in addition to improved fuel economy , we anticipate that the performance of our vehicles on-route will reduce long-term vehicle maintenance expense by approximately 50 % as compared to fossil-fueled trucks . in march of 2013 , we purchased the former workhorse custom chassis assembly plant in union city , indiana from navistar international ( nav : nyse ) . with this acquisition , we acquired the capability to be an original equipment manufacturer ( oem ) of class 3-6 commercial-grade , medium-duty truck chassis , to be marketed under the workhorse® brand . all workhorse last mile delivery vans are assembled in the union city assembly facility . from our development modeling and the existing performance of our electric vehicles on american roads , we estimate that our e-gen range-extended electric delivery vans will save over $ 150,000 in fuel and maintenance savings over the 20-year life of the vehicle . due to the positive return-on-investment , we place a premium price for our vehicles when selling to major fleet buyers . we expect that fleet buyers will be able to achieve a four-year or better return-on-investment ( without government incentives ) , which we believe justifies the higher acquisition cost of our vehicles . we believe that we are the only medium-duty battery-electric oem in the u.s. and we will be introducing additional light-duty electric and range-extended electric vehicles in late 2018 and 2019. our goal is to continue to increase sales and production , while executing on our cost-down strategy to a point that will enable us to achieve gross margin profitability of the last mile-delivery van platform . as a key strategy , we have begun development of the workhorse n-gen platform , which has been accelerated from our development efforts on the usps ngdv program . the workhorse n-gen electric cargo van platform will be available in multiple size configurations , 500 , 700 and 1,000 cubic feet . we intend to initiate the launch with the 500 cubic foot configuration where it is designed to compete with the sprinter , transit and ram gasoline/diesel trucks in the commercial sector with an emphasis on last-mile delivery and other service-oriented businesses , such as telecom . this ultra-low floor platform incorporates state-of-the-art safety features , economy and performance : we expect these vehicles to achieve a fuel economy of approximately 60 mpge , and offer fleet operators the most favorable total cost-of-ownership of any comparable vehicle available today . we believe we are the first american oem to market a u.s. built electric cargo van , and early indications of fleet interest are significant . we expect the n-gen trucks will be supported by our ryder systems partnership . as a direct result of the usps award and development efforts , workhorse has begun development on the workhorse w-15 , a medium- and light-duty pickup truck platform aimed at commercial fleets . the w-15 pickup truck powertrain is a smaller version of its sister vehicle , the medium-duty battery electric powertrain , and will have two purpose-built variants , a w-15 work truck ( pickup ) and an n-gen cargo van . either of these two variants will appeal to delivery fleets , utility companies , telecom companies , municipalities and more . our horsefly delivery drone is a custom designed , purpose-built drone that is fully integrated in our electric trucks . horsefly is an octocopter designed with a maximum gross weight of 30 lbs . , a 10 lb . payload and a maximum air speed of 50 mph . it is designed and built to be rugged and consisting of redundant systems to further meet the faa 's required rules and regulations . surefly is our entry into the emerging vtol market . it is designed to be a two-person , 400-pound payload aircraft with a hybrid internal combustion/electric power generation system . our approach in the design is to build the safest and simplest way to fly rotary wing aircraft in the world . we believe it is a practical answer to personal flight , as well as , commercial transportation segments , including air taxi series , agriculture and beyond . the faa to-date has granted three separate workhorse inc. aerospace team an experimental airworthiness certifications , registered as n834lw , for the aircraft . these certifications come after an extensive design review and inspection of the aircraft with each renewed certificate . we continue to leverage our knowledge of high-voltage battery packs , electric motor controls , software and range extending generators to design a multicopter that can carry a pilot and passenger . 27 results of operations our condensed consolidated statement of operations data for the period presented follows : replace_table_token_3_th revenue sales for the years ended december 31 , 2017 and 2016 were $ 10.8 million and $ 6.4 million , respectively , were related to delivery of the production vehicles for ups and other customers . selling , general and administrative expenses selling , general and administrative ( “ sg & a ” ) expenses consist primarily of personnel and facilities costs related to our development including , marketing , sales , executive , finance , human resources , information technology and professional , legal and contract services . sg & a expenses during year ended december 31 , 2017 were $ 10.3 million , an increase from $ 6.2 million for the year ended december 31 , 2016. the increase in our sg & a expenses consisted primarily of employee salaries and benefits , consulting and investor relations , due to the increased activity in the period . story_separator_special_tag research and development expenses research and development ( “ r & d ” ) expenses consist primarily of personnel costs for our teams in engineering and research , prototyping expense , and contract and professional services . r & d expenses during the year ended december 31 , 2017 were $ 18.1 million , an increase from $ 6.1 million for the year ended december 31 , 2016. the r & d expenses consisted primarily in employee salaries and benefits , consulting and materials related to the start of the next generation delivery vehicles ( ngdvs ) , and pick-up truck projects and the manned multicopter . interest expenses our interest expense is incurred primarily from our mortgage on the 100 commerce drive , loveland , ohio property mentioned before in the long-term debt note to the financial statements . interest expenses during the year ended december 31 , 2017 were $ 180 thousand , an increase from $ 44 thousand for year ended december 31 , 2016. story_separator_special_tag style= `` vertical-align : top ; font : 10pt times new roman , times , serif `` > ● the costs and timing of obtaining , enforcing and defending our patent and other intellectual property rights ; and ● expenses associated with any unforeseen litigation . insufficient funds may require us to delay , scale back or eliminate some or all of our research or development programs , limit our sales activities , limit or cease production or negatively impact our operations . for the years ended december 31 , 2017 and 2016 , we maintained an investment portfolio primarily in money market funds , u. s. treasury bills , government-sponsored enterprise securities , and corporate bonds and commercial paper . cash in excess of immediate requirements is invested with regard to liquidity and capital preservation . wherever possible , we seek to minimize the potential effects of concentration and degrees of risk . we will continue to monitor the impact of the changes in the conditions of the credit and financial markets to our investment portfolio and assess if future changes in our investment strategy are necessary . summary of cash flows replace_table_token_4_th cash flows from operating activities our cash flows from operating activities are affected by our cash investments to support the business in research and development , manufacturing , selling , general and administration . our operating cash flows are also affected by our working capital needs to support fluctuations in inventory , personnel expenses , accounts payable and other current assets and liabilities . 29 during the year ended december 31 , 2017 and 2016 , cash used in operating activities was $ 38.7 million and $ 19.0 million , respectively . the decrease in operating cash flows in 2017 as compared to 2016 was mainly due to an increase in net losses . cash flows from investing activities cash flow from investing activities primarily relates to capital expenditures to support our future growth in operations . during the years ended december 31 , 2017 and 2016 , cash used by investing activities was $ 143 thousand and $ 528 thousand , respectively . the decrease in cash used by investing activities during the year is mainly due to reduced capital spending . cash flows from financing activities during the years ended december 31 , 2017 and 2016 , net cash provided by financing activities was $ 42.4 million and $ 12.4 million , respectively . cash flows from financing activities during the year ended december 31 , 2017 consisted mainly of $ 37.0 million of proceeds from the issuance of common stock and $ 4.8 million of senior secured notes as part of the initial efforts to spin-off surefly . credit facility presently we have no revolving credit facility established . there is no guarantee that we will be able to enter into an agreement to establish a line of credit or that if we do enter into such agreement that it will be on favorable terms . off-balance sheet arrangements the company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the company 's financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources that are material to investors . federal tax credit qualification by the irs the company has been qualified by the irs for a vehicle federal tax credit of up to $ 7,500. the company joins a list of plug-in electric drive motor vehicle manufacturers , including ford motor company , general motors corporation , tesla , toyota , and 13 ev manufacturers in all , qualifying purchasers for up to a $ 7,500 tax credit when purchasing an electric vehicle . additionally , many states offer additional sales tax exemptions and zero emission tax credits of up to $ 5,000 that can also be applied to the purchase . california air resources board approval on february 20 , 2013 the california air resource board ( carb ) approved the company 's e-100 all-electric commercial truck for sale in the state of california . most other states use this approval for sale of vehicles in their state . 30 critical accounting policies and estimates the following accounting principles and practices of the company are set forth to facilitate the understanding of data presented in the consolidated financial statements : nature of operations we are a technology company focused on providing sustainable and cost-effective solutions to the commercial transportation sector . as an american manufacturer we design and build high performance battery-electric electric vehicles and aircraft that make movement of people and goods more efficient and less harmful to the environment . as part of our solution , we also develop cloud-based , real-time telematics performance monitoring systems that enable fleet operators to optimize energy and route efficiency . although we operate as a single unit through our

liquidity and capital resources cash requirements from inception , we have financed our operations primarily through sales of equity securities . we have utilized this capital to date in our research and development of five truck-based platforms ( i.e. , e-gen , e-100 , w-15 pickup truck , usps prototype and n-gen ) and two aviation platforms ( horsefly and surefly ) designing building and delivering our vehicles to our customer base and for working capital purposes . 28 as of december 31 , 2017 , we had approximately $ 4.1 million in cash , cash equivalents and short-term investments , as compared to approximately $ 0.5 million as of december 31 , 2016 , an increase of $ 3.6 million . the change was primarily attributable to increased financing activity . on january 10 , 2017 , the company entered into a securities purchase agreement with joseph t. lukens ( “ lukens ” ) providing for the sale by the company to lukens of a 6 % convertible debenture in the aggregate amount of $ 2,000,000 ( the “ lukens debenture ” ) in consideration of $ 2,000,000. the financing closed on january 10 , 2017. on january 27 , 2017 , the company and lukens entered into a conversion agreement pursuant to which lukens agreed to convert his outstanding 6 % convertible debenture in the principal amount of $ 2,000,000 plus interest into shares of common stock of the company at the offering price of the company 's public offering .


 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 cash requirements from inception , we have financed our operations primarily through sales of equity securities . we have utilized this capital to date in our research and development of five truck-based platforms ( i.e. , e-gen , e-100 , w-15 pickup truck , usps prototype and n-gen ) and two aviation platforms ( horsefly and surefly ) designing building and delivering our vehicles to our customer base and for working capital purposes . 28 as of december 31 , 2017 , we had approximately $ 4.1 million in cash , cash equivalents and short-term investments , as compared to approximately $ 0.5 million as of december 31 , 2016 , an increase of $ 3.6 million . the change was primarily attributable to increased financing activity . on january 10 , 2017 , the company entered into a securities purchase agreement with joseph t. lukens ( “ lukens ” ) providing for the sale by the company to lukens of a 6 % convertible debenture in the aggregate amount of $ 2,000,000 ( the “ lukens debenture ” ) in consideration of $ 2,000,000. the financing closed on january 10 , 2017. on january 27 , 2017 , the company and lukens entered into a conversion agreement pursuant to which lukens agreed to convert his outstanding 6 % convertible debenture in the principal amount of $ 2,000,000 plus interest into shares of common stock of the company at the offering price of the company 's public offering .
```    
 Suspicious Activity Report : in addition to improved fuel economy , we anticipate that the performance of our vehicles on-route will reduce long-term vehicle maintenance expense by approximately 50 % as compared to fossil-fueled trucks . in march of 2013 , we purchased the former workhorse custom chassis assembly plant in union city , indiana from navistar international ( nav : nyse ) . with this acquisition , we acquired the capability to be an original equipment manufacturer ( oem ) of class 3-6 commercial-grade , medium-duty truck chassis , to be marketed under the workhorse® brand . all workhorse last mile delivery vans are assembled in the union city assembly facility . from our development modeling and the existing performance of our electric vehicles on american roads , we estimate that our e-gen range-extended electric delivery vans will save over $ 150,000 in fuel and maintenance savings over the 20-year life of the vehicle . due to the positive return-on-investment , we place a premium price for our vehicles when selling to major fleet buyers . we expect that fleet buyers will be able to achieve a four-year or better return-on-investment ( without government incentives ) , which we believe justifies the higher acquisition cost of our vehicles . we believe that we are the only medium-duty battery-electric oem in the u.s. and we will be introducing additional light-duty electric and range-extended electric vehicles in late 2018 and 2019. our goal is to continue to increase sales and production , while executing on our cost-down strategy to a point that will enable us to achieve gross margin profitability of the last mile-delivery van platform . as a key strategy , we have begun development of the workhorse n-gen platform , which has been accelerated from our development efforts on the usps ngdv program . the workhorse n-gen electric cargo van platform will be available in multiple size configurations , 500 , 700 and 1,000 cubic feet . we intend to initiate the launch with the 500 cubic foot configuration where it is designed to compete with the sprinter , transit and ram gasoline/diesel trucks in the commercial sector with an emphasis on last-mile delivery and other service-oriented businesses , such as telecom . this ultra-low floor platform incorporates state-of-the-art safety features , economy and performance : we expect these vehicles to achieve a fuel economy of approximately 60 mpge , and offer fleet operators the most favorable total cost-of-ownership of any comparable vehicle available today . we believe we are the first american oem to market a u.s. built electric cargo van , and early indications of fleet interest are significant . we expect the n-gen trucks will be supported by our ryder systems partnership . as a direct result of the usps award and development efforts , workhorse has begun development on the workhorse w-15 , a medium- and light-duty pickup truck platform aimed at commercial fleets . the w-15 pickup truck powertrain is a smaller version of its sister vehicle , the medium-duty battery electric powertrain , and will have two purpose-built variants , a w-15 work truck ( pickup ) and an n-gen cargo van . either of these two variants will appeal to delivery fleets , utility companies , telecom companies , municipalities and more . our horsefly delivery drone is a custom designed , purpose-built drone that is fully integrated in our electric trucks . horsefly is an octocopter designed with a maximum gross weight of 30 lbs . , a 10 lb . payload and a maximum air speed of 50 mph . it is designed and built to be rugged and consisting of redundant systems to further meet the faa 's required rules and regulations . surefly is our entry into the emerging vtol market . it is designed to be a two-person , 400-pound payload aircraft with a hybrid internal combustion/electric power generation system . our approach in the design is to build the safest and simplest way to fly rotary wing aircraft in the world . we believe it is a practical answer to personal flight , as well as , commercial transportation segments , including air taxi series , agriculture and beyond . the faa to-date has granted three separate workhorse inc. aerospace team an experimental airworthiness certifications , registered as n834lw , for the aircraft . these certifications come after an extensive design review and inspection of the aircraft with each renewed certificate . we continue to leverage our knowledge of high-voltage battery packs , electric motor controls , software and range extending generators to design a multicopter that can carry a pilot and passenger . 27 results of operations our condensed consolidated statement of operations data for the period presented follows : replace_table_token_3_th revenue sales for the years ended december 31 , 2017 and 2016 were $ 10.8 million and $ 6.4 million , respectively , were related to delivery of the production vehicles for ups and other customers . selling , general and administrative expenses selling , general and administrative ( “ sg & a ” ) expenses consist primarily of personnel and facilities costs related to our development including , marketing , sales , executive , finance , human resources , information technology and professional , legal and contract services . sg & a expenses during year ended december 31 , 2017 were $ 10.3 million , an increase from $ 6.2 million for the year ended december 31 , 2016. the increase in our sg & a expenses consisted primarily of employee salaries and benefits , consulting and investor relations , due to the increased activity in the period . story_separator_special_tag research and development expenses research and development ( “ r & d ” ) expenses consist primarily of personnel costs for our teams in engineering and research , prototyping expense , and contract and professional services . r & d expenses during the year ended december 31 , 2017 were $ 18.1 million , an increase from $ 6.1 million for the year ended december 31 , 2016. the r & d expenses consisted primarily in employee salaries and benefits , consulting and materials related to the start of the next generation delivery vehicles ( ngdvs ) , and pick-up truck projects and the manned multicopter . interest expenses our interest expense is incurred primarily from our mortgage on the 100 commerce drive , loveland , ohio property mentioned before in the long-term debt note to the financial statements . interest expenses during the year ended december 31 , 2017 were $ 180 thousand , an increase from $ 44 thousand for year ended december 31 , 2016. story_separator_special_tag style= `` vertical-align : top ; font : 10pt times new roman , times , serif `` > ● the costs and timing of obtaining , enforcing and defending our patent and other intellectual property rights ; and ● expenses associated with any unforeseen litigation . insufficient funds may require us to delay , scale back or eliminate some or all of our research or development programs , limit our sales activities , limit or cease production or negatively impact our operations . for the years ended december 31 , 2017 and 2016 , we maintained an investment portfolio primarily in money market funds , u. s. treasury bills , government-sponsored enterprise securities , and corporate bonds and commercial paper . cash in excess of immediate requirements is invested with regard to liquidity and capital preservation . wherever possible , we seek to minimize the potential effects of concentration and degrees of risk . we will continue to monitor the impact of the changes in the conditions of the credit and financial markets to our investment portfolio and assess if future changes in our investment strategy are necessary . summary of cash flows replace_table_token_4_th cash flows from operating activities our cash flows from operating activities are affected by our cash investments to support the business in research and development , manufacturing , selling , general and administration . our operating cash flows are also affected by our working capital needs to support fluctuations in inventory , personnel expenses , accounts payable and other current assets and liabilities . 29 during the year ended december 31 , 2017 and 2016 , cash used in operating activities was $ 38.7 million and $ 19.0 million , respectively . the decrease in operating cash flows in 2017 as compared to 2016 was mainly due to an increase in net losses . cash flows from investing activities cash flow from investing activities primarily relates to capital expenditures to support our future growth in operations . during the years ended december 31 , 2017 and 2016 , cash used by investing activities was $ 143 thousand and $ 528 thousand , respectively . the decrease in cash used by investing activities during the year is mainly due to reduced capital spending . cash flows from financing activities during the years ended december 31 , 2017 and 2016 , net cash provided by financing activities was $ 42.4 million and $ 12.4 million , respectively . cash flows from financing activities during the year ended december 31 , 2017 consisted mainly of $ 37.0 million of proceeds from the issuance of common stock and $ 4.8 million of senior secured notes as part of the initial efforts to spin-off surefly . credit facility presently we have no revolving credit facility established . there is no guarantee that we will be able to enter into an agreement to establish a line of credit or that if we do enter into such agreement that it will be on favorable terms . off-balance sheet arrangements the company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the company 's financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources that are material to investors . federal tax credit qualification by the irs the company has been qualified by the irs for a vehicle federal tax credit of up to $ 7,500. the company joins a list of plug-in electric drive motor vehicle manufacturers , including ford motor company , general motors corporation , tesla , toyota , and 13 ev manufacturers in all , qualifying purchasers for up to a $ 7,500 tax credit when purchasing an electric vehicle . additionally , many states offer additional sales tax exemptions and zero emission tax credits of up to $ 5,000 that can also be applied to the purchase . california air resources board approval on february 20 , 2013 the california air resource board ( carb ) approved the company 's e-100 all-electric commercial truck for sale in the state of california . most other states use this approval for sale of vehicles in their state . 30 critical accounting policies and estimates the following accounting principles and practices of the company are set forth to facilitate the understanding of data presented in the consolidated financial statements : nature of operations we are a technology company focused on providing sustainable and cost-effective solutions to the commercial transportation sector . as an american manufacturer we design and build high performance battery-electric electric vehicles and aircraft that make movement of people and goods more efficient and less harmful to the environment . as part of our solution , we also develop cloud-based , real-time telematics performance monitoring systems that enable fleet operators to optimize energy and route efficiency . although we operate as a single unit through our

