we further believe that authentication will occur on the device itself for potentially low-value , and therefore low-risk , use-transactions and that user authentication for high-value transactions will migrate to the application provider 's authentication server , typically located within their supporting technology infrastructure , or cloud . we have developed our technology to enable , on-device authentication as well as network or cloud-based authentication and believe we may be the only technology vendor capable of providing this flexibility and capability . our core technology works on over 40 commercially available fingerprint readers , across both windows and linux platforms , and apple ios and android mobile operating systems . this interoperability , coupled with the ability to authentic users via the device or cloud , is unique in the industry , provides a key differentiator for us , and in our opinion , makes our technology more viable than competing technologies and expands the size of the overall market for our products . we believe there is potential for significant market growth in five key areas : ● corporate network access control , including corporate campuses , computer networks and applications ; ● consumer mobile credentialing , including mobile payments , credit and payment card programs , data and application access , and commercial loyalty programs ; ● government services and highly regulated industries including , medicare , medicaid , social security , drivers licenses , campus and school id , passports/visas ; ● direct sales of fingerprint readers to consumers and commercial customers ; and ● growth in the asia pacific region . in the near-term , we expect to grow our business within government services and highly-regulated industries in which we have historically had a strong presence , such as the healthcare industry . we believe that continued heightened security and privacy requirements in these industries will generate increased demand for security solutions , including biometrics . in addition , we expect that the integration of our technology into windows 10 , will accelerate the demand for our computer network log-on solutions and fingerprint readers . finally , our entry into the asian market and licensing arrangement with cgg is expected to further expand our business by opening new markets . over the longer term , we intend to expand our business into the cloud and mobile computing industries . the emergence of cloud computing and mobile computing are primary drivers of commercial and consumer adoption of advanced authentication applications , including biometric and bio-key authentication capabilities . as the value of assets , services and transactions increases on such networks , we expect that security and user authentication demand should rise proportionately . our integration partners include major web and network technology providers , who we believe will deliver our cloud-applicable solutions to interested service-providers . these service-providers could include , but are not limited to , financial institutions , web-service providers , consumer payment service providers , credit reporting services , consumer data service providers , healthcare providers and others . additionally , our integration partners include major technology component providers and oem manufacturers , who we believe will deliver our device-applicable solutions to interested hardware manufacturers . such manufacturers could include cellular handset and smartphone manufacturers , tablet manufacturers , laptop and pc manufacturers , among other hardware manufacturers . 17 results of operations consolidated results of operations two year % trend replace_table_token_3_th revenues and costs of goods sold replace_table_token_4_th revenues revenue increased $ 1,255,369 or 31 % to $ 5,261,225 in 2015 as compared to $ 4,005,856 in 2014. as described more fully below , the increase was primarily due to material growth in our core business of licensing our software and new revenue stream from sales of our fingerprint readers . for the years ended december 31 , 2015 and 2014 , service revenues included approximately $ 679,000 and $ 627,000 , respectively , of recurring maintenance and support revenue , and approximately $ 252,000 and $ 863,000 , respectively , of non-recurring custom services revenue . recurring service revenue increased 8 % from 2014 to 2015 , due to the increase in bundled maintenance agreements to our expanding customer license base . non-recurring custom services decreased 71 % due to a completion of a customer project at the end of 2014 . 18 for the years ended december 31 , 2015 and 2014 , license and other revenue ( comprised of third party and bio-key hardware , and royalty ) increased approximately 72 % as a result of several contributing factors . software license revenue increased by approximately $ 957,000 or 49 % during the year ended december 31 , 2015 compared to the year ended december 31 , 2014. we continued to expand our relationship with ncr , developed new partnerships , continued to ship orders to aesynt for their continued deployment of our identification technology in their accudose® product line , and for ongoing expansion of biometric id deployments with commercial partners lexisnexis , educational biometric technology , identimetrics , and a large supplemental order from single international customer . hardware sales increased by approximately $ 841,000 ( 181 % ) , as a result of the introduction of our new low cost fingerprint readers , the establishment of our hong kong subsidiary , and expanding healthcare industry deployments . royalty income , from an oem agreement for the year ended december 31 , 2015 increased 18 % to approximately $ 103,000 from $ 87,000 during 2014 , due to adding a new oem partner . costs of goods sold for the year ended december 31 , 2015 , cost of service decreased approximately $ 185,000 primarily as a result of costs associated with non-recurring custom services revenue . license and other costs for the year ended december 31 , 2015 increased approximately $ 716,000 due primarily to the increase in hardware revenue , and third party software revenue . story_separator_special_tag also , projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions , or that the degree of compliance with the policies or procedures may deteriorate . under the supervision and with the participation of our management , including our ceo and cfo , we have conducted an evaluation of the effectiveness of our internal control over financial reporting as of december 31 , 2015 , based upon the framework in internal control-integrated framework issued by the committee of sponsoring organizations of the treadway commission . based on this evaluation , management has concluded that our internal control over financial reporting was effective as of december 31 , 2015. as the company is a smaller reporting company , this annual report does not include an attestation report of the company 's registered public accounting firm regarding internal control over financial reporting . management 's report was not subject to attestation by the company 's registered public accounting firm pursuant to rules of the securities and exchange commission that permit the company to provide only management 's report in this annual report . changes in internal control over financial reporting no change in our internal control over financial reporting occurred during the fiscal quarter ended december 31 , 2015 that has materially affected , or is reasonably likely to materially affect , our internal control over financial reporting . item 9b . other information none . 25 part iii item 10. directors , executive officers and corporate governance the following sets forth certain information about each director , executive officer , and key employee of the company . replace_table_token_8_th ( a ) compensation committee member ( b ) audit committee member ( c ) nominating committee member directors we believe that our board of directors should be composed of individuals with sophistication and experience in many substantive areas that impact our business . we believe that experience , qualifications , or skills in the following areas are most important : legal/regulatory and government affairs ; accounting and finance ; design , innovation and engineering ; strategic planning ; and human resources and development practices ; and board practices of other corporations . these areas are in addition to the personal qualifications described in this section . we believe that our current board members possess the professional and personal qualifications necessary for board service , and have highlighted particularly noteworthy attributes for each board member below . the principal occupation and business experience , for at least the past five years , of each current director is as follows : michael w. depasquale has served as our chief executive officer and a director since january 3 , 2003 , and chairman of the board since january 29 , 2014. he served as co-chief executive officer of the company from july 2005 to august 2006. mr. depasquale brings more than 27 years of executive management , sales and marketing experience to the company . prior to joining us , mr. depasquale served as the president and chief executive officer of prism esolutions , inc. , a pennsylvania-based provider of professional consulting services and online solutions for iso-9001/14000 certification for customers in manufacturing , healthcare and government markets , since february 2001. from december 1999 through december 2000 , mr. depasquale served as group vice president for wrc media , a new york-based distributor of supplemental education products and software . from january 1996 until december 1999 , mr. depasquale served as senior vice president of jostens learning corp. , a california-based provider of multimedia curriculum . prior to jostens , mr. depasquale held sales and marketing management positions with mcgraw-hill and digital equipment corporation . mr. depasquale earned a bachelor of science degree from the new jersey institute of technology . he serves on the board of directors and as treasurer of the international biometrics and identification industry association . mr. depasquale has extensive general management experience in the technology sector and has served as a director for number of non-profit organizations and private companies . charles p. romeo has served as a director since february 28 , 2005 and from january 29 , 2003 to april 19 , 2004. from april 2004 until february 2005 , he served as our vice president of sales , public safety division . from november 2005 to november 2007 , mr. romeo served as the vice president of sales and marketing for unicom , a rhode island systems integrator . from september 2002 until april 2004 , mr. romeo was the president and chief executive officer of freedombridge technologies , inc. , a rhode island-based consulting firm to technology companies in the homeland security industry specializing in implementing direct and channel selling programs , strategic alliances and partnerships in the law enforcement market . prior to founding freedombridge , mr. romeo had a 33 year sales and marketing management career with digital equipment corporation , compaq computer corporation and hewlett packard . during his career , mr. romeo served as vice president of service sales for a $ 500 million business unit , and director of public sector sales for a $ 275 million division of hewlett packard . mr. romeo authored the sales manager 's troubleshooter , prentice hall 1998 , which was named as one of the “ top 10 must reads ” by sales and marketing magazine . mr. romeo earned a bachelor of science degree in mathematics and economics from the university of massachusetts and an executive mba from babson college . mr. romeo has significant sales and marketing management experience in the infrastructure and computer hardware and software industries . 26 john schoenherr has served as a director since december 30 , 2004. mr. schoenherr served as vice president of corporate performance management for oracle corporation from 1995 through 2006. prior to oracle he served as senior vice president of business intelligence and analytics at information resources

liquidity and capital resources operating activities overview net cash used for operations during the year ended december 31 , 2015 was approximately $ 15,560,000. items of note were as follows : ● negative cash flows from the purchase of software licenses of $ 12,000,000 and other inventory of approximately $ 337,000 ● negative cash flows related to an increase in accounts receivable , less movements in prepayments , accounts payable , and accrued expenses of approximately $ 1,804,000 , due to working capital management , and ● net positive cash flows related to the adjustments for depreciation , amortization , share-based compensation , debt discount , and fair value adjustments of approximately $ 442,000 investing activities overview net cash used for investing activities during the year ended december 31 , 2015 was approximately $ 3,000 and was due to the purchase of capital expenditures . financing activities overview net cash provided by financing activities during the year ended december 31 , 2015 was approximately $ 19,041,000 and attributable primarily to the following : ● positive cash flows from the issuance of shares of preferred stock and warrants of approximately $ 19,500,000 , net of dividends and financing costs of approximately $ 459,000 . 20 capital resources since our inception , our capital needs have been principally met through proceeds from the sale of equity and debt securities . we expect capital expenditures to be less than $ 100,000 during the next twelve months . we do not currently maintain a line of credit or term loan with any commercial bank or other financial institution . the following sets forth our primary sources of capital during the previous two years : as of december 2011 , we entered into a 24-month accounts receivable factoring arrangement with a financial institution ( the “ factor ” ) . pursuant to the terms of this arrangement , from time to time , we sell to the factor certain of our accounts receivable balances on a non-recourse basis for credit approved accounts .


 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 operating activities overview net cash used for operations during the year ended december 31 , 2015 was approximately $ 15,560,000. items of note were as follows : ● negative cash flows from the purchase of software licenses of $ 12,000,000 and other inventory of approximately $ 337,000 ● negative cash flows related to an increase in accounts receivable , less movements in prepayments , accounts payable , and accrued expenses of approximately $ 1,804,000 , due to working capital management , and ● net positive cash flows related to the adjustments for depreciation , amortization , share-based compensation , debt discount , and fair value adjustments of approximately $ 442,000 investing activities overview net cash used for investing activities during the year ended december 31 , 2015 was approximately $ 3,000 and was due to the purchase of capital expenditures . financing activities overview net cash provided by financing activities during the year ended december 31 , 2015 was approximately $ 19,041,000 and attributable primarily to the following : ● positive cash flows from the issuance of shares of preferred stock and warrants of approximately $ 19,500,000 , net of dividends and financing costs of approximately $ 459,000 . 20 capital resources since our inception , our capital needs have been principally met through proceeds from the sale of equity and debt securities . we expect capital expenditures to be less than $ 100,000 during the next twelve months . we do not currently maintain a line of credit or term loan with any commercial bank or other financial institution . the following sets forth our primary sources of capital during the previous two years : as of december 2011 , we entered into a 24-month accounts receivable factoring arrangement with a financial institution ( the “ factor ” ) . pursuant to the terms of this arrangement , from time to time , we sell to the factor certain of our accounts receivable balances on a non-recourse basis for credit approved accounts .
```    
 Suspicious Activity Report : we further believe that authentication will occur on the device itself for potentially low-value , and therefore low-risk , use-transactions and that user authentication for high-value transactions will migrate to the application provider 's authentication server , typically located within their supporting technology infrastructure , or cloud . we have developed our technology to enable , on-device authentication as well as network or cloud-based authentication and believe we may be the only technology vendor capable of providing this flexibility and capability . our core technology works on over 40 commercially available fingerprint readers , across both windows and linux platforms , and apple ios and android mobile operating systems . this interoperability , coupled with the ability to authentic users via the device or cloud , is unique in the industry , provides a key differentiator for us , and in our opinion , makes our technology more viable than competing technologies and expands the size of the overall market for our products . we believe there is potential for significant market growth in five key areas : ● corporate network access control , including corporate campuses , computer networks and applications ; ● consumer mobile credentialing , including mobile payments , credit and payment card programs , data and application access , and commercial loyalty programs ; ● government services and highly regulated industries including , medicare , medicaid , social security , drivers licenses , campus and school id , passports/visas ; ● direct sales of fingerprint readers to consumers and commercial customers ; and ● growth in the asia pacific region . in the near-term , we expect to grow our business within government services and highly-regulated industries in which we have historically had a strong presence , such as the healthcare industry . we believe that continued heightened security and privacy requirements in these industries will generate increased demand for security solutions , including biometrics . in addition , we expect that the integration of our technology into windows 10 , will accelerate the demand for our computer network log-on solutions and fingerprint readers . finally , our entry into the asian market and licensing arrangement with cgg is expected to further expand our business by opening new markets . over the longer term , we intend to expand our business into the cloud and mobile computing industries . the emergence of cloud computing and mobile computing are primary drivers of commercial and consumer adoption of advanced authentication applications , including biometric and bio-key authentication capabilities . as the value of assets , services and transactions increases on such networks , we expect that security and user authentication demand should rise proportionately . our integration partners include major web and network technology providers , who we believe will deliver our cloud-applicable solutions to interested service-providers . these service-providers could include , but are not limited to , financial institutions , web-service providers , consumer payment service providers , credit reporting services , consumer data service providers , healthcare providers and others . additionally , our integration partners include major technology component providers and oem manufacturers , who we believe will deliver our device-applicable solutions to interested hardware manufacturers . such manufacturers could include cellular handset and smartphone manufacturers , tablet manufacturers , laptop and pc manufacturers , among other hardware manufacturers . 17 results of operations consolidated results of operations two year % trend replace_table_token_3_th revenues and costs of goods sold replace_table_token_4_th revenues revenue increased $ 1,255,369 or 31 % to $ 5,261,225 in 2015 as compared to $ 4,005,856 in 2014. as described more fully below , the increase was primarily due to material growth in our core business of licensing our software and new revenue stream from sales of our fingerprint readers . for the years ended december 31 , 2015 and 2014 , service revenues included approximately $ 679,000 and $ 627,000 , respectively , of recurring maintenance and support revenue , and approximately $ 252,000 and $ 863,000 , respectively , of non-recurring custom services revenue . recurring service revenue increased 8 % from 2014 to 2015 , due to the increase in bundled maintenance agreements to our expanding customer license base . non-recurring custom services decreased 71 % due to a completion of a customer project at the end of 2014 . 18 for the years ended december 31 , 2015 and 2014 , license and other revenue ( comprised of third party and bio-key hardware , and royalty ) increased approximately 72 % as a result of several contributing factors . software license revenue increased by approximately $ 957,000 or 49 % during the year ended december 31 , 2015 compared to the year ended december 31 , 2014. we continued to expand our relationship with ncr , developed new partnerships , continued to ship orders to aesynt for their continued deployment of our identification technology in their accudose® product line , and for ongoing expansion of biometric id deployments with commercial partners lexisnexis , educational biometric technology , identimetrics , and a large supplemental order from single international customer . hardware sales increased by approximately $ 841,000 ( 181 % ) , as a result of the introduction of our new low cost fingerprint readers , the establishment of our hong kong subsidiary , and expanding healthcare industry deployments . royalty income , from an oem agreement for the year ended december 31 , 2015 increased 18 % to approximately $ 103,000 from $ 87,000 during 2014 , due to adding a new oem partner . costs of goods sold for the year ended december 31 , 2015 , cost of service decreased approximately $ 185,000 primarily as a result of costs associated with non-recurring custom services revenue . license and other costs for the year ended december 31 , 2015 increased approximately $ 716,000 due primarily to the increase in hardware revenue , and third party software revenue . story_separator_special_tag also , projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions , or that the degree of compliance with the policies or procedures may deteriorate . under the supervision and with the participation of our management , including our ceo and cfo , we have conducted an evaluation of the effectiveness of our internal control over financial reporting as of december 31 , 2015 , based upon the framework in internal control-integrated framework issued by the committee of sponsoring organizations of the treadway commission . based on this evaluation , management has concluded that our internal control over financial reporting was effective as of december 31 , 2015. as the company is a smaller reporting company , this annual report does not include an attestation report of the company 's registered public accounting firm regarding internal control over financial reporting . management 's report was not subject to attestation by the company 's registered public accounting firm pursuant to rules of the securities and exchange commission that permit the company to provide only management 's report in this annual report . changes in internal control over financial reporting no change in our internal control over financial reporting occurred during the fiscal quarter ended december 31 , 2015 that has materially affected , or is reasonably likely to materially affect , our internal control over financial reporting . item 9b . other information none . 25 part iii item 10. directors , executive officers and corporate governance the following sets forth certain information about each director , executive officer , and key employee of the company . replace_table_token_8_th ( a ) compensation committee member ( b ) audit committee member ( c ) nominating committee member directors we believe that our board of directors should be composed of individuals with sophistication and experience in many substantive areas that impact our business . we believe that experience , qualifications , or skills in the following areas are most important : legal/regulatory and government affairs ; accounting and finance ; design , innovation and engineering ; strategic planning ; and human resources and development practices ; and board practices of other corporations . these areas are in addition to the personal qualifications described in this section . we believe that our current board members possess the professional and personal qualifications necessary for board service , and have highlighted particularly noteworthy attributes for each board member below . the principal occupation and business experience , for at least the past five years , of each current director is as follows : michael w. depasquale has served as our chief executive officer and a director since january 3 , 2003 , and chairman of the board since january 29 , 2014. he served as co-chief executive officer of the company from july 2005 to august 2006. mr. depasquale brings more than 27 years of executive management , sales and marketing experience to the company . prior to joining us , mr. depasquale served as the president and chief executive officer of prism esolutions , inc. , a pennsylvania-based provider of professional consulting services and online solutions for iso-9001/14000 certification for customers in manufacturing , healthcare and government markets , since february 2001. from december 1999 through december 2000 , mr. depasquale served as group vice president for wrc media , a new york-based distributor of supplemental education products and software . from january 1996 until december 1999 , mr. depasquale served as senior vice president of jostens learning corp. , a california-based provider of multimedia curriculum . prior to jostens , mr. depasquale held sales and marketing management positions with mcgraw-hill and digital equipment corporation . mr. depasquale earned a bachelor of science degree from the new jersey institute of technology . he serves on the board of directors and as treasurer of the international biometrics and identification industry association . mr. depasquale has extensive general management experience in the technology sector and has served as a director for number of non-profit organizations and private companies . charles p. romeo has served as a director since february 28 , 2005 and from january 29 , 2003 to april 19 , 2004. from april 2004 until february 2005 , he served as our vice president of sales , public safety division . from november 2005 to november 2007 , mr. romeo served as the vice president of sales and marketing for unicom , a rhode island systems integrator . from september 2002 until april 2004 , mr. romeo was the president and chief executive officer of freedombridge technologies , inc. , a rhode island-based consulting firm to technology companies in the homeland security industry specializing in implementing direct and channel selling programs , strategic alliances and partnerships in the law enforcement market . prior to founding freedombridge , mr. romeo had a 33 year sales and marketing management career with digital equipment corporation , compaq computer corporation and hewlett packard . during his career , mr. romeo served as vice president of service sales for a $ 500 million business unit , and director of public sector sales for a $ 275 million division of hewlett packard . mr. romeo authored the sales manager 's troubleshooter , prentice hall 1998 , which was named as one of the “ top 10 must reads ” by sales and marketing magazine . mr. romeo earned a bachelor of science degree in mathematics and economics from the university of massachusetts and an executive mba from babson college . mr. romeo has significant sales and marketing management experience in the infrastructure and computer hardware and software industries . 26 john schoenherr has served as a director since december 30 , 2004. mr. schoenherr served as vice president of corporate performance management for oracle corporation from 1995 through 2006. prior to oracle he served as senior vice president of business intelligence and analytics at information resources

