our license agreements also require licensees to support the brands by either paying or spending contractually guaranteed minimum amounts for the marketing and advertising of the respective licensed brands . as of march 7 , 2017 we had contractual rights to receive an aggregate of $ 462.0 million in minimum royalty and marketing and advertising revenue from our licensees through the balance of the current terms of such licenses , excluding any renewals . items affecting comparability of periods presented we were formed on june 5 , 2015 , for the purpose of effecting the merger of singer merger sub , inc. with and into sqbg , inc. ( previously known as sequential brands group , inc. ) ( sec file no . 001-36082 ) ( “ old sequential ” ) and the merger of madeline merger sub , inc. with and into mslo ( sec file no . 001-15395 ) , with old sequential and mslo each surviving the merger as wholly owned subsidiaries of us ( the “ mergers ” ) . prior to the mergers , we did not conduct any activities other than those incidental to its formation and the matters contemplated in the agreement and plan of merger , dated as of june 22 , 2015 , as amended , by and among mslo , old sequential , us , singer merger sub , inc. , and madeline merger sub , inc. ( the “ merger agreement ” ) . on december 4 , 2015 , pursuant to the merger agreement , old sequential and mslo completed the strategic combination of their respective businesses and became wholly owned subsidiaries of the company . old sequential was the accounting acquirer in the mergers ; therefore , the historical consolidated financial statements for old sequential for period prior to the mergers are considered to be the historical financial statements of sequential brands group , inc. and thus , our consolidated financial statements for fiscal 2015 reflect old sequential 's consolidated financial statements for period from january 1 , 2015 through december 4 , 2015 and for fiscal year 2014 , and sequential brands group inc. 's thereafter . 23 recently issued accounting standards asu no . 2017-04 , “ simplifying the test for goodwill impairment ” in january 2017 , the fasb issued asu no . 2017-04 , “ simplifying the test for goodwill impairment ” ( “ asu 2017-04 ” ) . asu 2017-04 removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test . as a result , under asu 2017-04 , an entity should perform its annual , or interim , goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit 's fair value ; however , the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit . asu 2017-04 is effective prospectively for annual and interim periods beginning on or after december 15 , 2019 , and early adoption is permitted on testing dates after january 1 , 2017. we are currently evaluating the impact the adoption of asu 2017-04 will have on our consolidated financial statements . asu no . 2017-01 , “ fasb clarifies the definition of a business ” in january 2017 , the fasb issued asu no . 2017-01 , “ fasb clarifies the definition of a business ” ( “ asu 2017-01 ” ) . asu 2017-01 clarifies the definition of a business in asc 805. the amendments in asu 2017-01 are intended to make application of the guidance more consistent and cost-efficient . asu 2017-01 is effective for annual and interim periods beginning after december 15 , 2017 , with early adoption permitted for transactions that occurred before the issuance date of effective date of the standard if the transactions were not reported in financial statements that have been issued or made available for issuance . we do not expect the adoption of asu 2017-01 to have a material impact on our consolidated financial statements . asu no . 2016-18 , “ restricted cash – a consensus of the fasb emerging issues task force ” in november 2016 , the fasb issued asu no . 2016-18 , “ restricted cash – a consensus of the fasb emerging issues task force ” ( “ asu 2016-18 ” ) . asu 2016-18 amends asc 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows . upon adoption of asu 2016-18 , an entity should include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents . asu 2016-18 is effective for annual and interim periods beginning after december 15 , 2017 , and early adoption is permitted for all entities . we do not expect the adoption of asu 2016-18 to have a material impact on our consolidated financial statements . asu no . 2016-15 , “ classification of certain cash receipts and cash payments ” in august 2016 , the fasb issued asu no . 2016-15 , “ classification of certain cash receipts and cash payments ” ( “ asu 2016-15 ” ) . asu 2016-15 amends the guidance in asc 230 on the classification of certain cash receipts and payments in the statement of cash flows . the primary purpose of asu 2016-15 is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic . asu 2016-15 is effective for annual and interim periods beginning after december 15 , 2017 , and early adoption is permitted for all entities . story_separator_special_tag indefinite-lived intangible assets are not amortized , but instead are subject to impairment evaluation . the carrying value of intangible assets and other finite-lived assets is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . indefinite-lived intangible assets are tested for impairment on an annual basis and between annual tests if an event occurs or circumstances change that indicate that the carrying amount of the indefinite-lived intangible asset may not be recoverable . when conducting our impairment assessment , we initially perform a qualitative evaluation of whether it is more likely than not that the asset is impaired . if it is determined by a qualitative evaluation that it is more likely than not that the asset is impaired , we then test the asset for recoverability . recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to its future undiscounted net cash flows . if the carrying amount of such assets are considered to be impaired , the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the recoverability of the assets . assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell . during the year ended december 31 , 2016 , we changed our annual impairment testing date from december 31 to october 1. we believe this new date is preferable because it allows for more timely completion of the annual impairment test prior to the end of our annual financial reporting period . this change in accounting principle does not delay , accelerate or avoid an impairment charge . we have determined that it would be impracticable to objectively determine projected cash flow and related valuation estimates that would have been used as of each october 1 of prior reporting periods without the use of hindsight . as such , we applied the change in annual impairment testing date prospectively beginning october 1 , 2016 . 27 income taxes . current income taxes are based on the respective periods ' taxable income for federal , foreign and state income tax reporting purposes . deferred tax liabilities and assets are determined based on the difference between the financial statement and income tax bases of assets and liabilities , using statutory tax rates in effect for the year in which the differences are expected to reverse . in accordance with asu no . 2015-17 “ balance sheet classification of deferred taxes ” , all deferred income taxes are reported and classified as non-current . a valuation allowance is required if , based on the weight of available evidence , it is more likely than not that some portion or all of the deferred tax assets will not be realized . the company applies the fasb guidance on accounting for uncertainty in income taxes . the guidance clarifies the accounting for uncertainty in income taxes recognized in an enterprise 's financial statements in accordance with other authoritative gaap and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return . the guidance also addresses derecognition , classification , interest and penalties , accounting in interim periods , disclosure and transition . during the year ended december 31 , 2016 , the company released its $ 0.3 million reserve of certain unrecognized tax benefits along with $ 0.3 million of accrued interest and penalties through current income tax expense in accordance with asc 740 , income taxes ( “ asc 740 ” ) . at december 31 , 2015 , the company had $ 0.6 million of certain unrecognized tax benefits , included as a component of long-term liabilities held for disposition from discontinued operations of wholesale operations subsidiary . interest and penalties related to uncertain tax positions , if any , are recorded in income tax expense . tax years that remain open for assessment for federal and state tax purposes include the years ended december 31 , 2013 through december 31 , 2016. stock-based compensation . we account for stock-based compensation under asc topic 718 , compensation - stock compensation , which requires companies to measure and recognize compensation expense for all stock-based payments at fair value . compensation cost for restricted stock is measured using the quoted market price of our common stock at the date the common stock is granted . for restricted stock and restricted stock units , for which restrictions lapse with the passage of time ( “ time-based restricted stock ” ) , compensation cost is recognized on a straight-line basis over the period between the issue date and the date that restrictions lapse . time-based restricted stock is included in total shares of common stock outstanding upon the lapse of applicable restrictions . for restricted stock , for which restrictions are based on performance measures ( “ performance stock units ” or “ psu 's ” ) , restrictions lapse when those performance measures have been deemed achieved . compensation cost for psus is recognized on a straight-line basis during the period from the date on which the likelihood of the psus being earned is deemed probable and ( x ) the end of the fiscal year during which such psus are granted or ( y ) the date on which awards of such psus may be approved by the compensation committee of the company 's board of directors ( the “ compensation committee ” ) on a discretionary basis , as applicable . psus are included in total shares of common stock outstanding upon the lapse of applicable restrictions . psus are included in total diluted shares of common stock outstanding when the performance measures have been deemed achieved but the psus have not yet been issued . compensation cost

liquidity as of december 31 , 2016 , we had cash on hand , including restricted cash , of $ 20.7 million and a net working capital balance ( defined below ) of $ 26.8 million . additionally , we had outstanding debt obligations under our loan agreements of $ 663.0 million excluding $ 18.0 million of deferred financing fees . as of december 31 , 2015 , we had cash on hand of $ 41.6 million and a net working capital balance of $ 49.6 million . additionally , we had outstanding debt obligations under our loan agreements of $ 550.0 million excluding $ 7.9 million of deferred financing fees . net working capital is defined as current assets minus current liabilities , excluding restricted cash and discontinued operations . we believe that cash from continuing operations and our currently available cash ( including available borrowings under our existing financing arrangements and available-for-sale securities ) will be sufficient to satisfy our anticipated working capital requirements for the foreseeable future . overall , we do not expect any negative effects to our funding sources that would have a material effect on our liquidity . we intend to continue financing future brand acquisitions through a combination of cash from operations , bank financing and the issuance of additional equity and or debt securities . see note 9 to our consolidated financial statements for a description of certain financing transactions consummated by us . there are no material capital expenditure commitments as of december 31 , 2016 .


 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 as of december 31 , 2016 , we had cash on hand , including restricted cash , of $ 20.7 million and a net working capital balance ( defined below ) of $ 26.8 million . additionally , we had outstanding debt obligations under our loan agreements of $ 663.0 million excluding $ 18.0 million of deferred financing fees . as of december 31 , 2015 , we had cash on hand of $ 41.6 million and a net working capital balance of $ 49.6 million . additionally , we had outstanding debt obligations under our loan agreements of $ 550.0 million excluding $ 7.9 million of deferred financing fees . net working capital is defined as current assets minus current liabilities , excluding restricted cash and discontinued operations . we believe that cash from continuing operations and our currently available cash ( including available borrowings under our existing financing arrangements and available-for-sale securities ) will be sufficient to satisfy our anticipated working capital requirements for the foreseeable future . overall , we do not expect any negative effects to our funding sources that would have a material effect on our liquidity . we intend to continue financing future brand acquisitions through a combination of cash from operations , bank financing and the issuance of additional equity and or debt securities . see note 9 to our consolidated financial statements for a description of certain financing transactions consummated by us . there are no material capital expenditure commitments as of december 31 , 2016 .
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 Suspicious Activity Report : our license agreements also require licensees to support the brands by either paying or spending contractually guaranteed minimum amounts for the marketing and advertising of the respective licensed brands . as of march 7 , 2017 we had contractual rights to receive an aggregate of $ 462.0 million in minimum royalty and marketing and advertising revenue from our licensees through the balance of the current terms of such licenses , excluding any renewals . items affecting comparability of periods presented we were formed on june 5 , 2015 , for the purpose of effecting the merger of singer merger sub , inc. with and into sqbg , inc. ( previously known as sequential brands group , inc. ) ( sec file no . 001-36082 ) ( “ old sequential ” ) and the merger of madeline merger sub , inc. with and into mslo ( sec file no . 001-15395 ) , with old sequential and mslo each surviving the merger as wholly owned subsidiaries of us ( the “ mergers ” ) . prior to the mergers , we did not conduct any activities other than those incidental to its formation and the matters contemplated in the agreement and plan of merger , dated as of june 22 , 2015 , as amended , by and among mslo , old sequential , us , singer merger sub , inc. , and madeline merger sub , inc. ( the “ merger agreement ” ) . on december 4 , 2015 , pursuant to the merger agreement , old sequential and mslo completed the strategic combination of their respective businesses and became wholly owned subsidiaries of the company . old sequential was the accounting acquirer in the mergers ; therefore , the historical consolidated financial statements for old sequential for period prior to the mergers are considered to be the historical financial statements of sequential brands group , inc. and thus , our consolidated financial statements for fiscal 2015 reflect old sequential 's consolidated financial statements for period from january 1 , 2015 through december 4 , 2015 and for fiscal year 2014 , and sequential brands group inc. 's thereafter . 23 recently issued accounting standards asu no . 2017-04 , “ simplifying the test for goodwill impairment ” in january 2017 , the fasb issued asu no . 2017-04 , “ simplifying the test for goodwill impairment ” ( “ asu 2017-04 ” ) . asu 2017-04 removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test . as a result , under asu 2017-04 , an entity should perform its annual , or interim , goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit 's fair value ; however , the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit . asu 2017-04 is effective prospectively for annual and interim periods beginning on or after december 15 , 2019 , and early adoption is permitted on testing dates after january 1 , 2017. we are currently evaluating the impact the adoption of asu 2017-04 will have on our consolidated financial statements . asu no . 2017-01 , “ fasb clarifies the definition of a business ” in january 2017 , the fasb issued asu no . 2017-01 , “ fasb clarifies the definition of a business ” ( “ asu 2017-01 ” ) . asu 2017-01 clarifies the definition of a business in asc 805. the amendments in asu 2017-01 are intended to make application of the guidance more consistent and cost-efficient . asu 2017-01 is effective for annual and interim periods beginning after december 15 , 2017 , with early adoption permitted for transactions that occurred before the issuance date of effective date of the standard if the transactions were not reported in financial statements that have been issued or made available for issuance . we do not expect the adoption of asu 2017-01 to have a material impact on our consolidated financial statements . asu no . 2016-18 , “ restricted cash – a consensus of the fasb emerging issues task force ” in november 2016 , the fasb issued asu no . 2016-18 , “ restricted cash – a consensus of the fasb emerging issues task force ” ( “ asu 2016-18 ” ) . asu 2016-18 amends asc 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows . upon adoption of asu 2016-18 , an entity should include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents . asu 2016-18 is effective for annual and interim periods beginning after december 15 , 2017 , and early adoption is permitted for all entities . we do not expect the adoption of asu 2016-18 to have a material impact on our consolidated financial statements . asu no . 2016-15 , “ classification of certain cash receipts and cash payments ” in august 2016 , the fasb issued asu no . 2016-15 , “ classification of certain cash receipts and cash payments ” ( “ asu 2016-15 ” ) . asu 2016-15 amends the guidance in asc 230 on the classification of certain cash receipts and payments in the statement of cash flows . the primary purpose of asu 2016-15 is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic . asu 2016-15 is effective for annual and interim periods beginning after december 15 , 2017 , and early adoption is permitted for all entities . story_separator_special_tag indefinite-lived intangible assets are not amortized , but instead are subject to impairment evaluation . the carrying value of intangible assets and other finite-lived assets is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . indefinite-lived intangible assets are tested for impairment on an annual basis and between annual tests if an event occurs or circumstances change that indicate that the carrying amount of the indefinite-lived intangible asset may not be recoverable . when conducting our impairment assessment , we initially perform a qualitative evaluation of whether it is more likely than not that the asset is impaired . if it is determined by a qualitative evaluation that it is more likely than not that the asset is impaired , we then test the asset for recoverability . recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to its future undiscounted net cash flows . if the carrying amount of such assets are considered to be impaired , the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the recoverability of the assets . assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell . during the year ended december 31 , 2016 , we changed our annual impairment testing date from december 31 to october 1. we believe this new date is preferable because it allows for more timely completion of the annual impairment test prior to the end of our annual financial reporting period . this change in accounting principle does not delay , accelerate or avoid an impairment charge . we have determined that it would be impracticable to objectively determine projected cash flow and related valuation estimates that would have been used as of each october 1 of prior reporting periods without the use of hindsight . as such , we applied the change in annual impairment testing date prospectively beginning october 1 , 2016 . 27 income taxes . current income taxes are based on the respective periods ' taxable income for federal , foreign and state income tax reporting purposes . deferred tax liabilities and assets are determined based on the difference between the financial statement and income tax bases of assets and liabilities , using statutory tax rates in effect for the year in which the differences are expected to reverse . in accordance with asu no . 2015-17 “ balance sheet classification of deferred taxes ” , all deferred income taxes are reported and classified as non-current . a valuation allowance is required if , based on the weight of available evidence , it is more likely than not that some portion or all of the deferred tax assets will not be realized . the company applies the fasb guidance on accounting for uncertainty in income taxes . the guidance clarifies the accounting for uncertainty in income taxes recognized in an enterprise 's financial statements in accordance with other authoritative gaap and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return . the guidance also addresses derecognition , classification , interest and penalties , accounting in interim periods , disclosure and transition . during the year ended december 31 , 2016 , the company released its $ 0.3 million reserve of certain unrecognized tax benefits along with $ 0.3 million of accrued interest and penalties through current income tax expense in accordance with asc 740 , income taxes ( “ asc 740 ” ) . at december 31 , 2015 , the company had $ 0.6 million of certain unrecognized tax benefits , included as a component of long-term liabilities held for disposition from discontinued operations of wholesale operations subsidiary . interest and penalties related to uncertain tax positions , if any , are recorded in income tax expense . tax years that remain open for assessment for federal and state tax purposes include the years ended december 31 , 2013 through december 31 , 2016. stock-based compensation . we account for stock-based compensation under asc topic 718 , compensation - stock compensation , which requires companies to measure and recognize compensation expense for all stock-based payments at fair value . compensation cost for restricted stock is measured using the quoted market price of our common stock at the date the common stock is granted . for restricted stock and restricted stock units , for which restrictions lapse with the passage of time ( “ time-based restricted stock ” ) , compensation cost is recognized on a straight-line basis over the period between the issue date and the date that restrictions lapse . time-based restricted stock is included in total shares of common stock outstanding upon the lapse of applicable restrictions . for restricted stock , for which restrictions are based on performance measures ( “ performance stock units ” or “ psu 's ” ) , restrictions lapse when those performance measures have been deemed achieved . compensation cost for psus is recognized on a straight-line basis during the period from the date on which the likelihood of the psus being earned is deemed probable and ( x ) the end of the fiscal year during which such psus are granted or ( y ) the date on which awards of such psus may be approved by the compensation committee of the company 's board of directors ( the “ compensation committee ” ) on a discretionary basis , as applicable . psus are included in total shares of common stock outstanding upon the lapse of applicable restrictions . psus are included in total diluted shares of common stock outstanding when the performance measures have been deemed achieved but the psus have not yet been issued . compensation cost

