during fluid situations . we believe xmax represents a compelling solution for disaster response , emergency communications , and defense applications , among other sectors . xmax has already been deployed at u.s. army bases and by the u.s. state department in mexico . the equipment that we develop , manufacture and market under the xmax brand includes a suite of products and services that includes access points , fixed and mobile dual-band wifi hotspots , mobile switching centers , as well as network management and deployment tools . these products embody our broad portfolio of innovative intellectual property including spectrum sharing , interference mitigation , multiple-input multiple-output ( mimo ) and cognitive and software defined radio ( sdr ) . xmax utilizes an end-to-end internet protocol ( ip ) architecture that allows it to serve as a turnkey network system ranging from a last-mile solution to a full network backbone . xg federal : the xg federal business unit leverage xg 's extensive portfolio of patented rf communications technologies to engage in collaborative research and development projects . 21 result of operations the following table sets forth the items contained in the consolidated statements of operations of the financial statements included herewith for the fiscal years ended december 31 , 2016 and december 31 , 2015. xg technology , inc. consolidated statements of operations ( in thousands except net loss per share data ) replace_table_token_1_th revenue our revenues for the fiscal year ended december 31 , 2016 increased 605 % from $ 932,000 in the year ended december 31 , 2015 to $ 6,574,000 which can be attributed to the acquisition of imt during the first quarter of fiscal year 2016. of the $ 6,574,000 revenue in 2016 , $ 6,292,000 resulted from sales of equipment and $ 282,000 resulted from engineering and consulting services agreements . of the $ 932,000 revenue in 2015 , $ 701,000 resulted from sales of equipment and $ 231,000 resulted from an engineering and consulting services agreement . cost of revenue and operating expenses cost of components and personnel cost of components and personnel for the fiscal year ended december 31 , 2016 increased 514 % from $ 510,000 in the year ended december 31 , 2015 to $ 3,133,000 which can be attributed to the acquisition of imt during fiscal year 2016. of the $ 3,133,000 cost of components and personnel in 2016 , $ 3,008,000 is based on the cost of components and the time allocated to building the products sold and $ 125,000 is based on the cost of the time allocated towards the engineering and consulting services agreements . of the $ 510,000 cost of components and personnel in 2015 , $ 458,000 is based on the cost of components and the time allocated to building the products sold and $ 52,000 is based on the cost of the time allocated towards the engineering and consulting services agreements . we do anticipate a significant increase in revenue and the related costs in 2017 due to the acquisition of vislink . inventory valuation adjustments inventory valuation adjustments consist primarily of items that are written off due to obsolescence or reserved for slow moving or excess inventory . story_separator_special_tag several aspects of the accounting for share-based payments award transactions are simplified , including : ( a ) income tax consequences ; ( b ) classification of awards as either equity or liabilities ; and ( c ) classification on the statement of cash flows . for public companies , the amendments are effective for annual periods beginning after december 15 , 2016 , and interim periods within those annual periods . early adoption is permitted for any organization in any interim or annual period . the adoption of this standard did not have a material impact on the consolidated financial statement . in march 2016 , the fasb issued asu no . 2016-08 “ revenue from contracts with customers ( topic 606 ) : principal versus agent considerations ( reporting revenue gross versus net ) . ” this guidance amends the principal versus agent guidance in the new revenue standard . the amendments retain the guidance that the principal in an arrangement controls a good or service before it is transferred to a customer . the amendments clarify how an entity should identify the unit of accounting for principal versus agent evaluation and how it should apply the control principle to certain types of arrangements , such as service transactions . the amendments also reframe the indicators to focus on evidence that an entity is acting as a principal rather than an agent , revise examples in the new standard and add new examples . the company has not yet determined the effect of the adoption of this standard on the company 's consolidated financial position and results of operations . in february 2016 , the fasb issued asu 2016-02 , creating topic 842 , leases which supersedes the guidance in former asc 840 , leases , to increase transparency and comparability among organizations by requiring recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements . the standard will become effective for interim and annual periods beginning after december 15 , 2018 , with early adoption permitted . the guidance is required to be adopted at the earliest period presented using a modified retrospective approach . the company is currently in the process of evaluating the impact this new guidance will have on its consolidated financial statements . in november 2015 , the fasb issued asu no . 2015-17 , balance sheet classification of deferred taxes ( “ asu no . 2015-17 ” ) , to reduce complexity and simplify the reporting of deferred income tax liabilities and assets . current gaap requires an entity to separate deferred income tax liabilities into current and noncurrent amounts in a classified balance sheet . the amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet . the current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendment of this update . this standard is effective for the company 's annual periods beginning after december 15 , 2017 and interim periods within annual periods beginning after december 15 , 2018. the company will adopt the new standard in fiscal year 2018. the company maintains full valuation allowances on all deferred tax balances , and therefore , the adoption of this standard is not anticipated to have a material impact on its consolidated financial statements . in july 2015 , the fasb issued accounting standards update no . 2015-11 , “ simplifying the measurement of inventory ” ( “ asu 2015-11 ” ) . asu 2015-11 requires an entity to measure inventory at the lower of cost and net realizable value . net realizable value is the estimated selling prices in the ordinary course of business , less reasonably predictable costs of completion , disposal , and transportation . subsequent measurement is unchanged for inventory measured using last-in , first-out ( “ lifo ” ) or the retail inventory method . it is effective for annual reporting periods beginning after december 15 , 2016. the amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period . the company has not yet determined the effect of the adoption of this standard and it is expected to have a material impact on the company 's consolidated financial position and results of operations . in august 2014 , the fasb issued asu no . 2014-15 , presentation of financial statements-going concern ( subtopic 205-40 ) : disclosure of uncertainties about an entity 's ability to continue as a going concern . this asu provides guidance on management 's responsibility in evaluating whether there is substantial doubt about a company 's ability to continue as a going concern and about related footnote disclosures . for each reporting period , after this asu is adopted management will be required to evaluate whether there are conditions or events that raise substantial doubt about the company 's ability to continue as a going concern within one year from the date the financial statements are issued . this standard is effective for annual periods ending after december 15 , 2016 , and for interim periods within annual periods beginning after december 15 , 2016 with early adoption permitted . the adoption of this standard did not have a material impact on the consolidated financial statement . 26 in april 2015 , the fasb issued asu no . 2015-3 , “ simplifying the presentation of debt issuance costs ” ( “ asu 2015-3 ” ) which changes the presentation of debt issuance costs in financial statements to present such costs as a direct deduction from the related debt liability rather than as an asset . asu 2015-3 became effective for public companies during interim and annual reporting periods beginning after december 15 , 2015. the adoption of this asu did not have a

liquidity and capital resources our operations primarily have been funded through cash generated by debt and equity financing . cash comprises cash on hand and demand deposits . our cash balances were as follows ( in thousands ) : replace_table_token_2_th cash flows the following table sets forth the major components of our consolidated statements of cash flows data for the periods presented ( in thousands ) . replace_table_token_3_th operating activities net cash used in operating activities for the year ended december 31 , 2016 totaled $ 8.1 million as compared to $ 7.8 million for the year ended december 31 , 2015. of the $ 8.1 million used in 2016 , $ 0.1 million was due to the increase of our payables ; $ 0.5 million was due to from the increase in accrued expense ; and the remaining consisted principally of the net loss from operations . of the $ 7.8 million used in 2015 , $ 0.3 million was due to the increase of our payables and $ 1.1 million was from the increase in accrued expense and the remaining consisted principally of the net loss from operations . investing activities net cash used in investing activities for the year ended december 31 , 2016 was $ 0.04 million as compared to $ 2.2 million for the year ended december 31 , 2015. the net cash proceeds from the imt acquisition were $ 0.023 million for the year ended december 31 , 2016. no capitalization of intangible assets occurred during the year ended december 31 , 2016. we have invested in product and technology development , with $ 0 million accounted for as investment in intangible assets in the year ended december 31 , 2016 , and $ 2.2 million in the year ended december 31 , 2015. in addition , the company 's investment in property and equipment , comprising of the purchase of two cell-on-wheels and a


 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 operations primarily have been funded through cash generated by debt and equity financing . cash comprises cash on hand and demand deposits . our cash balances were as follows ( in thousands ) : replace_table_token_2_th cash flows the following table sets forth the major components of our consolidated statements of cash flows data for the periods presented ( in thousands ) . replace_table_token_3_th operating activities net cash used in operating activities for the year ended december 31 , 2016 totaled $ 8.1 million as compared to $ 7.8 million for the year ended december 31 , 2015. of the $ 8.1 million used in 2016 , $ 0.1 million was due to the increase of our payables ; $ 0.5 million was due to from the increase in accrued expense ; and the remaining consisted principally of the net loss from operations . of the $ 7.8 million used in 2015 , $ 0.3 million was due to the increase of our payables and $ 1.1 million was from the increase in accrued expense and the remaining consisted principally of the net loss from operations . investing activities net cash used in investing activities for the year ended december 31 , 2016 was $ 0.04 million as compared to $ 2.2 million for the year ended december 31 , 2015. the net cash proceeds from the imt acquisition were $ 0.023 million for the year ended december 31 , 2016. no capitalization of intangible assets occurred during the year ended december 31 , 2016. we have invested in product and technology development , with $ 0 million accounted for as investment in intangible assets in the year ended december 31 , 2016 , and $ 2.2 million in the year ended december 31 , 2015. in addition , the company 's investment in property and equipment , comprising of the purchase of two cell-on-wheels and a
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 Suspicious Activity Report : imt 's products in this market are sold under the brand name imt . 20 vislink : xg technology originally announced the acquisition of vislink on october 20 , 2016 in a $ 16 million binding asset purchase agreement . on february 2 , 2017 , xg completed the acquisition and assumed full legal ownership of vislink . vislink specializes in the wireless capture , delivery and management of secure , high-quality , live video from the field to the point of usage . vislink designs and manufactures products encompassing microwave radio components , satellite communication , cellular and wireless camera systems , and associated amplifier items . vislink serves two core markets : broadcast & media , and law enforcement , public safety & surveillance . in the broadcast & media market , vislink provides broadcast communication links for the collection of live news , sports and entertainment events . customers in this market include national broadcasters , multi-channel broadcasters , network owners and station groups , sports and live broadcasters and hosted service providers . in the law enforcement , public safety & surveillance markets , vislink provides secure video communications and mission-critical solutions for law enforcement , defense and homeland security applications . its public safety & surveillance customers include metropolitan , regional and national law enforcement agencies as well as domestic and international defense agencies and organizations . while our intent is to merge vislink 's operations with those of imt , the vislink brand and its legacy brands , including gigawave , link , advent and mrc , will be preserved . imt has assumed all the vislink product warranties and will continue to support all the vislink and imt product offerings . vislink 's business in the americas will become part of imt , and their business in the rest of the world will be handled by vislink 's existing uk operation . imt is maintaining all the existing physical facilities around the world , including offices in colchester in the uk , billerica ( massachusetts ) , anaheim ( california ) , singapore , dubai , and imt 's newest factory in hackettstown ( nj ) . xmax : xmax is a secure , rapid-deploy mobile broadband system that delivers mission-assured wireless connectivity in demanding operating environments . xmax was specifically designed to serve as an expeditionary and critical communications network for use in unpredictable scenarios and during fluid situations . we believe xmax represents a compelling solution for disaster response , emergency communications , and defense applications , among other sectors . xmax has already been deployed at u.s. army bases and by the u.s. state department in mexico . the equipment that we develop , manufacture and market under the xmax brand includes a suite of products and services that includes access points , fixed and mobile dual-band wifi hotspots , mobile switching centers , as well as network management and deployment tools . these products embody our broad portfolio of innovative intellectual property including spectrum sharing , interference mitigation , multiple-input multiple-output ( mimo ) and cognitive and software defined radio ( sdr ) . xmax utilizes an end-to-end internet protocol ( ip ) architecture that allows it to serve as a turnkey network system ranging from a last-mile solution to a full network backbone . xg federal : the xg federal business unit leverage xg 's extensive portfolio of patented rf communications technologies to engage in collaborative research and development projects . 21 result of operations the following table sets forth the items contained in the consolidated statements of operations of the financial statements included herewith for the fiscal years ended december 31 , 2016 and december 31 , 2015. xg technology , inc. consolidated statements of operations ( in thousands except net loss per share data ) replace_table_token_1_th revenue our revenues for the fiscal year ended december 31 , 2016 increased 605 % from $ 932,000 in the year ended december 31 , 2015 to $ 6,574,000 which can be attributed to the acquisition of imt during the first quarter of fiscal year 2016. of the $ 6,574,000 revenue in 2016 , $ 6,292,000 resulted from sales of equipment and $ 282,000 resulted from engineering and consulting services agreements . of the $ 932,000 revenue in 2015 , $ 701,000 resulted from sales of equipment and $ 231,000 resulted from an engineering and consulting services agreement . cost of revenue and operating expenses cost of components and personnel cost of components and personnel for the fiscal year ended december 31 , 2016 increased 514 % from $ 510,000 in the year ended december 31 , 2015 to $ 3,133,000 which can be attributed to the acquisition of imt during fiscal year 2016. of the $ 3,133,000 cost of components and personnel in 2016 , $ 3,008,000 is based on the cost of components and the time allocated to building the products sold and $ 125,000 is based on the cost of the time allocated towards the engineering and consulting services agreements . of the $ 510,000 cost of components and personnel in 2015 , $ 458,000 is based on the cost of components and the time allocated to building the products sold and $ 52,000 is based on the cost of the time allocated towards the engineering and consulting services agreements . we do anticipate a significant increase in revenue and the related costs in 2017 due to the acquisition of vislink . inventory valuation adjustments inventory valuation adjustments consist primarily of items that are written off due to obsolescence or reserved for slow moving or excess inventory . story_separator_special_tag several aspects of the accounting for share-based payments award transactions are simplified , including : ( a ) income tax consequences ; ( b ) classification of awards as either equity or liabilities ; and ( c ) classification on the statement of cash flows . for public companies , the amendments are effective for annual periods beginning after december 15 , 2016 , and interim periods within those annual periods . early adoption is permitted for any organization in any interim or annual period . the adoption of this standard did not have a material impact on the consolidated financial statement . in march 2016 , the fasb issued asu no . 2016-08 “ revenue from contracts with customers ( topic 606 ) : principal versus agent considerations ( reporting revenue gross versus net ) . ” this guidance amends the principal versus agent guidance in the new revenue standard . the amendments retain the guidance that the principal in an arrangement controls a good or service before it is transferred to a customer . the amendments clarify how an entity should identify the unit of accounting for principal versus agent evaluation and how it should apply the control principle to certain types of arrangements , such as service transactions . the amendments also reframe the indicators to focus on evidence that an entity is acting as a principal rather than an agent , revise examples in the new standard and add new examples . the company has not yet determined the effect of the adoption of this standard on the company 's consolidated financial position and results of operations . in february 2016 , the fasb issued asu 2016-02 , creating topic 842 , leases which supersedes the guidance in former asc 840 , leases , to increase transparency and comparability among organizations by requiring recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements . the standard will become effective for interim and annual periods beginning after december 15 , 2018 , with early adoption permitted . the guidance is required to be adopted at the earliest period presented using a modified retrospective approach . the company is currently in the process of evaluating the impact this new guidance will have on its consolidated financial statements . in november 2015 , the fasb issued asu no . 2015-17 , balance sheet classification of deferred taxes ( “ asu no . 2015-17 ” ) , to reduce complexity and simplify the reporting of deferred income tax liabilities and assets . current gaap requires an entity to separate deferred income tax liabilities into current and noncurrent amounts in a classified balance sheet . the amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet . the current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendment of this update . this standard is effective for the company 's annual periods beginning after december 15 , 2017 and interim periods within annual periods beginning after december 15 , 2018. the company will adopt the new standard in fiscal year 2018. the company maintains full valuation allowances on all deferred tax balances , and therefore , the adoption of this standard is not anticipated to have a material impact on its consolidated financial statements . in july 2015 , the fasb issued accounting standards update no . 2015-11 , “ simplifying the measurement of inventory ” ( “ asu 2015-11 ” ) . asu 2015-11 requires an entity to measure inventory at the lower of cost and net realizable value . net realizable value is the estimated selling prices in the ordinary course of business , less reasonably predictable costs of completion , disposal , and transportation . subsequent measurement is unchanged for inventory measured using last-in , first-out ( “ lifo ” ) or the retail inventory method . it is effective for annual reporting periods beginning after december 15 , 2016. the amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period . the company has not yet determined the effect of the adoption of this standard and it is expected to have a material impact on the company 's consolidated financial position and results of operations . in august 2014 , the fasb issued asu no . 2014-15 , presentation of financial statements-going concern ( subtopic 205-40 ) : disclosure of uncertainties about an entity 's ability to continue as a going concern . this asu provides guidance on management 's responsibility in evaluating whether there is substantial doubt about a company 's ability to continue as a going concern and about related footnote disclosures . for each reporting period , after this asu is adopted management will be required to evaluate whether there are conditions or events that raise substantial doubt about the company 's ability to continue as a going concern within one year from the date the financial statements are issued . this standard is effective for annual periods ending after december 15 , 2016 , and for interim periods within annual periods beginning after december 15 , 2016 with early adoption permitted . the adoption of this standard did not have a material impact on the consolidated financial statement . 26 in april 2015 , the fasb issued asu no . 2015-3 , “ simplifying the presentation of debt issuance costs ” ( “ asu 2015-3 ” ) which changes the presentation of debt issuance costs in financial statements to present such costs as a direct deduction from the related debt liability rather than as an asset . asu 2015-3 became effective for public companies during interim and annual reporting periods beginning after december 15 , 2015. the adoption of this asu did not have a

