recent developments on june 22 , 2016 , the company entered into a stock purchase agreement ( the “ spa ” ) by and between the company , tarek kirschen , the then-chief executive officer and a director of the company and south centre , a firm owned solely by david cohen , a then-unrelated individual . the spa provided that the company would issue to mr. kirschen 5,000,000 shares of newly designated series a preferred stock of the company , par value $ 0.0001 per share ( the “ series a stock ” ) , in exchange for the payment to the company of $ 1,000 , which would thereafter be sold by mr. kirschen to south centre for $ 150,000. mr. cohen thereby became the controlling shareholder of the company . the spa , as amended pursuant to amendment no . 1 to the spa , executed on june 24 , 2016 , provided that the closing of the transactions thereunder ( the “ closing ” ) would occur upon satisfaction of all conditions precedent , including the issuance of the shares of series a stock and the issuance of shares of series b preferred stock of the company , the delivery of certain documents to evidence the valid issuance of the series a stock to mr. kirschen , the execution and delivery of certain additional documents , including the release and issuance agreement as discussed below , and certain other customary closing conditions . all such conditions were satisfied and the transactions under the spa closed on june 27 , 2016. on june 22 , 2016 , in connection with and as required by the spa , the company entered into a release and issuance agreement by and between mr. kirschen , the company , alexander bafer , a former officer and shareholder of the company , and south centre ( the “ release agreement ” ) . pursuant to the release agreement , effective as of the closing , ( i ) mr. kirschen released all claims that he may have against the company , mr. bafer and their respective related parties ; and ( ii ) mr. bafer released all claims that he may have against mr. kirschen and his related parties . in the release agreement , the company also agreed to issue to mr. kirschen 5,000,000 shares of series a stock , and 1,000,000 shares of newly designated series b preferred stock of the company , par value $ 0.0001 per share ( the “ series b stock ” ) , and mr. kirschen agreed to forgive $ 439,000 that was owed by the company to mr. kirschen ( the “ debt ” ) . the transactions under the release agreement closed concurrently with the closing under the spa , on june 27 , 2016. upon the closing , mr. cohen was named a director and the chief executive officer of the company . on july 20 , 2016 , the company entered into an amendment to promissory notes ( “ notes amendment ” ) with alexander bafer pursuant to which the maturity date of each of our five loans from mr. bafer was amended to be august 1 , 2017 instead of october 1 , 2015. the five loans are represented by replacement convertible promissory notes ( “ notes ” ) . pursuant to the terms of the notes amendment , mr. bafer waived any default under each of the notes through the date of the notes amendment as a result of any amounts payable under the notes not being paid as of october 1 , 2015 and waived the payment of any default interest ( as defined in the notes ) through the date of the notes amendment as a result of such failure of payment . no other terms of the loans changed , and we did not pay any consideration for the extension . our outstanding balance on the loans under the notes as of july 20 , 2016 was approximately $ 469,000 . 12 on july 21 , 2016 , the company entered into a redemption and issuance agreement ( the “ redemption agreement ” ) by and between the company and south centre , inc. , an entity owned and controlled by david cohen , the company 's sole director ( at the time ) and chief executive officer . pursuant to the redemption agreement , on the same date , the company redeemed 2,500,000 shares of the company 's series a preferred stock ( the “ series a stock ” ) in exchange for the payment to south centre of $ 0.0001 per share . the company undertook the redemption for the purposes of obtaining the shares of series a stock so that such shares could be paid to certain third parties in connection with the contribution agreement as disclosed below . also pursuant to the redemption agreement , on the same date , the company issued to south centre 12,750,000 shares of newly designated series c preferred stock of the company ( the “ series c stock ” ) in exchange for payment to the company of $ 1,000. on july 25 , 2016 , the company entered into a contribution agreement ( the “ contribution agreement ” ) by and between the company , recall , south centre and various other shareholders of recall ( the “ recall shareholders ” ) . the contribution agreement provided that the recall shareholders would contribute to the company all of the shares of recall held by the recall shareholders , which would result in recall becoming a wholly owned subsidiary of the company . story_separator_special_tag on december 28 , 2016 , the company issued an unsecured convertible promissory note in the principal amount of $ 50,000 to james lux ( the “ lender ” ) . the note bore interest at 5 % per annum , and due upon demand . results of operations for the year ended december 31 , 2016 compared to the year ended december 31 , 2015 replace_table_token_2_th 14 revenues for the year ended december 31 , 2016 were $ 208,000 as compared to $ 964,000 for the year ended december 31 , 2015. the decrease of $ 756,000 in revenue was due to the slowdown in production activities during the change in the company 's ownership in june 2016. the company continues to focus much of its efforts in the area of productions related to televised awards programming where it believes it has the expertise to grow in this sector . revenue recognition is deferred until product is delivered and accepted by our customers . our future revenue plan is , in part , dependent on our ability to effectively market the doorman pilot and close new viable acquisitions of film rights . cost of goods sold for the year ended december 31 , 2016 were $ 113,000 as compared to $ 792,000 for the year ended december 31 , 2015. this decrease was directly related to the 78 % decrease in revenues due to the acquisition and transition periods . operating expenses for the year ended december 31 , 2016 totaled $ 1,720,000 compared to $ 3,218,000 for the year ended december 31 , 2015. the decrease of 47 % was primarily attributable to a decrease in compensation expense , and professional fees due to the transitional period during the transfer of ownership . the company has realized a net loss of $ 10,136,000 for the year ended december 31 , 2016 compared to a net loss of $ 7,609,000 for the year ended december 31 , 2015. the increase in net loss of approximately $ 2,527,000 is primarily due to the change in fair value of derivatives of $ 8,870,000 , which is partially offset by a gain on extinguishment of derivative liability of $ 558,000. story_separator_special_tag serif ; font-size : 10pt `` > we believe the following critical accounting policies , among others , require significant judgments and estimates used in the preparation of our consolidated financial statements . revenue recognition the company 's high five entertainment subsidiary specializes in the development and presentation of quality television programming including series , specials , pilots , live events and award shows . it recognizes revenue from its live events and award show productions when all of the following criteria are met : ( i ) persuasive evidence of an arrangement exists , ( ii ) the show or live event has been completed and occurred and there are no future production obligations , ( iii ) the sales price is fixed or determinable , and ( iv ) collectability is reasonably assured . the company 's recall studios subsidiary produces software applications for third-parties on a consulting basis . revenues from these services are recognized when the following criteria are met : ( i ) persuasive evidence of an arrangement exists ; ( ii ) the show/episode is complete , and in accordance with the terms of the arrangement , has been delivered or is available for immediate and unconditional delivery ; ( iii ) the price to the customer is fixed and determinable ; and ( iv ) collectability is reasonably assured . 16 use of estimates the preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . actual results could differ from those estimates . those estimates and assumptions include depreciable lives of property and equipment , analysis of impairments of recorded goodwill , accruals for potential liabilities , assumptions made in valuing derivative liabilities and assumptions made in valuing stock instruments issued for services . stock-based compensation the company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs . the company accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by fasb where the value of the award is measured on the date of grant and recognized as compensation expense on the straight-line basis over the vesting period . the company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the fasb where the value of the stock compensation is based upon the measurement date as determined at either a ) the date at which a performance commitment is reached , or b ) at the date at which the necessary performance to earn the equity instruments is complete . options and warrants granted to non-employees are revalued each reporting period to determine the amount to be recorded as an expense in the respective period . as the options and warrants vest , they are valued on each vesting date and an adjustment is recorded for the difference between the value already recorded and the then current value on the date of vesting . in certain circumstances where there are no future performance requirements by the non-employee , option and warrant grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date . the fair value of the company 's stock option and warrant grants are estimated using the black-scholes-merton option pricing model , which uses certain assumptions related to risk-free interest rates , expected volatility , expected life of the stock options or warrants , and future dividends . compensation expense is

liquidity and capital resources replace_table_token_3_th as of december 31 , 2016 , our total assets were $ 115,000 and our total liabilities were $ 14,370,000 and we had negative working capital of ( $ 14,255,000 ) . our financial statements report a net loss of $ 10,136,000 for the year ended december 31 , 2016 and a net loss of $ 7,609,000 for the year ended december 31 , 2015. we have suffered recurring losses from operations . the continuation of our company is dependent upon our company attaining and maintaining profitable operations and raising additional capital as needed . in this regard , we have raised additional capital through equity offerings and loan transactions , and , in the short term , will seek to raise additional capital in such manners to fund our operations . we do not currently have any third-party financing available in the form of loans , advances , or commitments . our officers and shareholders have not made any written or oral agreement to provide us additional financing . there can be no assurance that we will be able to continue to raise capital on terms and conditions that are deemed acceptable to us . off-balance sheet arrangements as of december 31 , 2016 , there were no off-balance sheet arrangements . going concern the accompanying consolidated financial statements have been prepared assuming that the company will continue as a going concern , which contemplates continuity of operations , realization of assets , and liquidation of liabilities in the normal course of business .


 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 replace_table_token_3_th as of december 31 , 2016 , our total assets were $ 115,000 and our total liabilities were $ 14,370,000 and we had negative working capital of ( $ 14,255,000 ) . our financial statements report a net loss of $ 10,136,000 for the year ended december 31 , 2016 and a net loss of $ 7,609,000 for the year ended december 31 , 2015. we have suffered recurring losses from operations . the continuation of our company is dependent upon our company attaining and maintaining profitable operations and raising additional capital as needed . in this regard , we have raised additional capital through equity offerings and loan transactions , and , in the short term , will seek to raise additional capital in such manners to fund our operations . we do not currently have any third-party financing available in the form of loans , advances , or commitments . our officers and shareholders have not made any written or oral agreement to provide us additional financing . there can be no assurance that we will be able to continue to raise capital on terms and conditions that are deemed acceptable to us . off-balance sheet arrangements as of december 31 , 2016 , there were no off-balance sheet arrangements . going concern the accompanying consolidated financial statements have been prepared assuming that the company will continue as a going concern , which contemplates continuity of operations , realization of assets , and liquidation of liabilities in the normal course of business .
```    
 Suspicious Activity Report : recent developments on june 22 , 2016 , the company entered into a stock purchase agreement ( the “ spa ” ) by and between the company , tarek kirschen , the then-chief executive officer and a director of the company and south centre , a firm owned solely by david cohen , a then-unrelated individual . the spa provided that the company would issue to mr. kirschen 5,000,000 shares of newly designated series a preferred stock of the company , par value $ 0.0001 per share ( the “ series a stock ” ) , in exchange for the payment to the company of $ 1,000 , which would thereafter be sold by mr. kirschen to south centre for $ 150,000. mr. cohen thereby became the controlling shareholder of the company . the spa , as amended pursuant to amendment no . 1 to the spa , executed on june 24 , 2016 , provided that the closing of the transactions thereunder ( the “ closing ” ) would occur upon satisfaction of all conditions precedent , including the issuance of the shares of series a stock and the issuance of shares of series b preferred stock of the company , the delivery of certain documents to evidence the valid issuance of the series a stock to mr. kirschen , the execution and delivery of certain additional documents , including the release and issuance agreement as discussed below , and certain other customary closing conditions . all such conditions were satisfied and the transactions under the spa closed on june 27 , 2016. on june 22 , 2016 , in connection with and as required by the spa , the company entered into a release and issuance agreement by and between mr. kirschen , the company , alexander bafer , a former officer and shareholder of the company , and south centre ( the “ release agreement ” ) . pursuant to the release agreement , effective as of the closing , ( i ) mr. kirschen released all claims that he may have against the company , mr. bafer and their respective related parties ; and ( ii ) mr. bafer released all claims that he may have against mr. kirschen and his related parties . in the release agreement , the company also agreed to issue to mr. kirschen 5,000,000 shares of series a stock , and 1,000,000 shares of newly designated series b preferred stock of the company , par value $ 0.0001 per share ( the “ series b stock ” ) , and mr. kirschen agreed to forgive $ 439,000 that was owed by the company to mr. kirschen ( the “ debt ” ) . the transactions under the release agreement closed concurrently with the closing under the spa , on june 27 , 2016. upon the closing , mr. cohen was named a director and the chief executive officer of the company . on july 20 , 2016 , the company entered into an amendment to promissory notes ( “ notes amendment ” ) with alexander bafer pursuant to which the maturity date of each of our five loans from mr. bafer was amended to be august 1 , 2017 instead of october 1 , 2015. the five loans are represented by replacement convertible promissory notes ( “ notes ” ) . pursuant to the terms of the notes amendment , mr. bafer waived any default under each of the notes through the date of the notes amendment as a result of any amounts payable under the notes not being paid as of october 1 , 2015 and waived the payment of any default interest ( as defined in the notes ) through the date of the notes amendment as a result of such failure of payment . no other terms of the loans changed , and we did not pay any consideration for the extension . our outstanding balance on the loans under the notes as of july 20 , 2016 was approximately $ 469,000 . 12 on july 21 , 2016 , the company entered into a redemption and issuance agreement ( the “ redemption agreement ” ) by and between the company and south centre , inc. , an entity owned and controlled by david cohen , the company 's sole director ( at the time ) and chief executive officer . pursuant to the redemption agreement , on the same date , the company redeemed 2,500,000 shares of the company 's series a preferred stock ( the “ series a stock ” ) in exchange for the payment to south centre of $ 0.0001 per share . the company undertook the redemption for the purposes of obtaining the shares of series a stock so that such shares could be paid to certain third parties in connection with the contribution agreement as disclosed below . also pursuant to the redemption agreement , on the same date , the company issued to south centre 12,750,000 shares of newly designated series c preferred stock of the company ( the “ series c stock ” ) in exchange for payment to the company of $ 1,000. on july 25 , 2016 , the company entered into a contribution agreement ( the “ contribution agreement ” ) by and between the company , recall , south centre and various other shareholders of recall ( the “ recall shareholders ” ) . the contribution agreement provided that the recall shareholders would contribute to the company all of the shares of recall held by the recall shareholders , which would result in recall becoming a wholly owned subsidiary of the company . story_separator_special_tag on december 28 , 2016 , the company issued an unsecured convertible promissory note in the principal amount of $ 50,000 to james lux ( the “ lender ” ) . the note bore interest at 5 % per annum , and due upon demand . results of operations for the year ended december 31 , 2016 compared to the year ended december 31 , 2015 replace_table_token_2_th 14 revenues for the year ended december 31 , 2016 were $ 208,000 as compared to $ 964,000 for the year ended december 31 , 2015. the decrease of $ 756,000 in revenue was due to the slowdown in production activities during the change in the company 's ownership in june 2016. the company continues to focus much of its efforts in the area of productions related to televised awards programming where it believes it has the expertise to grow in this sector . revenue recognition is deferred until product is delivered and accepted by our customers . our future revenue plan is , in part , dependent on our ability to effectively market the doorman pilot and close new viable acquisitions of film rights . cost of goods sold for the year ended december 31 , 2016 were $ 113,000 as compared to $ 792,000 for the year ended december 31 , 2015. this decrease was directly related to the 78 % decrease in revenues due to the acquisition and transition periods . operating expenses for the year ended december 31 , 2016 totaled $ 1,720,000 compared to $ 3,218,000 for the year ended december 31 , 2015. the decrease of 47 % was primarily attributable to a decrease in compensation expense , and professional fees due to the transitional period during the transfer of ownership . the company has realized a net loss of $ 10,136,000 for the year ended december 31 , 2016 compared to a net loss of $ 7,609,000 for the year ended december 31 , 2015. the increase in net loss of approximately $ 2,527,000 is primarily due to the change in fair value of derivatives of $ 8,870,000 , which is partially offset by a gain on extinguishment of derivative liability of $ 558,000. story_separator_special_tag serif ; font-size : 10pt `` > we believe the following critical accounting policies , among others , require significant judgments and estimates used in the preparation of our consolidated financial statements . revenue recognition the company 's high five entertainment subsidiary specializes in the development and presentation of quality television programming including series , specials , pilots , live events and award shows . it recognizes revenue from its live events and award show productions when all of the following criteria are met : ( i ) persuasive evidence of an arrangement exists , ( ii ) the show or live event has been completed and occurred and there are no future production obligations , ( iii ) the sales price is fixed or determinable , and ( iv ) collectability is reasonably assured . the company 's recall studios subsidiary produces software applications for third-parties on a consulting basis . revenues from these services are recognized when the following criteria are met : ( i ) persuasive evidence of an arrangement exists ; ( ii ) the show/episode is complete , and in accordance with the terms of the arrangement , has been delivered or is available for immediate and unconditional delivery ; ( iii ) the price to the customer is fixed and determinable ; and ( iv ) collectability is reasonably assured . 16 use of estimates the preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . actual results could differ from those estimates . those estimates and assumptions include depreciable lives of property and equipment , analysis of impairments of recorded goodwill , accruals for potential liabilities , assumptions made in valuing derivative liabilities and assumptions made in valuing stock instruments issued for services . stock-based compensation the company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs . the company accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by fasb where the value of the award is measured on the date of grant and recognized as compensation expense on the straight-line basis over the vesting period . the company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the fasb where the value of the stock compensation is based upon the measurement date as determined at either a ) the date at which a performance commitment is reached , or b ) at the date at which the necessary performance to earn the equity instruments is complete . options and warrants granted to non-employees are revalued each reporting period to determine the amount to be recorded as an expense in the respective period . as the options and warrants vest , they are valued on each vesting date and an adjustment is recorded for the difference between the value already recorded and the then current value on the date of vesting . in certain circumstances where there are no future performance requirements by the non-employee , option and warrant grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date . the fair value of the company 's stock option and warrant grants are estimated using the black-scholes-merton option pricing model , which uses certain assumptions related to risk-free interest rates , expected volatility , expected life of the stock options or warrants , and future dividends . compensation expense is

