through our acquisitions of 108 patents and patent applications from rockstar consortium us , lp and acquisition of several hundred patents issued to harris corporation as a result of our acquisition of north south , we have expanded our activities in wireless communications and telecommunication sectors including antenna technology , wi-fi , base station functionality and cellular . our activities generally include the acquisition and development of patents through internal or external research and development . in addition , we seek to acquire existing rights to intellectual property through the acquisition of already issued patents and pending patent applications , both in the united states and abroad . we may alone , or in conjunction with others , develop products and processes associated with our intellectual property and license our intellectual property to others seeking to develop products or processes or whose products or processes infringe our intellectual property rights through legal processes . using our patented technologies , we employ strategies seeking to permit us to derive value from licensing , commercialization , settlement and litigation from our patents . we will continue to seek to obtain patents from inventors and patent owners to monetize patent portfolios . critical accounting policies accounting for warrants we account for the issuance of common stock purchase warrants issued in connection with the equity offerings in accordance with the provisions of accounting standards codification ( “ asc ” ) 815 , derivatives and hedging ( “ asc 815 ” ) . we classify as equity any contracts that ( i ) require physical settlement or net-share settlement or ( ii ) gives the company a choice of net-cash settlement or settlement in its own shares ( physical settlement or net-share settlement ) . we classify as assets or liabilities any contracts that ( i ) require net-cash settlement ( including a requirement to net-cash settle the contract if an event occurs and if that event is outside the control of the company ) or ( ii ) gives the counterparty a choice of net-cash settlement or settlement in shares ( physical settlement or net-share settlement ) . in addition , under asc 815 , registered common stock warrants that require the issuance of registered shares upon exercise and do not expressly preclude an implied right to cash settlement are accounted for as derivative liabilities . we classify these derivative warrant liabilities on the consolidated balance sheet as a current liability . 19 we assess the classification of our common stock purchase warrants as of the date of each offering and determined that such instruments met the criteria for liability classification . the warrants are reported on the consolidated balance sheets as a warrant liability at fair value using the black-scholes valuation method . changes in the estimated fair value of the warrants result in the consolidated statement of operations as “ change in the fair value of warrant liabilities ” . convertible preferred stock we account for convertible preferred stock with detachable warrants in accordance with asc 470 : debt and allocated proceeds received to the convertible preferred stock and detachable warrants based on relative fair values . we evaluated the classification of our convertible preferred stock and warrants and determined that such instruments meet the criteria for equity classification . we recorded the related issuance costs and value ascribed to the warrants as a reduction of the convertible preferred stock . we have also evaluated our convertible preferred stock and warrants in accordance with the provisions of asc 815 , derivatives and hedging , including consideration of embedded derivatives requiring bifurcation . the issuance of the convertible preferred stock generated a beneficial conversion feature ( “ bcf ” ) , which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor or in the money at inception because the conversion option has an effective strike price that is less than the market price of the underlying stock at the commitment date . we recognized the bcf by allocating the intrinsic value of the conversion option , which is the number of shares of common stock available upon conversion multiplied by the difference between the effective conversion price per share and the fair value of common stock per share on the commitment date , to additional paid-in capital , resulting in a discount on the convertible preferred stock . as the convertible preferred stock may be converted immediately , we have disclosed the bcf as a deemed dividend on the consolidated statements of operations . stock-based compensation we account for share-based payment awards exchanged for employee services at the estimated grant date fair value of the award . stock options issued under our long-term incentive plans are granted with an exercise price equal to no less than the market price of our stock at the date of grant and expire up to ten years from the date of grant . these options generally vest over a one- to five-year period . the fair value of stock options granted was determined on the grant date by using a black-scholes model valuation with assumptions for risk free interest rate , the expected term , expected volatility , and expected dividend yield . the risk free interest rate is based on u.s. treasury zero-coupon yield curve over the expected term of the option . the expected term assumption is determined using the weighted average midpoint between vest and expiration for all individuals within the grant . the volatility rate was computed based on the standard deviation of our underlying stock price 's daily logarithmic returns . story_separator_special_tag this test requires various judgments and estimates . we estimate the fair value of the reporting unit using a market approach in combination with a discounted operating cash flow approach . impairment of goodwill is measured as the excess of the carrying amount of goodwill over the fair values of recognized and unrecognized assets and liabilities of the reporting unit . an adjustment to goodwill will be recorded for any goodwill that is determined to be impaired . we test goodwill for impairment at least annually in conjunction with the preparation of our annual business plan , or more frequently if events or circumstances indicate it might be impaired . accounting standards update ( “ asu ” ) 2010-28 modifies step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts . for those reporting units , an entity is required to perform step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists . in determining whether it is more likely than not that goodwill impairment exists , an entity should consider whether there are any adverse qualitative factors indicating that impairment may exist . recently issued accounting pronouncements see note 3 to the consolidated financial statements for a discussion of recent accounting standards and pronouncements . results of operations fiscal year ended december 31 , 2016 compared to fiscal year ended december 31 , 2015 for the year ended december 31 , 2016 , we incurred a loss from operations of $ 8.6 million , a decrease of $ 43.4 million , as compared to $ 52.0 million in 2015. the decrease in net loss was primarily attributed to a $ 37.9 million decrease in impairment charge taken against the goodwill and intangible assets , and $ 4.2 million decrease in amortization of patent portfolio expense , partially offset by a $ 226,000 increase in compensation and related expenses . during the years ended december 31 , 2016 and 2015 , we recorded $ 2.1 million and $ 6.3 million , respectively , in amortization expenses related to the rockstar patents acquired by the company during 2013. for the year ended december 31 , 2016 , revenue was approximately $ 0.9 million , which is the amortization of deferred revenue related to rpx license agreements . for the year ended december 31 , 2015 , the revenue was nominal . for the year ended december 31 , 2016 , we recorded income related to a non-cash fair value adjustment on our warrant liability of approximately $ 2.3 million , compared to $ 269,000 of income in 2015. fair value adjustments for warrant liabilities is the result of the change in the carrying amount of the warrant liability caused by changes in the fair value as determined using a black-scholes valuation method . in addition , during the year ended december 31 , 2016 , we recorded other expenses , net of $ 182,000 compared to other income , net of $ 276,000 in 2015. during the year ended december 2015 , the company received $ 295,000 related to the settlement of the huawei case in 2015 . 21 for the year ended december 31 , 2016 , we incurred a $ 31.5 million of deemed capital contribution on preferred stock related to the cancellation of 381,967 shares of series h preferred stock pursuant to the rpx license agreement compared with a $ 9.5 million of deemed capital contribution on preferred stock related to the assignment to us of 29,940 shares of our series i preferred stock and 57,076 shares of our series h preferred stock and the subsequent cancellation thereof pursuant to the rpx license agreement . liquidity and capital resources we continue to incur ongoing administrative and other expenses , including public company expenses , in excess of corresponding revenue . we intend to finance our activities through : · managing current cash and cash equivalents on hand from our past equity offerings , · seeking additional funds raised through the sale of additional securities in the future , · seeking additional liquidity through credit facilities or other debt arrangements , and · increasing revenue from the monetization of its patent portfolios , license fees and new business ventures . story_separator_special_tag on a number of factors , including the market conditions at that time , our cash position at that time and the availability and terms of alternative sources of capital . rockstar will be entitled to receive a contingent recovery percentage of future profits ( “ participation payments ” ) from licensing , settlements and judgments against defendants with respect to patents purchased under the first patent purchase agreement ; however , no payment is required unless the company receives a recovery . the participation payments under the first patent purchase agreement are equal to zero percent until the company recovers with respect to patents purchased under the first patent purchase agreement at least ( a ) $ 8.0 million or ( b ) if we recover less than $ 17.0 million , an amount equal to $ 5.0 million plus $ 3.0 million times a fraction equal to total recoveries minus $ 10.0 million , divided by $ 7.0 million ( clause ( a ) or ( b ) , as applicable , being the “ initial return ” ) , in each case net of certain expenses . once we obtain recoveries in excess of the initial return , we are required to make a payment to rockstar of $ 13.0 million , payable only from the proceeds of such recovery , within six months after such recovery . in addition , no later than 30 days after the end of each quarter in which we make such a recovery , we are required to pay to rockstar a percentage of such recovery , net of certain expenses , scaling from 30 % if such cumulative recoveries net of certain expenses

cash flows from operating activities - for the year ended december 31 , 2016 , net cash provided by operations was $ 70,000 compared to net cash used in operations of $ 4.6 million for the year ended december 31 , 2015. the cash provided by operating activities for the year ended december 31 , 2016 primarily resulted from significant non-cash charges related to impairment of intangibles of $ 2.7 million , amortization expenses of $ 2.1 million , stock-based compensation expense of approximately $ 0.6 million and approximately $ 3.5 million of deferred revenue , partially offset by approximately $ 6.5 million net loss and $ 2.3 million of change in fair value of warrant liabilities . the cash used in operating activities for the year ended december 31 , 2015 primarily resulted from our net loss of $ 51.5 million and a fair value adjustment of warrant liabilities of $ 0.3 million , offset by significant non-cash charges related to impairment of goodwill and intangibles of $ 40.6 million , amortization expenses of $ 6.3 million , stock-based compensation expense of $ 0.4 million , plus a $ 0.2 million increase in cash from changes in operating assets and liabilities . cash flows from investing activities - for the year ended december 31 , 2016 , net cash used in investing activities was approximately $ 3.0 million . the cash used in investing activities primarily resulted from our purchase of marketable securities for the year ended december 31 , 2016 of approximately $ 18.0 million and purchase of property and equipment of approximately $ 4,000 , partially offset by sale of marketable securities of approximately $ 15.1 million . for the year ended december 31 , 2015 , net cash provided by investing activities was $ 0.1 million . we purchased $ 8.0 million and sold $ 8.1 million of marketable securities in 2015. cash flows from financing activities - net cash flows provided by financing activities during the year ended december 31 , 2016 was $ 2.9 million compared to net cash provided by financing activities of $ 3.8 million in the year ended december 31 , 2015.


 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.
     ```cash flows from operating activities - for the year ended december 31 , 2016 , net cash provided by operations was $ 70,000 compared to net cash used in operations of $ 4.6 million for the year ended december 31 , 2015. the cash provided by operating activities for the year ended december 31 , 2016 primarily resulted from significant non-cash charges related to impairment of intangibles of $ 2.7 million , amortization expenses of $ 2.1 million , stock-based compensation expense of approximately $ 0.6 million and approximately $ 3.5 million of deferred revenue , partially offset by approximately $ 6.5 million net loss and $ 2.3 million of change in fair value of warrant liabilities . the cash used in operating activities for the year ended december 31 , 2015 primarily resulted from our net loss of $ 51.5 million and a fair value adjustment of warrant liabilities of $ 0.3 million , offset by significant non-cash charges related to impairment of goodwill and intangibles of $ 40.6 million , amortization expenses of $ 6.3 million , stock-based compensation expense of $ 0.4 million , plus a $ 0.2 million increase in cash from changes in operating assets and liabilities . cash flows from investing activities - for the year ended december 31 , 2016 , net cash used in investing activities was approximately $ 3.0 million . the cash used in investing activities primarily resulted from our purchase of marketable securities for the year ended december 31 , 2016 of approximately $ 18.0 million and purchase of property and equipment of approximately $ 4,000 , partially offset by sale of marketable securities of approximately $ 15.1 million . for the year ended december 31 , 2015 , net cash provided by investing activities was $ 0.1 million . we purchased $ 8.0 million and sold $ 8.1 million of marketable securities in 2015. cash flows from financing activities - net cash flows provided by financing activities during the year ended december 31 , 2016 was $ 2.9 million compared to net cash provided by financing activities of $ 3.8 million in the year ended december 31 , 2015.
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 Suspicious Activity Report : through our acquisitions of 108 patents and patent applications from rockstar consortium us , lp and acquisition of several hundred patents issued to harris corporation as a result of our acquisition of north south , we have expanded our activities in wireless communications and telecommunication sectors including antenna technology , wi-fi , base station functionality and cellular . our activities generally include the acquisition and development of patents through internal or external research and development . in addition , we seek to acquire existing rights to intellectual property through the acquisition of already issued patents and pending patent applications , both in the united states and abroad . we may alone , or in conjunction with others , develop products and processes associated with our intellectual property and license our intellectual property to others seeking to develop products or processes or whose products or processes infringe our intellectual property rights through legal processes . using our patented technologies , we employ strategies seeking to permit us to derive value from licensing , commercialization , settlement and litigation from our patents . we will continue to seek to obtain patents from inventors and patent owners to monetize patent portfolios . critical accounting policies accounting for warrants we account for the issuance of common stock purchase warrants issued in connection with the equity offerings in accordance with the provisions of accounting standards codification ( “ asc ” ) 815 , derivatives and hedging ( “ asc 815 ” ) . we classify as equity any contracts that ( i ) require physical settlement or net-share settlement or ( ii ) gives the company a choice of net-cash settlement or settlement in its own shares ( physical settlement or net-share settlement ) . we classify as assets or liabilities any contracts that ( i ) require net-cash settlement ( including a requirement to net-cash settle the contract if an event occurs and if that event is outside the control of the company ) or ( ii ) gives the counterparty a choice of net-cash settlement or settlement in shares ( physical settlement or net-share settlement ) . in addition , under asc 815 , registered common stock warrants that require the issuance of registered shares upon exercise and do not expressly preclude an implied right to cash settlement are accounted for as derivative liabilities . we classify these derivative warrant liabilities on the consolidated balance sheet as a current liability . 19 we assess the classification of our common stock purchase warrants as of the date of each offering and determined that such instruments met the criteria for liability classification . the warrants are reported on the consolidated balance sheets as a warrant liability at fair value using the black-scholes valuation method . changes in the estimated fair value of the warrants result in the consolidated statement of operations as “ change in the fair value of warrant liabilities ” . convertible preferred stock we account for convertible preferred stock with detachable warrants in accordance with asc 470 : debt and allocated proceeds received to the convertible preferred stock and detachable warrants based on relative fair values . we evaluated the classification of our convertible preferred stock and warrants and determined that such instruments meet the criteria for equity classification . we recorded the related issuance costs and value ascribed to the warrants as a reduction of the convertible preferred stock . we have also evaluated our convertible preferred stock and warrants in accordance with the provisions of asc 815 , derivatives and hedging , including consideration of embedded derivatives requiring bifurcation . the issuance of the convertible preferred stock generated a beneficial conversion feature ( “ bcf ” ) , which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor or in the money at inception because the conversion option has an effective strike price that is less than the market price of the underlying stock at the commitment date . we recognized the bcf by allocating the intrinsic value of the conversion option , which is the number of shares of common stock available upon conversion multiplied by the difference between the effective conversion price per share and the fair value of common stock per share on the commitment date , to additional paid-in capital , resulting in a discount on the convertible preferred stock . as the convertible preferred stock may be converted immediately , we have disclosed the bcf as a deemed dividend on the consolidated statements of operations . stock-based compensation we account for share-based payment awards exchanged for employee services at the estimated grant date fair value of the award . stock options issued under our long-term incentive plans are granted with an exercise price equal to no less than the market price of our stock at the date of grant and expire up to ten years from the date of grant . these options generally vest over a one- to five-year period . the fair value of stock options granted was determined on the grant date by using a black-scholes model valuation with assumptions for risk free interest rate , the expected term , expected volatility , and expected dividend yield . the risk free interest rate is based on u.s. treasury zero-coupon yield curve over the expected term of the option . the expected term assumption is determined using the weighted average midpoint between vest and expiration for all individuals within the grant . the volatility rate was computed based on the standard deviation of our underlying stock price 's daily logarithmic returns . story_separator_special_tag this test requires various judgments and estimates . we estimate the fair value of the reporting unit using a market approach in combination with a discounted operating cash flow approach . impairment of goodwill is measured as the excess of the carrying amount of goodwill over the fair values of recognized and unrecognized assets and liabilities of the reporting unit . an adjustment to goodwill will be recorded for any goodwill that is determined to be impaired . we test goodwill for impairment at least annually in conjunction with the preparation of our annual business plan , or more frequently if events or circumstances indicate it might be impaired . accounting standards update ( “ asu ” ) 2010-28 modifies step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts . for those reporting units , an entity is required to perform step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists . in determining whether it is more likely than not that goodwill impairment exists , an entity should consider whether there are any adverse qualitative factors indicating that impairment may exist . recently issued accounting pronouncements see note 3 to the consolidated financial statements for a discussion of recent accounting standards and pronouncements . results of operations fiscal year ended december 31 , 2016 compared to fiscal year ended december 31 , 2015 for the year ended december 31 , 2016 , we incurred a loss from operations of $ 8.6 million , a decrease of $ 43.4 million , as compared to $ 52.0 million in 2015. the decrease in net loss was primarily attributed to a $ 37.9 million decrease in impairment charge taken against the goodwill and intangible assets , and $ 4.2 million decrease in amortization of patent portfolio expense , partially offset by a $ 226,000 increase in compensation and related expenses . during the years ended december 31 , 2016 and 2015 , we recorded $ 2.1 million and $ 6.3 million , respectively , in amortization expenses related to the rockstar patents acquired by the company during 2013. for the year ended december 31 , 2016 , revenue was approximately $ 0.9 million , which is the amortization of deferred revenue related to rpx license agreements . for the year ended december 31 , 2015 , the revenue was nominal . for the year ended december 31 , 2016 , we recorded income related to a non-cash fair value adjustment on our warrant liability of approximately $ 2.3 million , compared to $ 269,000 of income in 2015. fair value adjustments for warrant liabilities is the result of the change in the carrying amount of the warrant liability caused by changes in the fair value as determined using a black-scholes valuation method . in addition , during the year ended december 31 , 2016 , we recorded other expenses , net of $ 182,000 compared to other income , net of $ 276,000 in 2015. during the year ended december 2015 , the company received $ 295,000 related to the settlement of the huawei case in 2015 . 21 for the year ended december 31 , 2016 , we incurred a $ 31.5 million of deemed capital contribution on preferred stock related to the cancellation of 381,967 shares of series h preferred stock pursuant to the rpx license agreement compared with a $ 9.5 million of deemed capital contribution on preferred stock related to the assignment to us of 29,940 shares of our series i preferred stock and 57,076 shares of our series h preferred stock and the subsequent cancellation thereof pursuant to the rpx license agreement . liquidity and capital resources we continue to incur ongoing administrative and other expenses , including public company expenses , in excess of corresponding revenue . we intend to finance our activities through : · managing current cash and cash equivalents on hand from our past equity offerings , · seeking additional funds raised through the sale of additional securities in the future , · seeking additional liquidity through credit facilities or other debt arrangements , and · increasing revenue from the monetization of its patent portfolios , license fees and new business ventures . story_separator_special_tag on a number of factors , including the market conditions at that time , our cash position at that time and the availability and terms of alternative sources of capital . rockstar will be entitled to receive a contingent recovery percentage of future profits ( “ participation payments ” ) from licensing , settlements and judgments against defendants with respect to patents purchased under the first patent purchase agreement ; however , no payment is required unless the company receives a recovery . the participation payments under the first patent purchase agreement are equal to zero percent until the company recovers with respect to patents purchased under the first patent purchase agreement at least ( a ) $ 8.0 million or ( b ) if we recover less than $ 17.0 million , an amount equal to $ 5.0 million plus $ 3.0 million times a fraction equal to total recoveries minus $ 10.0 million , divided by $ 7.0 million ( clause ( a ) or ( b ) , as applicable , being the “ initial return ” ) , in each case net of certain expenses . once we obtain recoveries in excess of the initial return , we are required to make a payment to rockstar of $ 13.0 million , payable only from the proceeds of such recovery , within six months after such recovery . in addition , no later than 30 days after the end of each quarter in which we make such a recovery , we are required to pay to rockstar a percentage of such recovery , net of certain expenses , scaling from 30 % if such cumulative recoveries net of certain expenses

