our goal is to drill and produce oil and gas cost effectively by concentrating our efforts in proven oil rich areas where we have in-house geologic and operating experience . we are focusing on the acquisition of proven properties that we believe can be economically enhanced in this current commodity price environment . in certain market conditions , we believe there could be additional upside realized through the development of deeper productive horizons , or applying tertiary recovery applications to these acquired fields . to date , we have focused our activities in eastern wyoming along the salt creek/big muddy trend . starting with the salt creek field in natrona county , following the salt creek/big muddy trend down to the south glenrock field in converse county , we believe there are a series of analogous fields that could provide ideal targets for us to execute this business strategy . our acquisition strategy includes taking older wells that are shut in or have lower production results and applying new and existing technologies to work-over and or recomplete those wells so as to increase production and ultimate recovery . technologies to be deployed include 3-d seismic imaging to target undeveloped areas of the reservoir that contain remaining primary reserves and horizontal drilling to increase recoveries , as well as secondary and tertiary recovery methods to increase produced reserves . we will require substantial additional capital to support our existing and proposed future operations . we have no committed source for any additional funds as of the date hereof . no representation is made that any funds will be available when needed . in the event funds can not be raised when needed , we may not be able to carry out our business plan , may never achieve sales or royalty income and could fail in business as a result of these uncertainties . results of operations for the year ended march 31 , 2016 compared to the year ended march 31 , 2015 overview . during the year ended march 31 , 2016 , the company recognized a net loss of $ 15,767,831 compared to a net loss of $ 11,043,541 for the year ended march 31 , 2015. the increase of $ 4,724,290 is primarily the result of an increase in oil sales offset by an increase in operational activities , impairment of oil and gas properties as a result in the decline of oil and gas prices and the acquisition of western interior . discussions of individually significant line items follow : revenues : during the year ended march 31 , 2016 , the company recognized revenues of $ 547,000. during the year ended march 31 , 2015 , the company did not recognize revenues from its oil and gas operational activities . during the year ended march 31 , 2016 , the company sold approximately 16,120 barrels of oil at an average price of $ 33.93 per barrel during the period . management expects to see increases in its production numbers as it takes over the management of the operations of the wells held by llc # 3 and from the company 's purchase of outstanding working interests in these properties during april 2016 . 29 operating expenses : during the year ended march 31 , 2016 , the company had an increase of $ 6,693,726 in total operating expenses as a result of the following : an increase in costs of $ 509,584 related to its oil and gas operational activities as a result of its acquisition of western interior . general and administrative expenses increased by $ 464,096 primarily as a result of increases in staffing and costs associated with reporting requirements . depletion , depreciation , amortization and accretion increased by $ 3,392,414 as a result of its acquisition of western interior oil and gas properties that at march 31 , 2016 reflected only 46.5mbbls of proved producing reserves ( no proved undeveloped reserves ) due to sec pricing requirements with a decrease in exploration costs $ 1,440,037 due to the company focusing its efforts on existing producing wells and an increase in asset impairment of $ 3,411,348 further as a result of sec pricing requirements . story_separator_special_tag 10pt `` > on august 1 , 2015 , the company , relative to the repurchase by the company on march 31 , 2015 of the remaining 14,368 shares of western interior common stock , entered into an agreement with the note holder to settle the amount owed under the promissory note . as such , the parties agreed the amount owed on such promissory note by the company would be reduced from $ 768,715 to $ 393,795 and the difference of $ 374,920 be considered a reduction in the purchase price by the company of the 14,368 shares of western interior common stock . in addition , the $ 393,795 was paid in full effective august 1 , 2015 by the transfer to the note holder of certain oil and gas properties owned by western interior . on january 14 , 2016 , the company borrowed $ 50,000 each from two directors in exchange for secured promissory notes including interest at the rate of 5 % per annum with accrued and unpaid interest and principal due at september 30 , 2016. the promissory notes are collateralized by certain oil and gas properties located in the state of wyoming . holders may , at any time prior to payment of the promissory notes elect to convert all or any portion of the promissory notes , including accrued interest , into common shares of the company at a price determined by the average ten consecutive day trading closing price less 30 % . story_separator_special_tag during the years ended march 31 , 2016 and 2015 , there was impairment to unproved properties in the amount of $ 3,384,758 and $ 6,661 , respectively and for the year ended march 31 , 2016 there was a write off of expired lease costs in the amount of $ 3,096,931. the sale of a partial interest in an unproved property is accounted for as a recovery of cost when substantial uncertainty exists as to the ultimate recovery of the cost applicable to the interest retained . a gain on the sale is recognized to the extent that the sales price exceeds the carrying amount of the unproved property . a gain or loss is recognized for all other sales of unproved properties . there were capitalized costs of $ 4,745,917 and $ 8,087,991 at march 31 , 2016 and 2015 , respectively . costs associated with development wells that are unevaluated or are waiting for access to transportation or processing facilities are reclassified into developmental wells-in-progress ( “ wip ” ) . these costs are not put into a depletable field basis until the wells are fully evaluated or access is gained to transportation and processing facilities . costs associated with wip are included in the cash flows from investing as part of investment in oil and gas properties . at march 31 , 2016 and 2015 , no capitalized developmental costs were included in wip . depreciation , depletion and amortization of proved oil and gas properties is calculated using the units-of-production method based on proved reserves and estimated salvage values . for the years ended march 31 , 2016 and 2015 , the company recorded depreciation , depletion and amortization expense on oil and gas properties in the amount of $ 3,411,348 and $ 0 , respectively . the company reviews its proved oil and natural gas properties for impairment whenever events and circumstances indicate that a decline in the recoverability of its carrying value may have occurred . it estimates the undiscounted future net cash flows of its oil and natural gas properties and compares such undiscounted future cash flows to the carrying amount of the oil and natural gas properties to determine if the carrying amount is recoverable . if the carrying amount exceeds the estimated undiscounted future cash flows , the company will adjust the carrying amount of the oil and natural gas properties to fair value . for the years ended march 31 , 2016 and 2015 , there was impairment to proved properties of $ 5,091,554 and $ 0 , respectively . asset retirement obligations the company records estimated future asset retirement obligations ( “ aro ” ) related to its oil and gas properties . the company records the estimated fair value of a liability for aro in the period in which it is incurred with a corresponding increase in the carrying amount of the related long-lived asset . the increased carrying value is depleted using the units-of-production method , and the discounted liability is increased through accretion over the remaining life of the respective oil and gas properties . the estimated liability is based on historical industry experience in abandoning wells , including estimated economic lives , external estimates as to the cost to abandon the wells in the future and federal and state regulatory requirements . the company 's liability is discounted using management 's best estimate of its credit-adjusted , risk-free rate . revisions to the liability could occur due to changes in estimated abandonment costs , changes in well economic lives or if federal or state regulators enact new requirements regarding the abandonment of wells . 33 replace_table_token_7_th impairment of long-lived assets in accordance with authoritative guidance on accounting for the impairment or disposal of long-lived assets , as set forth in topic 360 of the asc , the company assesses the recoverability of the carrying value of its non-oil and gas long-lived assets when events occur that indicate an impairment in value may exist . an impairment loss is indicated if the sum of the expected undiscounted future net cash flows is less than the carrying amount of the assets . if this occurs , an impairment loss is recognized for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets . revenue recognition the company recognizes revenue when it is realized or realizable and earned . revenue is realized or realizable and earned when persuasive evidence of an arrangement exists , delivery has occurred or services have been rendered to the customer , the price to the buyer is fixed or determinable and collectability is reasonably assured . for goods , this is the point at which title and risk of loss is transferred and when payment has either been received or collection is reasonably assured . revenues for services are recorded when the services have been provided . revenue that does not meet these criteria is deferred until the criteria are met . business combination the company accounts for acquisitions in accordance with guidance found in asc 805 , business combinations . the guidance requires consideration given , including contingent consideration , assets acquired and liabilities assumed to be valued at their fair values at the date of acquisition . the guidance further provides that acquisition costs will generally be expensed as incurred and changes in deferred tax asset valuations and income tax uncertainties after the acquisition date generally will affect income tax expense . asc 805 requires that any excess of purchase price over the fair value of assets acquired , including identifiable intangibles and liabilities assumed , be recognized as goodwill and any excess of fair value of acquired net assets , including identifiable intangible assets over the acquisition consideration , results in a gain from bargain purchase . prior to recording a gain , the acquiring entity must reassess whether acquired assets and assumed liabilities have been identified and recognized and perform

liquidity we have incurred a net loss of $ 15,767,831 for the year ended march 31 , 2016 and have had a limited operating history . on april 26 , 2015 , we entered into a subscription agreement for the purchase of shares of our restricted common stock pursuant to regulation s. through the termination of the subscription agreement as of september 30 , 2015 , we received $ 1,345,000 in funds and issued 664,050 shares of restricted common stock . the company has used these funds to support ongoing operations . in october 2015 , the company commenced a private placement financing of $ 7,000,000 in units , a unit consisting of 1 share of its series a shares and a unit warrant . the unit warrant has an exercise price of $ 3.00 per share and a term of 3 years . the unit warrant is exercisable 9 months after issuance and is callable by the company upon the company 's common stock closing at a market price of $ 5.00 or above for a period of 10 days . the series a shares do not accrue dividends and have a deemed purchase price of $ 2.00 per share . at march 31 , 2016 , the company had received $ 657,988 of cash in exchange for issuance of 396,519 shares of its series a shares and unit warrants exercisable for 396,519 shares of common stock .


 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 we have incurred a net loss of $ 15,767,831 for the year ended march 31 , 2016 and have had a limited operating history . on april 26 , 2015 , we entered into a subscription agreement for the purchase of shares of our restricted common stock pursuant to regulation s. through the termination of the subscription agreement as of september 30 , 2015 , we received $ 1,345,000 in funds and issued 664,050 shares of restricted common stock . the company has used these funds to support ongoing operations . in october 2015 , the company commenced a private placement financing of $ 7,000,000 in units , a unit consisting of 1 share of its series a shares and a unit warrant . the unit warrant has an exercise price of $ 3.00 per share and a term of 3 years . the unit warrant is exercisable 9 months after issuance and is callable by the company upon the company 's common stock closing at a market price of $ 5.00 or above for a period of 10 days . the series a shares do not accrue dividends and have a deemed purchase price of $ 2.00 per share . at march 31 , 2016 , the company had received $ 657,988 of cash in exchange for issuance of 396,519 shares of its series a shares and unit warrants exercisable for 396,519 shares of common stock .
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 Suspicious Activity Report : our goal is to drill and produce oil and gas cost effectively by concentrating our efforts in proven oil rich areas where we have in-house geologic and operating experience . we are focusing on the acquisition of proven properties that we believe can be economically enhanced in this current commodity price environment . in certain market conditions , we believe there could be additional upside realized through the development of deeper productive horizons , or applying tertiary recovery applications to these acquired fields . to date , we have focused our activities in eastern wyoming along the salt creek/big muddy trend . starting with the salt creek field in natrona county , following the salt creek/big muddy trend down to the south glenrock field in converse county , we believe there are a series of analogous fields that could provide ideal targets for us to execute this business strategy . our acquisition strategy includes taking older wells that are shut in or have lower production results and applying new and existing technologies to work-over and or recomplete those wells so as to increase production and ultimate recovery . technologies to be deployed include 3-d seismic imaging to target undeveloped areas of the reservoir that contain remaining primary reserves and horizontal drilling to increase recoveries , as well as secondary and tertiary recovery methods to increase produced reserves . we will require substantial additional capital to support our existing and proposed future operations . we have no committed source for any additional funds as of the date hereof . no representation is made that any funds will be available when needed . in the event funds can not be raised when needed , we may not be able to carry out our business plan , may never achieve sales or royalty income and could fail in business as a result of these uncertainties . results of operations for the year ended march 31 , 2016 compared to the year ended march 31 , 2015 overview . during the year ended march 31 , 2016 , the company recognized a net loss of $ 15,767,831 compared to a net loss of $ 11,043,541 for the year ended march 31 , 2015. the increase of $ 4,724,290 is primarily the result of an increase in oil sales offset by an increase in operational activities , impairment of oil and gas properties as a result in the decline of oil and gas prices and the acquisition of western interior . discussions of individually significant line items follow : revenues : during the year ended march 31 , 2016 , the company recognized revenues of $ 547,000. during the year ended march 31 , 2015 , the company did not recognize revenues from its oil and gas operational activities . during the year ended march 31 , 2016 , the company sold approximately 16,120 barrels of oil at an average price of $ 33.93 per barrel during the period . management expects to see increases in its production numbers as it takes over the management of the operations of the wells held by llc # 3 and from the company 's purchase of outstanding working interests in these properties during april 2016 . 29 operating expenses : during the year ended march 31 , 2016 , the company had an increase of $ 6,693,726 in total operating expenses as a result of the following : an increase in costs of $ 509,584 related to its oil and gas operational activities as a result of its acquisition of western interior . general and administrative expenses increased by $ 464,096 primarily as a result of increases in staffing and costs associated with reporting requirements . depletion , depreciation , amortization and accretion increased by $ 3,392,414 as a result of its acquisition of western interior oil and gas properties that at march 31 , 2016 reflected only 46.5mbbls of proved producing reserves ( no proved undeveloped reserves ) due to sec pricing requirements with a decrease in exploration costs $ 1,440,037 due to the company focusing its efforts on existing producing wells and an increase in asset impairment of $ 3,411,348 further as a result of sec pricing requirements . story_separator_special_tag 10pt `` > on august 1 , 2015 , the company , relative to the repurchase by the company on march 31 , 2015 of the remaining 14,368 shares of western interior common stock , entered into an agreement with the note holder to settle the amount owed under the promissory note . as such , the parties agreed the amount owed on such promissory note by the company would be reduced from $ 768,715 to $ 393,795 and the difference of $ 374,920 be considered a reduction in the purchase price by the company of the 14,368 shares of western interior common stock . in addition , the $ 393,795 was paid in full effective august 1 , 2015 by the transfer to the note holder of certain oil and gas properties owned by western interior . on january 14 , 2016 , the company borrowed $ 50,000 each from two directors in exchange for secured promissory notes including interest at the rate of 5 % per annum with accrued and unpaid interest and principal due at september 30 , 2016. the promissory notes are collateralized by certain oil and gas properties located in the state of wyoming . holders may , at any time prior to payment of the promissory notes elect to convert all or any portion of the promissory notes , including accrued interest , into common shares of the company at a price determined by the average ten consecutive day trading closing price less 30 % . story_separator_special_tag during the years ended march 31 , 2016 and 2015 , there was impairment to unproved properties in the amount of $ 3,384,758 and $ 6,661 , respectively and for the year ended march 31 , 2016 there was a write off of expired lease costs in the amount of $ 3,096,931. the sale of a partial interest in an unproved property is accounted for as a recovery of cost when substantial uncertainty exists as to the ultimate recovery of the cost applicable to the interest retained . a gain on the sale is recognized to the extent that the sales price exceeds the carrying amount of the unproved property . a gain or loss is recognized for all other sales of unproved properties . there were capitalized costs of $ 4,745,917 and $ 8,087,991 at march 31 , 2016 and 2015 , respectively . costs associated with development wells that are unevaluated or are waiting for access to transportation or processing facilities are reclassified into developmental wells-in-progress ( “ wip ” ) . these costs are not put into a depletable field basis until the wells are fully evaluated or access is gained to transportation and processing facilities . costs associated with wip are included in the cash flows from investing as part of investment in oil and gas properties . at march 31 , 2016 and 2015 , no capitalized developmental costs were included in wip . depreciation , depletion and amortization of proved oil and gas properties is calculated using the units-of-production method based on proved reserves and estimated salvage values . for the years ended march 31 , 2016 and 2015 , the company recorded depreciation , depletion and amortization expense on oil and gas properties in the amount of $ 3,411,348 and $ 0 , respectively . the company reviews its proved oil and natural gas properties for impairment whenever events and circumstances indicate that a decline in the recoverability of its carrying value may have occurred . it estimates the undiscounted future net cash flows of its oil and natural gas properties and compares such undiscounted future cash flows to the carrying amount of the oil and natural gas properties to determine if the carrying amount is recoverable . if the carrying amount exceeds the estimated undiscounted future cash flows , the company will adjust the carrying amount of the oil and natural gas properties to fair value . for the years ended march 31 , 2016 and 2015 , there was impairment to proved properties of $ 5,091,554 and $ 0 , respectively . asset retirement obligations the company records estimated future asset retirement obligations ( “ aro ” ) related to its oil and gas properties . the company records the estimated fair value of a liability for aro in the period in which it is incurred with a corresponding increase in the carrying amount of the related long-lived asset . the increased carrying value is depleted using the units-of-production method , and the discounted liability is increased through accretion over the remaining life of the respective oil and gas properties . the estimated liability is based on historical industry experience in abandoning wells , including estimated economic lives , external estimates as to the cost to abandon the wells in the future and federal and state regulatory requirements . the company 's liability is discounted using management 's best estimate of its credit-adjusted , risk-free rate . revisions to the liability could occur due to changes in estimated abandonment costs , changes in well economic lives or if federal or state regulators enact new requirements regarding the abandonment of wells . 33 replace_table_token_7_th impairment of long-lived assets in accordance with authoritative guidance on accounting for the impairment or disposal of long-lived assets , as set forth in topic 360 of the asc , the company assesses the recoverability of the carrying value of its non-oil and gas long-lived assets when events occur that indicate an impairment in value may exist . an impairment loss is indicated if the sum of the expected undiscounted future net cash flows is less than the carrying amount of the assets . if this occurs , an impairment loss is recognized for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets . revenue recognition the company recognizes revenue when it is realized or realizable and earned . revenue is realized or realizable and earned when persuasive evidence of an arrangement exists , delivery has occurred or services have been rendered to the customer , the price to the buyer is fixed or determinable and collectability is reasonably assured . for goods , this is the point at which title and risk of loss is transferred and when payment has either been received or collection is reasonably assured . revenues for services are recorded when the services have been provided . revenue that does not meet these criteria is deferred until the criteria are met . business combination the company accounts for acquisitions in accordance with guidance found in asc 805 , business combinations . the guidance requires consideration given , including contingent consideration , assets acquired and liabilities assumed to be valued at their fair values at the date of acquisition . the guidance further provides that acquisition costs will generally be expensed as incurred and changes in deferred tax asset valuations and income tax uncertainties after the acquisition date generally will affect income tax expense . asc 805 requires that any excess of purchase price over the fair value of assets acquired , including identifiable intangibles and liabilities assumed , be recognized as goodwill and any excess of fair value of acquired net assets , including identifiable intangible assets over the acquisition consideration , results in a gain from bargain purchase . prior to recording a gain , the acquiring entity must reassess whether acquired assets and assumed liabilities have been identified and recognized and perform

