on august 31 , 2017 , straight path ventures demonstrated its prototype 39 ghz gigarray ® solutions that achieved 800 megabits per second at a distance of 500 meters . straight path ip group on april 9 , 2017 , we and idt entered into the idt term sheet to settle claims potential under agreements related to the spin-off , and the sale of our interest in straight path ip group to idt . for further discussion , please see note 3 to the consolidated financial statements in this annual report – settlement of claims with idt and sale of straight path ip group . on october 9 , 2014 , the ptab issued an administrative decision stating that claims 1-7 and 32-42 of the ‘ 704 patent are unpatentable . straight path ip group appealed that decision . on november 25 , 2015 , the cafc reversed the ptab 's decision and remanded the case back to the ptab for further proceedings . on may 23 , 2016 , the ptab issued a final written decision finding none of the challenged claims unpatentable . following the favorable cafc decision , the ptab denied pending petitions for ipr of the ‘ 704 patent and other patents held by straight path ip group . as well , the ptab found nearly all the claims patentable over the prior art in pending iprs . the petitioners have appealed to the cafc . on june 23 , 2017 , the cafc affirmed the ptab 's decision . following the second affirmance by the cafc , the stays that had been in place in the civil actions pending in federal district court , except in the suit against several verizon affiliates . in that suit , on july 5 , 2017 , the court lifted the stay that had been in place pending the outcome of the cafc appeal and set a scheduling conference for september 15 , 2017. however , on september 11 , 2017 , the parties jointly agreed to a 90-day stay . the court granted the stay until december 8 , 2017. straight path ip group has also filed complaints against apple , avaya , and cisco . expert discovery is underway in the apple and cisco actions . however , avaya recently filed voluntary petitions under chapter 11 of the u.s. bankruptcy code . on may 2 , 2017 , straight path ip group filed a proof of claim in the avaya bankruptcy proceeding . in addition , on september 13 , 2017 , apple filed a request for ex parte reexamination of u.s. patent no . 7,149,208 in the uspto . for further discussion of these actions and other legal proceedings , please see item 3 to part i “ legal proceedings ” in this annual report . 36 critical accounting policies and estimates our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the united states of america , or u.s. gaap . the preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenue , and expenses as well as the disclosure of contingent assets and liabilities . critical accounting estimates are those that require application of management 's most subjective or complex judgments , often as a result of matters that are inherently uncertain and may change in subsequent periods . our critical accounting estimates are as follows : 1. the valuation of warrants issued to the lenders . 2. the valuation of stock options issued to officers and employees 3. the valuation of intangible assets with indefinite useful lives . management bases its estimates and judgments on historical experience and other factors that are believed to be reasonable under the circumstances . actual results may differ from these estimates under different assumptions or conditions . see note 1 to the consolidated financial statements in this annual report for a complete discussion of our significant accounting policies and estimates . 37 emerging growth company we qualify as an “ emerging growth company ” as defined in the jumpstart our business startups act of 2012 , or the jobs act . an emerging growth company may take advantage of reduced reporting and other burdens that are otherwise applicable generally to public companies . these provisions include : ● an extended transition period to comply with new or revised accounting standards applicable to public companies ; and ● an exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting pursuant to the sarbanes-oxley act of 2002. we are able to take advantage of these provisions until the end of the fiscal year ending after the fifth anniversary of our initial registration statement filed related to our spin-off from idt , which is july 31 , 2018 , or such earlier time that we are no longer an emerging growth company and , if we do , the information that we provide stockholders may be different than you might receive from other public companies in which you hold equity . we would cease to be an emerging growth company if we have more than $ 1.0 billion in annual revenue , have more than $ 700 million in market value of our shares of common stock held by non-affiliates as of the last business day of the second quarter of our fiscal year end , or issue more than $ 1.0 billion of non-convertible debt over a three-year period . results of operations year ended july 31 , 2017 ( “ fiscal 2017 ” ) compared to year ended july 31 , 2016 ( “ fiscal 2016 ” ) we evaluate the performance of our operating business segments based primarily on income ( loss ) from operations . story_separator_special_tag research and development consists of expenses related to a development agreement in september 2015 to expedite production of a pmp radio for a total fee of $ 1,000,000. selling , general and administrative expense . selling , general and administrative expenses increased in fiscal 2016 compared to fiscal 2015 primarily as a result of the hiring of new employees , and the related increase in compensation costs , including stock-based compensation for the issuances of restricted common stock to employees , marketing expenses related to the installation of radio links , and increased legal costs due to the putative shareholder class action , derivative action , and regulatory enforcement activity . straight path ip group segment replace_table_token_9_th 43 revenues . we have filed a series of lawsuits claiming infringement of a number of our key patents seeking both damages and injunctive relief . many of these actions have been settled and we have entered into licensing agreements with the former defendants . in connection with the settlements and license agreements , straight path ip group recognized revenue of approximately $ 1.7 million and $ 12.8 million in fiscal 2016 and fiscal 2015 , respectively . the gross payments under settlement and licensing agreements that have been secured since our spin-off ( the beginning of fiscal 2014 ) totaled $ 18.3 million as of july 31 , 2016 , all of which has been collected . most of these settlement agreements included license fees for the duration of the license term , and were allocated across fiscal 2014 , 2015 and 2016 in the amounts of $ 4.2 million , $ 12.5 million and $ 1.6 million respectively , based on the settlement dates and if the settlement included a look back period for damages . the license term was through the expiration of the licensed patents . primarily all of the revenue from these settlements was recognized as of september 30 , 2015. the ptab 's october 2014 decision on the ‘ 704 patent previously had a materially adverse impact on our ongoing enforcement efforts . during the pendency of the appeal from that decision and related iprs , a number of pending civil actions brought by straight path ip group against various defendants were stayed or dismissed without prejudice . in light of the favorable outcome on appeal , the favorable ptab rulings in the related ipr proceedings , and the subsequent affirmance on a second appeal , straight path ip group has re-commenced all of its civil litigations in federal district court ( except for one that is stayed by agreement of the parties and one that is subject to a bankruptcy proceeding ) . for further discussion of these litigations , please see item 3 to part i “ legal proceedings ” in this annual report . direct cost of revenues . direct cost of revenues consisted of legal expenses directly related to revenues from the litigation settlements described above . we incurred an aggregate of $ 9.0 million in expenses directly related to these settlements , which was recognized ratably in proportion to the recognition of the related revenue . we generally paid law firms that represented us in litigation against alleged infringers of our intellectual property rights a percentage of the amounts recovered ranging from 0 % to 40 % depending on several factors . in addition , beginning on october 2 , 2017 , straight path ip group will pay one of the law firms $ 100,000 per month as a non-refundable fee creditable against any contingency payment that may be paid to that firm in the future ; there are also other directly related legal expenses , such as expert testimony , travel , filing fees , and others . selling , general and administrative expense . selling , general and administrative expenses increased in fiscal 2016 compared to fiscal 2015 primarily as a result of the increase in compensation costs , including stock-based compensation for the issuances of restricted common stock to employees , and increased legal costs due to straight path ip group 's appeal of the ptab 's decision on the ‘ 704 patent and related iprs . straight path ventures segment replace_table_token_10_th research and development . research and development consists of expenses related to development by our gigabit mobility lab of next generation wireless technology for 39 ghz . selling , general and administrative . selling , general and administrative expenses consist primarily of payroll and related payroll taxes and benefits as well as stock compensation expenses . story_separator_special_tag roman , times , serif ; margin : 0 `` > investing activities cash flows used in investing activities in fiscal 2017 totaled approximately $ 1.0 million . we incurred costs of approximately $ 1.0 million for the sale of straight path ip group to idt . these costs will be offset against the gain or loss recognized on the consummation of the transaction . financing activities cash flows provided by financing activities in fiscal 2017 totaled approximately $ 19.2 million . in february 2017 , we borrowed $ 17.5 million under the loan agreement , primarily to fund the payment of the initial civil penalty under the consent decree with the fcc . we incurred costs of approximately $ 80,000 to obtain the loan agreement . in addition , we received $ 1.8 million received for the exercise of stock options . we do not anticipate paying any additional dividends on our common stock until we achieve sustainable profitability ( after satisfying all of our operational needs , including payments to the former spsi ceo and retaining certain minimum cash reserves . following that time , we will retain sufficient cash to provide for investment in growth opportunities and provide for the creation of long-term stockholder value , particularly through development of the straight path spectrum and straight path ventures businesses and possibly the acquisition of complementary businesses or assets . however , we do not intend to retain

liquidity and capital resources general historically , we have primarily satisfied our cash requirements through the initial funding provided in connection with the spin-off , proceeds from the sale or lease of rights in spectrum licenses , and settlements or licensing fees received . in connection with the spin-off , idt transferred cash to us such that we had approximately $ 15 million in cash at the time of the spin-off . since that time , we have satisfied our cash requirements through straight path ip group 's settlement and licensing agreements and straight path spectrum 's revenue from spectrum leases . in february 2017 , we borrowed $ 17.5 million pursuant to the loan agreement . for a further discussion , see note 8 to the consolidated financial statements . we currently expect that our cash and cash equivalents on-hand at july 31 , 2017 and the proceeds to be received upon consummation of the settlement with idt , will be sufficient to meet our anticipated cash requirements during the twelve months ending july 31 , 2018. as discussed above , we signed the consent decree with the fcc and incurred an initial civil penalty of $ 15 million which is being paid in four installments through the earlier of october 11 , 2017 or the consummation of the merger . to fund the payments of the initial civil penalty , we entered into the loan agreement pursuant to which we borrowed the $ 17.5 million , which matures on december 29 , 2017 . $ 15 million of the loan amount is being used to pay the initial civil penalty provided for in the consent decree in accordance with the payment requirements set forth in the consent decree . the first three installments totaling $ 11.5 million were paid . the remainder of the loan amount is being used for general corporate purposes and working capital needs .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources general historically , we have primarily satisfied our cash requirements through the initial funding provided in connection with the spin-off , proceeds from the sale or lease of rights in spectrum licenses , and settlements or licensing fees received . in connection with the spin-off , idt transferred cash to us such that we had approximately $ 15 million in cash at the time of the spin-off . since that time , we have satisfied our cash requirements through straight path ip group 's settlement and licensing agreements and straight path spectrum 's revenue from spectrum leases . in february 2017 , we borrowed $ 17.5 million pursuant to the loan agreement . for a further discussion , see note 8 to the consolidated financial statements . we currently expect that our cash and cash equivalents on-hand at july 31 , 2017 and the proceeds to be received upon consummation of the settlement with idt , will be sufficient to meet our anticipated cash requirements during the twelve months ending july 31 , 2018. as discussed above , we signed the consent decree with the fcc and incurred an initial civil penalty of $ 15 million which is being paid in four installments through the earlier of october 11 , 2017 or the consummation of the merger . to fund the payments of the initial civil penalty , we entered into the loan agreement pursuant to which we borrowed the $ 17.5 million , which matures on december 29 , 2017 . $ 15 million of the loan amount is being used to pay the initial civil penalty provided for in the consent decree in accordance with the payment requirements set forth in the consent decree . the first three installments totaling $ 11.5 million were paid . the remainder of the loan amount is being used for general corporate purposes and working capital needs .
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 Suspicious Activity Report : on august 31 , 2017 , straight path ventures demonstrated its prototype 39 ghz gigarray ® solutions that achieved 800 megabits per second at a distance of 500 meters . straight path ip group on april 9 , 2017 , we and idt entered into the idt term sheet to settle claims potential under agreements related to the spin-off , and the sale of our interest in straight path ip group to idt . for further discussion , please see note 3 to the consolidated financial statements in this annual report – settlement of claims with idt and sale of straight path ip group . on october 9 , 2014 , the ptab issued an administrative decision stating that claims 1-7 and 32-42 of the ‘ 704 patent are unpatentable . straight path ip group appealed that decision . on november 25 , 2015 , the cafc reversed the ptab 's decision and remanded the case back to the ptab for further proceedings . on may 23 , 2016 , the ptab issued a final written decision finding none of the challenged claims unpatentable . following the favorable cafc decision , the ptab denied pending petitions for ipr of the ‘ 704 patent and other patents held by straight path ip group . as well , the ptab found nearly all the claims patentable over the prior art in pending iprs . the petitioners have appealed to the cafc . on june 23 , 2017 , the cafc affirmed the ptab 's decision . following the second affirmance by the cafc , the stays that had been in place in the civil actions pending in federal district court , except in the suit against several verizon affiliates . in that suit , on july 5 , 2017 , the court lifted the stay that had been in place pending the outcome of the cafc appeal and set a scheduling conference for september 15 , 2017. however , on september 11 , 2017 , the parties jointly agreed to a 90-day stay . the court granted the stay until december 8 , 2017. straight path ip group has also filed complaints against apple , avaya , and cisco . expert discovery is underway in the apple and cisco actions . however , avaya recently filed voluntary petitions under chapter 11 of the u.s. bankruptcy code . on may 2 , 2017 , straight path ip group filed a proof of claim in the avaya bankruptcy proceeding . in addition , on september 13 , 2017 , apple filed a request for ex parte reexamination of u.s. patent no . 7,149,208 in the uspto . for further discussion of these actions and other legal proceedings , please see item 3 to part i “ legal proceedings ” in this annual report . 36 critical accounting policies and estimates our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the united states of america , or u.s. gaap . the preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenue , and expenses as well as the disclosure of contingent assets and liabilities . critical accounting estimates are those that require application of management 's most subjective or complex judgments , often as a result of matters that are inherently uncertain and may change in subsequent periods . our critical accounting estimates are as follows : 1. the valuation of warrants issued to the lenders . 2. the valuation of stock options issued to officers and employees 3. the valuation of intangible assets with indefinite useful lives . management bases its estimates and judgments on historical experience and other factors that are believed to be reasonable under the circumstances . actual results may differ from these estimates under different assumptions or conditions . see note 1 to the consolidated financial statements in this annual report for a complete discussion of our significant accounting policies and estimates . 37 emerging growth company we qualify as an “ emerging growth company ” as defined in the jumpstart our business startups act of 2012 , or the jobs act . an emerging growth company may take advantage of reduced reporting and other burdens that are otherwise applicable generally to public companies . these provisions include : ● an extended transition period to comply with new or revised accounting standards applicable to public companies ; and ● an exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting pursuant to the sarbanes-oxley act of 2002. we are able to take advantage of these provisions until the end of the fiscal year ending after the fifth anniversary of our initial registration statement filed related to our spin-off from idt , which is july 31 , 2018 , or such earlier time that we are no longer an emerging growth company and , if we do , the information that we provide stockholders may be different than you might receive from other public companies in which you hold equity . we would cease to be an emerging growth company if we have more than $ 1.0 billion in annual revenue , have more than $ 700 million in market value of our shares of common stock held by non-affiliates as of the last business day of the second quarter of our fiscal year end , or issue more than $ 1.0 billion of non-convertible debt over a three-year period . results of operations year ended july 31 , 2017 ( “ fiscal 2017 ” ) compared to year ended july 31 , 2016 ( “ fiscal 2016 ” ) we evaluate the performance of our operating business segments based primarily on income ( loss ) from operations . story_separator_special_tag research and development consists of expenses related to a development agreement in september 2015 to expedite production of a pmp radio for a total fee of $ 1,000,000. selling , general and administrative expense . selling , general and administrative expenses increased in fiscal 2016 compared to fiscal 2015 primarily as a result of the hiring of new employees , and the related increase in compensation costs , including stock-based compensation for the issuances of restricted common stock to employees , marketing expenses related to the installation of radio links , and increased legal costs due to the putative shareholder class action , derivative action , and regulatory enforcement activity . straight path ip group segment replace_table_token_9_th 43 revenues . we have filed a series of lawsuits claiming infringement of a number of our key patents seeking both damages and injunctive relief . many of these actions have been settled and we have entered into licensing agreements with the former defendants . in connection with the settlements and license agreements , straight path ip group recognized revenue of approximately $ 1.7 million and $ 12.8 million in fiscal 2016 and fiscal 2015 , respectively . the gross payments under settlement and licensing agreements that have been secured since our spin-off ( the beginning of fiscal 2014 ) totaled $ 18.3 million as of july 31 , 2016 , all of which has been collected . most of these settlement agreements included license fees for the duration of the license term , and were allocated across fiscal 2014 , 2015 and 2016 in the amounts of $ 4.2 million , $ 12.5 million and $ 1.6 million respectively , based on the settlement dates and if the settlement included a look back period for damages . the license term was through the expiration of the licensed patents . primarily all of the revenue from these settlements was recognized as of september 30 , 2015. the ptab 's october 2014 decision on the ‘ 704 patent previously had a materially adverse impact on our ongoing enforcement efforts . during the pendency of the appeal from that decision and related iprs , a number of pending civil actions brought by straight path ip group against various defendants were stayed or dismissed without prejudice . in light of the favorable outcome on appeal , the favorable ptab rulings in the related ipr proceedings , and the subsequent affirmance on a second appeal , straight path ip group has re-commenced all of its civil litigations in federal district court ( except for one that is stayed by agreement of the parties and one that is subject to a bankruptcy proceeding ) . for further discussion of these litigations , please see item 3 to part i “ legal proceedings ” in this annual report . direct cost of revenues . direct cost of revenues consisted of legal expenses directly related to revenues from the litigation settlements described above . we incurred an aggregate of $ 9.0 million in expenses directly related to these settlements , which was recognized ratably in proportion to the recognition of the related revenue . we generally paid law firms that represented us in litigation against alleged infringers of our intellectual property rights a percentage of the amounts recovered ranging from 0 % to 40 % depending on several factors . in addition , beginning on october 2 , 2017 , straight path ip group will pay one of the law firms $ 100,000 per month as a non-refundable fee creditable against any contingency payment that may be paid to that firm in the future ; there are also other directly related legal expenses , such as expert testimony , travel , filing fees , and others . selling , general and administrative expense . selling , general and administrative expenses increased in fiscal 2016 compared to fiscal 2015 primarily as a result of the increase in compensation costs , including stock-based compensation for the issuances of restricted common stock to employees , and increased legal costs due to straight path ip group 's appeal of the ptab 's decision on the ‘ 704 patent and related iprs . straight path ventures segment replace_table_token_10_th research and development . research and development consists of expenses related to development by our gigabit mobility lab of next generation wireless technology for 39 ghz . selling , general and administrative . selling , general and administrative expenses consist primarily of payroll and related payroll taxes and benefits as well as stock compensation expenses . story_separator_special_tag roman , times , serif ; margin : 0 `` > investing activities cash flows used in investing activities in fiscal 2017 totaled approximately $ 1.0 million . we incurred costs of approximately $ 1.0 million for the sale of straight path ip group to idt . these costs will be offset against the gain or loss recognized on the consummation of the transaction . financing activities cash flows provided by financing activities in fiscal 2017 totaled approximately $ 19.2 million . in february 2017 , we borrowed $ 17.5 million under the loan agreement , primarily to fund the payment of the initial civil penalty under the consent decree with the fcc . we incurred costs of approximately $ 80,000 to obtain the loan agreement . in addition , we received $ 1.8 million received for the exercise of stock options . we do not anticipate paying any additional dividends on our common stock until we achieve sustainable profitability ( after satisfying all of our operational needs , including payments to the former spsi ceo and retaining certain minimum cash reserves . following that time , we will retain sufficient cash to provide for investment in growth opportunities and provide for the creation of long-term stockholder value , particularly through development of the straight path spectrum and straight path ventures businesses and possibly the acquisition of complementary businesses or assets . however , we do not intend to retain

