further , the availability of supplies in california differs greatly from year to year due to natural hydrological variability . over the last decade , california struggled through an historic drought featuring record-low winter precipitation . then , following a series of strong storms that delivered record amounts of rain and snow during the 2016-2017 winter , state officials declared an end to the drought . yet , the 2017-2018 winter has delivered few precipitation events and , through february 2018 , 82 % of the state is again abnormally dry according to the us drought monitor . the rapid swings between wet and dry years challenges california 's traditional supply system and supports the need for reliable storage and local supply . southern california water providers are presently pursuing investments in storage , supply and infrastructure to meet long-term demand given the variety of challenges and limitations faced by the state 's traditional infrastructure . the cadiz water project is a local supply option in southern california that could help address the region 's water supply challenges by providing new reliable supply and local groundwater storage opportunities ( see `` water resource development `` below ) in both dry and wet years . following a multi-year california environmental quality act ( `` ceqa `` ) review and permitting process , the water project received permits that allow the capture and conservation of 2.5 million acre-feet of groundwater over 50 years in accordance with the terms of a groundwater management plan approved by san bernardino county , the public agency responsible for groundwater use at the project area . our current working capital requirements relate largely to the final development activities associated with the water project and those activities consistent with the water project related to further development of our land and agricultural assets . while we continue to believe that the ultimate implementation of the water project will provide the primary source of our future cash flow , we also believe there is significant additional value in our underlying agricultural assets . demand for agricultural land with water rights is at an all-time high ; therefore , in addition to our water project proposal , we are engaged in agricultural joint ventures at the cadiz/fenner property that put some of the groundwater currently being lost to evaporation from the underlying aquifer system to immediate beneficial use . we have farmed portions of the cadiz/fenner property since the late 1980s relying on groundwater from the aquifer system for irrigation and the site is well suited for various permanent and seasonal crops . presently , the property has 2,100 acres leased for cultivation of a variety of crops , including citrus , dried-on-the-vine raisins and seasonal vegetables . we also continue to explore additional uses of our land and water resource assets , including the marketing of our approved desert tortoise land conservation bank , which is located on our properties outside the water project area , and other long-term legacy uses of our properties , such as habitat conservation and cultural development . 23 w ater resource development the water project is designed to capture and conserve billions of gallons of renewable native groundwater currently being lost to evaporation from the aquifer system underlying our cadiz/fenner property , and provide a new reliable water supply for approximately 400,000 people in southern california . in this first phase , phase 1 , the total quantity of groundwater to be recovered and conveyed to water project participants will not exceed a long-term annual average of 50,000 acre-feet per year for 50 years . the water project also offers participants in phase 1 the ability to carry-over their annual supply and store it in the groundwater basin from year to year . a second phase of the water project , phase ii , will offer up to one million acre-feet of storage capacity that can be used to hold water supplies imported to the project area . water project facilities required for phase i primarily include , among other things : · high-yield wells designed to efficiently recover available native groundwater from beneath the water project area ; · a water conveyance pipeline to deliver water from the well-field to the colorado river aqueduct ( `` cra `` ) for further delivery to project participants ; and · an energy source to provide power to the well-field , pipeline and pumping facilities . if an imported water storage component of the project is ultimately implemented in phase ii , the following additional facilities would be required , among other things : · facilities to pump water through the conveyance pipeline from the cra to the water project well-field and or through the company 's pipeline from cadiz to barstow , ca ; and · spreading basins , which are shallow settling ponds that will be configured to efficiently percolate water from the ground surface down to the water table using subsurface storage capacity for the storage of water . phase i phase i has been fully reviewed and permitted in accordance with the california environmental quality act ( ceqa ) . in may 2016 , all permits and approvals were sustained in the california court of appeal and are no longer subject to further litigation . as a result , the project presently is permitted to provide an average of 50,000 acre-feet of water for 50 years to meet municipal and industrial ( m & i ) water needs in southern california . story_separator_special_tag the net loss totaled $ 33.9 million for the year ended december 31 , 2017 , compared with a net loss of $ 26.3 million for the year ended december 31 , 2016. the higher loss in 2017 was primarily related to a $ 3.5 million loss on extinguishment of debt and $ 2.6 million in unrealized losses recorded for warrant liabilities . the higher 2017 loss was also related to an increase in stock compensation resulting from the vesting of milestone shares earned by employees , an increase in cash bonus awards to employees , and an increase in general and administrative expense due to pre-construction engineering activities in connection with the water project . 29 our primary expenses are our ongoing overhead costs associated with the development of the water project ( i.e . , general and administrative expense ) and our interest expense . we will continue to incur non-cash expense in connection with our management and director equity incentive compensation plans . revenues . revenue totaled $ 437 thousand during the year ended december 31 , 2017 , compared to $ 412 thousand during the year ended december 31 , 2016. the 2017 revenue is primarily related to rental income from the fvf lease ( see `` agricultural development `` , above ) . general and administrative expenses . general and administrative expenses during the year ended december 31 , 2017 , totaled $ 12.8 million compared with $ 9.3 million for the year ended december 31 , 2016. non-cash compensation costs related to stock and option awards are included in general and administrative expenses . general and administrative expenses , exclusive of stock-based compensation costs , totaled $ 10.5 million for the year ended december 31 , 2017 , compared with $ 8.0 million for the year ended december 31 , 2016. the increase in general and administrative expense in 2017 was primarily due to pre-construction engineering activities in connection with the water project and an increase in cash bonus awards to employees . compensation costs from stock and option awards for the year ended december 31 , 2017 , totaled $ 2.3 million compared with $ 1.3 million for the year ended december 31 , 2016. the higher 2017 expense primarily reflects the vesting of milestone shares earned by employees and consultants of the company . depreciation . depreciation expense totaled $ 274 thousand for the year ended december 31 , 2017 , and $ 292 thousand for the year ended december 31 , 2016. interest expense , net . net interest expense totaled $ 17.7 million during the year ended december 31 , 2017 , compared to $ 14.9 million during 2016. the following table summarizes the components of net interest expense for the two periods ( in thousands ) : replace_table_token_3_th 30 the interest on outstanding debt increased from $ 9.7 million to $ 11.3 million due to compounded interest on a larger credit facility associated with our may 2017 debt refinancing . additionally , during the year ended december 31 , 2017 , the company recorded net unrealized losses on warrants of $ 2.6 million , which included $ 3.1 million in unrealized losses related to the issuance of shares to former lenders ( see note 8 to the consolidated financial statements , `` common stock `` ) and $ 508 thousand in unrealized gains related to our may 2017 debt refinancing . ( see note 6 to the consolidated financial statements , `` long-term debt `` ) . story_separator_special_tag id= `` trgrrtftohtmltab `` style= `` font-size : 1px ; width : 9pt ; display : inline-block `` > prior debt refinancings . in april 2016 , we entered into a note purchase agreement with new and existing investors ( the `` investors `` ) . pursuant to the agreement , we issued approximately $ 10.0 million of our 7.00 % convertible senior notes due 2020 ( `` 2020 notes ) in aggregate principal and accrued interest . the proceeds from the issuance of the 2020 notes ( such 2020 notes , the `` new notes `` ) , are used for general working capital purposes . the 2020 notes accrue interest at 7.00 % per year , with no principal or interest payments due prior to maturity on march 5 , 2020. the 2020 notes , including original principal and accrued interest , are convertible at any time into the company 's common stock at a price of $ 6.75 per share , pursuant to the terms of the indenture dated as of december 10 , 2015 , by and between the company and us bank national association ( the `` indenture `` ) , under which the new notes were issued . as a result of this transaction , we recorded a debt discount in the amount of $ 2.0 million which is the difference between the proceeds from this transaction and the principal and accrued interest of new notes on the day of the issuance . in addition , based on the conversion rate of $ 6.75 per share , the fair value of the shares receivable on conversion exceed the $ 8.0 million in net proceeds ; therefore , a beneficial conversion feature was recorded in the amount of $ 1.48 million . this amount was recorded as additional debt discount with a corresponding amount recorded as additional paid-in capital . such debt discount is accreted to the redemption value of the instrument over the remaining term of the loan . furthermore , we incurred $ 400 thousand in placement agent fees which was recorded as additional debt discount and is being amortized over the remaining term of the loan . in november 2016 , we entered into an agreement with our then senior lenders which ( i ) extended the maturity date of our secured senior debt from september 2017 to september 2019 and ( ii ) permits us to satisfy the cash interest payment obligations

debt refinancings . in may 2017 , we entered into a new $ 60 million credit agreement ( `` credit agreement '' ) with funds affiliated with apollo global management , llc ( `` apollo '' ) that replaced and refinanced our then existing $ 45 million senior secured mortgage debt ( `` prior senior secured debt '' ) and provided $ 15 million of new senior debt to fund immediate construction related expenditures ( `` new senior secured debt '' ) . the new senior secured debt will mature on the earliest of ( a ) the four year anniversary of the closing date , and ( b ) the `` springing maturity date '' , which is defined as the date which is 91 days prior to the maturity date of the 7.00 % convertible senior notes of cadiz due 2020 ( the `` new convertible notes '' ) that were issued in december 2015 and april 2016 pursuant to the new convertible notes indenture as defined in the credit agreement , if on the 91 st day preceding the maturity date of the new convertible notes , the 5-day vwap , as defined in the credit agreement , is less than 120 % of the then applicable conversion rate , as defined in the new convertible notes indenture , and at least $ 10,000,000 in original principal amount of the new convertible notes is outstanding ( ( a ) or ( b ) , as applicable , the `` maturity date '' ) . interest on the new senior secured debt is due quarterly on each march 31 , june 30 , september 30 and december 31 ( each an `` interest date '' ) beginning on june 30 , 2017. interest on the new senior secured debt will ( i ) accrete to the outstanding principal amount at a rate per annum equal to 6 % ( the `` pik rate '' ) compounded quarterly on each interest date and ( ii ) accrue on the outstanding principal amount at a rate per annum equal to 2 % ( the `` cash rate '' ) .


 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.
     ```debt refinancings . in may 2017 , we entered into a new $ 60 million credit agreement ( `` credit agreement '' ) with funds affiliated with apollo global management , llc ( `` apollo '' ) that replaced and refinanced our then existing $ 45 million senior secured mortgage debt ( `` prior senior secured debt '' ) and provided $ 15 million of new senior debt to fund immediate construction related expenditures ( `` new senior secured debt '' ) . the new senior secured debt will mature on the earliest of ( a ) the four year anniversary of the closing date , and ( b ) the `` springing maturity date '' , which is defined as the date which is 91 days prior to the maturity date of the 7.00 % convertible senior notes of cadiz due 2020 ( the `` new convertible notes '' ) that were issued in december 2015 and april 2016 pursuant to the new convertible notes indenture as defined in the credit agreement , if on the 91 st day preceding the maturity date of the new convertible notes , the 5-day vwap , as defined in the credit agreement , is less than 120 % of the then applicable conversion rate , as defined in the new convertible notes indenture , and at least $ 10,000,000 in original principal amount of the new convertible notes is outstanding ( ( a ) or ( b ) , as applicable , the `` maturity date '' ) . interest on the new senior secured debt is due quarterly on each march 31 , june 30 , september 30 and december 31 ( each an `` interest date '' ) beginning on june 30 , 2017. interest on the new senior secured debt will ( i ) accrete to the outstanding principal amount at a rate per annum equal to 6 % ( the `` pik rate '' ) compounded quarterly on each interest date and ( ii ) accrue on the outstanding principal amount at a rate per annum equal to 2 % ( the `` cash rate '' ) .
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 Suspicious Activity Report : further , the availability of supplies in california differs greatly from year to year due to natural hydrological variability . over the last decade , california struggled through an historic drought featuring record-low winter precipitation . then , following a series of strong storms that delivered record amounts of rain and snow during the 2016-2017 winter , state officials declared an end to the drought . yet , the 2017-2018 winter has delivered few precipitation events and , through february 2018 , 82 % of the state is again abnormally dry according to the us drought monitor . the rapid swings between wet and dry years challenges california 's traditional supply system and supports the need for reliable storage and local supply . southern california water providers are presently pursuing investments in storage , supply and infrastructure to meet long-term demand given the variety of challenges and limitations faced by the state 's traditional infrastructure . the cadiz water project is a local supply option in southern california that could help address the region 's water supply challenges by providing new reliable supply and local groundwater storage opportunities ( see `` water resource development `` below ) in both dry and wet years . following a multi-year california environmental quality act ( `` ceqa `` ) review and permitting process , the water project received permits that allow the capture and conservation of 2.5 million acre-feet of groundwater over 50 years in accordance with the terms of a groundwater management plan approved by san bernardino county , the public agency responsible for groundwater use at the project area . our current working capital requirements relate largely to the final development activities associated with the water project and those activities consistent with the water project related to further development of our land and agricultural assets . while we continue to believe that the ultimate implementation of the water project will provide the primary source of our future cash flow , we also believe there is significant additional value in our underlying agricultural assets . demand for agricultural land with water rights is at an all-time high ; therefore , in addition to our water project proposal , we are engaged in agricultural joint ventures at the cadiz/fenner property that put some of the groundwater currently being lost to evaporation from the underlying aquifer system to immediate beneficial use . we have farmed portions of the cadiz/fenner property since the late 1980s relying on groundwater from the aquifer system for irrigation and the site is well suited for various permanent and seasonal crops . presently , the property has 2,100 acres leased for cultivation of a variety of crops , including citrus , dried-on-the-vine raisins and seasonal vegetables . we also continue to explore additional uses of our land and water resource assets , including the marketing of our approved desert tortoise land conservation bank , which is located on our properties outside the water project area , and other long-term legacy uses of our properties , such as habitat conservation and cultural development . 23 w ater resource development the water project is designed to capture and conserve billions of gallons of renewable native groundwater currently being lost to evaporation from the aquifer system underlying our cadiz/fenner property , and provide a new reliable water supply for approximately 400,000 people in southern california . in this first phase , phase 1 , the total quantity of groundwater to be recovered and conveyed to water project participants will not exceed a long-term annual average of 50,000 acre-feet per year for 50 years . the water project also offers participants in phase 1 the ability to carry-over their annual supply and store it in the groundwater basin from year to year . a second phase of the water project , phase ii , will offer up to one million acre-feet of storage capacity that can be used to hold water supplies imported to the project area . water project facilities required for phase i primarily include , among other things : · high-yield wells designed to efficiently recover available native groundwater from beneath the water project area ; · a water conveyance pipeline to deliver water from the well-field to the colorado river aqueduct ( `` cra `` ) for further delivery to project participants ; and · an energy source to provide power to the well-field , pipeline and pumping facilities . if an imported water storage component of the project is ultimately implemented in phase ii , the following additional facilities would be required , among other things : · facilities to pump water through the conveyance pipeline from the cra to the water project well-field and or through the company 's pipeline from cadiz to barstow , ca ; and · spreading basins , which are shallow settling ponds that will be configured to efficiently percolate water from the ground surface down to the water table using subsurface storage capacity for the storage of water . phase i phase i has been fully reviewed and permitted in accordance with the california environmental quality act ( ceqa ) . in may 2016 , all permits and approvals were sustained in the california court of appeal and are no longer subject to further litigation . as a result , the project presently is permitted to provide an average of 50,000 acre-feet of water for 50 years to meet municipal and industrial ( m & i ) water needs in southern california . story_separator_special_tag the net loss totaled $ 33.9 million for the year ended december 31 , 2017 , compared with a net loss of $ 26.3 million for the year ended december 31 , 2016. the higher loss in 2017 was primarily related to a $ 3.5 million loss on extinguishment of debt and $ 2.6 million in unrealized losses recorded for warrant liabilities . the higher 2017 loss was also related to an increase in stock compensation resulting from the vesting of milestone shares earned by employees , an increase in cash bonus awards to employees , and an increase in general and administrative expense due to pre-construction engineering activities in connection with the water project . 29 our primary expenses are our ongoing overhead costs associated with the development of the water project ( i.e . , general and administrative expense ) and our interest expense . we will continue to incur non-cash expense in connection with our management and director equity incentive compensation plans . revenues . revenue totaled $ 437 thousand during the year ended december 31 , 2017 , compared to $ 412 thousand during the year ended december 31 , 2016. the 2017 revenue is primarily related to rental income from the fvf lease ( see `` agricultural development `` , above ) . general and administrative expenses . general and administrative expenses during the year ended december 31 , 2017 , totaled $ 12.8 million compared with $ 9.3 million for the year ended december 31 , 2016. non-cash compensation costs related to stock and option awards are included in general and administrative expenses . general and administrative expenses , exclusive of stock-based compensation costs , totaled $ 10.5 million for the year ended december 31 , 2017 , compared with $ 8.0 million for the year ended december 31 , 2016. the increase in general and administrative expense in 2017 was primarily due to pre-construction engineering activities in connection with the water project and an increase in cash bonus awards to employees . compensation costs from stock and option awards for the year ended december 31 , 2017 , totaled $ 2.3 million compared with $ 1.3 million for the year ended december 31 , 2016. the higher 2017 expense primarily reflects the vesting of milestone shares earned by employees and consultants of the company . depreciation . depreciation expense totaled $ 274 thousand for the year ended december 31 , 2017 , and $ 292 thousand for the year ended december 31 , 2016. interest expense , net . net interest expense totaled $ 17.7 million during the year ended december 31 , 2017 , compared to $ 14.9 million during 2016. the following table summarizes the components of net interest expense for the two periods ( in thousands ) : replace_table_token_3_th 30 the interest on outstanding debt increased from $ 9.7 million to $ 11.3 million due to compounded interest on a larger credit facility associated with our may 2017 debt refinancing . additionally , during the year ended december 31 , 2017 , the company recorded net unrealized losses on warrants of $ 2.6 million , which included $ 3.1 million in unrealized losses related to the issuance of shares to former lenders ( see note 8 to the consolidated financial statements , `` common stock `` ) and $ 508 thousand in unrealized gains related to our may 2017 debt refinancing . ( see note 6 to the consolidated financial statements , `` long-term debt `` ) . story_separator_special_tag id= `` trgrrtftohtmltab `` style= `` font-size : 1px ; width : 9pt ; display : inline-block `` > prior debt refinancings . in april 2016 , we entered into a note purchase agreement with new and existing investors ( the `` investors `` ) . pursuant to the agreement , we issued approximately $ 10.0 million of our 7.00 % convertible senior notes due 2020 ( `` 2020 notes ) in aggregate principal and accrued interest . the proceeds from the issuance of the 2020 notes ( such 2020 notes , the `` new notes `` ) , are used for general working capital purposes . the 2020 notes accrue interest at 7.00 % per year , with no principal or interest payments due prior to maturity on march 5 , 2020. the 2020 notes , including original principal and accrued interest , are convertible at any time into the company 's common stock at a price of $ 6.75 per share , pursuant to the terms of the indenture dated as of december 10 , 2015 , by and between the company and us bank national association ( the `` indenture `` ) , under which the new notes were issued . as a result of this transaction , we recorded a debt discount in the amount of $ 2.0 million which is the difference between the proceeds from this transaction and the principal and accrued interest of new notes on the day of the issuance . in addition , based on the conversion rate of $ 6.75 per share , the fair value of the shares receivable on conversion exceed the $ 8.0 million in net proceeds ; therefore , a beneficial conversion feature was recorded in the amount of $ 1.48 million . this amount was recorded as additional debt discount with a corresponding amount recorded as additional paid-in capital . such debt discount is accreted to the redemption value of the instrument over the remaining term of the loan . furthermore , we incurred $ 400 thousand in placement agent fees which was recorded as additional debt discount and is being amortized over the remaining term of the loan . in november 2016 , we entered into an agreement with our then senior lenders which ( i ) extended the maturity date of our secured senior debt from september 2017 to september 2019 and ( ii ) permits us to satisfy the cash interest payment obligations

