through its wholly owned subsidiary , schmitt measurement systems , inc. , an oregon corporation , the company designs , manufactures and sells laser and white light sensors for distance , dimensional and area measurement for a wide variety of commercial applications , laser-based microroughness measurement products for the semiconductor wafer and hard disk drive industries and for other industrial applications , laser-based surface analysis and measurement products for a variety of scientific applications , and ultrasonic measurement products that accurately measure the fill levels of tanks holding propane , diesel and other tank-based liquids and transmit that data via satellite to a secure web site for display ( the measurement segment ) . the company also provides sales and service for europe and asia through its wholly owned subsidiary , schmitt europe limited ( sel ) , located in coventry , england and through its sales representative office located in shanghai , china . for the fiscal year ended may 31 , 2016 ( fiscal 2016 ) , total sales decreased $ 1,383,738 , or 10.6 % , to $ 11,685,353 from $ 13,069,091 in the fiscal year ended may 31 , 2015 ( fiscal 2015 ) . the focus of balancer segment sales throughout the world is on end-users , rebuilders and original equipment manufacturers of grinding machines with the target geographic markets of north america , asia , and europe . balancer sales decreased $ 887,490 , or 11.3 % , to $ 6,962,746 in fiscal 2016 compared to $ 7,850,236 in fiscal 2015. sales to customers in europe increased $ 173,359 , or 16.0 % , to $ 1,259,868 in fiscal 2016 compared to $ 1,086,509 in fiscal 2015. sales to customers in the rest of the world decreased $ 1,060,849 , or 15.7 % , from fiscal 2015 to fiscal 2016 with sales into china and other parts of asia accounting for 77 % of the decrease . the measurement segment product lines consist of the sms and lasercheck laser-based surface microroughness measurement systems , the acuity laser-based distance measurement and dimensional sizing laser sensors , and the xact ultrasonic-based remote tank monitoring products . total measurement segment sales decreased $ 496,248 , or 9.5 % , to $ 4,722,607 for fiscal 2016 as compared to $ 5,218,855 for fiscal 2015. the overall decrease in sales in the measurement segment is primarily attributed to decreased sales in our sms product line of $ 886,468 , or 71.7 % , which had sales of two casi machines included in its fiscal 2015 results which were not repeated in fiscal 2016. this decrease was , in part , offset by increased sales in our acuity product line . acuity posted sales of $ 2,401,465 in fiscal 2016 as compared to $ 1,991,596 in fiscal 2015 , an increase of $ 409,869 , or 20.6 % . page 19 operating expenses increased $ 98,613 , or 1.6 % , to $ 6,303,769 in fiscal 2016 from $ 6,205,156 in fiscal 2015. general , administrative and sales expenses increased $ 189,246 , or 3.2 % , in fiscal 2016 to $ 6,016,097 as compared to $ 5,826,851 in the prior fiscal year . this increase was offset by a decrease in spending of $ 90,633 , or 24.0 % , for research and development expenses in fiscal 2016 as compared to the same period in the prior year . net loss was $ 1,515,189 , or $ ( 0.51 ) per fully diluted share , for the year ended may 31 , 2016 as compared to net loss of $ 93,669 , or $ ( 0.03 ) per fully diluted share , for the year ended may 31 , 2015. critical accounting policies revenue recognition  the company recognizes revenue for sales and billing for freight charges upon delivery of the product to the customer at a fixed or determinable price with a reasonable assurance of collection , passage of title to the customer as indicated by shipping terms and fulfillment of all significant obligations , pursuant to the guidance provided by accounting standards codification topic 605. for sales to all customers , including manufacturer representatives , distributors or their third-party customers , these criteria are met at the time product is shipped . when other significant obligations remain after products are delivered , revenue is recognized only after such obligations are fulfilled . in addition , judgments are required in evaluating the credit worthiness of our customers . credit is not extended to customers and revenue is not recognized until we have determined that collectability is reasonably assured . the company estimates customer product returns based on historical return patterns and reduces sales and cost of sales accordingly . allowance for doubtful accounts  the company maintains credit limits for all customers based upon several factors , including but not limited to financial condition and stability , payment history , published credit reports and use of credit references . management performs various analyses to evaluate accounts receivable balances to ensure recorded amounts reflect estimated net realizable value . this review includes accounts receivable agings , other operating trends and relevant business conditions , including general economic factors , as they relate to the company 's domestic and international customers . if these analyses lead management to the conclusion that potential significant accounts are uncollectible , a reserve is provided . inventories  inventories are valued at the lower of cost or market with cost determined on the average cost basis . costs included in inventories consist of materials , labor and manufacturing overhead , which are related to the purchase or production of inventories . story_separator_special_tag the increases in sales into asia and other regions of the world were due to an increase in demand for the company 's sbs products , while the increase in sales into germany and other european countries is in response to the targeted market strategy we have in those areas . the decline in sales in north america reflected fluctuations in demand in the markets we serve . the levels of demand for our balancer products in any of these geographic markets can not be forecasted with any certainty given current economic trends and the historical volatility experienced in this market . sales in the measurement segment increased $ 805,560 , or 18.3 % , to $ 5,218,855 in fiscal 2015 compared to $ 4,413,295 in fiscal 2014. sales of acuity laser-based distance measurement and dimensional-sizing products decreased $ 499,937 , or 20.1 % , primarily due to a reduction in the markets we serve . sales of xact remote tank monitoring products increased $ 723,595 , or 74.4 % , to $ 1,695,939 during fiscal 2015 due to an increase in product shipments and increasing monitoring revenues associated with unit sales . sales of sms and lasercheck laser-based surface measurement products increased $ 581,902 , or 61.3 % , primarily due to an increase in demand for these products . future sales of laser-based or ultrasonic measurement products can not be forecasted with any certainty given the historical volatility experienced in this market . gross margin  gross margin in fiscal 2016 decreased to 41.7 % compared to 47.0 % in fiscal 2015. gross margin in fiscal 2015 increased to 47.0 % compared to 46.4 % in fiscal 2014. the variances in gross margin between the periods presented was primarily influenced by shifts in the product sales mix from higher to lower margin product line sales . operating expenses  operating expenses increased $ 98,613 , or 1.6 % , to $ 6,303,769 for fiscal 2016 compared to $ 6,205,156 for fiscal 2015. general , administrative and sales expenses increased $ 189,246 , or 3.2 % , to $ 6,016,097 in fiscal 2015 compared to $ 5,826,851 in the prior year . this increase was a result of increases in sales commissions , salaries and related payroll expense in the early part of fiscal 2016 and increases in general office and utilities costs for fiscal 2016 , offset by decreases in depreciation expense . this increase in general , administrative and sales expenses was offset by a decrease in spending of $ 90,633 , or 24.0 % , for research and development in fiscal 2016 as compared to fiscal 2015. operating expenses increased $ 66,605 , or 1.1 % , to $ 6,205,156 for fiscal 2015 compared to $ 6,138,551 for fiscal 2014. general , administrative and sales expenses increased $ 163,730 , or 2.9 % , to $ 5,826,851 in fiscal 2015 compared to $ 5,663,121 in the prior year . increases in personnel costs and commissions expense were offset by decreases in professional fees , depreciation expense and other general office expenses . research and development expenses decreased $ 97,125 , or 20.4 % , to $ 378,305 in fiscal 2015 compared to $ 475,430 in fiscal 2014. the decrease in research and development expense was primarily due to the timing of completion of some of the development projects occurring within our existing product lines , with new projects starting during the fourth quarter of fiscal 2015. other income ( expense )  other income ( expense ) consists of interest income , interest expense , foreign currency exchange gain ( loss ) and other income ( expense ) . interest income was $ 1,338 , $ 191 and $ 1,558 in fiscal 2016 , 2015 and 2014 , respectively . fluctuations in interest income are impacted by the levels of our average cash and investment balances and changes in interest rates . interest expense was $ 2,988 , $ 3,452 and $ 9,158 in fiscal 2016 , 2015 and 2014 , respectively . fiscal 2016 and 2015 interest expense is related to the capital lease of a piece of manufacturing equipment . fiscal 2014 interest expense was related to the interest charges on the outstanding balances on our line of credit . foreign currency exchange loss was $ 57,406 , $ 33,411 and $ 23,375 in fiscal 2016 , page 22 2015 and 2014 , respectively . the foreign currency exchange loss fluctuated with the strength of foreign currencies against the u.s. dollar during the respective periods . in fiscal 2016 , 2015 and 2014 , other income included gains in the amounts of $ 299 , $ 17,500 and $ 13,667 , respectively , which were the result of sales of certain fixed assets . income tax provision  the effective tax rate in fiscal 2016 was 1.3 % . the effective tax rate on consolidated net loss in fiscal 2016 differed from the federal statutory tax rate primarily due to changes in the deferred tax valuation allowance . the effective tax rate in fiscal 2015 was 12.1 % . the effective tax rate on consolidated net loss in fiscal 2015 differed from the federal statutory tax rate primarily due to changes in the deferred tax valuation allowance and certain expenses not being deductible for income tax reporting , offset by tax credits related to research and experimentation expenses . the effective tax rate in fiscal 2014 was 1.8 % . the effective tax rate on consolidated net loss in fiscal 2014 differed from the federal statutory tax rate primarily due to changes in the deferred tax valuation allowance and certain expenses not being deductible for income tax reporting , offset by tax credits related to research and experimentation expenses . net income ( loss )  net loss was $ 1,515,189 , or $ ( 0.51 ) per fully diluted share , for the year ended may 31 , 2016 as compared to net

liquidity and capital resources the company 's working capital decreased $ 1,227,608 to $ 6,325,707 as of may 31 , 2016 compared to $ 7,553,315 as of may 31 , 2015. cash and cash equivalents decreased $ 806,968 from $ 1,795,654 as of may 31 , 2015 to $ 988,686 as of may 31 , 2016. cash used in operating activities was $ 819,808 in fiscal 2016 , as compared to cash provided by operating activities of $ 390,146 in fiscal 2015 and cash used in operations of $ 392,376 in fiscal 2014. the amount of cash used in or provided by operating activities was primarily impacted by the amount of the net loss in each of the fiscal years , the timing of collections of accounts receivable , shifts in the level of inventories , and the timing of payments of accounts payable . at may 31 , 2016 , accounts receivable decreased $ 561,344 to $ 2,099,082 compared to $ 2,660,426 as of may 31 , 2015. the decrease in accounts receivable was due to the decrease in sales in the second half of fiscal 2016 and the timing of collections . inventories increased $ 170,410 to $ 4,727,977 as of may 31 , 2016 compared to $ 4,557,567 as of may 31 , 2015 as a result of lower level of sales occurring during fiscal 2016. atmay 31 , 2016 , total current liabilities increased $ 15,369 to $ 1,630,700 as compared to $ 1,615,331 at may 31 , 2015. during fiscal 2016 , net cash provided by investing activities of $ 11,430 consisted primarily of the proceeds from the disposition of some office equipment , offset by the purchase of computer equipment .


 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 the company 's working capital decreased $ 1,227,608 to $ 6,325,707 as of may 31 , 2016 compared to $ 7,553,315 as of may 31 , 2015. cash and cash equivalents decreased $ 806,968 from $ 1,795,654 as of may 31 , 2015 to $ 988,686 as of may 31 , 2016. cash used in operating activities was $ 819,808 in fiscal 2016 , as compared to cash provided by operating activities of $ 390,146 in fiscal 2015 and cash used in operations of $ 392,376 in fiscal 2014. the amount of cash used in or provided by operating activities was primarily impacted by the amount of the net loss in each of the fiscal years , the timing of collections of accounts receivable , shifts in the level of inventories , and the timing of payments of accounts payable . at may 31 , 2016 , accounts receivable decreased $ 561,344 to $ 2,099,082 compared to $ 2,660,426 as of may 31 , 2015. the decrease in accounts receivable was due to the decrease in sales in the second half of fiscal 2016 and the timing of collections . inventories increased $ 170,410 to $ 4,727,977 as of may 31 , 2016 compared to $ 4,557,567 as of may 31 , 2015 as a result of lower level of sales occurring during fiscal 2016. atmay 31 , 2016 , total current liabilities increased $ 15,369 to $ 1,630,700 as compared to $ 1,615,331 at may 31 , 2015. during fiscal 2016 , net cash provided by investing activities of $ 11,430 consisted primarily of the proceeds from the disposition of some office equipment , offset by the purchase of computer equipment .
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 Suspicious Activity Report : through its wholly owned subsidiary , schmitt measurement systems , inc. , an oregon corporation , the company designs , manufactures and sells laser and white light sensors for distance , dimensional and area measurement for a wide variety of commercial applications , laser-based microroughness measurement products for the semiconductor wafer and hard disk drive industries and for other industrial applications , laser-based surface analysis and measurement products for a variety of scientific applications , and ultrasonic measurement products that accurately measure the fill levels of tanks holding propane , diesel and other tank-based liquids and transmit that data via satellite to a secure web site for display ( the measurement segment ) . the company also provides sales and service for europe and asia through its wholly owned subsidiary , schmitt europe limited ( sel ) , located in coventry , england and through its sales representative office located in shanghai , china . for the fiscal year ended may 31 , 2016 ( fiscal 2016 ) , total sales decreased $ 1,383,738 , or 10.6 % , to $ 11,685,353 from $ 13,069,091 in the fiscal year ended may 31 , 2015 ( fiscal 2015 ) . the focus of balancer segment sales throughout the world is on end-users , rebuilders and original equipment manufacturers of grinding machines with the target geographic markets of north america , asia , and europe . balancer sales decreased $ 887,490 , or 11.3 % , to $ 6,962,746 in fiscal 2016 compared to $ 7,850,236 in fiscal 2015. sales to customers in europe increased $ 173,359 , or 16.0 % , to $ 1,259,868 in fiscal 2016 compared to $ 1,086,509 in fiscal 2015. sales to customers in the rest of the world decreased $ 1,060,849 , or 15.7 % , from fiscal 2015 to fiscal 2016 with sales into china and other parts of asia accounting for 77 % of the decrease . the measurement segment product lines consist of the sms and lasercheck laser-based surface microroughness measurement systems , the acuity laser-based distance measurement and dimensional sizing laser sensors , and the xact ultrasonic-based remote tank monitoring products . total measurement segment sales decreased $ 496,248 , or 9.5 % , to $ 4,722,607 for fiscal 2016 as compared to $ 5,218,855 for fiscal 2015. the overall decrease in sales in the measurement segment is primarily attributed to decreased sales in our sms product line of $ 886,468 , or 71.7 % , which had sales of two casi machines included in its fiscal 2015 results which were not repeated in fiscal 2016. this decrease was , in part , offset by increased sales in our acuity product line . acuity posted sales of $ 2,401,465 in fiscal 2016 as compared to $ 1,991,596 in fiscal 2015 , an increase of $ 409,869 , or 20.6 % . page 19 operating expenses increased $ 98,613 , or 1.6 % , to $ 6,303,769 in fiscal 2016 from $ 6,205,156 in fiscal 2015. general , administrative and sales expenses increased $ 189,246 , or 3.2 % , in fiscal 2016 to $ 6,016,097 as compared to $ 5,826,851 in the prior fiscal year . this increase was offset by a decrease in spending of $ 90,633 , or 24.0 % , for research and development expenses in fiscal 2016 as compared to the same period in the prior year . net loss was $ 1,515,189 , or $ ( 0.51 ) per fully diluted share , for the year ended may 31 , 2016 as compared to net loss of $ 93,669 , or $ ( 0.03 ) per fully diluted share , for the year ended may 31 , 2015. critical accounting policies revenue recognition  the company recognizes revenue for sales and billing for freight charges upon delivery of the product to the customer at a fixed or determinable price with a reasonable assurance of collection , passage of title to the customer as indicated by shipping terms and fulfillment of all significant obligations , pursuant to the guidance provided by accounting standards codification topic 605. for sales to all customers , including manufacturer representatives , distributors or their third-party customers , these criteria are met at the time product is shipped . when other significant obligations remain after products are delivered , revenue is recognized only after such obligations are fulfilled . in addition , judgments are required in evaluating the credit worthiness of our customers . credit is not extended to customers and revenue is not recognized until we have determined that collectability is reasonably assured . the company estimates customer product returns based on historical return patterns and reduces sales and cost of sales accordingly . allowance for doubtful accounts  the company maintains credit limits for all customers based upon several factors , including but not limited to financial condition and stability , payment history , published credit reports and use of credit references . management performs various analyses to evaluate accounts receivable balances to ensure recorded amounts reflect estimated net realizable value . this review includes accounts receivable agings , other operating trends and relevant business conditions , including general economic factors , as they relate to the company 's domestic and international customers . if these analyses lead management to the conclusion that potential significant accounts are uncollectible , a reserve is provided . inventories  inventories are valued at the lower of cost or market with cost determined on the average cost basis . costs included in inventories consist of materials , labor and manufacturing overhead , which are related to the purchase or production of inventories . story_separator_special_tag the increases in sales into asia and other regions of the world were due to an increase in demand for the company 's sbs products , while the increase in sales into germany and other european countries is in response to the targeted market strategy we have in those areas . the decline in sales in north america reflected fluctuations in demand in the markets we serve . the levels of demand for our balancer products in any of these geographic markets can not be forecasted with any certainty given current economic trends and the historical volatility experienced in this market . sales in the measurement segment increased $ 805,560 , or 18.3 % , to $ 5,218,855 in fiscal 2015 compared to $ 4,413,295 in fiscal 2014. sales of acuity laser-based distance measurement and dimensional-sizing products decreased $ 499,937 , or 20.1 % , primarily due to a reduction in the markets we serve . sales of xact remote tank monitoring products increased $ 723,595 , or 74.4 % , to $ 1,695,939 during fiscal 2015 due to an increase in product shipments and increasing monitoring revenues associated with unit sales . sales of sms and lasercheck laser-based surface measurement products increased $ 581,902 , or 61.3 % , primarily due to an increase in demand for these products . future sales of laser-based or ultrasonic measurement products can not be forecasted with any certainty given the historical volatility experienced in this market . gross margin  gross margin in fiscal 2016 decreased to 41.7 % compared to 47.0 % in fiscal 2015. gross margin in fiscal 2015 increased to 47.0 % compared to 46.4 % in fiscal 2014. the variances in gross margin between the periods presented was primarily influenced by shifts in the product sales mix from higher to lower margin product line sales . operating expenses  operating expenses increased $ 98,613 , or 1.6 % , to $ 6,303,769 for fiscal 2016 compared to $ 6,205,156 for fiscal 2015. general , administrative and sales expenses increased $ 189,246 , or 3.2 % , to $ 6,016,097 in fiscal 2015 compared to $ 5,826,851 in the prior year . this increase was a result of increases in sales commissions , salaries and related payroll expense in the early part of fiscal 2016 and increases in general office and utilities costs for fiscal 2016 , offset by decreases in depreciation expense . this increase in general , administrative and sales expenses was offset by a decrease in spending of $ 90,633 , or 24.0 % , for research and development in fiscal 2016 as compared to fiscal 2015. operating expenses increased $ 66,605 , or 1.1 % , to $ 6,205,156 for fiscal 2015 compared to $ 6,138,551 for fiscal 2014. general , administrative and sales expenses increased $ 163,730 , or 2.9 % , to $ 5,826,851 in fiscal 2015 compared to $ 5,663,121 in the prior year . increases in personnel costs and commissions expense were offset by decreases in professional fees , depreciation expense and other general office expenses . research and development expenses decreased $ 97,125 , or 20.4 % , to $ 378,305 in fiscal 2015 compared to $ 475,430 in fiscal 2014. the decrease in research and development expense was primarily due to the timing of completion of some of the development projects occurring within our existing product lines , with new projects starting during the fourth quarter of fiscal 2015. other income ( expense )  other income ( expense ) consists of interest income , interest expense , foreign currency exchange gain ( loss ) and other income ( expense ) . interest income was $ 1,338 , $ 191 and $ 1,558 in fiscal 2016 , 2015 and 2014 , respectively . fluctuations in interest income are impacted by the levels of our average cash and investment balances and changes in interest rates . interest expense was $ 2,988 , $ 3,452 and $ 9,158 in fiscal 2016 , 2015 and 2014 , respectively . fiscal 2016 and 2015 interest expense is related to the capital lease of a piece of manufacturing equipment . fiscal 2014 interest expense was related to the interest charges on the outstanding balances on our line of credit . foreign currency exchange loss was $ 57,406 , $ 33,411 and $ 23,375 in fiscal 2016 , page 22 2015 and 2014 , respectively . the foreign currency exchange loss fluctuated with the strength of foreign currencies against the u.s. dollar during the respective periods . in fiscal 2016 , 2015 and 2014 , other income included gains in the amounts of $ 299 , $ 17,500 and $ 13,667 , respectively , which were the result of sales of certain fixed assets . income tax provision  the effective tax rate in fiscal 2016 was 1.3 % . the effective tax rate on consolidated net loss in fiscal 2016 differed from the federal statutory tax rate primarily due to changes in the deferred tax valuation allowance . the effective tax rate in fiscal 2015 was 12.1 % . the effective tax rate on consolidated net loss in fiscal 2015 differed from the federal statutory tax rate primarily due to changes in the deferred tax valuation allowance and certain expenses not being deductible for income tax reporting , offset by tax credits related to research and experimentation expenses . the effective tax rate in fiscal 2014 was 1.8 % . the effective tax rate on consolidated net loss in fiscal 2014 differed from the federal statutory tax rate primarily due to changes in the deferred tax valuation allowance and certain expenses not being deductible for income tax reporting , offset by tax credits related to research and experimentation expenses . net income ( loss )  net loss was $ 1,515,189 , or $ ( 0.51 ) per fully diluted share , for the year ended may 31 , 2016 as compared to net

