the company recognizes revenue on sales of products when title passes , which can occur at the time of shipment , or when the goods arrive at the customer location depending on the agreement with the customer . the company sells its products to both distributors and end-users . sales to distributors and end-users are recorded based upon the criteria governed by the sales , delivery , and payment terms stated on the invoices from the company to the purchaser . in addition to transfer of title / risk of loss , all revenue is recorded in accordance with the criteria outlined within sab 104 and fasb asc 605 , revenue recognition : ( a ) persuasive evidence of an arrangement ( principally in the form of customer sales orders and the company 's sales invoices ) ; ( b ) delivery and performance ( evidenced by proof of delivery , e.g . the shipment of film and substrates with bill of lading used for proof of delivery for fob shipping point terms , and the carrier booking confirmation report used for fob destination terms ) . once the finished product is shipped and physically delivered under the terms of the invoice and sales order , the company has no additional performance or service obligations to complete ; ( c ) a fixed and determinable sales price ( the company 's pricing is established and is not based on variable terms , as evidenced in either the company 's invoices or the limited number of distribution agreements ; the company rarely grants extended payment terms and has no history of concessions ) ; and ( d ) a reasonable likelihood of payment ( the company 's terms are standard , and the company does not have a substantial history of customer defaults or non-payment ) . sales are reported on a net basis by deducting credits , estimated normal returns and discounts . the company 's return policy does not vary by geography . the customer has no rotation or price protection rights and the company is not under a warranty obligation . freight billed to customers is included in sales . shipping costs are included in cost of goods sold . trade receivables . the company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customer 's current credit worthiness , as determined by review of the current credit information . the company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses based upon historical experience and any specific customer collection issues that have been identified . while such credit losses have historically been within expectations and the provisions established , the company can not guarantee that it will continue to experience the same collection history that has occurred in the past . the general payment terms are net 30-45 days for domestic customers and net 30-90 days for foreign customers . a small percentage of the trade receivables balance is denominated in a foreign currency with no concentration in any given country . at the end of each reporting period , the company analyzes the receivable balance for customers paying in a foreign currency . these balances are adjusted to each quarter or year-end spot rate . the company also maintains a provision based upon historical experience and any specifically identified issues for any customer related returns , refunds or credits . inventories . inventories are valued at the lower of cost or market value using the last in , first out ( lifo ) method . the company monitors its inventory for obsolescence and records reductions from cost when required . income taxes . deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are 13 recognized for taxable temporary differences . temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis . deferred tax assets are reduced by a valuation allowance when , in the opinion of management , it is more likely than not that some portion or all of the deferred tax assets will not be realized . deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment . the tax cut and jobs act of 2017 ( the “ tax reform act ” ) was enacted december 22 , 2017. this legislation makes significant changes in u.s. tax law including a reduction in the corporate tax rates , changes to net operating loss carryforwards and carrybacks and a repeal of the corporate alternative minimum tax . the legislation reduced the u.s. corporate tax rate from the current rate of 34 % and 35 % to 21 % . as a result of the enacted law , the company was required to revalue deferred tax assets and liabilities at the newly enacted rate . this revaluation resulted in a benefit of $ 115,000 to income tax expense in continuing operations and a corresponding reduction in the deferred tax liability . the other provisions of the tax reform act did not have a material impact on the 2017 consolidated financial statements . results of operations year ended december 31 , 2017 compared to year ended december 31 , 2016 sales . story_separator_special_tag the company expects capital expenditures in 2018 of approximately $ 658,000. the planned expenditures primarily will be to upgrade the heating , cooling and ventilation system at the company 's main facility and manufacturing equipment to improve processes and capabilities . these commitments are expected to be funded with cash generated from operating activities . international activity the company markets its products in numerous countries in various regions of the world , including north america , europe , latin america , and asia . the company 's 2017 foreign sales of $ 5.4 million were approximately 30.5 % of total sales , compared to the 2016 foreign sales of $ 4.9 million , which were 28.0 % of total sales . the company realized an increase in foreign sales due to the sale of two dtx printers into europe and improved consumable sales to asia . the company 's foreign transactions are primarily negotiated , invoiced and paid in u.s. dollars , though a portion is transacted in euros . ikonics has not implemented an economic hedging strategy to reduce the risk of foreign currency translation exposures , which management does not believe to be significant based on the scope and geographic diversity of the company 's foreign operations . furthermore , the impact of foreign exchange on the company 's balance sheet and operating results was not material in either 2017 or 2016. future outlook ikonics has spent an average of approximately 4.0 % of annual sales in research and development and has made capital expenditures related to new products and programs . the company plans to maintain its efforts in these 16 areas to expedite internal product development as well as to form technological alliances with outside entities to commercialize new product opportunities . the company continues to make progress on its ams business initiative . although ams experienced a short-term drop in sales during 2017 due to temporary inventory overstocking by a major customer , these sales have returned to expected levels , and the company anticipates continued growth over the long term . the company has two long-term sales agreements in place for its technology with major aerospace companies and is negotiating a third . in anticipation of this growing business , the company increased its ams capacity with a 27,300 square foot expansion at its morgan park site in 2016. the company is also continuing to pursue dtx-related business initiatives and expects increased consumable sales as a result of the sale of two dtx printers in 2017. in addition to making efforts towards growing the inkjet technology business , the company offers a range of products for creating texture surfaces and has introduced a fluid for use in prototyping . the company is currently working on production improvements to enhance its customer offerings . the company has been awarded european , japanese , and united states patents on its dtx technologies . the company has also modified its dtx technology to facilitate entry into the market for prototyping . both the domestic and ikonics imaging units remain profitable in mature markets . although these business units require aggressive strategies to grow market share , both are developing new products and business relationships that we believe will contribute to growth . in october 2017 , the company introduced subthat ! , a patent-pending product for the dye-sublimation market . response to subthat ! has been very encouraging , with the company realizing subthat ! sales of $ 258,000 in the fourth quarter of 2017. in addition to its traditional emphasis on domestic markets , the company will continue efforts to grow its business internationally by attempting to develop new markets and expanding market share where it has already established a presence . however , the strong u.s. dollar has made this challenging . other future activities undertaken to expand the company 's business may include acquisitions , building improvements , equipment additions , new product development and marketing opportunities . off-balance sheet arrangements the company has no off-balance sheet arrangements . recent accounting pronouncements in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers . asu 2014‑09 supersedes the revenue recognition requirements in revenue recognition ( topic 605 ) , and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services . in august 2015 , the fasb issued asu 2015-14 , revenue from contracts with customers : deferral of the effective date , which defers the adoption of asu 2014-09 to annual reporting periods beginning after december 15 , 2017 , including interim reporting periods within that reporting period . the standard permits two methods of adoption : retrospectively to each prior reporting period presented ( full retrospective method ) , or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application ( the modified retrospective method ) . the standard also requires expanded disclosures relating to the nature , amount , timing , and uncertainty of revenue and cash flows arising from contracts with customers . additionally , qualitative and quantitative disclosures are required about customer contracts , significant judgments and changes in judgments , and assets recognized from the costs to obtain or fulfill a contract . the company will adopt the provisions of asu 2014-09 on january 1 , 2018 using the modified retrospective method . while most of the company 's revenue is contracted with customers through one-time purchase orders and short-term contracts , the company does have long-term contracts with certain customers . the company is nearly complete with its evaluation of the effect of adoption on its financial statements , and will expand its financial statement disclosures in future periods in order to comply with the new standard . for the revenue streams

liquidity and capital resources outside of the 2016 building expansion , for which $ 3.4 million in financing was obtained , the company has financed its operations principally with funds generated from operations . these funds have been sufficient to cover the company 's normal operating expenditures , annual capital requirements , and research and development expenditures . cash and cash equivalents were $ 930,000 and $ 1.0 million at december 31 , 2017 and 2016 , respectively . in addition to its cash , the company held $ 2.9 million and $ 3.2 million of short-term investments as of december 31 , 2017 and 2016 , respectively . the company generated $ 205,000 in cash from operating activities during 2017 , compared to generating $ 917,000 of cash from operating activities in 2016. cash provided by operating activities is primarily the result of the net loss adjusted for non-cash depreciation and amortization , deferred taxes , and certain changes in working capital components discussed in the following paragraph . during 2017 , improved collections resulted in a $ 146,000 trade receivables decrease . inventories increased by $ 100,000 related to an increase in finished goods inventories compared to 2016. accounts payable decreased from 2016 to 2017 by $ 409,000 due to the timing of payments to and purchases from vendors , mainly related to raw materials . prepaid expenses and other assets decreased $ 194,000 from 2016 to 2017. the decrease is mainly related to 2016 prepayments on equipment being manufactured that was sold in 2017. compared to 2016 , accrued expenses decreased $ 33,000 reflecting the timing of compensation payments . income taxes receivables decreased $ 64,000 due to the timing of estimated 2017 tax payments compared to the calculated 2017 tax liability . during 2016 , inventories decreased by $ 134,000 related to a decrease in raw material inventories compared to 2015. the timing of collections resulted in a $ 171,000 trade receivables increase in 2016 versus 2015. accounts payable increased from 2015 to 2016 by $ 310,000 due to the timing of payments to and purchases from vendors .


 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 outside of the 2016 building expansion , for which $ 3.4 million in financing was obtained , the company has financed its operations principally with funds generated from operations . these funds have been sufficient to cover the company 's normal operating expenditures , annual capital requirements , and research and development expenditures . cash and cash equivalents were $ 930,000 and $ 1.0 million at december 31 , 2017 and 2016 , respectively . in addition to its cash , the company held $ 2.9 million and $ 3.2 million of short-term investments as of december 31 , 2017 and 2016 , respectively . the company generated $ 205,000 in cash from operating activities during 2017 , compared to generating $ 917,000 of cash from operating activities in 2016. cash provided by operating activities is primarily the result of the net loss adjusted for non-cash depreciation and amortization , deferred taxes , and certain changes in working capital components discussed in the following paragraph . during 2017 , improved collections resulted in a $ 146,000 trade receivables decrease . inventories increased by $ 100,000 related to an increase in finished goods inventories compared to 2016. accounts payable decreased from 2016 to 2017 by $ 409,000 due to the timing of payments to and purchases from vendors , mainly related to raw materials . prepaid expenses and other assets decreased $ 194,000 from 2016 to 2017. the decrease is mainly related to 2016 prepayments on equipment being manufactured that was sold in 2017. compared to 2016 , accrued expenses decreased $ 33,000 reflecting the timing of compensation payments . income taxes receivables decreased $ 64,000 due to the timing of estimated 2017 tax payments compared to the calculated 2017 tax liability . during 2016 , inventories decreased by $ 134,000 related to a decrease in raw material inventories compared to 2015. the timing of collections resulted in a $ 171,000 trade receivables increase in 2016 versus 2015. accounts payable increased from 2015 to 2016 by $ 310,000 due to the timing of payments to and purchases from vendors .
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 Suspicious Activity Report : the company recognizes revenue on sales of products when title passes , which can occur at the time of shipment , or when the goods arrive at the customer location depending on the agreement with the customer . the company sells its products to both distributors and end-users . sales to distributors and end-users are recorded based upon the criteria governed by the sales , delivery , and payment terms stated on the invoices from the company to the purchaser . in addition to transfer of title / risk of loss , all revenue is recorded in accordance with the criteria outlined within sab 104 and fasb asc 605 , revenue recognition : ( a ) persuasive evidence of an arrangement ( principally in the form of customer sales orders and the company 's sales invoices ) ; ( b ) delivery and performance ( evidenced by proof of delivery , e.g . the shipment of film and substrates with bill of lading used for proof of delivery for fob shipping point terms , and the carrier booking confirmation report used for fob destination terms ) . once the finished product is shipped and physically delivered under the terms of the invoice and sales order , the company has no additional performance or service obligations to complete ; ( c ) a fixed and determinable sales price ( the company 's pricing is established and is not based on variable terms , as evidenced in either the company 's invoices or the limited number of distribution agreements ; the company rarely grants extended payment terms and has no history of concessions ) ; and ( d ) a reasonable likelihood of payment ( the company 's terms are standard , and the company does not have a substantial history of customer defaults or non-payment ) . sales are reported on a net basis by deducting credits , estimated normal returns and discounts . the company 's return policy does not vary by geography . the customer has no rotation or price protection rights and the company is not under a warranty obligation . freight billed to customers is included in sales . shipping costs are included in cost of goods sold . trade receivables . the company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customer 's current credit worthiness , as determined by review of the current credit information . the company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses based upon historical experience and any specific customer collection issues that have been identified . while such credit losses have historically been within expectations and the provisions established , the company can not guarantee that it will continue to experience the same collection history that has occurred in the past . the general payment terms are net 30-45 days for domestic customers and net 30-90 days for foreign customers . a small percentage of the trade receivables balance is denominated in a foreign currency with no concentration in any given country . at the end of each reporting period , the company analyzes the receivable balance for customers paying in a foreign currency . these balances are adjusted to each quarter or year-end spot rate . the company also maintains a provision based upon historical experience and any specifically identified issues for any customer related returns , refunds or credits . inventories . inventories are valued at the lower of cost or market value using the last in , first out ( lifo ) method . the company monitors its inventory for obsolescence and records reductions from cost when required . income taxes . deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are 13 recognized for taxable temporary differences . temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis . deferred tax assets are reduced by a valuation allowance when , in the opinion of management , it is more likely than not that some portion or all of the deferred tax assets will not be realized . deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment . the tax cut and jobs act of 2017 ( the “ tax reform act ” ) was enacted december 22 , 2017. this legislation makes significant changes in u.s. tax law including a reduction in the corporate tax rates , changes to net operating loss carryforwards and carrybacks and a repeal of the corporate alternative minimum tax . the legislation reduced the u.s. corporate tax rate from the current rate of 34 % and 35 % to 21 % . as a result of the enacted law , the company was required to revalue deferred tax assets and liabilities at the newly enacted rate . this revaluation resulted in a benefit of $ 115,000 to income tax expense in continuing operations and a corresponding reduction in the deferred tax liability . the other provisions of the tax reform act did not have a material impact on the 2017 consolidated financial statements . results of operations year ended december 31 , 2017 compared to year ended december 31 , 2016 sales . story_separator_special_tag the company expects capital expenditures in 2018 of approximately $ 658,000. the planned expenditures primarily will be to upgrade the heating , cooling and ventilation system at the company 's main facility and manufacturing equipment to improve processes and capabilities . these commitments are expected to be funded with cash generated from operating activities . international activity the company markets its products in numerous countries in various regions of the world , including north america , europe , latin america , and asia . the company 's 2017 foreign sales of $ 5.4 million were approximately 30.5 % of total sales , compared to the 2016 foreign sales of $ 4.9 million , which were 28.0 % of total sales . the company realized an increase in foreign sales due to the sale of two dtx printers into europe and improved consumable sales to asia . the company 's foreign transactions are primarily negotiated , invoiced and paid in u.s. dollars , though a portion is transacted in euros . ikonics has not implemented an economic hedging strategy to reduce the risk of foreign currency translation exposures , which management does not believe to be significant based on the scope and geographic diversity of the company 's foreign operations . furthermore , the impact of foreign exchange on the company 's balance sheet and operating results was not material in either 2017 or 2016. future outlook ikonics has spent an average of approximately 4.0 % of annual sales in research and development and has made capital expenditures related to new products and programs . the company plans to maintain its efforts in these 16 areas to expedite internal product development as well as to form technological alliances with outside entities to commercialize new product opportunities . the company continues to make progress on its ams business initiative . although ams experienced a short-term drop in sales during 2017 due to temporary inventory overstocking by a major customer , these sales have returned to expected levels , and the company anticipates continued growth over the long term . the company has two long-term sales agreements in place for its technology with major aerospace companies and is negotiating a third . in anticipation of this growing business , the company increased its ams capacity with a 27,300 square foot expansion at its morgan park site in 2016. the company is also continuing to pursue dtx-related business initiatives and expects increased consumable sales as a result of the sale of two dtx printers in 2017. in addition to making efforts towards growing the inkjet technology business , the company offers a range of products for creating texture surfaces and has introduced a fluid for use in prototyping . the company is currently working on production improvements to enhance its customer offerings . the company has been awarded european , japanese , and united states patents on its dtx technologies . the company has also modified its dtx technology to facilitate entry into the market for prototyping . both the domestic and ikonics imaging units remain profitable in mature markets . although these business units require aggressive strategies to grow market share , both are developing new products and business relationships that we believe will contribute to growth . in october 2017 , the company introduced subthat ! , a patent-pending product for the dye-sublimation market . response to subthat ! has been very encouraging , with the company realizing subthat ! sales of $ 258,000 in the fourth quarter of 2017. in addition to its traditional emphasis on domestic markets , the company will continue efforts to grow its business internationally by attempting to develop new markets and expanding market share where it has already established a presence . however , the strong u.s. dollar has made this challenging . other future activities undertaken to expand the company 's business may include acquisitions , building improvements , equipment additions , new product development and marketing opportunities . off-balance sheet arrangements the company has no off-balance sheet arrangements . recent accounting pronouncements in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers . asu 2014‑09 supersedes the revenue recognition requirements in revenue recognition ( topic 605 ) , and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services . in august 2015 , the fasb issued asu 2015-14 , revenue from contracts with customers : deferral of the effective date , which defers the adoption of asu 2014-09 to annual reporting periods beginning after december 15 , 2017 , including interim reporting periods within that reporting period . the standard permits two methods of adoption : retrospectively to each prior reporting period presented ( full retrospective method ) , or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application ( the modified retrospective method ) . the standard also requires expanded disclosures relating to the nature , amount , timing , and uncertainty of revenue and cash flows arising from contracts with customers . additionally , qualitative and quantitative disclosures are required about customer contracts , significant judgments and changes in judgments , and assets recognized from the costs to obtain or fulfill a contract . the company will adopt the provisions of asu 2014-09 on january 1 , 2018 using the modified retrospective method . while most of the company 's revenue is contracted with customers through one-time purchase orders and short-term contracts , the company does have long-term contracts with certain customers . the company is nearly complete with its evaluation of the effect of adoption on its financial statements , and will expand its financial statement disclosures in future periods in order to comply with the new standard . for the revenue streams

