our revenue is generated from a combination of third-party payors , institutions and self-payors , including private and government employers . payments for our products by third party payors have been made primarily through case-by-case determinations . third-party payors include , without limitation , private insurance plans and managed care programs , government programs including the us department of veterans affairs , worker 's compensation and medicare and medicaid . we expect that third-party payors will be an increasingly important source of revenue in the future . in december 2015 , the va issued a national policy for the evaluation , training and procurement of rewalk personal exoskeleton systems for all qualifying veterans across the united states . the va policy is the first national coverage policy in the united states for qualifying individuals who have suffered spinal cord injury . all of our rewalk systems sold until the end of the current year are covered by a two-year warranty from the date of purchase , which is included in the purchase price . we offer customers the ability to purchase , any time during the initial warranty period , an extended warranty for up to three additional years . both warranties cover all elements of the rewalk system , including the batteries , other than normal wear and tear . in the beginning of 2018 we updated our service policy for new devices sold to include a five-year warranty . 64 revenues are presented net of the amounts of any provision we record for expected future product returns . cost of revenues and gross profit ( loss ) cost of revenue consists primarily of systems purchased from our outsourced manufacturer , sanmina , salaries , personnel costs including non-cash share based compensation , associated with manufacturing and inventory management , training and inspection , warranty and service costs , shipping and handling and manufacturing startup and transition costs . prior to the first quarter of 2014 , when we completed the manufacturing transition to sanmina , cost of revenues also included costs of components , compensation related costs associated with manufacturing and costs to transition manufacturing to sanmina . cost of revenues also includes royalties and expenses related to royalty-bearing research and development grants and sales and marketing grants . our gross profit ( loss ) and gross margin as a percentage of sales is influenced by a number of factors , including primarily the volume and price of our products sold and fluctuations in our cost of revenues . certain one-time expenses also impact gross margins including a 2014 expense relating to the early settlement , at a discount , of a royalty-bearing grant to the bird foundation and 2015 and 2016 costs to transition manufacturing to the rewalk personal 6.0 model . we expect gross profit ( loss ) as a percentage of sales will improve in the future as we increase our sales volumes and decrease the product manufacturing costs . operating expenses research and development expenses , net research and development expenses , net consist primarily of salaries , related personnel costs including share-based compensation , supplies , materials and expenses related to product design and development , clinical studies , regulatory submissions , patent costs , sponsored research costs and other expenses related to our product development and research programs . we expense all research and development expenses as they are incurred . we believe that continued investment in research and development is crucial to attaining our strategic product objectives . research and development expenses are presented net of the amount of any grants we receive for research and development in the period in which we receive the grant . we previously received grants and other funding from the bird foundation and the israel innovation authority , or “ iia ” ( formerly known as the office of the chief scientist ) . certain of those grants require us to pay royalties on sales of rewalk systems , which are recorded as cost of revenues . we may receive additional funding from these entities or others in the future . see “ grants and other funding ” below . sales and marketing expenses our sales and marketing expenses consist primarily of salaries , related personnel costs including share-based compensation for sales , marketing and reimbursement personnel , travel , marketing and public relations activities and consulting costs . also included in the sales and marketing expenses are the costs associated with our reimbursement activities in the united states and germany . general and administrative expenses our general and administrative expenses consist primarily of salaries , related personnel costs including share-based compensation for our administrative , finance , and general management personnel , professional services and insurance . financial income ( expenses ) , net financial income and expenses consist of bank commissions , foreign exchange gains and losses , interest earned on investments in short term deposits , and revaluation of the fair value of warrants to purchase our preferred shares and expenses related to our convertible loans , which were issued in 2013 and are no longer outstanding . warrants to purchase our convertible preferred shares were classified as a liability on our consolidated balance sheet at fair value . the warrants were subject to revaluation at each balance sheet date and any change in fair value is recognized as a component of financial income ( expense ) , net , on our consolidated statements of operations . all such warrants were exercised , expired or converted into warrants to purchase ordinary shares in connection with our initial public offering , and therefore as of december 31 , 2014 and for periods beginning with the fourth quarter of 2014 , we no longer record any liability in respect of them on our balance sheet or financial expenses in respect of them on our statement of operations . interest income consists of interest earned on our cash and cash equivalent balances . story_separator_special_tag we have established a full valuation allowance with respect to our deferred tax assets . 72 asu 2015-17 , “ balance sheet classification of deferred taxes `` provides presentation requirements to classify deferred tax assets and liabilities , along with any related valuation allowance , are classified as non-current on the balance sheet . we account for uncertain tax positions in accordance with asc 740 and recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities , based on the technical merits of the position . the tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50 % likelihood of being realized upon ultimate settlement . accordingly , we report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return . we recognize interest and penalties , if any , related to unrecognized tax benefits in tax expense . new and revised financial accounting standards the jobs act permits emerging growth companies such as us to delay adopting new or revised accounting standards until such time as those standards apply to private companies . we have irrevocably elected not to avail ourselves of this and , therefore , we are subject to the same new or revised accounting standards as other public companies that are not emerging growth companies . recently issued and adopted accounting pronouncements a discussion of recent accounting pronouncements is included in note 2u , new accounting pronouncements to our consolidated financial statements in this annual report . liquidity and capital resources sources of liquidity and outlook since inception , we have funded our operations primarily through the sale of certain of our equity securities and convertible notes to investors in private placements , the sale of our ordinary shares in public offerings and the incurrence of bank debt . as of december 31 , 2017 , the company had cash and cash equivalents of $ 14.6 million . the company has an accumulated deficit in the total amount of $ 131.2 million as of december 31 , 2017 and further losses are anticipated in the development of its business . those factors raise substantial doubt about the company 's ability to continue as a going concern . the ability to continue as a going concern is dependent upon the company obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due . the company intends to finance operating costs over the next twelve months with existing cash on hand , reducing operating spend , issuances under the company 's atm offering program , or other future issuances of equity and debt securities , including the recently signed private placement of ordinary shares to timwell , or through a combination of the foregoing . however , the company will need to seek additional sources of financing if the company require more funds than anticipated during the next 12 months or in later periods . the accompanying consolidated financial statements have been prepared assuming the company will continue as a going concern , which contemplates the realization of assets and liabilities and commitments in the normal course of business . the consolidated financial statements for the year ended december 31 , 2017 do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the company 's ability to continue as a going concern . our anticipated primary uses of cash are ( i ) sales , marketing and reimbursement expenses related to market development activities and broadening third-party payor coverage , and ( ii ) research and development costs related to , in the shorter term , our restore device that will assist patients who had stroke , and , in the longer term , developing our next generation of rewalk with design improvements and building upon our technological platform to address new medical indications that affect the ability to walk including cerebral palsy , parkinson 's disease and elderly assistance . our future cash requirements will depend on many factors , including our rate of revenue growth , the expansion of our sales and marketing activities , the timing and extent of our spending on research and development efforts and international expansion . if our current estimates of revenue , expenses or capital or liquidity requirements change or are inaccurate , we may seek to sell additional equity or debt securities , arrange for additional bank debt financing or refinance our indebtedness . there can be no assurance that we will be able to raise such funds on acceptable terms . for more information , see “ part i , item 1a . risk factors-we have concluded that there are substantial doubts as to our ability to continue as a going concern . ” 73 loan agreement with kreos and related warrant to purchase ordinary shares on december 30 , 2015 , we entered into the loan agreement with kreos pursuant to which kreos extended a line of credit to us in the amount of $ 20 million . on january 4 , 2016 , we drew down $ 12.0 million under the loan agreement . under the terms of the loan agreement we were entitled to draw down up to an additional $ 8.0 million until december 31 , 2016 , if we raised $ 10.0 million or more in the issuance of shares of our capital stock ( including debt convertible into shares of our capital stock ) by december 31 , 2016. on december 28 , 2016 , we drew down the remaining $ 8.0 million available under the loan agreement . interest is payable monthly in

loss on extinguishment of debt loss on extinguishment of debt of $ 313 thousand during 2017 is due to amending of our debt under the loan agreement with kreos , such that $ 3.0 million in principal is now subject to the kreos convertible note . the entry into the kreos convertible note , which decreased the outstanding principal amount under the loan agreement from $ 17.2 million to $ 14.2 million , resulted in extinguishment of debt accounting treatment . 68 financial expenses , net our financial expenses , net for 2017 and 2016 were as follows ( in thousands ) : replace_table_token_9_th financial expenses , net , increased by $ 0.2 million , or 11 % during 2017 compared to 2016 . this increase is mainly attributable to interest expense related to the loan agreement with kreos . income tax our income tax for 2017 and 2016 was as follows ( in thousands ) : replace_table_token_10_th income taxes increased by $ 116 thousand or 3,867 % during 2017 compared to 2016 . this increase is mainly related to a deferred tax expense as a result of the tax rate change in the u.s due to the tcja .


 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.
     ```loss on extinguishment of debt loss on extinguishment of debt of $ 313 thousand during 2017 is due to amending of our debt under the loan agreement with kreos , such that $ 3.0 million in principal is now subject to the kreos convertible note . the entry into the kreos convertible note , which decreased the outstanding principal amount under the loan agreement from $ 17.2 million to $ 14.2 million , resulted in extinguishment of debt accounting treatment . 68 financial expenses , net our financial expenses , net for 2017 and 2016 were as follows ( in thousands ) : replace_table_token_9_th financial expenses , net , increased by $ 0.2 million , or 11 % during 2017 compared to 2016 . this increase is mainly attributable to interest expense related to the loan agreement with kreos . income tax our income tax for 2017 and 2016 was as follows ( in thousands ) : replace_table_token_10_th income taxes increased by $ 116 thousand or 3,867 % during 2017 compared to 2016 . this increase is mainly related to a deferred tax expense as a result of the tax rate change in the u.s due to the tcja .
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 Suspicious Activity Report : our revenue is generated from a combination of third-party payors , institutions and self-payors , including private and government employers . payments for our products by third party payors have been made primarily through case-by-case determinations . third-party payors include , without limitation , private insurance plans and managed care programs , government programs including the us department of veterans affairs , worker 's compensation and medicare and medicaid . we expect that third-party payors will be an increasingly important source of revenue in the future . in december 2015 , the va issued a national policy for the evaluation , training and procurement of rewalk personal exoskeleton systems for all qualifying veterans across the united states . the va policy is the first national coverage policy in the united states for qualifying individuals who have suffered spinal cord injury . all of our rewalk systems sold until the end of the current year are covered by a two-year warranty from the date of purchase , which is included in the purchase price . we offer customers the ability to purchase , any time during the initial warranty period , an extended warranty for up to three additional years . both warranties cover all elements of the rewalk system , including the batteries , other than normal wear and tear . in the beginning of 2018 we updated our service policy for new devices sold to include a five-year warranty . 64 revenues are presented net of the amounts of any provision we record for expected future product returns . cost of revenues and gross profit ( loss ) cost of revenue consists primarily of systems purchased from our outsourced manufacturer , sanmina , salaries , personnel costs including non-cash share based compensation , associated with manufacturing and inventory management , training and inspection , warranty and service costs , shipping and handling and manufacturing startup and transition costs . prior to the first quarter of 2014 , when we completed the manufacturing transition to sanmina , cost of revenues also included costs of components , compensation related costs associated with manufacturing and costs to transition manufacturing to sanmina . cost of revenues also includes royalties and expenses related to royalty-bearing research and development grants and sales and marketing grants . our gross profit ( loss ) and gross margin as a percentage of sales is influenced by a number of factors , including primarily the volume and price of our products sold and fluctuations in our cost of revenues . certain one-time expenses also impact gross margins including a 2014 expense relating to the early settlement , at a discount , of a royalty-bearing grant to the bird foundation and 2015 and 2016 costs to transition manufacturing to the rewalk personal 6.0 model . we expect gross profit ( loss ) as a percentage of sales will improve in the future as we increase our sales volumes and decrease the product manufacturing costs . operating expenses research and development expenses , net research and development expenses , net consist primarily of salaries , related personnel costs including share-based compensation , supplies , materials and expenses related to product design and development , clinical studies , regulatory submissions , patent costs , sponsored research costs and other expenses related to our product development and research programs . we expense all research and development expenses as they are incurred . we believe that continued investment in research and development is crucial to attaining our strategic product objectives . research and development expenses are presented net of the amount of any grants we receive for research and development in the period in which we receive the grant . we previously received grants and other funding from the bird foundation and the israel innovation authority , or “ iia ” ( formerly known as the office of the chief scientist ) . certain of those grants require us to pay royalties on sales of rewalk systems , which are recorded as cost of revenues . we may receive additional funding from these entities or others in the future . see “ grants and other funding ” below . sales and marketing expenses our sales and marketing expenses consist primarily of salaries , related personnel costs including share-based compensation for sales , marketing and reimbursement personnel , travel , marketing and public relations activities and consulting costs . also included in the sales and marketing expenses are the costs associated with our reimbursement activities in the united states and germany . general and administrative expenses our general and administrative expenses consist primarily of salaries , related personnel costs including share-based compensation for our administrative , finance , and general management personnel , professional services and insurance . financial income ( expenses ) , net financial income and expenses consist of bank commissions , foreign exchange gains and losses , interest earned on investments in short term deposits , and revaluation of the fair value of warrants to purchase our preferred shares and expenses related to our convertible loans , which were issued in 2013 and are no longer outstanding . warrants to purchase our convertible preferred shares were classified as a liability on our consolidated balance sheet at fair value . the warrants were subject to revaluation at each balance sheet date and any change in fair value is recognized as a component of financial income ( expense ) , net , on our consolidated statements of operations . all such warrants were exercised , expired or converted into warrants to purchase ordinary shares in connection with our initial public offering , and therefore as of december 31 , 2014 and for periods beginning with the fourth quarter of 2014 , we no longer record any liability in respect of them on our balance sheet or financial expenses in respect of them on our statement of operations . interest income consists of interest earned on our cash and cash equivalent balances . story_separator_special_tag we have established a full valuation allowance with respect to our deferred tax assets . 72 asu 2015-17 , “ balance sheet classification of deferred taxes `` provides presentation requirements to classify deferred tax assets and liabilities , along with any related valuation allowance , are classified as non-current on the balance sheet . we account for uncertain tax positions in accordance with asc 740 and recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities , based on the technical merits of the position . the tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50 % likelihood of being realized upon ultimate settlement . accordingly , we report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return . we recognize interest and penalties , if any , related to unrecognized tax benefits in tax expense . new and revised financial accounting standards the jobs act permits emerging growth companies such as us to delay adopting new or revised accounting standards until such time as those standards apply to private companies . we have irrevocably elected not to avail ourselves of this and , therefore , we are subject to the same new or revised accounting standards as other public companies that are not emerging growth companies . recently issued and adopted accounting pronouncements a discussion of recent accounting pronouncements is included in note 2u , new accounting pronouncements to our consolidated financial statements in this annual report . liquidity and capital resources sources of liquidity and outlook since inception , we have funded our operations primarily through the sale of certain of our equity securities and convertible notes to investors in private placements , the sale of our ordinary shares in public offerings and the incurrence of bank debt . as of december 31 , 2017 , the company had cash and cash equivalents of $ 14.6 million . the company has an accumulated deficit in the total amount of $ 131.2 million as of december 31 , 2017 and further losses are anticipated in the development of its business . those factors raise substantial doubt about the company 's ability to continue as a going concern . the ability to continue as a going concern is dependent upon the company obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due . the company intends to finance operating costs over the next twelve months with existing cash on hand , reducing operating spend , issuances under the company 's atm offering program , or other future issuances of equity and debt securities , including the recently signed private placement of ordinary shares to timwell , or through a combination of the foregoing . however , the company will need to seek additional sources of financing if the company require more funds than anticipated during the next 12 months or in later periods . the accompanying consolidated financial statements have been prepared assuming the company will continue as a going concern , which contemplates the realization of assets and liabilities and commitments in the normal course of business . the consolidated financial statements for the year ended december 31 , 2017 do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the company 's ability to continue as a going concern . our anticipated primary uses of cash are ( i ) sales , marketing and reimbursement expenses related to market development activities and broadening third-party payor coverage , and ( ii ) research and development costs related to , in the shorter term , our restore device that will assist patients who had stroke , and , in the longer term , developing our next generation of rewalk with design improvements and building upon our technological platform to address new medical indications that affect the ability to walk including cerebral palsy , parkinson 's disease and elderly assistance . our future cash requirements will depend on many factors , including our rate of revenue growth , the expansion of our sales and marketing activities , the timing and extent of our spending on research and development efforts and international expansion . if our current estimates of revenue , expenses or capital or liquidity requirements change or are inaccurate , we may seek to sell additional equity or debt securities , arrange for additional bank debt financing or refinance our indebtedness . there can be no assurance that we will be able to raise such funds on acceptable terms . for more information , see “ part i , item 1a . risk factors-we have concluded that there are substantial doubts as to our ability to continue as a going concern . ” 73 loan agreement with kreos and related warrant to purchase ordinary shares on december 30 , 2015 , we entered into the loan agreement with kreos pursuant to which kreos extended a line of credit to us in the amount of $ 20 million . on january 4 , 2016 , we drew down $ 12.0 million under the loan agreement . under the terms of the loan agreement we were entitled to draw down up to an additional $ 8.0 million until december 31 , 2016 , if we raised $ 10.0 million or more in the issuance of shares of our capital stock ( including debt convertible into shares of our capital stock ) by december 31 , 2016. on december 28 , 2016 , we drew down the remaining $ 8.0 million available under the loan agreement . interest is payable monthly in

