we recognize revenue when the following four basic criteria have been met : ( 1 ) persuasive evidence of a sales arrangement exists ; ( 2 ) performance of services has occurred , ( 3 ) the sales price is fixed or determinable , and ( 4 ) collectability is reasonably assured . we consider persuasive evidence of a merchant processing sales arrangement to be the receipt of a billable transaction from aggregators or a signed contract . revenue for access to branded content is recognized monthly as the mobile subscribers purchase access to content . service fee revenue from the aptito saas fees is monthly recognized when billed unless collectability is considered an issue . collectability is assessed based on a number of factors , including transaction history with the customer and the credit worthiness of the customer . if it is determined that the collection is not reasonably assured , revenue is not recognized until collection becomes reasonably assured , which is generally upon receipt of cash . we record cash received in advance of revenue recognition as deferred revenue . reserve for loan losses . we monitor all accounts receivable , notes receivable and transactions with mobile operators and aggregators on a quarterly basis to ensure collectability and the adequacy of loss provisions . considerations include payment history , business volume history , financial statements of borrower , projections of borrower and other standard credit review documentation . management uses its best judgment to adequately reserve for future losses after all available information is reviewed . during 2017 digital provider had recovered approximately $ 0.1 million of advances previously reserved . during 2016 digital provider had $ 0.5 million of bad debt expenses . during 2017 and 2016 , we recognized $ 1,408,908 and $ 1,173,815 for net ach rejects that occurred in the normal course of business . 31 deferred taxes . estimates of deferred income taxes and items giving rise to deferred tax assets and liabilities reflect management 's assessment of actual future taxes to be paid on items reflected in the financial statements , giving consideration to both timing and the probability of their realization . actual income taxes could vary from these estimates for a variety of reasons , including changes in tax law , operating results that vary from budget or the review of our tax returns by the irs . results of operations for the year ended december 31 , 2017 compared to the year ended december 31 , 2016 we reported a net loss attributable to common stockholders of $ 9,913,485 or ( $ 5.04 ) per share for the year ended december 31 , 2017 as compared to a net loss of $ 13,487,537 or ( $ 10.33 ) per share for the year ended december 31 , 2016. this resulted in a decrease in net loss attributable to stockholders of $ 3,574,052 primarily due to an increase in revenues , decreases in depreciation , amortization and interest expenses , partially offset by an increase in general and administrative expenses . net loss attributable to stockholders for the year ended december 31 , 2016 was also negatively affected by an expense for loss from stock value guarantee related to the payonline acquisition . the following table sets forth our sources of revenues , cost of revenues and gross margins for the years ended december 31 , 2017 and 2016. gross margin analysis replace_table_token_4_th replace_table_token_5_th replace_table_token_6_th net revenues consist primarily of service fees from transaction processing . net revenues were $ 60,064,824 for the year ended december 31 , 2017 as compared to $ 54,286,859 for the year ended december 31 , 2016. the increase in net revenues is primarily due to continued organic growth of north american merchants with emphasis on value-added offerings partially offset by a $ 3,229,460 decrease in net revenues from our international transaction solutions segment as we experience increased competition , decreased margins and reorganizing assignments from our international transaction solutions segment . cost of revenues represents direct costs of generating revenues , including commissions , mobile operator fees , purchases of short numbers , interchange expense and processing fees . cost of revenues for the year ended december 31 , 2017 were $ 51,237,212 as compared to $ 45,708,241 for the year ended december 31 , 2016. the year over year increase in cost of revenues of $ 5,528,971 was driven by a $ 7,922,799 increase due to increased north american transaction solutions sales for the year ended december 31 , 2017. this was partially offset by a $ 2,393,828 decrease in the international transaction solutions segment cost of revenues due to the decrease in international transaction solutions revenues from digital provider . gross margin for the year ended december 31 , 2017 was $ 8,827,613 , or 14.7 % of net revenue , as compared to $ 8,578,618 , or 15.8 % of net revenue , for the year ended december 31 , 2016. the primary reason gross margin percentages decreased was due to increased ( lower margin ) business mix from north american transaction solutions and a decrease in digital provider business that had higher margins . total operating expenses were $ 17,425,030 for the year ended december 31 , 2017 , as compared to total operating expenses of $ 17,416,066 for the year ended december 31 , 2016. total operating expenses for the year ended december 31 , 2017 consisted of general and administrative expenses of $ 10,629,773 , non-cash compensation of $ 2,940,424 , a bad debt provision of $ 1,320,848 and depreciation and amortization of $ 2,533,985. for the year ended december 31 , 2016 , operating expenses consisted of general and administrative expenses of $ 8,797,883 , non-cash compensation of $ 3,463,435 , a bad debt provision of $ 1,688,237 , and depreciation and amortization of $ 3,466,511 . story_separator_special_tag the outstanding balance of the term note was refinanced into another rbl term note during june 2017. during april 2017 , crede purchased a $ 75,000 tranche of our rbl term note , which we repurchased and extinguished in exchange for 10,235 shares of our common stock . as a result , the terms of the $ 4,044,055 refinance note was revised to reduce the monthly interest and principal payments to $ 108,759. during may 2017 , we entered into a $ 75,000 rbl term note . the term note provided for one interest-only payment at 14.4 % , with monthly interest and principal payments of $ 2,065 from june 2017 through may 2021. the term note required payment of a 2 % front-end fee at issuance and a 4 % back-end fee due at final payment . the outstanding balance of the term note was refinanced into another rbl term note during june 2017. during may 2017 , crede purchased a $ 150,000 tranche of our rbl term note , which we repurchased and extinguished in exchange for 23,058 shares of our common stock . 37 during may 2017 , we entered into a $ 150,000 rbl term note . the term note provided for one interest-only payment at 14.4 % , with monthly interest and principal payments of $ 4,129 from july 2017 through june 2021. the term note required payment of a 2 % front-end fee at issuance and a 4 % back-end fee due at final payment . the outstanding balance of the term note was refinanced into another rbl term note during june 2017. during june 2017 , the $ 4,044,055 refinance note was modified to include the $ 150,000 , $ 75,000 , $ 400,000 and 100,000 term notes described above . the modified note provided for interest only payments at 14.19 % from june 2017 through september 2017 , with monthly payments of interest and principal of $ 124,607 from october 2017 through september 2021. during july 2017 , the refinance note was further modified to reflect the $ 150,000 tranche extinguishment in may 2017 , described above . the terms of the refinance note was revised to reduce the monthly interest and principal payments to $ 121,810. during october 2017 we received a six-month extension to the interest-only payment term for a fee of $ 12,000. at december 31 , 2017 the principal balance of the refinance note was $ 4,438,087. during august 2017 , we entered into a $ 106,000 rbl term note . the term note provided for interest-only payments at 14.9 % through september 2017 , with monthly interest and principal payments of $ 2,945 from october 2017 through september 2021. the term note required payment of a 2 % front-end fee at issuance and a 4 % back-end fee due at final payment . during october 2017 we received a six-month extension of the interest-only payment term . at december 31 , 2017 , the principal balance of the term note is $ 106,000. also see note 17 for activity subsequent to december 31 , 2017. mbf merchant capital , llc we issued the following notes payable to mbf , an entity owned by william healy , a former member of our board of directors . during march 2016 , we entered into a $ 75,000 promissory note with mbf . the promissory note provided for interest-only payments at 14 % through may 2016 , with monthly interest and principal payments of $ 7,990 from june 2016 through march 2017. the promissory note required payment of a 6 % back-end fee which was paid at maturity in march 2017. the balance of the promissory note was $ 23,420 at december 31 , 2016. during april 2016 , we entered into a $ 300,000 promissory note with mbf . the promissory note provides for interest-only payments at 15.5 % through may 2016 , with monthly interest and principal payments of $ 14,617 from june 2016 through may 2018. the promissory note requires payment of a 6 % back-end fee due at the final payment . at december 31 , 2017 and 2016 , the balance of the note was $ 74,177 and $ 221,826 , respectively . during july 2016 , our subsidiary , tot group , inc. , entered into a $ 353,500 promissory note with mbf . the promissory note provides for interest-only payments at 15.5 % through june 28 , 2016 , with monthly interest and principal payments of $ 17,224 from july 2016 through june 28 , 2018. the promissory note required payment of a 1 % front-end fee at issuance and a 6.6 % back-end fee due at final payment . at december 31 , 2017 and 2016 , the outstanding balance of the promissory note was $ 98,829 and $ 275,056 , respectively . on august 29 , 2017 , our subsidiary , tot group , inc. , entered into a $ 275,000 promissory note with mbf . the principal amount of the loan carries an interest rate 13.95 % per annum , with ten monthly interest and principal payments of $ 29,289. the promissory note required payment of a 2 % front-end fee at issuance and a 4 % back-end fee due at final payment . at december 31 , 2017 , the outstanding balance of the promissory note was $ 168,798. priority payment systems llc effective as of may 18 , 2017 , we entered into a loan agreement and security agreement with priority payment systems llc and issued a promissory note dated may 18 , 2017. pursuant to the loan agreement and the note , we borrowed $ 2,000,000. prior to maturity of the loan , the principal amount of the loan will carry a floating interest rate of prime rate plus 6 % per annum at 10.25 % at december 31 , 2017. we may prepay the loan in whole or in part at any time . the loan

liquidity and capital resources our total assets at december 31 , 2017 were $ 32.3 million compared to $ 23.3 million at december 31 , 2016. the year over year change in total assets is primarily attributable to the $ 10.7 million increase in our cash balance as a result of equity sales at the end of 2017. at december 31 , 2017 , we had total current assets of $ 19.0 million including $ 11.3 million of cash , $ 5.5 million of accounts receivable , and $ 2.3 million of prepaid expenses and other assets . at december 31 , 2016 , we had total current assets of $ 9.2 million including $ 0.6 million of cash , $ 7.1 million of accounts receivable , and $ 1.5 million of prepaid expenses and other assets . as of the filing date of this report with the sec , management expects that our cash flows from operations will be sufficient to fund our current operations for at least the next twelve months . we may require additional capital in order to fund business expansion or future acquisitions . since our inception , we have incurred significant operating losses . we incurred net losses totaling $ 10.0 million and $ 13.6 million for the years ended december 31 , 2017 and 2016 , respectively . we have working capital of approximately $ 4.3 million and an accumulated deficit of $ 167.3 million at december 31 , 2017. we have a cash balance at december 31 , 2017 of $ 11.3 million . we estimate we will need $ 4.8 million to cover our anticipated cash flow shortfall over the next 12 months and we have adequate cash balances to support our cash flow requirements for this period . we may raise additional funds through debt financing and or the issuance of equity securities , there being no assurance that any type of financing on terms satisfactory to us will be available or otherwise occur .


 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 our total assets at december 31 , 2017 were $ 32.3 million compared to $ 23.3 million at december 31 , 2016. the year over year change in total assets is primarily attributable to the $ 10.7 million increase in our cash balance as a result of equity sales at the end of 2017. at december 31 , 2017 , we had total current assets of $ 19.0 million including $ 11.3 million of cash , $ 5.5 million of accounts receivable , and $ 2.3 million of prepaid expenses and other assets . at december 31 , 2016 , we had total current assets of $ 9.2 million including $ 0.6 million of cash , $ 7.1 million of accounts receivable , and $ 1.5 million of prepaid expenses and other assets . as of the filing date of this report with the sec , management expects that our cash flows from operations will be sufficient to fund our current operations for at least the next twelve months . we may require additional capital in order to fund business expansion or future acquisitions . since our inception , we have incurred significant operating losses . we incurred net losses totaling $ 10.0 million and $ 13.6 million for the years ended december 31 , 2017 and 2016 , respectively . we have working capital of approximately $ 4.3 million and an accumulated deficit of $ 167.3 million at december 31 , 2017. we have a cash balance at december 31 , 2017 of $ 11.3 million . we estimate we will need $ 4.8 million to cover our anticipated cash flow shortfall over the next 12 months and we have adequate cash balances to support our cash flow requirements for this period . we may raise additional funds through debt financing and or the issuance of equity securities , there being no assurance that any type of financing on terms satisfactory to us will be available or otherwise occur .
```    
 Suspicious Activity Report : we recognize revenue when the following four basic criteria have been met : ( 1 ) persuasive evidence of a sales arrangement exists ; ( 2 ) performance of services has occurred , ( 3 ) the sales price is fixed or determinable , and ( 4 ) collectability is reasonably assured . we consider persuasive evidence of a merchant processing sales arrangement to be the receipt of a billable transaction from aggregators or a signed contract . revenue for access to branded content is recognized monthly as the mobile subscribers purchase access to content . service fee revenue from the aptito saas fees is monthly recognized when billed unless collectability is considered an issue . collectability is assessed based on a number of factors , including transaction history with the customer and the credit worthiness of the customer . if it is determined that the collection is not reasonably assured , revenue is not recognized until collection becomes reasonably assured , which is generally upon receipt of cash . we record cash received in advance of revenue recognition as deferred revenue . reserve for loan losses . we monitor all accounts receivable , notes receivable and transactions with mobile operators and aggregators on a quarterly basis to ensure collectability and the adequacy of loss provisions . considerations include payment history , business volume history , financial statements of borrower , projections of borrower and other standard credit review documentation . management uses its best judgment to adequately reserve for future losses after all available information is reviewed . during 2017 digital provider had recovered approximately $ 0.1 million of advances previously reserved . during 2016 digital provider had $ 0.5 million of bad debt expenses . during 2017 and 2016 , we recognized $ 1,408,908 and $ 1,173,815 for net ach rejects that occurred in the normal course of business . 31 deferred taxes . estimates of deferred income taxes and items giving rise to deferred tax assets and liabilities reflect management 's assessment of actual future taxes to be paid on items reflected in the financial statements , giving consideration to both timing and the probability of their realization . actual income taxes could vary from these estimates for a variety of reasons , including changes in tax law , operating results that vary from budget or the review of our tax returns by the irs . results of operations for the year ended december 31 , 2017 compared to the year ended december 31 , 2016 we reported a net loss attributable to common stockholders of $ 9,913,485 or ( $ 5.04 ) per share for the year ended december 31 , 2017 as compared to a net loss of $ 13,487,537 or ( $ 10.33 ) per share for the year ended december 31 , 2016. this resulted in a decrease in net loss attributable to stockholders of $ 3,574,052 primarily due to an increase in revenues , decreases in depreciation , amortization and interest expenses , partially offset by an increase in general and administrative expenses . net loss attributable to stockholders for the year ended december 31 , 2016 was also negatively affected by an expense for loss from stock value guarantee related to the payonline acquisition . the following table sets forth our sources of revenues , cost of revenues and gross margins for the years ended december 31 , 2017 and 2016. gross margin analysis replace_table_token_4_th replace_table_token_5_th replace_table_token_6_th net revenues consist primarily of service fees from transaction processing . net revenues were $ 60,064,824 for the year ended december 31 , 2017 as compared to $ 54,286,859 for the year ended december 31 , 2016. the increase in net revenues is primarily due to continued organic growth of north american merchants with emphasis on value-added offerings partially offset by a $ 3,229,460 decrease in net revenues from our international transaction solutions segment as we experience increased competition , decreased margins and reorganizing assignments from our international transaction solutions segment . cost of revenues represents direct costs of generating revenues , including commissions , mobile operator fees , purchases of short numbers , interchange expense and processing fees . cost of revenues for the year ended december 31 , 2017 were $ 51,237,212 as compared to $ 45,708,241 for the year ended december 31 , 2016. the year over year increase in cost of revenues of $ 5,528,971 was driven by a $ 7,922,799 increase due to increased north american transaction solutions sales for the year ended december 31 , 2017. this was partially offset by a $ 2,393,828 decrease in the international transaction solutions segment cost of revenues due to the decrease in international transaction solutions revenues from digital provider . gross margin for the year ended december 31 , 2017 was $ 8,827,613 , or 14.7 % of net revenue , as compared to $ 8,578,618 , or 15.8 % of net revenue , for the year ended december 31 , 2016. the primary reason gross margin percentages decreased was due to increased ( lower margin ) business mix from north american transaction solutions and a decrease in digital provider business that had higher margins . total operating expenses were $ 17,425,030 for the year ended december 31 , 2017 , as compared to total operating expenses of $ 17,416,066 for the year ended december 31 , 2016. total operating expenses for the year ended december 31 , 2017 consisted of general and administrative expenses of $ 10,629,773 , non-cash compensation of $ 2,940,424 , a bad debt provision of $ 1,320,848 and depreciation and amortization of $ 2,533,985. for the year ended december 31 , 2016 , operating expenses consisted of general and administrative expenses of $ 8,797,883 , non-cash compensation of $ 3,463,435 , a bad debt provision of $ 1,688,237 , and depreciation and amortization of $ 3,466,511 . story_separator_special_tag the outstanding balance of the term note was refinanced into another rbl term note during june 2017. during april 2017 , crede purchased a $ 75,000 tranche of our rbl term note , which we repurchased and extinguished in exchange for 10,235 shares of our common stock . as a result , the terms of the $ 4,044,055 refinance note was revised to reduce the monthly interest and principal payments to $ 108,759. during may 2017 , we entered into a $ 75,000 rbl term note . the term note provided for one interest-only payment at 14.4 % , with monthly interest and principal payments of $ 2,065 from june 2017 through may 2021. the term note required payment of a 2 % front-end fee at issuance and a 4 % back-end fee due at final payment . the outstanding balance of the term note was refinanced into another rbl term note during june 2017. during may 2017 , crede purchased a $ 150,000 tranche of our rbl term note , which we repurchased and extinguished in exchange for 23,058 shares of our common stock . 37 during may 2017 , we entered into a $ 150,000 rbl term note . the term note provided for one interest-only payment at 14.4 % , with monthly interest and principal payments of $ 4,129 from july 2017 through june 2021. the term note required payment of a 2 % front-end fee at issuance and a 4 % back-end fee due at final payment . the outstanding balance of the term note was refinanced into another rbl term note during june 2017. during june 2017 , the $ 4,044,055 refinance note was modified to include the $ 150,000 , $ 75,000 , $ 400,000 and 100,000 term notes described above . the modified note provided for interest only payments at 14.19 % from june 2017 through september 2017 , with monthly payments of interest and principal of $ 124,607 from october 2017 through september 2021. during july 2017 , the refinance note was further modified to reflect the $ 150,000 tranche extinguishment in may 2017 , described above . the terms of the refinance note was revised to reduce the monthly interest and principal payments to $ 121,810. during october 2017 we received a six-month extension to the interest-only payment term for a fee of $ 12,000. at december 31 , 2017 the principal balance of the refinance note was $ 4,438,087. during august 2017 , we entered into a $ 106,000 rbl term note . the term note provided for interest-only payments at 14.9 % through september 2017 , with monthly interest and principal payments of $ 2,945 from october 2017 through september 2021. the term note required payment of a 2 % front-end fee at issuance and a 4 % back-end fee due at final payment . during october 2017 we received a six-month extension of the interest-only payment term . at december 31 , 2017 , the principal balance of the term note is $ 106,000. also see note 17 for activity subsequent to december 31 , 2017. mbf merchant capital , llc we issued the following notes payable to mbf , an entity owned by william healy , a former member of our board of directors . during march 2016 , we entered into a $ 75,000 promissory note with mbf . the promissory note provided for interest-only payments at 14 % through may 2016 , with monthly interest and principal payments of $ 7,990 from june 2016 through march 2017. the promissory note required payment of a 6 % back-end fee which was paid at maturity in march 2017. the balance of the promissory note was $ 23,420 at december 31 , 2016. during april 2016 , we entered into a $ 300,000 promissory note with mbf . the promissory note provides for interest-only payments at 15.5 % through may 2016 , with monthly interest and principal payments of $ 14,617 from june 2016 through may 2018. the promissory note requires payment of a 6 % back-end fee due at the final payment . at december 31 , 2017 and 2016 , the balance of the note was $ 74,177 and $ 221,826 , respectively . during july 2016 , our subsidiary , tot group , inc. , entered into a $ 353,500 promissory note with mbf . the promissory note provides for interest-only payments at 15.5 % through june 28 , 2016 , with monthly interest and principal payments of $ 17,224 from july 2016 through june 28 , 2018. the promissory note required payment of a 1 % front-end fee at issuance and a 6.6 % back-end fee due at final payment . at december 31 , 2017 and 2016 , the outstanding balance of the promissory note was $ 98,829 and $ 275,056 , respectively . on august 29 , 2017 , our subsidiary , tot group , inc. , entered into a $ 275,000 promissory note with mbf . the principal amount of the loan carries an interest rate 13.95 % per annum , with ten monthly interest and principal payments of $ 29,289. the promissory note required payment of a 2 % front-end fee at issuance and a 4 % back-end fee due at final payment . at december 31 , 2017 , the outstanding balance of the promissory note was $ 168,798. priority payment systems llc effective as of may 18 , 2017 , we entered into a loan agreement and security agreement with priority payment systems llc and issued a promissory note dated may 18 , 2017. pursuant to the loan agreement and the note , we borrowed $ 2,000,000. prior to maturity of the loan , the principal amount of the loan will carry a floating interest rate of prime rate plus 6 % per annum at 10.25 % at december 31 , 2017. we may prepay the loan in whole or in part at any time . the loan

