our gabriel collaboration suite is a set of applications that run on top of our gabriel secure communication platform . it enables seamless and secure cross-platform communications between user 's devices that have our software installed . our gabriel collaboration suite is available for download and free trial , for android , ios , windows , linux and mac os x platforms , at http : //www.gabrielsecure.com/ . we continue to enhance our products and add new functionality to our products . we will provide updates to new and existing customers as they are released to the general public . we have signed patent license agreements with avaya inc. , aastra usa , inc. , microsoft , mitel networks corporation , nec corporation and nec corporation of america , siemens enterprise communications gmbh & co. kg , and siemens enterprise communications inc. to license certain of our patents , for a one-time payment and or an ongoing royalty for all future sales through the expiration of the licensed patents with respect to certain current 29 and future ip-encrypted products . we have engaged ipvalue management inc. to assist us in commercializing our portfolio of patents on securing real-time communications over the internet . under the multi-year agreement , ipvalue will originate and assist us with negotiating transactions related to patent licensing worldwide with respect to certain third parties . our employees include the core development team behind our patent portfolio , technology and software . this team has worked together for over ten years and is the same team that invented and developed this technology while working at leidos , is a fortune 500® scientific , engineering and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world , in national security , energy and the environment , critical infrastructure and health . the team has continued its research and development work started at leidos , and expanded the set of patents we acquired in 2006 from leidos , into a larger portfolio with over 100 u.s. and international patents with over 50 pending applications . this portfolio now serves as the foundation of our licensing business and planned service offerings and is expected to generate the majority of our future revenue in license fees and royalties . we intend to continue our research and development efforts to further strengthen and expand our patent portfolio . see – operations – research and development expenses for a description of our research and development expenses for the past three fiscal years discussed below . we continue using an outsourced and leveraged model to maintain efficiency and manage costs as we grow our licensing business by , for example , offering incentives to early licensing targets or asserting our rights for use of our patents . we also intend to expand our design pilot in participation with leading 4g/lte companies ( domain infrastructure providers , chipset manufacturers , service providers , and others ) and build our secure domain name registry . developments in the year ended december 31 , 2016 litigation we have nine intellectual property infringement lawsuits pending in the united states district court for the eastern district of texas , tyler division , and united states court of appeals for the federal circuit ( uscafc ) . virnetx inc. v. apple , inc. ( case 6:12-cv-00855-led ) on march 30 , 2015 , the united states court for the eastern district of texas , tyler division , issued an order finding substantial overlap between the remanded portions of the civil action case 6:10-cv-00417-led ( virnetx vs. cisco et . al . ) , and the ongoing civil action case 6:12-cv-00855-led ( virnetx inc. v. apple , inc. ) . the court consolidated the two civil actions under civil action case 6:12-cv-00855-led ( virnetx inc. v. apple , inc. ) and designated it as the lead case . the jury trial in this case was held on january 25 , 2016. on february 4 , 2016 , a jury in the united states court for the eastern district of texas , tyler division , awarded us $ 625.6 million in a verdict against apple inc. for infringing four of our us patents , marking it the second time a federal jury has found apple liable for infringing virnetx 's patented technology . the verdict includes royalties awarded to us based on an earlier patent infringement finding ( case 6:10-cv-00417-led ) against apple . the jury found that apple 's modified vpn on-demand , imessage and facetime services infringed virnetx 's patents and that apple 's infringement was willful . in addition to determining the royalty owed by apple for its prior infringement , this verdict also includes an award based on the jury 's finding that apple 's modified vpn on demand , imessage and facetime services have continued to infringe virnetx 's patents . the post-trial hearing was held on may 25 , 2016 in the united states court for the eastern district of texas , texarkana division . on july 29 , 2016 , the court issued a new order , vacating its previous orders consolidating the cases ( case no . 6:10-cv-417 , docket no . 878 ( apple i case ) ; case no . 6:12-cv-855 , docket no . 220 ( apple ii case ) ) , ordering that the two cases be retried separately , and setting the retrial date for apple i case with jury selection to begin on september 26 , 2016. the court also ordered that the issue of willfulness in both cases is bifurcated and that the apple ii case will be retried after apple i case . events and developments subsequent to the order from the court are described to support apple i and apple ii matters . virnetx inc. v. cisco systems , inc. et al . story_separator_special_tag 33 critical accounting policies the preparation of financial statements in conformity with accounting principles generally accepted in the united states requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period . the critical accounting policies we employ in the preparation of our consolidated financial statements are those which involve impairment of long-lived assets , income taxes , fair value of financial instruments and stock-based compensation . basis of consolidation the consolidated financial statements include the accounts of virnetx holding corporation and our wholly-owned subsidiaries . all intercompany balances and transactions have been eliminated . use of estimates the preparation of consolidated financial statements in conformity with u.s. gaap requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes . actual results could differ materially from these estimates . on an ongoing basis , we evaluate our estimates , including those related to the fair values of financial instruments , fair values of stock-based awards , income taxes , and derivative liabilities , among others . we base our estimates on historical experience and on various other assumptions that are believed to be reasonable , the results of which form the basis for making judgments about the carrying values of assets and liabilities . revenue recognition we derive our revenue from patent licensing . the timing and amount of revenue recognized from each licensee depends upon a variety of factors , including the specific terms of each agreement and the nature of the deliverables and obligations . such agreements may be complex and include multiple elements . these agreements may include , without limitation , elements related to the settlement of past patent infringement liabilities , up-front and non-refundable license fees for the use of patents , patent licensing royalties on covered products sold by licensees , and the compensation structure and ownership of intellectual property rights associated with contractual technology development arrangements . licensing agreements are accounted for under the financial accounting standards board ( fasb ) revenue recognition guidance , revenue arrangements with multiple deliverables. this guidance requires consideration to be allocated to each element of an agreement that has stand-alone value using the relative fair value method . in other circumstances , such as those agreements involving consideration for past and expected future patent royalty obligations , after consideration of the particular facts and circumstances , the appropriate recording of revenue between periods may require the use of judgment . in all cases , revenue is only recognized after all the following criteria are met : ( 1 ) written agreements have been executed ; ( 2 ) delivery of technology or intellectual property rights has occurred or services have been rendered ; ( 3 ) fees are fixed or determinable ; and ( 4 ) collectability of fees is reasonably assured . patent license agreements : upon signing a patent license agreement , including licenses entered upon settlement of litigation , we provide the licensee permission to use our patented technology in specific applications . we account for patent license agreements in accordance with the guidance for revenue recognition for arrangements with multiple deliverables , with amounts allocated to each element based on their fair values . we have elected to utilize the leased-based model for revenue recognition with revenue being recognized over the expected period of benefit to the licensee . under our patent license agreements , we do or expect to typically receive one or a combination of the following forms of payment as consideration for permitting our licensees to use our patented inventions in specific applications and products : consideration for past sales : consideration related to a licensee 's product sales from prior periods may result from a negotiated agreement with a licensee that utilized our patented technology prior to signing a patent license agreement with us or from the resolution of a litigation , disagreement or arbitration with a licensee over the specific terms of an existing license agreement . we may also receive royalty for past sales in connection with the settlement of patent litigation where there was no prior patent license agreement . these amounts are negotiated , typically based upon application of a royalty rate to historical sales prior to the execution of the license agreement . in each of these cases , because delivery has occurred , we record the consideration as revenue when we have obtained a signed agreement , identified a fixed or determinable price , and determined that collectability is reasonably assured . 34 current royalty payments : ongoing royalty payments cover a licensee 's obligations to us related to its sales of covered products in the current contractual reporting period . licensees that owe these current royalty payments are obligated to provide us with quarterly or semi-annual royalty reports that summarize their sales of covered products and their related royalty obligations to us . we expect to receive these royalty reports subsequent to the period in which our licensees ' underlying sales occurred . as a result , it is impractical for us to recognize revenue in the period in which the underlying sales occur , and , in most cases , we will recognize revenue in the period in which the royalty report is received and other revenue recognition criteria are met due to the fact that without royalty reports from our licensees , our visibility into our licensees ' sales is limited . non-refundable up-front fees and minimum fee contracts : for licenses that provide for non-refundable up-front or fixed minimum fees over their term , for which we have no future obligations or performance requirements , revenue is generally recognized over the license term . for licenses that provide for fees that are not fixed or determinable

liquidity and capital resources for the year ended december 31 , 2016 , our cash and cash equivalents totaled $ 6,627 and our short-term investments totaled $ 9,249 compared to $ 8,726 and $ 9,954 , respectively , for the year ended december 31 , 2015. we expect that our cash and cash equivalents and short-term investments as of december 31 , 2016 will be sufficient to fund our current operations and provide working capital for general corporate purposes and legal expenses for the foreseeable future . we may undertake additional opportunities to seek to grow our business and as a result , we may seek to raise capital in some form within the next twelve months including the actions described below under universal shelf registration and atm offering . over the long term , we expect to derive the majority of our revenue from license fees and royalties associated with our patent portfolio , technology , software and secure domain name registry in the united states and other markets around the world . universal shelf registration and atm offering in august 2015 , we filed a universal shelf registration statement with the sec enabling us to offer and sell from time to time up to $ 100 million of equity , debt or other types of securities .


 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 for the year ended december 31 , 2016 , our cash and cash equivalents totaled $ 6,627 and our short-term investments totaled $ 9,249 compared to $ 8,726 and $ 9,954 , respectively , for the year ended december 31 , 2015. we expect that our cash and cash equivalents and short-term investments as of december 31 , 2016 will be sufficient to fund our current operations and provide working capital for general corporate purposes and legal expenses for the foreseeable future . we may undertake additional opportunities to seek to grow our business and as a result , we may seek to raise capital in some form within the next twelve months including the actions described below under universal shelf registration and atm offering . over the long term , we expect to derive the majority of our revenue from license fees and royalties associated with our patent portfolio , technology , software and secure domain name registry in the united states and other markets around the world . universal shelf registration and atm offering in august 2015 , we filed a universal shelf registration statement with the sec enabling us to offer and sell from time to time up to $ 100 million of equity , debt or other types of securities .
```    
 Suspicious Activity Report : our gabriel collaboration suite is a set of applications that run on top of our gabriel secure communication platform . it enables seamless and secure cross-platform communications between user 's devices that have our software installed . our gabriel collaboration suite is available for download and free trial , for android , ios , windows , linux and mac os x platforms , at http : //www.gabrielsecure.com/ . we continue to enhance our products and add new functionality to our products . we will provide updates to new and existing customers as they are released to the general public . we have signed patent license agreements with avaya inc. , aastra usa , inc. , microsoft , mitel networks corporation , nec corporation and nec corporation of america , siemens enterprise communications gmbh & co. kg , and siemens enterprise communications inc. to license certain of our patents , for a one-time payment and or an ongoing royalty for all future sales through the expiration of the licensed patents with respect to certain current 29 and future ip-encrypted products . we have engaged ipvalue management inc. to assist us in commercializing our portfolio of patents on securing real-time communications over the internet . under the multi-year agreement , ipvalue will originate and assist us with negotiating transactions related to patent licensing worldwide with respect to certain third parties . our employees include the core development team behind our patent portfolio , technology and software . this team has worked together for over ten years and is the same team that invented and developed this technology while working at leidos , is a fortune 500® scientific , engineering and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world , in national security , energy and the environment , critical infrastructure and health . the team has continued its research and development work started at leidos , and expanded the set of patents we acquired in 2006 from leidos , into a larger portfolio with over 100 u.s. and international patents with over 50 pending applications . this portfolio now serves as the foundation of our licensing business and planned service offerings and is expected to generate the majority of our future revenue in license fees and royalties . we intend to continue our research and development efforts to further strengthen and expand our patent portfolio . see – operations – research and development expenses for a description of our research and development expenses for the past three fiscal years discussed below . we continue using an outsourced and leveraged model to maintain efficiency and manage costs as we grow our licensing business by , for example , offering incentives to early licensing targets or asserting our rights for use of our patents . we also intend to expand our design pilot in participation with leading 4g/lte companies ( domain infrastructure providers , chipset manufacturers , service providers , and others ) and build our secure domain name registry . developments in the year ended december 31 , 2016 litigation we have nine intellectual property infringement lawsuits pending in the united states district court for the eastern district of texas , tyler division , and united states court of appeals for the federal circuit ( uscafc ) . virnetx inc. v. apple , inc. ( case 6:12-cv-00855-led ) on march 30 , 2015 , the united states court for the eastern district of texas , tyler division , issued an order finding substantial overlap between the remanded portions of the civil action case 6:10-cv-00417-led ( virnetx vs. cisco et . al . ) , and the ongoing civil action case 6:12-cv-00855-led ( virnetx inc. v. apple , inc. ) . the court consolidated the two civil actions under civil action case 6:12-cv-00855-led ( virnetx inc. v. apple , inc. ) and designated it as the lead case . the jury trial in this case was held on january 25 , 2016. on february 4 , 2016 , a jury in the united states court for the eastern district of texas , tyler division , awarded us $ 625.6 million in a verdict against apple inc. for infringing four of our us patents , marking it the second time a federal jury has found apple liable for infringing virnetx 's patented technology . the verdict includes royalties awarded to us based on an earlier patent infringement finding ( case 6:10-cv-00417-led ) against apple . the jury found that apple 's modified vpn on-demand , imessage and facetime services infringed virnetx 's patents and that apple 's infringement was willful . in addition to determining the royalty owed by apple for its prior infringement , this verdict also includes an award based on the jury 's finding that apple 's modified vpn on demand , imessage and facetime services have continued to infringe virnetx 's patents . the post-trial hearing was held on may 25 , 2016 in the united states court for the eastern district of texas , texarkana division . on july 29 , 2016 , the court issued a new order , vacating its previous orders consolidating the cases ( case no . 6:10-cv-417 , docket no . 878 ( apple i case ) ; case no . 6:12-cv-855 , docket no . 220 ( apple ii case ) ) , ordering that the two cases be retried separately , and setting the retrial date for apple i case with jury selection to begin on september 26 , 2016. the court also ordered that the issue of willfulness in both cases is bifurcated and that the apple ii case will be retried after apple i case . events and developments subsequent to the order from the court are described to support apple i and apple ii matters . virnetx inc. v. cisco systems , inc. et al . story_separator_special_tag 33 critical accounting policies the preparation of financial statements in conformity with accounting principles generally accepted in the united states requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period . the critical accounting policies we employ in the preparation of our consolidated financial statements are those which involve impairment of long-lived assets , income taxes , fair value of financial instruments and stock-based compensation . basis of consolidation the consolidated financial statements include the accounts of virnetx holding corporation and our wholly-owned subsidiaries . all intercompany balances and transactions have been eliminated . use of estimates the preparation of consolidated financial statements in conformity with u.s. gaap requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes . actual results could differ materially from these estimates . on an ongoing basis , we evaluate our estimates , including those related to the fair values of financial instruments , fair values of stock-based awards , income taxes , and derivative liabilities , among others . we base our estimates on historical experience and on various other assumptions that are believed to be reasonable , the results of which form the basis for making judgments about the carrying values of assets and liabilities . revenue recognition we derive our revenue from patent licensing . the timing and amount of revenue recognized from each licensee depends upon a variety of factors , including the specific terms of each agreement and the nature of the deliverables and obligations . such agreements may be complex and include multiple elements . these agreements may include , without limitation , elements related to the settlement of past patent infringement liabilities , up-front and non-refundable license fees for the use of patents , patent licensing royalties on covered products sold by licensees , and the compensation structure and ownership of intellectual property rights associated with contractual technology development arrangements . licensing agreements are accounted for under the financial accounting standards board ( fasb ) revenue recognition guidance , revenue arrangements with multiple deliverables. this guidance requires consideration to be allocated to each element of an agreement that has stand-alone value using the relative fair value method . in other circumstances , such as those agreements involving consideration for past and expected future patent royalty obligations , after consideration of the particular facts and circumstances , the appropriate recording of revenue between periods may require the use of judgment . in all cases , revenue is only recognized after all the following criteria are met : ( 1 ) written agreements have been executed ; ( 2 ) delivery of technology or intellectual property rights has occurred or services have been rendered ; ( 3 ) fees are fixed or determinable ; and ( 4 ) collectability of fees is reasonably assured . patent license agreements : upon signing a patent license agreement , including licenses entered upon settlement of litigation , we provide the licensee permission to use our patented technology in specific applications . we account for patent license agreements in accordance with the guidance for revenue recognition for arrangements with multiple deliverables , with amounts allocated to each element based on their fair values . we have elected to utilize the leased-based model for revenue recognition with revenue being recognized over the expected period of benefit to the licensee . under our patent license agreements , we do or expect to typically receive one or a combination of the following forms of payment as consideration for permitting our licensees to use our patented inventions in specific applications and products : consideration for past sales : consideration related to a licensee 's product sales from prior periods may result from a negotiated agreement with a licensee that utilized our patented technology prior to signing a patent license agreement with us or from the resolution of a litigation , disagreement or arbitration with a licensee over the specific terms of an existing license agreement . we may also receive royalty for past sales in connection with the settlement of patent litigation where there was no prior patent license agreement . these amounts are negotiated , typically based upon application of a royalty rate to historical sales prior to the execution of the license agreement . in each of these cases , because delivery has occurred , we record the consideration as revenue when we have obtained a signed agreement , identified a fixed or determinable price , and determined that collectability is reasonably assured . 34 current royalty payments : ongoing royalty payments cover a licensee 's obligations to us related to its sales of covered products in the current contractual reporting period . licensees that owe these current royalty payments are obligated to provide us with quarterly or semi-annual royalty reports that summarize their sales of covered products and their related royalty obligations to us . we expect to receive these royalty reports subsequent to the period in which our licensees ' underlying sales occurred . as a result , it is impractical for us to recognize revenue in the period in which the underlying sales occur , and , in most cases , we will recognize revenue in the period in which the royalty report is received and other revenue recognition criteria are met due to the fact that without royalty reports from our licensees , our visibility into our licensees ' sales is limited . non-refundable up-front fees and minimum fee contracts : for licenses that provide for non-refundable up-front or fixed minimum fees over their term , for which we have no future obligations or performance requirements , revenue is generally recognized over the license term . for licenses that provide for fees that are not fixed or determinable

