dr. lord brings extensive innovation , executive management and board experience to his new role of chairman . on october 1 , 2017 , we appointed a new senior vice president and chief financial officer with proven leadership and technical experience in finance and business management in both public and private companies . on november 1 , 2017 , we appointed richard b. lanman , m.d . to our board , a well-known healthcare innovator and entrepreneur who specializes in the development and adoption of novel healthcare technologies . in january , we promoted from within a new vice president of u.s. sales , with a wealth of experience and knowledge about our company and the industry . in december 2017 , we completed a rights offering with holders of our common stock as of the record date of 5:00 p.m. , eastern time on november 8 , 2017. gross proceeds from the sale were $ 12.0 million , and net proceeds , after offering expenses of approximately $ 0.6 million , were approximately $ 11.4 million . in april 2017 , we completed a private placement with several institutional and individual investors , and certain of our directors and officers . gross proceeds from the sale were $ 10.5 million , and net proceeds , after offering expenses of approximately $ 0.3 million , were approximately $ 10.2 million . in february 2017 , we launched the fifth-generation waterlase express all-tissue laser system . waterlase express represents the newest addition to our waterlase portfolio of er , cr : ysgg all-tissue lasers . waterlase express was exhibited at the chicago dental society 's mid-winter meeting in february 2017. designed for easy and intuitive operation , integrated learning , and portability , waterlase express is our next-generation waterlase system . waterlase express has regulatory clearance for commercial distribution from the fda , and is available for sale to dentists in the u.s. as well as select international markets in europe , the middle east , and asia . 37 in january 2017 , we received fda clearance and launched epic pro , a powerful and innovative dental diode laser system , making it available for sale in the u.s. , as well as in select countries in europe , the middle east , and asia . the epic pro , which offers more power than most diode laser s in dentistry , is the first product to be introduced resulting from our strategic development agreement with ipg medical . the newest addition to the epic family of dental soft-tissue lasers , epic pro features several new innovations , such as a new super pulse technology for more precise , enhanced laser tissue cutting ; real-time automatic power control to enhance speed and consistency when performing surgery ; and pre-initiated , bendable , disposable tips with new smart tip technology to ensure tip performance and quality . t he epic pro laser system has fda clearance for dental and surgical operations , intended for us e in contact and non-contact techniques for incision , excision , vaporization , ablation , hemostasis , or coagulation of intraoral and extra-oral soft tissue ( including marginal and interdental gingiva and epithelial lining of free gingiva ) . in summary , 2017 was a year of continued transformation for biolase , positioning the company in executing on our strategic goals of returning biolase to a successful growing company and continuing as the clear worldwide industry leader in the dental laser segment . although we have made improvements throughout the year , it will take time for the financial statements to reflect the changes and as such , for the three years ended december 31 , 2017 we have reported recurring losses from operations and have not generated cash from operations . our level of cash used in operations , the potential need for additional capital , and the uncertainties surrounding our ability to raise additional capital , raise substantial doubt about our ability to continue as a going concern . as a result , the opinion we have received from our independent registered public accounting firm , on our consolidated financial statements , contains an explanatory paragraph stating that there is a substantial doubt regarding our ability to continue as a going concern . the accompanying financial statements have been prepared on a going concern basis , which assumes that we will continue in operation for the next 12 months and will be able to realize our assets and discharge our liabilities and commitments in the normal course of business . the financial statements do not include any adjustments that might be necessary if the company is unable to continue as a going concern . critical accounting policies the preparation of consolidated financial statements and rela ted disclosures in conformity with generally accepted accounting principles in the united states ( “ gaap ” ) requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes . the following is a summary of those accounting policies that we believe are necessary to understand and evaluate our reported financial results . revenue recognition . we sell our products in north america directly to customers through our field sales forc e and through non-exclusive distributors . we sell our products internationally through exclusive and non-exclusive distributors as well as directly to customers in certain countries . sales are recorded upon shipment from our facility , and payment of our invoices is generally due within 90 days or less . internationally , we primarily sell products through independent distributors . story_separator_special_tag the warrants became exercisable on february 8 , 2017 , six months after the closing of the private placement , and have a term of five years from the date of issuance . we are using the proceeds of the sale for working capital and general corporate purposes . in connection with the registration rights granted to these investors , we filed a registration statement on form s-3 with the sec , which was declared effective on november 3 , 2016. in accordance with applicable accounting standards , the $ 10.0 million gross proceeds from sale were allocated to the convertible preferred stock and warrants in the amount of $ 8.9 million and $ 1.1 million , respectively . the allocation was based on the relative fair values of the underlying common stock and warrants as of the commitment date , with the fair value of the warrants determined using a black scholes model . this transaction resulted in a discount from allocation of proceeds to separable instruments of $ 1.1 million and a beneficial conversion to common stock with a value of $ 1.1 million , which has been reflected as a deemed distribution to preferred shareholders in the year ended december 31 , 2016 . 41 results of operations the following table sets forth certain data from our operating results for each of the years ended december 31 , 2017 , 2016 , and 2015 , expressed as percentages of revenue : replace_table_token_4_th the following table summarizes our net revenues by category for the years ended december 31 , 2017 , 2016 , and 2015 ( dollars in thousands ) : replace_table_token_5_th non-gaap disclosure in addition to the financial information prepared in conformity with gaap , we provide certain historical non-gaap financial information . management believes that these non-gaap financial measures assist investors in making comparisons of period-to-period operating results and that , in some respects , these non-gaap financial measures are more indicative of the company 's ongoing core operating performance than their gaap equivalents . management believes that the presentation of this non-gaap financial information provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures , compensation strategies , derivative instruments , and amortization methods , which provides a more complete understanding of our financial performance , competitive position , and prospects for the future . however , the non-gaap financial measures presented in this form 10-k have certain limitations in that they do not reflect all of the costs associated with the operations of our business as determined in accordance with gaap . therefore , investors should consider non-gaap financial measures in addition to , and not as a substitute for , or as superior to , measures of financial performance prepared in accordance with gaap . further , the non-gaap financial measures presented by the company may be different from similarly named non-gaap financial measures used by other companies . 42 non-gaap net loss . management uses non-gaap net loss ( defined as net loss before interest , taxes , depreciation and amortization , stock-based compe nsation , and other non-cash compensation ) in its evaluation of the company 's core results of operations and trends between fiscal periods and believes that these measures are important components of its internal performance measurement process . management believes that this non-gaap financial information reflects an additional way of viewing aspects of our business that , when viewed with our gaap results , provides a more complete understanding of factors and trends affecting our business . non-gaap net loss for the periods presented is as follows ( in thousands ) : replace_table_token_6_th comparison of results of operations year ended december 31 , 2017 compared with year ended december 31 , 2016 net revenue . net revenue for the year ended december 31 , 2017 ( “ fiscal 2017 ” ) was $ 46.9 million , a decrease of $ 4.9 million , or 9 % , as compared with net revenue of $ 51.8 million for the year ended december 31 , 2016 ( “ fiscal 2016 ” ) . domestic revenues were $ 29.3 million , or 62 % of net revenue , for fiscal 2017 compared to $ 33.4 million , or 64 % of net revenue , for fiscal 2016. international revenues for fiscal 2017 were $ 17.6 million , or 38 % of net revenue , compared to $ 18.4 million , or 36 % of net revenue for fiscal 2016. the decrease in year-over-year net revenue resulted from decreases in worldwide laser system revenue , international imaging systems revenue , international consumables and other revenue , international services revenue and domestic license and royalties revenue , partially offset by increases in domestic imaging systems revenue , domestic consumables and other revenue and domestic services revenue . our goal has been to refocus on strengthening our leadership position in dental markets worldwide through increased focus on our professional customers and their patients . we have strengthened our management team with new key personnel and invested in our sales resources both domestically and internationally . laser system net revenues decreased by approximately $ 6.0 million , or 17 % , in fiscal 2017 compared to fiscal 2016. the laser systems revenue decrease was driven by a 28 % decline in domestic revenue and a 3 % decline in international revenue . imaging system net revenue increased by approximately $ 0.6 million , or 20 % , in fiscal 2017 compared to fiscal 2016. this increase was due to increased overall market interest in intra-oral scanning devices , and our favorable positioning as a distributor . consumables and other net revenue , which includes products such as disposable tips and shipping revenue , increased approximately $ 0.4 million , or 6 % , in fiscal 2017 , as compared to fiscal 2016. the increase in consumables and other net revenue was primarily a result

liquidity and capital resources at december 31 , 2017 , we had approximately $ 11.9 million in cash and cash equivalents , including restricted cash equivalents . management defines cash and cash equivalents as highly liquid deposits with original maturities of 90 days or less when purchased . the increase in our cash and cash equivalents by $ 2.7 million from december 31 , 2016 was primarily due to cash provided by financing activities of $ 21.6 million , partially offset by cash used in operating and investing act ivities of $ 18.4 million and $ 0.7 million , respectively , and the effect of exchange rates on cash of $ 0.3 million . the $ 18.4 million of net cash used in operating activities was primarily driven by the company 's net loss of $ 16.9 million during the year . at december 31 , 2017 , we had approximately $ 22.7 million in working capital . our principal sources of liquidity at december 31 , 2017 , consisted of approximately $ 11.9 million in cash , cash equivalents and restricted cash and $ 10.1 million of net accounts receivable . we have reported recurring losses from operations and have not generated cash from operations for the three years ended december 31 , 2017. our level of cash used in operations , the potential need for additional capital , and the uncertainties surrounding our ability to raise additional capital , raise substantial doubt about our ability to continue as a going concern . the accompanying financial statements have been prepared on a going concern basis , which assumes that we will continue in operation for the next 12 months and will be able to realize our assets and discharge our liabilities and commitments in the normal course of business . the financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern .


 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 at december 31 , 2017 , we had approximately $ 11.9 million in cash and cash equivalents , including restricted cash equivalents . management defines cash and cash equivalents as highly liquid deposits with original maturities of 90 days or less when purchased . the increase in our cash and cash equivalents by $ 2.7 million from december 31 , 2016 was primarily due to cash provided by financing activities of $ 21.6 million , partially offset by cash used in operating and investing act ivities of $ 18.4 million and $ 0.7 million , respectively , and the effect of exchange rates on cash of $ 0.3 million . the $ 18.4 million of net cash used in operating activities was primarily driven by the company 's net loss of $ 16.9 million during the year . at december 31 , 2017 , we had approximately $ 22.7 million in working capital . our principal sources of liquidity at december 31 , 2017 , consisted of approximately $ 11.9 million in cash , cash equivalents and restricted cash and $ 10.1 million of net accounts receivable . we have reported recurring losses from operations and have not generated cash from operations for the three years ended december 31 , 2017. our level of cash used in operations , the potential need for additional capital , and the uncertainties surrounding our ability to raise additional capital , raise substantial doubt about our ability to continue as a going concern . the accompanying financial statements have been prepared on a going concern basis , which assumes that we will continue in operation for the next 12 months and will be able to realize our assets and discharge our liabilities and commitments in the normal course of business . the financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern .
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 Suspicious Activity Report : dr. lord brings extensive innovation , executive management and board experience to his new role of chairman . on october 1 , 2017 , we appointed a new senior vice president and chief financial officer with proven leadership and technical experience in finance and business management in both public and private companies . on november 1 , 2017 , we appointed richard b. lanman , m.d . to our board , a well-known healthcare innovator and entrepreneur who specializes in the development and adoption of novel healthcare technologies . in january , we promoted from within a new vice president of u.s. sales , with a wealth of experience and knowledge about our company and the industry . in december 2017 , we completed a rights offering with holders of our common stock as of the record date of 5:00 p.m. , eastern time on november 8 , 2017. gross proceeds from the sale were $ 12.0 million , and net proceeds , after offering expenses of approximately $ 0.6 million , were approximately $ 11.4 million . in april 2017 , we completed a private placement with several institutional and individual investors , and certain of our directors and officers . gross proceeds from the sale were $ 10.5 million , and net proceeds , after offering expenses of approximately $ 0.3 million , were approximately $ 10.2 million . in february 2017 , we launched the fifth-generation waterlase express all-tissue laser system . waterlase express represents the newest addition to our waterlase portfolio of er , cr : ysgg all-tissue lasers . waterlase express was exhibited at the chicago dental society 's mid-winter meeting in february 2017. designed for easy and intuitive operation , integrated learning , and portability , waterlase express is our next-generation waterlase system . waterlase express has regulatory clearance for commercial distribution from the fda , and is available for sale to dentists in the u.s. as well as select international markets in europe , the middle east , and asia . 37 in january 2017 , we received fda clearance and launched epic pro , a powerful and innovative dental diode laser system , making it available for sale in the u.s. , as well as in select countries in europe , the middle east , and asia . the epic pro , which offers more power than most diode laser s in dentistry , is the first product to be introduced resulting from our strategic development agreement with ipg medical . the newest addition to the epic family of dental soft-tissue lasers , epic pro features several new innovations , such as a new super pulse technology for more precise , enhanced laser tissue cutting ; real-time automatic power control to enhance speed and consistency when performing surgery ; and pre-initiated , bendable , disposable tips with new smart tip technology to ensure tip performance and quality . t he epic pro laser system has fda clearance for dental and surgical operations , intended for us e in contact and non-contact techniques for incision , excision , vaporization , ablation , hemostasis , or coagulation of intraoral and extra-oral soft tissue ( including marginal and interdental gingiva and epithelial lining of free gingiva ) . in summary , 2017 was a year of continued transformation for biolase , positioning the company in executing on our strategic goals of returning biolase to a successful growing company and continuing as the clear worldwide industry leader in the dental laser segment . although we have made improvements throughout the year , it will take time for the financial statements to reflect the changes and as such , for the three years ended december 31 , 2017 we have reported recurring losses from operations and have not generated cash from operations . our level of cash used in operations , the potential need for additional capital , and the uncertainties surrounding our ability to raise additional capital , raise substantial doubt about our ability to continue as a going concern . as a result , the opinion we have received from our independent registered public accounting firm , on our consolidated financial statements , contains an explanatory paragraph stating that there is a substantial doubt regarding our ability to continue as a going concern . the accompanying financial statements have been prepared on a going concern basis , which assumes that we will continue in operation for the next 12 months and will be able to realize our assets and discharge our liabilities and commitments in the normal course of business . the financial statements do not include any adjustments that might be necessary if the company is unable to continue as a going concern . critical accounting policies the preparation of consolidated financial statements and rela ted disclosures in conformity with generally accepted accounting principles in the united states ( “ gaap ” ) requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes . the following is a summary of those accounting policies that we believe are necessary to understand and evaluate our reported financial results . revenue recognition . we sell our products in north america directly to customers through our field sales forc e and through non-exclusive distributors . we sell our products internationally through exclusive and non-exclusive distributors as well as directly to customers in certain countries . sales are recorded upon shipment from our facility , and payment of our invoices is generally due within 90 days or less . internationally , we primarily sell products through independent distributors . story_separator_special_tag the warrants became exercisable on february 8 , 2017 , six months after the closing of the private placement , and have a term of five years from the date of issuance . we are using the proceeds of the sale for working capital and general corporate purposes . in connection with the registration rights granted to these investors , we filed a registration statement on form s-3 with the sec , which was declared effective on november 3 , 2016. in accordance with applicable accounting standards , the $ 10.0 million gross proceeds from sale were allocated to the convertible preferred stock and warrants in the amount of $ 8.9 million and $ 1.1 million , respectively . the allocation was based on the relative fair values of the underlying common stock and warrants as of the commitment date , with the fair value of the warrants determined using a black scholes model . this transaction resulted in a discount from allocation of proceeds to separable instruments of $ 1.1 million and a beneficial conversion to common stock with a value of $ 1.1 million , which has been reflected as a deemed distribution to preferred shareholders in the year ended december 31 , 2016 . 41 results of operations the following table sets forth certain data from our operating results for each of the years ended december 31 , 2017 , 2016 , and 2015 , expressed as percentages of revenue : replace_table_token_4_th the following table summarizes our net revenues by category for the years ended december 31 , 2017 , 2016 , and 2015 ( dollars in thousands ) : replace_table_token_5_th non-gaap disclosure in addition to the financial information prepared in conformity with gaap , we provide certain historical non-gaap financial information . management believes that these non-gaap financial measures assist investors in making comparisons of period-to-period operating results and that , in some respects , these non-gaap financial measures are more indicative of the company 's ongoing core operating performance than their gaap equivalents . management believes that the presentation of this non-gaap financial information provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures , compensation strategies , derivative instruments , and amortization methods , which provides a more complete understanding of our financial performance , competitive position , and prospects for the future . however , the non-gaap financial measures presented in this form 10-k have certain limitations in that they do not reflect all of the costs associated with the operations of our business as determined in accordance with gaap . therefore , investors should consider non-gaap financial measures in addition to , and not as a substitute for , or as superior to , measures of financial performance prepared in accordance with gaap . further , the non-gaap financial measures presented by the company may be different from similarly named non-gaap financial measures used by other companies . 42 non-gaap net loss . management uses non-gaap net loss ( defined as net loss before interest , taxes , depreciation and amortization , stock-based compe nsation , and other non-cash compensation ) in its evaluation of the company 's core results of operations and trends between fiscal periods and believes that these measures are important components of its internal performance measurement process . management believes that this non-gaap financial information reflects an additional way of viewing aspects of our business that , when viewed with our gaap results , provides a more complete understanding of factors and trends affecting our business . non-gaap net loss for the periods presented is as follows ( in thousands ) : replace_table_token_6_th comparison of results of operations year ended december 31 , 2017 compared with year ended december 31 , 2016 net revenue . net revenue for the year ended december 31 , 2017 ( “ fiscal 2017 ” ) was $ 46.9 million , a decrease of $ 4.9 million , or 9 % , as compared with net revenue of $ 51.8 million for the year ended december 31 , 2016 ( “ fiscal 2016 ” ) . domestic revenues were $ 29.3 million , or 62 % of net revenue , for fiscal 2017 compared to $ 33.4 million , or 64 % of net revenue , for fiscal 2016. international revenues for fiscal 2017 were $ 17.6 million , or 38 % of net revenue , compared to $ 18.4 million , or 36 % of net revenue for fiscal 2016. the decrease in year-over-year net revenue resulted from decreases in worldwide laser system revenue , international imaging systems revenue , international consumables and other revenue , international services revenue and domestic license and royalties revenue , partially offset by increases in domestic imaging systems revenue , domestic consumables and other revenue and domestic services revenue . our goal has been to refocus on strengthening our leadership position in dental markets worldwide through increased focus on our professional customers and their patients . we have strengthened our management team with new key personnel and invested in our sales resources both domestically and internationally . laser system net revenues decreased by approximately $ 6.0 million , or 17 % , in fiscal 2017 compared to fiscal 2016. the laser systems revenue decrease was driven by a 28 % decline in domestic revenue and a 3 % decline in international revenue . imaging system net revenue increased by approximately $ 0.6 million , or 20 % , in fiscal 2017 compared to fiscal 2016. this increase was due to increased overall market interest in intra-oral scanning devices , and our favorable positioning as a distributor . consumables and other net revenue , which includes products such as disposable tips and shipping revenue , increased approximately $ 0.4 million , or 6 % , in fiscal 2017 , as compared to fiscal 2016. the increase in consumables and other net revenue was primarily a result

