uncertainties that affect our financial condition we spend a significant amount of cash on our operations , principally to procure raw materials for our products . many of our suppliers , including chestnut , vegetable and fruit farmers , and suppliers of packaging materials , require us to pay for their supplies in cash on the same day that such supplies are delivered to us . however , some of the suppliers with whom we have a long-standing business relationship allow us to pay on credit . we fund the majority of our working capital requirements out of cash flow generated from operations . if we fail to generate sufficient sales , or if our suppliers stop offering us credit terms , we may not have sufficient liquidity to fund our operating costs and our business could be adversely affected . we also funded approximately 37.7 % and 30.2 % of our working capital requirements in 2015 and 2016 , respectively , from the proceeds of short-term loans from chinese and foreign banks . we expect to continue to do so in the future . such loans are generally secured by our fixed assets , receivables and or guarantees by third parties . our average loan balance from short-term bank loans in 2016 and 2015were approximately $ 30.7 million and $ 39.0 million , respectively . the term of almost all such loans is one year or less . historically , we have rolled over such loans on an annual basis . however , in recent years , the chinese government has implemented more stringent credit policies to curb inflation and soaring property prices , which could negatively impact our ability to obtain or roll over these short term loans , and hence not having sufficient funds available to pay all of our borrowings upon maturity . failure to roll over our short-term borrowings at maturity or to service our debt could result in the imposition of penalties , including increases in rates of interest , legal actions against us by our creditors , or even insolvency . we obtained long term loans , private placement financing and a convertible promissory note during the period 2011 to 2014. we can provide no assurances that we will be able to enter into any future financing or refinancing agreements on terms favorable to us , especially considering the current instability of the capital markets . 26 we anticipate that our existing capital resources , including cash flows from operations , current and expected short-term bank loans will be adequate to satisfy our liquidity requirements through 2017. however , if available liquidity is not sufficient to meet our operating and loan obligations as they come due , our plans include considering pursuing alternative financing arrangements or further reducing expenditures as necessary to meet our cash requirements . however , there is no assurance that , if required , we will be able to raise additional capital or reduce discretionary spending to provide the required liquidity . currently , the capital markets for small capitalization companies are difficult and banking institutions have become stringent in their lending requirements . accordingly , we can not be sure of the availability or terms of any third party financing . in 2008 and 2009 , some of our customers , including some of our large supermarket customers , delayed their payments for up to 60 to 90 days beyond their term . our cash flow suffered while waiting for such payments . consequently , at times we had to delay payments to our suppliers and to postpone business expansion as a result of these delayed payments . starting in 2008 and through 2016 we gradually shortened credit terms for many of our domestic customers from between 30 and 180 days to between 30 and 60 days ; international customers are typically extended 90 days credit . our large customers may fail to meet these shortened credit terms , in which case we may not have sufficient cash flow to fund our operating costs and our business could be adversely affected . restatement of prior financial statements we have discovered errors in the timing of revenues recognized during the year ended december 31 , 2015. we recognize revenue upon shipping of products to its customers where title of the goods passes upon departure from our facilities ; however , in certain instances , contractual terms dictate that the customers are afforded seven days after the receipt of goods at their premises to inspect the goods for defects or spoilage and notify us . if we are not contacted within those seven days , our obligation to the customer are considered fully discharged and revenue should be recognized . given the timing of these seven days , we believe that certain sales transactions have been erroneously recognized during the year ended december 31 , 2015. we have rectified this error and the impact of our financial position and result of operations during the year ended december 31 , 2015. results of operations the following tables set forth key components of our results of operations for the periods indicated , and the differences between the two periods expressed in dollars and percentages . replace_table_token_5_th 27 year ended december 31 , 2016 compared to year ended december 31 , 2015 revenue net revenues . net revenues decreased by $ 61.0 million , or approximately 43.4 % , to $ 79.7 million in 2016 from $ 140.7 million in 2015. since 2015 , more competitors entered the convenience food industry that develop more types of products . our current products have not met customers ' demand in the most recent year due to our failure to invest in research and development . in addition , we have faced significant competition from chinese online ordering platforms since 2015 , which platforms offer convenient and efficient meals directly from restaurants . story_separator_special_tag 29 income taxes income taxes decreased approximately $ 1.5 million , or 43.5 % , to $ 1.9 million in 2016 , as compared to $ 3.4 million in 2015. this decrease was attributable to the lower income ( excluding impairment ) earned in 2016 as compared to 2015. non-controlling interest shandong economic development investment holds 19.8 % of the equity of our subsidiary shandong lorain , and biobranco ii , alcides branco , and nuno branco hold 49 % of the equity of the athena group , which is reflected in the non-controlling interest of $ 7.3million in 2016 and $ 7.7million in 2015. loss attributable to common stockholders loss attributable to common stockholders decreased $ 138.6 million , or 5,290.7 % , to negative $ 135.9 million in 2016 from $ 2.6 million in 2015. as our 51 % controlled overseas subsidiaries suffered loss in 2016 , its minority shareholders bore their proportion of loss . story_separator_special_tag carrying amount of the assets exceeds the fair value of the assets . assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell . the company recognized impairment losses on certain long-lived assets during 2016. revenue recognition the company 's revenue recognition policies are in compliance with staff accounting bulletin ( sab ) 104. sales revenue is recognized at the date of shipment to customers when a formal arrangement exists , the price is fixed or determinable , the delivery is completed , no other significant obligations of the company exist and collectibility is reasonably assured . payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue . the company 's revenue consists of invoiced value of goods , net of a value-added tax ( vat ) . the company allows its customers to return products if they are defective . however , this rarely happens and amounts returned have been de minimis . financial instruments the company 's financial instruments , including cash and equivalents , accounts and other receivables , accounts and other payables , accrued liabilities and short-term debt , have carrying amounts that approximate their fair values due to their short maturities . asc topic 820 , fair value measurements and disclosures ,  requires disclosure of the fair value of financial instruments held by the company . asc topic 825 , financial instruments ,  defines fair value , and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures . the carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest . the three levels of valuation hierarchy are defined as follows : 32 level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets . level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets , and inputs that are observable for the asset or liability , either directly or indirectly , for substantially the full term of the financial instrument . level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement . the company analyzes all financial instruments with features of both liabilities and equity under asc 480 , distinguishing liabilities from equity ,  and asc 815. as of december 31 , 2016 and 2015 , the company did not identify any assets and liabilities whose carrying amounts were required to be adjusted in order to present them at fair value . recent accounting pronouncements in january 2015 , the fasb issued asu no . 2015-01 , income statementextraordinary and unusual items ( subtopic 225-20 )  . this update eliminates from gaap the concept of extraordinary items . subtopic 225-20 , income statementextraordinary and unusual items , required that an entity separately classify , present , and disclose extraordinary events and transactions . presently , an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item . paragraph 225-20-45-2 contains the following criteria that must both be met for extraordinary classification : 1. unusual nature . the underlying event or transaction should possess a high degree of abnormality and be of a type clearly unrelated to , or only incidentally related to , the ordinary and typical activities of the entity , taking into account the environment in which the entity operates . 2. infrequency of occurrence . the underlying event or transaction should be of a type that would not reasonably be expected to recur in the foreseeable future , taking into account the environment in which the entity operates . if an event or transaction meets the criteria for extraordinary classification , an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement , net of tax after income from continuing operations . the entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item . the amendments in this update are effective for fiscal years , and interim periods within those fiscal years , beginning after december 15 , 2015. a reporting entity may apply the amendments prospectively . a reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements . early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption . the effective date is the same for both public business entities and all other entities . the company adopted asu no

liquidity and capital resources general the financial statements have been prepared on a going-concern basis . the going-concern basis assumes that assets will be realized and liabilities will be settled in the ordinary course of business in the amounts disclosed in the financial statements . our ability to continue as a going concern is greatly dependent on our ability to realize its non-cash current assets such as receivables and inventory into cash in order to settle its current obligations . for the year ended december 31 , 2016 , we incurred a substantial loss of $ 136,361,080. as of december 31 , 2016 , we had a working capital deficit of approximately $ 21,271,226. these conditions raise substantial doubt as to whether we may continue as a going concern . our primary capital needs have been to fund the working capital requirements necessitated by our sales growth , adding new products and expanding our facilities . in the past , our primary sources of financing have been cash generated from operations and short-term loans from banks in china . in addition , we obtained long term loans , private placement financing and convertible promissory note during the period 2011 to 2015. at december 31 , 2016 and 2015 , cash and cash equivalents ( including restricted cash ) were $ 1.4 million and $ 25.5 million , respectively . the debt to assets ratio was 55.4 % and 31.3 % as of december 31 , 2016 and 2015 , respectively . we expect to continue to finance our operations and working capital needs in 2017 from cash generated from operations , short-term bank loans . as such , we are in discussions regarding potential financing transactions . if available liquidity is not sufficient to meet our operating and loan obligations as they come due , our plans include pursuing alternative financing arrangements or reducing expenditures as necessary to meet our cash requirements . however , there is no assurance that we will be able to raise additional capital or reduce discretionary spending to provide liquidity , if needed . currently , the capital markets for small capitalization companies are difficult .


 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 general the financial statements have been prepared on a going-concern basis . the going-concern basis assumes that assets will be realized and liabilities will be settled in the ordinary course of business in the amounts disclosed in the financial statements . our ability to continue as a going concern is greatly dependent on our ability to realize its non-cash current assets such as receivables and inventory into cash in order to settle its current obligations . for the year ended december 31 , 2016 , we incurred a substantial loss of $ 136,361,080. as of december 31 , 2016 , we had a working capital deficit of approximately $ 21,271,226. these conditions raise substantial doubt as to whether we may continue as a going concern . our primary capital needs have been to fund the working capital requirements necessitated by our sales growth , adding new products and expanding our facilities . in the past , our primary sources of financing have been cash generated from operations and short-term loans from banks in china . in addition , we obtained long term loans , private placement financing and convertible promissory note during the period 2011 to 2015. at december 31 , 2016 and 2015 , cash and cash equivalents ( including restricted cash ) were $ 1.4 million and $ 25.5 million , respectively . the debt to assets ratio was 55.4 % and 31.3 % as of december 31 , 2016 and 2015 , respectively . we expect to continue to finance our operations and working capital needs in 2017 from cash generated from operations , short-term bank loans . as such , we are in discussions regarding potential financing transactions . if available liquidity is not sufficient to meet our operating and loan obligations as they come due , our plans include pursuing alternative financing arrangements or reducing expenditures as necessary to meet our cash requirements . however , there is no assurance that we will be able to raise additional capital or reduce discretionary spending to provide liquidity , if needed . currently , the capital markets for small capitalization companies are difficult .
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 Suspicious Activity Report : uncertainties that affect our financial condition we spend a significant amount of cash on our operations , principally to procure raw materials for our products . many of our suppliers , including chestnut , vegetable and fruit farmers , and suppliers of packaging materials , require us to pay for their supplies in cash on the same day that such supplies are delivered to us . however , some of the suppliers with whom we have a long-standing business relationship allow us to pay on credit . we fund the majority of our working capital requirements out of cash flow generated from operations . if we fail to generate sufficient sales , or if our suppliers stop offering us credit terms , we may not have sufficient liquidity to fund our operating costs and our business could be adversely affected . we also funded approximately 37.7 % and 30.2 % of our working capital requirements in 2015 and 2016 , respectively , from the proceeds of short-term loans from chinese and foreign banks . we expect to continue to do so in the future . such loans are generally secured by our fixed assets , receivables and or guarantees by third parties . our average loan balance from short-term bank loans in 2016 and 2015were approximately $ 30.7 million and $ 39.0 million , respectively . the term of almost all such loans is one year or less . historically , we have rolled over such loans on an annual basis . however , in recent years , the chinese government has implemented more stringent credit policies to curb inflation and soaring property prices , which could negatively impact our ability to obtain or roll over these short term loans , and hence not having sufficient funds available to pay all of our borrowings upon maturity . failure to roll over our short-term borrowings at maturity or to service our debt could result in the imposition of penalties , including increases in rates of interest , legal actions against us by our creditors , or even insolvency . we obtained long term loans , private placement financing and a convertible promissory note during the period 2011 to 2014. we can provide no assurances that we will be able to enter into any future financing or refinancing agreements on terms favorable to us , especially considering the current instability of the capital markets . 26 we anticipate that our existing capital resources , including cash flows from operations , current and expected short-term bank loans will be adequate to satisfy our liquidity requirements through 2017. however , if available liquidity is not sufficient to meet our operating and loan obligations as they come due , our plans include considering pursuing alternative financing arrangements or further reducing expenditures as necessary to meet our cash requirements . however , there is no assurance that , if required , we will be able to raise additional capital or reduce discretionary spending to provide the required liquidity . currently , the capital markets for small capitalization companies are difficult and banking institutions have become stringent in their lending requirements . accordingly , we can not be sure of the availability or terms of any third party financing . in 2008 and 2009 , some of our customers , including some of our large supermarket customers , delayed their payments for up to 60 to 90 days beyond their term . our cash flow suffered while waiting for such payments . consequently , at times we had to delay payments to our suppliers and to postpone business expansion as a result of these delayed payments . starting in 2008 and through 2016 we gradually shortened credit terms for many of our domestic customers from between 30 and 180 days to between 30 and 60 days ; international customers are typically extended 90 days credit . our large customers may fail to meet these shortened credit terms , in which case we may not have sufficient cash flow to fund our operating costs and our business could be adversely affected . restatement of prior financial statements we have discovered errors in the timing of revenues recognized during the year ended december 31 , 2015. we recognize revenue upon shipping of products to its customers where title of the goods passes upon departure from our facilities ; however , in certain instances , contractual terms dictate that the customers are afforded seven days after the receipt of goods at their premises to inspect the goods for defects or spoilage and notify us . if we are not contacted within those seven days , our obligation to the customer are considered fully discharged and revenue should be recognized . given the timing of these seven days , we believe that certain sales transactions have been erroneously recognized during the year ended december 31 , 2015. we have rectified this error and the impact of our financial position and result of operations during the year ended december 31 , 2015. results of operations the following tables set forth key components of our results of operations for the periods indicated , and the differences between the two periods expressed in dollars and percentages . replace_table_token_5_th 27 year ended december 31 , 2016 compared to year ended december 31 , 2015 revenue net revenues . net revenues decreased by $ 61.0 million , or approximately 43.4 % , to $ 79.7 million in 2016 from $ 140.7 million in 2015. since 2015 , more competitors entered the convenience food industry that develop more types of products . our current products have not met customers ' demand in the most recent year due to our failure to invest in research and development . in addition , we have faced significant competition from chinese online ordering platforms since 2015 , which platforms offer convenient and efficient meals directly from restaurants . story_separator_special_tag 29 income taxes income taxes decreased approximately $ 1.5 million , or 43.5 % , to $ 1.9 million in 2016 , as compared to $ 3.4 million in 2015. this decrease was attributable to the lower income ( excluding impairment ) earned in 2016 as compared to 2015. non-controlling interest shandong economic development investment holds 19.8 % of the equity of our subsidiary shandong lorain , and biobranco ii , alcides branco , and nuno branco hold 49 % of the equity of the athena group , which is reflected in the non-controlling interest of $ 7.3million in 2016 and $ 7.7million in 2015. loss attributable to common stockholders loss attributable to common stockholders decreased $ 138.6 million , or 5,290.7 % , to negative $ 135.9 million in 2016 from $ 2.6 million in 2015. as our 51 % controlled overseas subsidiaries suffered loss in 2016 , its minority shareholders bore their proportion of loss . story_separator_special_tag carrying amount of the assets exceeds the fair value of the assets . assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell . the company recognized impairment losses on certain long-lived assets during 2016. revenue recognition the company 's revenue recognition policies are in compliance with staff accounting bulletin ( sab ) 104. sales revenue is recognized at the date of shipment to customers when a formal arrangement exists , the price is fixed or determinable , the delivery is completed , no other significant obligations of the company exist and collectibility is reasonably assured . payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue . the company 's revenue consists of invoiced value of goods , net of a value-added tax ( vat ) . the company allows its customers to return products if they are defective . however , this rarely happens and amounts returned have been de minimis . financial instruments the company 's financial instruments , including cash and equivalents , accounts and other receivables , accounts and other payables , accrued liabilities and short-term debt , have carrying amounts that approximate their fair values due to their short maturities . asc topic 820 , fair value measurements and disclosures ,  requires disclosure of the fair value of financial instruments held by the company . asc topic 825 , financial instruments ,  defines fair value , and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures . the carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest . the three levels of valuation hierarchy are defined as follows : 32 level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets . level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets , and inputs that are observable for the asset or liability , either directly or indirectly , for substantially the full term of the financial instrument . level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement . the company analyzes all financial instruments with features of both liabilities and equity under asc 480 , distinguishing liabilities from equity ,  and asc 815. as of december 31 , 2016 and 2015 , the company did not identify any assets and liabilities whose carrying amounts were required to be adjusted in order to present them at fair value . recent accounting pronouncements in january 2015 , the fasb issued asu no . 2015-01 , income statementextraordinary and unusual items ( subtopic 225-20 )  . this update eliminates from gaap the concept of extraordinary items . subtopic 225-20 , income statementextraordinary and unusual items , required that an entity separately classify , present , and disclose extraordinary events and transactions . presently , an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item . paragraph 225-20-45-2 contains the following criteria that must both be met for extraordinary classification : 1. unusual nature . the underlying event or transaction should possess a high degree of abnormality and be of a type clearly unrelated to , or only incidentally related to , the ordinary and typical activities of the entity , taking into account the environment in which the entity operates . 2. infrequency of occurrence . the underlying event or transaction should be of a type that would not reasonably be expected to recur in the foreseeable future , taking into account the environment in which the entity operates . if an event or transaction meets the criteria for extraordinary classification , an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement , net of tax after income from continuing operations . the entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item . the amendments in this update are effective for fiscal years , and interim periods within those fiscal years , beginning after december 15 , 2015. a reporting entity may apply the amendments prospectively . a reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements . early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption . the effective date is the same for both public business entities and all other entities . the company adopted asu no

