partners that : ( a ) generates revenue , and ( b ) requires a lower cost structure compared to traditional pharmaceutical companies , thereby increasing our gross margins . 3. developing and acquiring on-line marketplaces such as supplementhunt.com and primesavingsclub.com that focus on certain market segments such as lower priced , soon to expire supplement business with the supplementhunt.com acquisition and with the select consumer product business through primesavingsclub.com among others in which we sell third party , brand or non-branded products . our products marketed products we currently market and sell over 35 products in the u.s. and more than 10 in multiple countries around the world through our 12 international commercial partners . we have five core products which we define as having more than $ 1.0 million in annual sales or rapidly growing product . the following represents these core products : 1. vesele® 2. urivarx® 3. fluticare® 4. apeaz® 5. diabasens® 6. prostagorx ® 7. sensum ® in addition , we currently expect to launch in the u.s. the following products in 2019 , subject to the applicable regulatory approvals , if required : 1. thermomax® is a hand cream with two strengths that provides up to eight hours of hand warming relief ( second quarter of 2019 ) ; 2. breastlift is a clinically tested cream to provide safe and natural way to firm sagging breasts ( second quarter of 2019 ) ; 3. healthifeet ® is a foot cream that provides foot warming relief ( second quarter of 2019 ) ; 4. mzs sleeping aid with hemp-derived thc-free oil and melatonin is in tincture form ( launched in first quarter of 2019 ) ; 5. trexar is a supplement to provide neuropathy support and enhanced sensation ( second quarter of 2019 ) ; 6. musclin ® is a proprietary supplement made of two fda generally recognized as safe ( gras ) approved ingredients designed to increase muscle mass , endurance and activity ( second half of 2019 ) . the main ingredient in musclin ® is a natural activator of the transient receptor potential cation channel , subfamily v , member 3 ( trpv3 ) channels on muscle fibers responsible to increase fibers width resulting in larger muscles ; 7. regenerum is a proprietary product containing two natural molecules : the first is an activator of the trpv3 channels resulting in the increase of muscle fiber width , and the second targets a different unknown receptor to build the muscle 's capacity for energy production and increases physical endurance , allowing longer and more intense exercise . regenerum is being developed for patients suffering from muscle wasting . we currently expect to launch this product in 2020 pending successful clinical trials in patients with muscle wasting or cachexia ; and 8. octiq is an expected fda ophthalmic otc monograph compliant product for the treatment of eye redness and eye lubrication ( late 2019/early 2020 ) . sales and marketing channels as discussed , we currently have four main sales and marketing channels making up the beyond human ® sales and marketing platform acquired in march 2016 , which has resulted in the significant revenue growth to $ 24.0 million in the year ended december 31 , 2018 compared with $ 8.8 million in the year ended december 31 , 2017. we feel that these channels complement each other to enhance the innovus pharmaceuticals , inc. brand and awareness of our customers and provide us with the ability to use our sales and marketing in the most efficient way possible in acquiring new customers and maintaining those current customers . print and direct mail marketing through our beyond hum an ® sales and marketing platform , we have access to advertise in the vast majority of newspapers and magazines on a regular basis . we have developed our own proprietary algorithm which allows us to target customers looking for specific health products allowing us to increase the return on our investment and reduce the cost to acquire new customers . during 2018 , we were able to expand our reach to canada with the approval of twelve of our products by health canada and successfully expand our beyond human ® sales and marketing platform . e-commerce we have an extensive on-line media channel through our amazon® , newegg® , walmart.com® , ebay® , wish.com , and walgreens.com sites in addition to our own innovuspharma.com site along with sites for each of our products individually . our expertise allows us to successfully drive product sales through proper marketing campaigns through third-party sites as well as through email marketing campaigns to increase traffic to our own sites . additionally , we have recognized that maintaining a proper e-commerce presence allows those customers who read our advertisements in the newspapers and magazine or receive our direct mail another avenue to purchase products . -22- retail/wholesale we are continuously introducing our products to varieties of retail and wholesale partners to enhance the brand and product awareness for our customers . in 2018 , we significantly increased our advertising expenses specifically in the print and direct mail marketing channel which , in turn , has had a direct positive impact to the success of products in retail . we intend to continue to demonstrate to our retail and wholesale partners the advantages of incorporating our products in their stores , especially due to our proprietary consumer targeted marketing approach that our print advertising allows us to achieve . international distribution we continue to work with our exclusive commercial partners outside of the u.s. that would be responsible for sales and marketing in those territories . we evaluate the performance of each of these partners to ensure a steady flow of consumer activity for each of our products . our strategy outside the u.s. is to partner with companies who can effectively market and sell our products in their countries through their direct marketing and sales teams . story_separator_special_tag in connection with the securities exchange agreement , the company issued a total of 40,481 shares of common stock in exchange for the settlement of principal due totaling $ 340,000. the fair value of the shares of common stock issued was based on the market price of our common stock on the date of the securities exchange agreements was determined to be $ 485,000. due to the settlement of the principal balance of $ 340,000 into shares of common stock , the transaction was recorded as a debt extinguishment and the fair value of the shares of common stock issued in excess of the settled principal balance totaling $ 145,000 and the unamortized debt discount as of the date of settlement of $ 3,000 were recorded as a loss on debt extinguishment in the accompanying condensed consolidated statement of operations . on november 30 , 2018 , the company entered into a securities exchange agreement with one of the february and march 2018 5 % notes payable holders . in connection with the securities exchange agreement , the company issued a total of 20,940 shares of common stock in exchange for the settlement of principal due totaling $ 143,000. the fair value of the shares of common stock issued was based on the market price of our common stock on the date of the securities exchange agreements was determined to be $ 231,000. due to the settlement of the principal balance of $ 143,000 into shares of common stock , the transaction was recorded as a debt extinguishment and the fair value of the shares of common stock issued in excess of the settled principal balance totaling $ 88,000 was recorded as a loss on debt extinguishment in the accompanying condensed consolidated statement of operations . july 2018 5 % note payable on july 19 , 2018 , the company entered into a securities purchase agreement with an unrelated third-party investor in which the investor loaned the company gross proceeds of $ 500,000 pursuant to 5 % promissory notes ( “ july 2018 5 % notes payable ” ) . the notes have an oid of $ 50,000 and require payments of $ 550,000 in principal . the notes bear interest at the rate of 5 % per annum and the principal amount and interest are payable at maturity on february 19 , 2019. in connection with the note , the company issued the investor restricted shares of common stock totaling 15,239 shares . the fair value of the restricted shares of common stock issued was based on the market price of our common stock on the date of issuance of the note . the allocation of the proceeds received to the restricted shares of common stock based on their relative fair value and the oid resulted in the company recording a debt discount of $ 226,000. the discount is being amortized to interest expense using the effective interest method over the term of the note . august 2018 notes payable on august 1 , 2018 , the company entered into a securities purchase agreement with two unrelated third-party investors in which the investors loaned the company gross proceeds of $ 1.0 million pursuant to a 0 % promissory note ( “ august 2018 notes payable ” ) . the notes have an oid of $ 200,000 and require twelve payments of $ 100,000 in principal per month through august 2019. the august 2018 notes payable bear no interest per annum . the effective interest rate is 20 % per annum for the notes . in connection with the august 2018 notes payable , we issued the investors restricted shares of common stock totaling 9,524 shares . the fair value of the restricted shares of common stock issued was based on the market price of our common stock on the date of issuance of the august 2018 notes payable . the allocation of the proceeds received to the restricted shares of common stock based on their relative fair value and the oid resulted in us recording a debt discount of $ 435,000. in connection with the financing , we issued 6,086 restricted shares to a third-party consultant . the fair value of the restricted shares of common stock issued of $ 100,000 was recorded as a debt discount to the carrying value of the august 2018 notes payable . the discount is being amortized to interest expense using the effective interest method over the term of the august 2018 notes payable . september 2018 5 % notes payable on september 12 , 2018 , the company entered into a securities purchase agreement with an unrelated third-party investor in which the investor loaned the company gross proceeds of $ 350,000 pursuant to 5 % promissory notes ( “ september 2018 5 % notes payable ” ) . the notes have an oid of $ 40,000 and require payments of $ 390,000 in principal . the notes bear interest at the rate of 5 % per annum and the principal amount and interest are payable in three installments on march 12 , 2019 , june 12 , 2019 and september 12 , 2019 for the note . in connection with the september 2018 5 % notes payable , the company issued the investor restricted shares of common stock totaling 9,524 shares . the fair value of the restricted shares of common stock issued was based on the market price of our common stock on the date of issuance of the september 2018 5 % notes payable . the allocation of the proceeds received to the restricted shares of common stock based on their relative fair value and the oid resulted in us recording a debt discount of $ 130,000. the discount is being amortized to interest expense using the effective interest method over the term of the note . october 2018 5 % notes payable on october 22 , 2018 , the company entered into a securities purchase agreement with an unrelated

liquidity and capital resources historically , we have funded losses from operations through the sale of equity and issuance of debt instruments . combined with revenue , these funds have provided us with the capital to operate our business , to sell and support our products , attract and retain key personnel , and add new products to our portfolio . to date , we have experienced net losses each year since our inception . as of december 31 , 2018 , we had an accumulated deficit of $ 43.9 million and a working capital deficit of $ 2.3 million . as of march 29 , 2019 , we had approximately $ 1.7 million in cash and $ 0.6 million held by processors . although no assurances can be given , we currently plan to raise additional capital through the sale of equity or debt securities . we expect , however , that our existing capital resources , the proceeds received from the private placement offering and issuance of notes payable in the first quarter of 2019 totaling $ 2.7 million ( see note 11 in the accompanying consolidated financial statements included elsewhere in this annual report ) , revenue from sales of our products and upcoming new product launches and sales milestone payments from the commercial partners signed for our products , and equity instruments available to pay certain vendors and consultants , will be sufficient to allow us to continue our operations , commence the product development process and launch selected products through at least the next 12 months . in addition , the company 's ceo , who is also a significant shareholder , has deferred the remaining payment of his salary earned through june 30 , 2016 of $ 1.2 million and will continue to defer such compensation if payment would jeopardize the ability of the company to continue its operations .


 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 historically , we have funded losses from operations through the sale of equity and issuance of debt instruments . combined with revenue , these funds have provided us with the capital to operate our business , to sell and support our products , attract and retain key personnel , and add new products to our portfolio . to date , we have experienced net losses each year since our inception . as of december 31 , 2018 , we had an accumulated deficit of $ 43.9 million and a working capital deficit of $ 2.3 million . as of march 29 , 2019 , we had approximately $ 1.7 million in cash and $ 0.6 million held by processors . although no assurances can be given , we currently plan to raise additional capital through the sale of equity or debt securities . we expect , however , that our existing capital resources , the proceeds received from the private placement offering and issuance of notes payable in the first quarter of 2019 totaling $ 2.7 million ( see note 11 in the accompanying consolidated financial statements included elsewhere in this annual report ) , revenue from sales of our products and upcoming new product launches and sales milestone payments from the commercial partners signed for our products , and equity instruments available to pay certain vendors and consultants , will be sufficient to allow us to continue our operations , commence the product development process and launch selected products through at least the next 12 months . in addition , the company 's ceo , who is also a significant shareholder , has deferred the remaining payment of his salary earned through june 30 , 2016 of $ 1.2 million and will continue to defer such compensation if payment would jeopardize the ability of the company to continue its operations .
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 Suspicious Activity Report : partners that : ( a ) generates revenue , and ( b ) requires a lower cost structure compared to traditional pharmaceutical companies , thereby increasing our gross margins . 3. developing and acquiring on-line marketplaces such as supplementhunt.com and primesavingsclub.com that focus on certain market segments such as lower priced , soon to expire supplement business with the supplementhunt.com acquisition and with the select consumer product business through primesavingsclub.com among others in which we sell third party , brand or non-branded products . our products marketed products we currently market and sell over 35 products in the u.s. and more than 10 in multiple countries around the world through our 12 international commercial partners . we have five core products which we define as having more than $ 1.0 million in annual sales or rapidly growing product . the following represents these core products : 1. vesele® 2. urivarx® 3. fluticare® 4. apeaz® 5. diabasens® 6. prostagorx ® 7. sensum ® in addition , we currently expect to launch in the u.s. the following products in 2019 , subject to the applicable regulatory approvals , if required : 1. thermomax® is a hand cream with two strengths that provides up to eight hours of hand warming relief ( second quarter of 2019 ) ; 2. breastlift is a clinically tested cream to provide safe and natural way to firm sagging breasts ( second quarter of 2019 ) ; 3. healthifeet ® is a foot cream that provides foot warming relief ( second quarter of 2019 ) ; 4. mzs sleeping aid with hemp-derived thc-free oil and melatonin is in tincture form ( launched in first quarter of 2019 ) ; 5. trexar is a supplement to provide neuropathy support and enhanced sensation ( second quarter of 2019 ) ; 6. musclin ® is a proprietary supplement made of two fda generally recognized as safe ( gras ) approved ingredients designed to increase muscle mass , endurance and activity ( second half of 2019 ) . the main ingredient in musclin ® is a natural activator of the transient receptor potential cation channel , subfamily v , member 3 ( trpv3 ) channels on muscle fibers responsible to increase fibers width resulting in larger muscles ; 7. regenerum is a proprietary product containing two natural molecules : the first is an activator of the trpv3 channels resulting in the increase of muscle fiber width , and the second targets a different unknown receptor to build the muscle 's capacity for energy production and increases physical endurance , allowing longer and more intense exercise . regenerum is being developed for patients suffering from muscle wasting . we currently expect to launch this product in 2020 pending successful clinical trials in patients with muscle wasting or cachexia ; and 8. octiq is an expected fda ophthalmic otc monograph compliant product for the treatment of eye redness and eye lubrication ( late 2019/early 2020 ) . sales and marketing channels as discussed , we currently have four main sales and marketing channels making up the beyond human ® sales and marketing platform acquired in march 2016 , which has resulted in the significant revenue growth to $ 24.0 million in the year ended december 31 , 2018 compared with $ 8.8 million in the year ended december 31 , 2017. we feel that these channels complement each other to enhance the innovus pharmaceuticals , inc. brand and awareness of our customers and provide us with the ability to use our sales and marketing in the most efficient way possible in acquiring new customers and maintaining those current customers . print and direct mail marketing through our beyond hum an ® sales and marketing platform , we have access to advertise in the vast majority of newspapers and magazines on a regular basis . we have developed our own proprietary algorithm which allows us to target customers looking for specific health products allowing us to increase the return on our investment and reduce the cost to acquire new customers . during 2018 , we were able to expand our reach to canada with the approval of twelve of our products by health canada and successfully expand our beyond human ® sales and marketing platform . e-commerce we have an extensive on-line media channel through our amazon® , newegg® , walmart.com® , ebay® , wish.com , and walgreens.com sites in addition to our own innovuspharma.com site along with sites for each of our products individually . our expertise allows us to successfully drive product sales through proper marketing campaigns through third-party sites as well as through email marketing campaigns to increase traffic to our own sites . additionally , we have recognized that maintaining a proper e-commerce presence allows those customers who read our advertisements in the newspapers and magazine or receive our direct mail another avenue to purchase products . -22- retail/wholesale we are continuously introducing our products to varieties of retail and wholesale partners to enhance the brand and product awareness for our customers . in 2018 , we significantly increased our advertising expenses specifically in the print and direct mail marketing channel which , in turn , has had a direct positive impact to the success of products in retail . we intend to continue to demonstrate to our retail and wholesale partners the advantages of incorporating our products in their stores , especially due to our proprietary consumer targeted marketing approach that our print advertising allows us to achieve . international distribution we continue to work with our exclusive commercial partners outside of the u.s. that would be responsible for sales and marketing in those territories . we evaluate the performance of each of these partners to ensure a steady flow of consumer activity for each of our products . our strategy outside the u.s. is to partner with companies who can effectively market and sell our products in their countries through their direct marketing and sales teams . story_separator_special_tag in connection with the securities exchange agreement , the company issued a total of 40,481 shares of common stock in exchange for the settlement of principal due totaling $ 340,000. the fair value of the shares of common stock issued was based on the market price of our common stock on the date of the securities exchange agreements was determined to be $ 485,000. due to the settlement of the principal balance of $ 340,000 into shares of common stock , the transaction was recorded as a debt extinguishment and the fair value of the shares of common stock issued in excess of the settled principal balance totaling $ 145,000 and the unamortized debt discount as of the date of settlement of $ 3,000 were recorded as a loss on debt extinguishment in the accompanying condensed consolidated statement of operations . on november 30 , 2018 , the company entered into a securities exchange agreement with one of the february and march 2018 5 % notes payable holders . in connection with the securities exchange agreement , the company issued a total of 20,940 shares of common stock in exchange for the settlement of principal due totaling $ 143,000. the fair value of the shares of common stock issued was based on the market price of our common stock on the date of the securities exchange agreements was determined to be $ 231,000. due to the settlement of the principal balance of $ 143,000 into shares of common stock , the transaction was recorded as a debt extinguishment and the fair value of the shares of common stock issued in excess of the settled principal balance totaling $ 88,000 was recorded as a loss on debt extinguishment in the accompanying condensed consolidated statement of operations . july 2018 5 % note payable on july 19 , 2018 , the company entered into a securities purchase agreement with an unrelated third-party investor in which the investor loaned the company gross proceeds of $ 500,000 pursuant to 5 % promissory notes ( “ july 2018 5 % notes payable ” ) . the notes have an oid of $ 50,000 and require payments of $ 550,000 in principal . the notes bear interest at the rate of 5 % per annum and the principal amount and interest are payable at maturity on february 19 , 2019. in connection with the note , the company issued the investor restricted shares of common stock totaling 15,239 shares . the fair value of the restricted shares of common stock issued was based on the market price of our common stock on the date of issuance of the note . the allocation of the proceeds received to the restricted shares of common stock based on their relative fair value and the oid resulted in the company recording a debt discount of $ 226,000. the discount is being amortized to interest expense using the effective interest method over the term of the note . august 2018 notes payable on august 1 , 2018 , the company entered into a securities purchase agreement with two unrelated third-party investors in which the investors loaned the company gross proceeds of $ 1.0 million pursuant to a 0 % promissory note ( “ august 2018 notes payable ” ) . the notes have an oid of $ 200,000 and require twelve payments of $ 100,000 in principal per month through august 2019. the august 2018 notes payable bear no interest per annum . the effective interest rate is 20 % per annum for the notes . in connection with the august 2018 notes payable , we issued the investors restricted shares of common stock totaling 9,524 shares . the fair value of the restricted shares of common stock issued was based on the market price of our common stock on the date of issuance of the august 2018 notes payable . the allocation of the proceeds received to the restricted shares of common stock based on their relative fair value and the oid resulted in us recording a debt discount of $ 435,000. in connection with the financing , we issued 6,086 restricted shares to a third-party consultant . the fair value of the restricted shares of common stock issued of $ 100,000 was recorded as a debt discount to the carrying value of the august 2018 notes payable . the discount is being amortized to interest expense using the effective interest method over the term of the august 2018 notes payable . september 2018 5 % notes payable on september 12 , 2018 , the company entered into a securities purchase agreement with an unrelated third-party investor in which the investor loaned the company gross proceeds of $ 350,000 pursuant to 5 % promissory notes ( “ september 2018 5 % notes payable ” ) . the notes have an oid of $ 40,000 and require payments of $ 390,000 in principal . the notes bear interest at the rate of 5 % per annum and the principal amount and interest are payable in three installments on march 12 , 2019 , june 12 , 2019 and september 12 , 2019 for the note . in connection with the september 2018 5 % notes payable , the company issued the investor restricted shares of common stock totaling 9,524 shares . the fair value of the restricted shares of common stock issued was based on the market price of our common stock on the date of issuance of the september 2018 5 % notes payable . the allocation of the proceeds received to the restricted shares of common stock based on their relative fair value and the oid resulted in us recording a debt discount of $ 130,000. the discount is being amortized to interest expense using the effective interest method over the term of the note . october 2018 5 % notes payable on october 22 , 2018 , the company entered into a securities purchase agreement with an unrelated

