from september 2011 through june 2012 , we began a controlled market release of cytosorb in select geographic territories in germany with the primary goal of preparing for commercialization of cytosorb in germany in terms of manufacturing , reimbursement , logistics , infrastructure , marketing , contacts , and other key issues . in late june 2012 , following the establishment of our european subsidiary , cytosorbents europe gmbh , we began the commercial launch of cytosorb in germany with the hiring of dr. christian steiner as vice president of sales and marketing and three additional sales representatives . the fourth quarter of 2012 represented the first full quarter of direct sales with the full sales team in place . during this period , we expanded our direct sales efforts to include both austria and switzerland . at the end of 2017 , we had hundreds of kols in our commercialized territories worldwide in critical care , cardiac surgery , and blood purification who were either using cytosorb or supporting its use in clinical practice or clinical trials . in march 2016 , we established cytosorbents switzerland gmbh , a wholly-owned subsidiary of cytosorbents europe gmbh , to conduct marketing and direct sales in switzerland . this subsidiary began operations during the second quarter of 2016. in 2017 , we further expanded our direct sales efforts into belgium and luxemburg . as of february 15 , 2018 , our european sales , marketing and clinical support team includes 18 direct sales people , one contract sales person and 13 sales support staff . 51 we have complemented our direct sales efforts with sales to distributors and or corporate partners . in 2013 , we reached agreements with distributors in the united kingdom , ireland , turkey , russia , and the netherlands . in 2014 , we announced distribution of cytosorb in the middle east , including saudi arabia , the united arab emirates , kuwait , qatar , bahrain , and oman ( the gcc ) and yemen , iraq , and jordan through an exclusive agreement with techno orbits , we entered into an exclusive agreement with smart medical solutions s.r.l . , to distribute cytosorb for critical care applications in romania and the neighboring republic of moldova . in 2015 , we announced exclusive distribution agreements with aferetica srl to distribute cytosorb in italy , alphamedix ltd. to distribute cytosorb in israel , tekmed pty ltd. to distribute cytosorb in australia and new zealand , and hoang long pharma to distribute cytosorb in vietnam . in june 2016 , we announced an exclusive distribution agreement with palex medical sa to distribute cytosorb in spain and portugal . in september 2016 , we announced an exclusive agreement with armaghan salamat kish group ( arsak ) to distribute cytosorb in iran . in october 2016 , we announced an exclusive agreement with foxx medical chile spa to distribute cytosorb in chile . in july 2017 , we announced an exclusive agreement with droguería , ramón , gonzález , revilla ( drgr ) s.a. to distribute cytosorb in panama . we have been working to expand the number and scope of our strategic partnerships . in september 2013 , we entered into a strategic partnership with biocon ltd. , india 's largest biopharmaceuticals company , with an initial distribution agreement for india and select emerging markets , under which biocon has the exclusive commercialization rights for cytosorb initially focused on sepsis . in october 2014 , the biocon partnership was expanded to include all critical care applications and cardiac surgery . in addition , biocon committed to higher annual minimum purchases of cytosorb to maintain distribution exclusivity and committed to conduct and publish results from multiple investigator initiated studies and patient case studies . in december 2017 , the biocon partnership was further expanded to include exclusive distribution of cytosorb in malaysia . under the terms of the agreement , biocon has committed to minimum annual purchases in malaysia to maintain exclusivity this territory . in addition , the term of the original agreement was extended to december 2022. in december 2014 , we entered into a multi-country strategic partnership with fresenius medical care ag & co kgaa ( “ fresenius ” ) to commercialize the cytosorb therapy . under the terms of this agreement , fresenius has exclusive rights to distribute cytosorb for critical care applications in france , poland , sweden , denmark , norway , and finland . the partnership allows fresenius to offer an innovative and easy way to use blood purification therapy for removing cytokines in patients that are treated in the icu . to promote the success of cytosorb , fresenius agreed to also engage in the ongoing clinical development of the product . this includes the support and publication of a number of small case series and patient case reports as well as the potential for future larger , clinical collaborations . fresenius launched the product in these six countries in may 2016. in january 2017 , the fresenius partnership was expanded . the terms of the revised three-year agreement extend fresenius ' exclusive distributorship of cytosorb for all critical care applications in their existing territories through 2019 and include guaranteed minimum quarterly orders and payments , evaluable every one and a half years . in addition , we have entered into a new comprehensive co-marketing agreement with fresenius . under the terms of the agreement , cytosorbents and fresenius will jointly market cytosorb to fresenius ' critical care customer base in all countries where cytosorb is being actively commercialized . cytosorb will continue to be sold by our direct sales force or through our international network of distributors and partners , while fresenius will sell all ancillary products to their customers . story_separator_special_tag in september 2017 , the company was awarded a phase ii sbir contract for its development program entitled “ investigation of a sorbent-based potassium adsorber for the treatment of hyperkalemia induced by traumatic injury and acute kidney injury ” . the purpose of this contract is to continue development of two novel and distinct treatment options for life-threatening hyperkalemia . this work is being funded by the usamraa under contract w81xwh-17-c-0142 and provides for maximum funding of $ 999,871. as of december 31 , 2017 , no funding has yet been received under this contract . results of operations our financial statements have been presented on the basis that it is a going concern , which contemplates the realization of revenues and the satisfaction of liabilities in the normal course of business . we have incurred losses from inception of operations . these factors raise substantial doubt about our ability to continue as a going concern . comparison of the year ended december 31 , 2017 and 2016 revenues : for the year ended december 31 , 2017 , we generated total revenue , which includes product revenue and grant income , of approximately $ 15,151,000 as compared to revenues of approximately $ 9,528,000 for the year ended december 31 , 2016 , an increase of approximately $ 5,623,000 , or 59 % . revenue from product sales was approximately $ 13,382,000 for the year ended december 31 , 2017 , as compared to approximately $ 8,206,000 in the year ended december 31 , 2016 , an increase of approximately $ 5,176,000 or 63 % . this increase was largely driven by an increase in direct sales from both new customers and repeat orders from existing customers , along with an increase in distributor sales . grant income increased by approximately $ 447,000 , or 34 % , to approximately $ 1,769,000 in 2017 from $ 1,322,000 in 2016 as a result of revenue received from new grants awarded during 2017 . 55 cost of revenue : for the years ended december 31 , 2017 and 2016 , cost of revenue was approximately $ 5,518,000 and $ 3,954,000 , respectively , an increase of approximately $ 1,564,000 , or 40 % . this increase is related to an increase in product cost of revenue of approximately $ 1,117,000 attributable to increased sales in 2017. product gross margins were approximately 71 % for the year ended december 31 , 2017 , as compared to approximately 67 % for the year ended december 31 , 2016 due to a reduction in our product costs and a change the mix of direct and distributor sales . grant income related expenses increased by approximately $ 447,000 during the year ended december 31 , 2017 as compared to the year ended december 31 , 2016 due to an increase in direct labor and other costs being deployed toward grant-funded activities during the year ended december 31 , 2017 as compared to the year ended december 31 , 2016. gross profit : gross profit was approximately $ 9,632,000 for the year ended 2017 , an increase of approximately $ 4,058,000 or 73 % , over gross profit of $ 5,574,000 in 2016. this increase is entirely attributed to an increase in cytosorb product sales during 2017. research and development expenses : our research and development costs were approximately $ 4,049,000 and $ 4,783,000 for the years ended december 31 , 2017 and 2016 , respectively , a decrease of approximately $ 734,000 , or 15 % . this decrease in research and development expenditures is related to an increase in direct labor and other costs being deployed toward grant-funded activities of approximately $ 447,000 , which had the effect of decreasing the amount of our non-reimbursable research and development costs , and a decrease in costs related to our various clinical studies and trials of approximately $ 580,000. these decreases were offset by an increase in stock-based compensation of approximately $ 117,000 , an increase in salaries related to non-clinical research and development activities of approximately $ 36,000 and an increase in supplies and other research and development expenses of approximately $ 140,000. legal , financial and other consulting expenses : our legal , financial and other consulting costs were approximately $ 1,339,000 and $ 1,185,000 for the years ended december 31 , 2017 and 2016 , respectively , an increase of approximately $ 154,000 , or 13 % . this increase was due to an increase in employment agency fees of approximately $ 123,000 related to the hiring of senior level personnel in 2017 , an increase in legal fees of approximately $ 17,000 related to various corporate initiatives and an increase in accounting and consulting fees of approximately $ 14,000. selling , general and administrative expenses : our selling , general and administrative expenses were approximately $ 14,086,000 and $ 11,098,000 for the years ended december 31 , 2017 and 2016 , respectively , an increase of approximately $ 2,988,000 , or 27 % . the increase in selling , general , and administrative expenses was due to an increase in non-cash stock compensation expense of approximately $ 825,000 primarily based upon achievement of the 2017 operating milestones , increases in salaries , commissions and related costs of approximately $ 834,000 due to headcount additions , an increase in royalty expenses of approximately $ 480,000 due to the increase in product sales , additional sales and marketing costs , which include advertising and conferences of approximately $ 299,000 , an increase in travel and entertainment costs and other expenses of approximately $ 213,000 , an increase in occupancy cost of approximately $ 90,000 related to facility expansion , an increase in public relations expense of approximately $ 105,000 , an increase in office supplies and related expenses of approximately $ 148,000 and other general and administrative cost increases of approximately $ 60,000. these increases were offset by a decrease in bad debt expense of

liquidity and capital resources since inception , our operations have been primarily financed through the private and public placement of our debt and equity securities . at december 31 , 2017 , we had current assets of approximately $ 20,739,000 including cash on hand of approximately $ 17,322,000 and had current liabilities of approximately $ 7,848,000. in december 2017 , we received approximately $ 677,000 in cash from the sale of our net operating losses to the state of new jersey . we believe that we have sufficient cash to fund our operations into 2019. we will need to raise additional capital to support our ongoing operations in the future . in addition , we will need to raise additional funds to support clinical trials in the u.s. and in europe . loan and security agreement : on june 30 , 2016 ( the “ closing date ” ) , the company and its wholly-owned subsidiary cytosorbents medical , inc. ( together , the “ borrower ” ) , entered into a loan and security agreement ( the “ loan and security agreement ” ) with bridge bank , a division of western alliance bank , ( the “ bank ” ) , pursuant to which the bank agreed to loan up to an aggregate of $ 10 million to the company , to be disbursed in two equal tranches of $ 5 million ( the first tranche , the “ term a loan ” , the second tranche , the “ term b loan ” , and the term a loan and term b loan together , the “ term loans ” ) . the company received the proceeds of the term a loan on june 30 , 2016 and the proceeds from term loan b on june 30 , 2017. the proceeds from the term loans will be used for working capital purposes and to fund general business requirements in accordance with the terms of the loan and security agreement . the term loans are secured by substantially all of the assets of the company , with the exception of any intellectual property .


 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 since inception , our operations have been primarily financed through the private and public placement of our debt and equity securities . at december 31 , 2017 , we had current assets of approximately $ 20,739,000 including cash on hand of approximately $ 17,322,000 and had current liabilities of approximately $ 7,848,000. in december 2017 , we received approximately $ 677,000 in cash from the sale of our net operating losses to the state of new jersey . we believe that we have sufficient cash to fund our operations into 2019. we will need to raise additional capital to support our ongoing operations in the future . in addition , we will need to raise additional funds to support clinical trials in the u.s. and in europe . loan and security agreement : on june 30 , 2016 ( the “ closing date ” ) , the company and its wholly-owned subsidiary cytosorbents medical , inc. ( together , the “ borrower ” ) , entered into a loan and security agreement ( the “ loan and security agreement ” ) with bridge bank , a division of western alliance bank , ( the “ bank ” ) , pursuant to which the bank agreed to loan up to an aggregate of $ 10 million to the company , to be disbursed in two equal tranches of $ 5 million ( the first tranche , the “ term a loan ” , the second tranche , the “ term b loan ” , and the term a loan and term b loan together , the “ term loans ” ) . the company received the proceeds of the term a loan on june 30 , 2016 and the proceeds from term loan b on june 30 , 2017. the proceeds from the term loans will be used for working capital purposes and to fund general business requirements in accordance with the terms of the loan and security agreement . the term loans are secured by substantially all of the assets of the company , with the exception of any intellectual property .
```    
 Suspicious Activity Report : from september 2011 through june 2012 , we began a controlled market release of cytosorb in select geographic territories in germany with the primary goal of preparing for commercialization of cytosorb in germany in terms of manufacturing , reimbursement , logistics , infrastructure , marketing , contacts , and other key issues . in late june 2012 , following the establishment of our european subsidiary , cytosorbents europe gmbh , we began the commercial launch of cytosorb in germany with the hiring of dr. christian steiner as vice president of sales and marketing and three additional sales representatives . the fourth quarter of 2012 represented the first full quarter of direct sales with the full sales team in place . during this period , we expanded our direct sales efforts to include both austria and switzerland . at the end of 2017 , we had hundreds of kols in our commercialized territories worldwide in critical care , cardiac surgery , and blood purification who were either using cytosorb or supporting its use in clinical practice or clinical trials . in march 2016 , we established cytosorbents switzerland gmbh , a wholly-owned subsidiary of cytosorbents europe gmbh , to conduct marketing and direct sales in switzerland . this subsidiary began operations during the second quarter of 2016. in 2017 , we further expanded our direct sales efforts into belgium and luxemburg . as of february 15 , 2018 , our european sales , marketing and clinical support team includes 18 direct sales people , one contract sales person and 13 sales support staff . 51 we have complemented our direct sales efforts with sales to distributors and or corporate partners . in 2013 , we reached agreements with distributors in the united kingdom , ireland , turkey , russia , and the netherlands . in 2014 , we announced distribution of cytosorb in the middle east , including saudi arabia , the united arab emirates , kuwait , qatar , bahrain , and oman ( the gcc ) and yemen , iraq , and jordan through an exclusive agreement with techno orbits , we entered into an exclusive agreement with smart medical solutions s.r.l . , to distribute cytosorb for critical care applications in romania and the neighboring republic of moldova . in 2015 , we announced exclusive distribution agreements with aferetica srl to distribute cytosorb in italy , alphamedix ltd. to distribute cytosorb in israel , tekmed pty ltd. to distribute cytosorb in australia and new zealand , and hoang long pharma to distribute cytosorb in vietnam . in june 2016 , we announced an exclusive distribution agreement with palex medical sa to distribute cytosorb in spain and portugal . in september 2016 , we announced an exclusive agreement with armaghan salamat kish group ( arsak ) to distribute cytosorb in iran . in october 2016 , we announced an exclusive agreement with foxx medical chile spa to distribute cytosorb in chile . in july 2017 , we announced an exclusive agreement with droguería , ramón , gonzález , revilla ( drgr ) s.a. to distribute cytosorb in panama . we have been working to expand the number and scope of our strategic partnerships . in september 2013 , we entered into a strategic partnership with biocon ltd. , india 's largest biopharmaceuticals company , with an initial distribution agreement for india and select emerging markets , under which biocon has the exclusive commercialization rights for cytosorb initially focused on sepsis . in october 2014 , the biocon partnership was expanded to include all critical care applications and cardiac surgery . in addition , biocon committed to higher annual minimum purchases of cytosorb to maintain distribution exclusivity and committed to conduct and publish results from multiple investigator initiated studies and patient case studies . in december 2017 , the biocon partnership was further expanded to include exclusive distribution of cytosorb in malaysia . under the terms of the agreement , biocon has committed to minimum annual purchases in malaysia to maintain exclusivity this territory . in addition , the term of the original agreement was extended to december 2022. in december 2014 , we entered into a multi-country strategic partnership with fresenius medical care ag & co kgaa ( “ fresenius ” ) to commercialize the cytosorb therapy . under the terms of this agreement , fresenius has exclusive rights to distribute cytosorb for critical care applications in france , poland , sweden , denmark , norway , and finland . the partnership allows fresenius to offer an innovative and easy way to use blood purification therapy for removing cytokines in patients that are treated in the icu . to promote the success of cytosorb , fresenius agreed to also engage in the ongoing clinical development of the product . this includes the support and publication of a number of small case series and patient case reports as well as the potential for future larger , clinical collaborations . fresenius launched the product in these six countries in may 2016. in january 2017 , the fresenius partnership was expanded . the terms of the revised three-year agreement extend fresenius ' exclusive distributorship of cytosorb for all critical care applications in their existing territories through 2019 and include guaranteed minimum quarterly orders and payments , evaluable every one and a half years . in addition , we have entered into a new comprehensive co-marketing agreement with fresenius . under the terms of the agreement , cytosorbents and fresenius will jointly market cytosorb to fresenius ' critical care customer base in all countries where cytosorb is being actively commercialized . cytosorb will continue to be sold by our direct sales force or through our international network of distributors and partners , while fresenius will sell all ancillary products to their customers . story_separator_special_tag in september 2017 , the company was awarded a phase ii sbir contract for its development program entitled “ investigation of a sorbent-based potassium adsorber for the treatment of hyperkalemia induced by traumatic injury and acute kidney injury ” . the purpose of this contract is to continue development of two novel and distinct treatment options for life-threatening hyperkalemia . this work is being funded by the usamraa under contract w81xwh-17-c-0142 and provides for maximum funding of $ 999,871. as of december 31 , 2017 , no funding has yet been received under this contract . results of operations our financial statements have been presented on the basis that it is a going concern , which contemplates the realization of revenues and the satisfaction of liabilities in the normal course of business . we have incurred losses from inception of operations . these factors raise substantial doubt about our ability to continue as a going concern . comparison of the year ended december 31 , 2017 and 2016 revenues : for the year ended december 31 , 2017 , we generated total revenue , which includes product revenue and grant income , of approximately $ 15,151,000 as compared to revenues of approximately $ 9,528,000 for the year ended december 31 , 2016 , an increase of approximately $ 5,623,000 , or 59 % . revenue from product sales was approximately $ 13,382,000 for the year ended december 31 , 2017 , as compared to approximately $ 8,206,000 in the year ended december 31 , 2016 , an increase of approximately $ 5,176,000 or 63 % . this increase was largely driven by an increase in direct sales from both new customers and repeat orders from existing customers , along with an increase in distributor sales . grant income increased by approximately $ 447,000 , or 34 % , to approximately $ 1,769,000 in 2017 from $ 1,322,000 in 2016 as a result of revenue received from new grants awarded during 2017 . 55 cost of revenue : for the years ended december 31 , 2017 and 2016 , cost of revenue was approximately $ 5,518,000 and $ 3,954,000 , respectively , an increase of approximately $ 1,564,000 , or 40 % . this increase is related to an increase in product cost of revenue of approximately $ 1,117,000 attributable to increased sales in 2017. product gross margins were approximately 71 % for the year ended december 31 , 2017 , as compared to approximately 67 % for the year ended december 31 , 2016 due to a reduction in our product costs and a change the mix of direct and distributor sales . grant income related expenses increased by approximately $ 447,000 during the year ended december 31 , 2017 as compared to the year ended december 31 , 2016 due to an increase in direct labor and other costs being deployed toward grant-funded activities during the year ended december 31 , 2017 as compared to the year ended december 31 , 2016. gross profit : gross profit was approximately $ 9,632,000 for the year ended 2017 , an increase of approximately $ 4,058,000 or 73 % , over gross profit of $ 5,574,000 in 2016. this increase is entirely attributed to an increase in cytosorb product sales during 2017. research and development expenses : our research and development costs were approximately $ 4,049,000 and $ 4,783,000 for the years ended december 31 , 2017 and 2016 , respectively , a decrease of approximately $ 734,000 , or 15 % . this decrease in research and development expenditures is related to an increase in direct labor and other costs being deployed toward grant-funded activities of approximately $ 447,000 , which had the effect of decreasing the amount of our non-reimbursable research and development costs , and a decrease in costs related to our various clinical studies and trials of approximately $ 580,000. these decreases were offset by an increase in stock-based compensation of approximately $ 117,000 , an increase in salaries related to non-clinical research and development activities of approximately $ 36,000 and an increase in supplies and other research and development expenses of approximately $ 140,000. legal , financial and other consulting expenses : our legal , financial and other consulting costs were approximately $ 1,339,000 and $ 1,185,000 for the years ended december 31 , 2017 and 2016 , respectively , an increase of approximately $ 154,000 , or 13 % . this increase was due to an increase in employment agency fees of approximately $ 123,000 related to the hiring of senior level personnel in 2017 , an increase in legal fees of approximately $ 17,000 related to various corporate initiatives and an increase in accounting and consulting fees of approximately $ 14,000. selling , general and administrative expenses : our selling , general and administrative expenses were approximately $ 14,086,000 and $ 11,098,000 for the years ended december 31 , 2017 and 2016 , respectively , an increase of approximately $ 2,988,000 , or 27 % . the increase in selling , general , and administrative expenses was due to an increase in non-cash stock compensation expense of approximately $ 825,000 primarily based upon achievement of the 2017 operating milestones , increases in salaries , commissions and related costs of approximately $ 834,000 due to headcount additions , an increase in royalty expenses of approximately $ 480,000 due to the increase in product sales , additional sales and marketing costs , which include advertising and conferences of approximately $ 299,000 , an increase in travel and entertainment costs and other expenses of approximately $ 213,000 , an increase in occupancy cost of approximately $ 90,000 related to facility expansion , an increase in public relations expense of approximately $ 105,000 , an increase in office supplies and related expenses of approximately $ 148,000 and other general and administrative cost increases of approximately $ 60,000. these increases were offset by a decrease in bad debt expense of

