the decrease is primarily attributed to a decrease in revenue from product sales of $ 631,853 , or 56 % , to $ 495,086 for the year ended december 31 , 2017 from $ 1,126,939 for the year ended december 31 , 2016. the decrease is due to a lower volume of residential and commercial units sold in 2017. additionally , the decline is attributable to a $ 211,767 decline in grants and rebates revenue that decreased to $ 120,905 , or 64 % for the year ended december 31 , 2017 compared to $ 332,672 for the year ended december 31 , 2016. grants and rebates relating to equipment and the related installation are deferred and amortized in a manner consistent with the depreciation expense of the related assets over their useful lives . the ability to secure grant revenues is typically unpredictable and , therefore , uncertain . we have not recently received any new grants and , as a result , the 2017 revenue is related to the amortization of previous grants . 24 charging service revenue company-owned charging stations was $ 1,186,710 for the year ended december 31 , 2017 compared to $ 1,144,016 for the year ended december 31 , 2016 , a slight increase of $ 42,694 , or 4 % . total revenue from warranty revenue and network fees was $ 359,216 for the year ended december 31 , 2017 , compared to $ 380,884 the year ended december 31 , 2016 a decrease of $ 21,668 , or 6 % . the decrease is primarily attributable to a lower volume of residential and commercial units sold in 2017. other revenue decreased by $ 3,070 to $ 338,440 for the year ended december 31 , 2017 as compared to $ 341,510 for the year ended december 31 , 2016. the decrease was primarily attributable to a decrease of $ 175,978 in charging revenue from host-owned stations as a result of property owners converting their charging stations from host-owned to company-owned . this decrease was almost fully offset by the sale of low carbon fuel standard credits that amounted to $ 172,908 during the year ended december 31 , 2017. cost of revenues cost of revenues primarily consists of depreciation of installed charging stations , amortization of the blink network infrastructure , the cost of charging station goods and related services sold , repairs and maintenance , electricity reimbursements and revenue share payments to hosts when we are the primary obligor in the revenue share arrangement . cost of revenues for the year ended december 31 , 2017 were $ 1,454,686 as compared to $ 2,813,680 for the year ended december 31 , 2016 , a decrease of $ 1,358,994 , or 48 % , primarily due to a reduction in depreciation and amortization expense that declined to $ 380,309 for the year ended december 31 , 2017 as compared to $ 805,607 for the year ended december 31 , 2016 , as the underlying assets became fully depreciated during 2017. warranty and repairs and maintenance costs decreased by $ 379,367 , or 109 % , to a benefit of $ 32,890 during the year ended december 31 , 2017 from $ 346,477 during the year ended december 31 , 2016. the decrease was primarily attributable to a decrease in warranty expenses of $ 340,828 as a result of us bringing our warranty service in-house in 2017. network costs were $ 302,645 for the year ended december 31 , 2017 compared to $ 511,438 for the year ended december 31 , 2016 , a decrease of $ 208,793 , or 41 % . this decrease is attributed to renegotiated contracts with service providers . there is a degree of variability in our gross margins related to charging services revenues from period to period primarily due to ( i ) the mix of revenue share payment arrangements , ( ii ) electricity reimbursements , and ( iii ) the costs of maintaining charging stations not currently in operation . any variability in our gross margins related to equipment sales depends on the mix of products sold . lastly , due to a decrease in the volume of residential and commercial units sold in 2017 , cost of product sales decreased by $ 264,307 to $ 237,422 during the year ended december 31 , 2017 as compared to $ 501,729 during 2016. operating expenses operating expenses consist of selling , marketing , advertising , payroll , administrative , finance and professional expenses . compensation expense increased by $ 1,101,949 , or 23 % , from $ 4,879,612 ( consisting of approximately $ 4.1 million of cash compensation and approximately $ 0.8 million of non-cash compensation ) for the year ended december 31 , 2016 to $ 5,981,561 ( consisting of approximately $ 2.9 million of cash compensation and approximately $ 3.1 million of non-cash compensation ) for the year ended december 31 , 2017. the increase is primarily attributed to an increase in non-cash compensation of $ 1.9 million due to increased equity-based board fees and commissions during 2017. this is partially offset by a decrease in salary and other payroll expenses of $ 724,750 due to a reduction in head count in 2017. other operating expenses consist primarily of rent and second generation product development expenses . other operating expenses decreased by $ 546,853 , or 38 % , from $ 1,451,683 for the year ended december 31 , 2016 to $ 904,830 for the year ended december 31 , 2017. the decrease was primarily attributable to a decrease in product development costs related to second generation charging stations of $ 338,979 to $ 162,190 during the year ended december 31 , 2017 from $ 501,168 during the year ended december 31 , 2016. additionally , there was a decrease in rent expense of $ 135,514 to $ 105,246 during the year ended december 31 , 2017 from $ 240,760 during the year ended december story_separator_special_tag 73,529 shares of common stock were issued to jmj financial as repayment of a $ 250,000 advance pursuant to a letter agreement between the company and the counterparty , dated february 1 , 2018. the 147,058 five-year warrants to purchase common stock with an exercise price of $ 4.25 were issued to jmj financial on april 9 , 2018 . 141,176 shares of common stock were issued to jns power & control systems , inc. ( “ jns ” ) as payment of $ 600,000 in connection with an asset purchase agreement entered into with the counterparty on february 2 , 2018 in settlement of litigation . 23,529 shares of common stock were issued to jns to be held in escrow as security for the $ 100,000 payment to be paid within six months of the closing of the public offering . at the time the $ 100,000 payment is made by the company , the 23,529 shares currently held in escrow will be cancelled . 17,132 shares of common stock were issued to genweb2 as repayment of a $ 58,250 debt pursuant to a letter agreement between the company and the counterparty , dated february 12 , 2018 . 2,353 shares of common stock were issued as payment of $ 10,000 to russ klenet & associates , inc. pursuant to the settlement and release agreement between the company and the counterparty , dated december 29 , 2016 . 17,647 shares of common stock were issued as payment of $ 75,000 owed to wilson sonsini goodrich & rosati pursuant to a settlement agreement between the company and the counterparty , dated june 8 , 2017 . 29 119,700 shares of common stock were issued to schafer & weiner , pllc as part of a repayment of a $ 406,981.47 debt pursuant to a letter agreement between the company and the counterparty . the 239,400 five-year warrants to purchase common stock with an exercise price of $ 4.25 were issued to schafer & weiner , pllc on april 9 , 2018 . 1,882 shares of common stock were issued to ibis co. in connection with an introduction to an investor . 550,000 shares of common stock were issued pursuant to letter agreements , dated december 6 , 2017 and december 7 , 2017 signed by the two holders of the series a convertible preferred stock ( “ series a preferred shares ” ) ( mr. farkas , our executive chairman is receiving 500,000 shares of common stock and ira feintuch , our chief operating officer is receiving 50,000 shares of common stock ) to convert 11,000,000 series a preferred shares issued and outstanding as of february 13 , 2018. as of march 28 , 2018 , there are no longer any series a preferred shares outstanding . 886,119 shares of common stock were issued to mr. farkas pursuant to the december 6 , 2017 letter agreement . 13,721 shares of common stock were issued to mr. farkas as payment of $ 46,651 in board fees owed to mr. farkas . 223,456 shares of common stock were issued to mr. farkas as payment of $ 712,500 in shares of common stock owed to mr. farkas for the period of december 1 , 2015 through may 31 , 2017 pursuant to the third amendment to executive employment agreement between the company and mr. farkas , dated june 15 , 2017 ( the “ third amendment ” ) and pursuant to a conversion agreement between the company and mr. farkas , dated august 23 , 2017 . 153,039 shares of common stock were issued to mr. farkas as payment of $ 375,000 in shares of common stock owed to mr. farkas for accrued commissions on hardware sales and revenue from charging stations for the period of november 2015 through march 2017 pursuant to the third amendment and $ 145,334 in shares of common stock owed to mr. farkas for accrued commissions on hardware sales and revenue from charging stations for the period of april 2017 through february 13 , 2018 pursuant to an oral agreement between the company and mr. farkas . this oral agreement was reached pursuant to section 7 ( b ) of the third amendment . in total 1,776,335 restricted shares of the company 's common stock were issued to mr. farkas . 26,500 shares of common stock were issued to mr. feintuch pursuant to the december 7 , 2017 letter agreement . 17,487 shares of common stock were issued to mr. feintuch as payment of $ 43,555 in shares of common stock owed to mr. feintuch which represents 25 % of the accrued commissions on hardware sales and revenue from charging stations for the period of november 2015 through march 2017 owed to mr. feintuch pursuant to the compensation agreement between the company and mr. feintuch , dated june 16 , 2017 and $ 15,902 in shares of common stock owed to mr. feintuch which represents 25 % of the accrued commissions on hardware sales and revenue from charging stations for the period of april 2017 through february 13 , 2018 owed to mr. feintuch pursuant to an oral agreement between the company and mr. feintuch . this oral agreement was reached pursuant to section 3 ( b ) of the compensation agreement . in total 93,987 restricted shares of the company 's common stock were issued to mr. feintuch . 360,441 shares of common stock were issued to ardour capital investments , llc ( “ ardour ” ) ( an entity of which mr. farkas owns less than 5 % ) in placement agent fees related to the $ 3,500,000 lent by jmj financial ( “ jmj ” ) to the company between october 2016 and october 2017. this share amount also includes placement agent fees owed to ardour in connection with a separate $ 250,000 lent by jmj to the company on january 22 , 2018 . 1,167 shares of common stock were issued to ardour in connection

liquidity and capital resources during the year ended december 31 , 2017 , we financed our activities from proceeds derived from debt and equity financing . a significant portion of the funds raised from the sale of capital stock have been used to cover working capital needs and personnel , office expenses and various consulting and professional fees . for the year ended december 31 , 2017 and 2016 , we used cash of $ 2,548,661 and $ 2,749,023 , respectively , in operations . our cash use for the year ended december 31 , 2017 was primarily attributable to our net loss of $ 75,363,496 , adjusted for net non-cash expenses in the aggregate amount of $ 58,138,853 , partially offset by $ 14,675,982 of net cash provided by changes in the levels of operating assets and liabilities . our cash use for the year ended december 31 , 2016 was primarily attributable to our net loss of $ 7,699,127 , adjusted for net non-cash expenses in the aggregate amount of $ 2,031,537 partially offset by $ 2,918,567 of net cash provided by changes in the levels of operating assets and liabilities . during the year ended december 31 , 2017 , cash used in investing activities was $ 23,169 , which was used to purchase charging stations and other fixed assets . net cash used in investing activities was $ 80,463 during the year ended december 31 , 2016 , which was used to purchase charging stations and other fixed assets .


 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 during the year ended december 31 , 2017 , we financed our activities from proceeds derived from debt and equity financing . a significant portion of the funds raised from the sale of capital stock have been used to cover working capital needs and personnel , office expenses and various consulting and professional fees . for the year ended december 31 , 2017 and 2016 , we used cash of $ 2,548,661 and $ 2,749,023 , respectively , in operations . our cash use for the year ended december 31 , 2017 was primarily attributable to our net loss of $ 75,363,496 , adjusted for net non-cash expenses in the aggregate amount of $ 58,138,853 , partially offset by $ 14,675,982 of net cash provided by changes in the levels of operating assets and liabilities . our cash use for the year ended december 31 , 2016 was primarily attributable to our net loss of $ 7,699,127 , adjusted for net non-cash expenses in the aggregate amount of $ 2,031,537 partially offset by $ 2,918,567 of net cash provided by changes in the levels of operating assets and liabilities . during the year ended december 31 , 2017 , cash used in investing activities was $ 23,169 , which was used to purchase charging stations and other fixed assets . net cash used in investing activities was $ 80,463 during the year ended december 31 , 2016 , which was used to purchase charging stations and other fixed assets .
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 Suspicious Activity Report : the decrease is primarily attributed to a decrease in revenue from product sales of $ 631,853 , or 56 % , to $ 495,086 for the year ended december 31 , 2017 from $ 1,126,939 for the year ended december 31 , 2016. the decrease is due to a lower volume of residential and commercial units sold in 2017. additionally , the decline is attributable to a $ 211,767 decline in grants and rebates revenue that decreased to $ 120,905 , or 64 % for the year ended december 31 , 2017 compared to $ 332,672 for the year ended december 31 , 2016. grants and rebates relating to equipment and the related installation are deferred and amortized in a manner consistent with the depreciation expense of the related assets over their useful lives . the ability to secure grant revenues is typically unpredictable and , therefore , uncertain . we have not recently received any new grants and , as a result , the 2017 revenue is related to the amortization of previous grants . 24 charging service revenue company-owned charging stations was $ 1,186,710 for the year ended december 31 , 2017 compared to $ 1,144,016 for the year ended december 31 , 2016 , a slight increase of $ 42,694 , or 4 % . total revenue from warranty revenue and network fees was $ 359,216 for the year ended december 31 , 2017 , compared to $ 380,884 the year ended december 31 , 2016 a decrease of $ 21,668 , or 6 % . the decrease is primarily attributable to a lower volume of residential and commercial units sold in 2017. other revenue decreased by $ 3,070 to $ 338,440 for the year ended december 31 , 2017 as compared to $ 341,510 for the year ended december 31 , 2016. the decrease was primarily attributable to a decrease of $ 175,978 in charging revenue from host-owned stations as a result of property owners converting their charging stations from host-owned to company-owned . this decrease was almost fully offset by the sale of low carbon fuel standard credits that amounted to $ 172,908 during the year ended december 31 , 2017. cost of revenues cost of revenues primarily consists of depreciation of installed charging stations , amortization of the blink network infrastructure , the cost of charging station goods and related services sold , repairs and maintenance , electricity reimbursements and revenue share payments to hosts when we are the primary obligor in the revenue share arrangement . cost of revenues for the year ended december 31 , 2017 were $ 1,454,686 as compared to $ 2,813,680 for the year ended december 31 , 2016 , a decrease of $ 1,358,994 , or 48 % , primarily due to a reduction in depreciation and amortization expense that declined to $ 380,309 for the year ended december 31 , 2017 as compared to $ 805,607 for the year ended december 31 , 2016 , as the underlying assets became fully depreciated during 2017. warranty and repairs and maintenance costs decreased by $ 379,367 , or 109 % , to a benefit of $ 32,890 during the year ended december 31 , 2017 from $ 346,477 during the year ended december 31 , 2016. the decrease was primarily attributable to a decrease in warranty expenses of $ 340,828 as a result of us bringing our warranty service in-house in 2017. network costs were $ 302,645 for the year ended december 31 , 2017 compared to $ 511,438 for the year ended december 31 , 2016 , a decrease of $ 208,793 , or 41 % . this decrease is attributed to renegotiated contracts with service providers . there is a degree of variability in our gross margins related to charging services revenues from period to period primarily due to ( i ) the mix of revenue share payment arrangements , ( ii ) electricity reimbursements , and ( iii ) the costs of maintaining charging stations not currently in operation . any variability in our gross margins related to equipment sales depends on the mix of products sold . lastly , due to a decrease in the volume of residential and commercial units sold in 2017 , cost of product sales decreased by $ 264,307 to $ 237,422 during the year ended december 31 , 2017 as compared to $ 501,729 during 2016. operating expenses operating expenses consist of selling , marketing , advertising , payroll , administrative , finance and professional expenses . compensation expense increased by $ 1,101,949 , or 23 % , from $ 4,879,612 ( consisting of approximately $ 4.1 million of cash compensation and approximately $ 0.8 million of non-cash compensation ) for the year ended december 31 , 2016 to $ 5,981,561 ( consisting of approximately $ 2.9 million of cash compensation and approximately $ 3.1 million of non-cash compensation ) for the year ended december 31 , 2017. the increase is primarily attributed to an increase in non-cash compensation of $ 1.9 million due to increased equity-based board fees and commissions during 2017. this is partially offset by a decrease in salary and other payroll expenses of $ 724,750 due to a reduction in head count in 2017. other operating expenses consist primarily of rent and second generation product development expenses . other operating expenses decreased by $ 546,853 , or 38 % , from $ 1,451,683 for the year ended december 31 , 2016 to $ 904,830 for the year ended december 31 , 2017. the decrease was primarily attributable to a decrease in product development costs related to second generation charging stations of $ 338,979 to $ 162,190 during the year ended december 31 , 2017 from $ 501,168 during the year ended december 31 , 2016. additionally , there was a decrease in rent expense of $ 135,514 to $ 105,246 during the year ended december 31 , 2017 from $ 240,760 during the year ended december story_separator_special_tag 73,529 shares of common stock were issued to jmj financial as repayment of a $ 250,000 advance pursuant to a letter agreement between the company and the counterparty , dated february 1 , 2018. the 147,058 five-year warrants to purchase common stock with an exercise price of $ 4.25 were issued to jmj financial on april 9 , 2018 . 141,176 shares of common stock were issued to jns power & control systems , inc. ( “ jns ” ) as payment of $ 600,000 in connection with an asset purchase agreement entered into with the counterparty on february 2 , 2018 in settlement of litigation . 23,529 shares of common stock were issued to jns to be held in escrow as security for the $ 100,000 payment to be paid within six months of the closing of the public offering . at the time the $ 100,000 payment is made by the company , the 23,529 shares currently held in escrow will be cancelled . 17,132 shares of common stock were issued to genweb2 as repayment of a $ 58,250 debt pursuant to a letter agreement between the company and the counterparty , dated february 12 , 2018 . 2,353 shares of common stock were issued as payment of $ 10,000 to russ klenet & associates , inc. pursuant to the settlement and release agreement between the company and the counterparty , dated december 29 , 2016 . 17,647 shares of common stock were issued as payment of $ 75,000 owed to wilson sonsini goodrich & rosati pursuant to a settlement agreement between the company and the counterparty , dated june 8 , 2017 . 29 119,700 shares of common stock were issued to schafer & weiner , pllc as part of a repayment of a $ 406,981.47 debt pursuant to a letter agreement between the company and the counterparty . the 239,400 five-year warrants to purchase common stock with an exercise price of $ 4.25 were issued to schafer & weiner , pllc on april 9 , 2018 . 1,882 shares of common stock were issued to ibis co. in connection with an introduction to an investor . 550,000 shares of common stock were issued pursuant to letter agreements , dated december 6 , 2017 and december 7 , 2017 signed by the two holders of the series a convertible preferred stock ( “ series a preferred shares ” ) ( mr. farkas , our executive chairman is receiving 500,000 shares of common stock and ira feintuch , our chief operating officer is receiving 50,000 shares of common stock ) to convert 11,000,000 series a preferred shares issued and outstanding as of february 13 , 2018. as of march 28 , 2018 , there are no longer any series a preferred shares outstanding . 886,119 shares of common stock were issued to mr. farkas pursuant to the december 6 , 2017 letter agreement . 13,721 shares of common stock were issued to mr. farkas as payment of $ 46,651 in board fees owed to mr. farkas . 223,456 shares of common stock were issued to mr. farkas as payment of $ 712,500 in shares of common stock owed to mr. farkas for the period of december 1 , 2015 through may 31 , 2017 pursuant to the third amendment to executive employment agreement between the company and mr. farkas , dated june 15 , 2017 ( the “ third amendment ” ) and pursuant to a conversion agreement between the company and mr. farkas , dated august 23 , 2017 . 153,039 shares of common stock were issued to mr. farkas as payment of $ 375,000 in shares of common stock owed to mr. farkas for accrued commissions on hardware sales and revenue from charging stations for the period of november 2015 through march 2017 pursuant to the third amendment and $ 145,334 in shares of common stock owed to mr. farkas for accrued commissions on hardware sales and revenue from charging stations for the period of april 2017 through february 13 , 2018 pursuant to an oral agreement between the company and mr. farkas . this oral agreement was reached pursuant to section 7 ( b ) of the third amendment . in total 1,776,335 restricted shares of the company 's common stock were issued to mr. farkas . 26,500 shares of common stock were issued to mr. feintuch pursuant to the december 7 , 2017 letter agreement . 17,487 shares of common stock were issued to mr. feintuch as payment of $ 43,555 in shares of common stock owed to mr. feintuch which represents 25 % of the accrued commissions on hardware sales and revenue from charging stations for the period of november 2015 through march 2017 owed to mr. feintuch pursuant to the compensation agreement between the company and mr. feintuch , dated june 16 , 2017 and $ 15,902 in shares of common stock owed to mr. feintuch which represents 25 % of the accrued commissions on hardware sales and revenue from charging stations for the period of april 2017 through february 13 , 2018 owed to mr. feintuch pursuant to an oral agreement between the company and mr. feintuch . this oral agreement was reached pursuant to section 3 ( b ) of the compensation agreement . in total 93,987 restricted shares of the company 's common stock were issued to mr. feintuch . 360,441 shares of common stock were issued to ardour capital investments , llc ( “ ardour ” ) ( an entity of which mr. farkas owns less than 5 % ) in placement agent fees related to the $ 3,500,000 lent by jmj financial ( “ jmj ” ) to the company between october 2016 and october 2017. this share amount also includes placement agent fees owed to ardour in connection with a separate $ 250,000 lent by jmj to the company on january 22 , 2018 . 1,167 shares of common stock were issued to ardour in connection

