33 results of operations revenue we recognize revenue from the sale of xpresspa products and services at the point of sale , net of discounts and applicable sales taxes . revenues from the xpresspa wholesale and e-commerce businesses are recorded at the time goods are shipped . we exclude all sales taxes assessed to our customers . sales taxes assessed on revenues are included in accounts payable , accrued expenses and other current liabilities in the consolidated balance sheets until remitted to the state agencies . we record revenue from the product sales of group mobile and fli charge when title and risk of loss are passed to the customer , there is persuasive evidence of an arrangement for sale , delivery has occurred , the sales price is fixed or determinable , and collectability is reasonably assured . our shipping terms typically specify f.o.b . destination , at which time title and risk of loss have passed to the customer . at the time of sale of hardware products , we record an estimate for sales returns and allowances based on historical experience . hardware products sold by us are warranted by the vendor . group mobile uses drop-shipment arrangements with many of its hardware vendors and suppliers to deliver products directly to customers . revenue for drop-shipment arrangements is recorded on a gross basis upon delivery to the customer with contract terms that typically specify f.o.b . destination . revenue is recognized on a gross basis as group mobile is the principal in the transaction as the primary obligor in the arrangement , assumes the inventory risk if the product is returned by the customer , sets the price of the product to the customer , assumes credit risk for the amounts invoiced , and works closely with the customers to determine their hardware specifications . freight billed to customers is recognized as net product revenue and the related freight costs as a cost of goods sold . deferred revenue includes ( i ) payments received from customers in advance of providing products and services and ( ii ) amounts deferred if other conditions of revenue recognition have not been met . we account for funds raised from crowdfunding campaigns and pre-sales as deferred revenue until the product is delivered to customers . revenue from patent licensing is recognized if collectability is reasonably assured , persuasive evidence of an arrangement exists , the sales price is fixed or determinable and delivery of the service has been rendered . currently , revenue arrangements related to intellectual property provide for the payment of contractually determined fees and other consideration for the grant of certain intellectual property rights related to our patents . these rights typically include some combination of the following : ( i ) the grant of a non-exclusive , retroactive and future license to manufacture and or sell products covered by patents , ( ii ) the release of the licensee from certain claims , and ( iii ) the dismissal of any pending litigation . the intellectual property rights granted typically extend until the expiration of the related patents . pursuant to the terms of these agreements , we have no further obligation with respect to the grant of the non-exclusive retroactive and future licenses , covenants-not-to-sue , releases , and other deliverables , including no express or implied obligation on our part to maintain or upgrade the related technology , or provide future support or services . generally , the agreements provide for the grant of the licenses , covenants-not-to-sue , releases , and other significant deliverables upon execution of the agreement , or upon receipt of the upfront payment . as such , the earnings process is complete and revenue is recognized upon the execution of the agreement , upon receipt of the upfront fee , and when all other revenue recognition criteria have been met . 34 intellectual property costs intellectual property costs mainly include expenses incurred in connection with our patent licensing and enforcement activities , patent-related legal expenses paid to external patent counsel ( including contingent legal fees ) , licensing and enforcement related research , consulting and other expenses paid to third parties , as well as related internal payroll expenses and stock-based compensation . in addition , amounts received by us for reimbursements of legal fees in connection with our litigation campaigns are recorded in intellectual property costs as an offset to legal expense . also included in intellectual property costs are royalties owed to previous owners of our intellectual property assets . the royalties fluctuate period to period , based on the amount of licensing revenue we recognize each period , the terms and conditions of agreements executed each period and the mix of specific patent portfolios with varying economic terms and obligations generating revenues each period . depreciation , amortization and impairment property and equipment is stated at cost , net of accumulated depreciation . depreciation is calculated on a straight-line basis over the estimated useful lives of the assets . the useful lives of our property and equipment is based on estimates of the period over which we expect the assets to be of economic benefit to us . leasehold improvements are amortized over the shorter of the useful life of the asset or the term of the lease . amortization of our acquired patent portfolios and other intangible assets are recognized on a straight-line basis over the remaining useful life of the intangible assets ( i.e . , through the expiration date of the patent ) . impairment charges related to our acquired intangible assets are recorded when an impairment indicator exists and the carrying amount of the related asset exceeds its fair value . story_separator_special_tag 41 critical accounting policies while our significant accounting policies are more fully described in the notes to our audited consolidated financial statements for the year ended december 31 , 2016 , which appear elsewhere in this annual report on form 10-k , we believe the following accounting policies to be the most critical in understanding the judgments and estimates we used in preparing our consolidated financial statements for the year ended december 31 , 2016. revenue recognition we recognize revenue from the sale of xpresspa products and services at the point of sale , net of discounts and applicable sales taxes . revenues from the xpresspa wholesale and e-commerce businesses are recorded at the time goods are shipped . we exclude all sales taxes assessed to our customers . sales taxes assessed on revenues are included in accounts payable , accrued expenses and other current liabilities in the consolidated balance sheets until remitted to the state agencies . we record revenue from the product sales of group mobile and fli charge when title and risk of loss are passed to the customer , there is persuasive evidence of an arrangement for sale , delivery has occurred , the sales price is fixed or determinable , and collectability is reasonably assured . our shipping terms typically specify f.o.b . destination , at which time title and risk of loss have passed to the customer . at the time of sale of hardware products , we record an estimate for sales returns and allowances based on historical experience . hardware products sold by us are warranted by the vendor . group mobile uses drop-shipment arrangements with many of its hardware vendors and suppliers to deliver products directly to customers . revenue for drop-shipment arrangements is recorded on a gross basis upon delivery to the customer with contract terms that typically specify f.o.b . destination . revenue is recognized on a gross basis as group mobile is the principal in the transaction as the primary obligor in the arrangement , assumes the inventory risk if the product is returned by the customer , sets the price of the product to the customer , assumes credit risk for the amounts invoiced , and works closely with the customers to determine their hardware specifications . freight billed to customers is recognized as net product revenue and the related freight costs as a cost of goods sold . deferred revenue includes ( i ) payments received from customers in advance of providing products and services and ( ii ) amounts deferred if other conditions of revenue recognition have not been met . we account for funds raised from crowdfunding campaigns and pre-sales as deferred revenue until the product is delivered to customers . revenue from patent licensing is recognized if collectability is reasonably assured , persuasive evidence of an arrangement exists , the sales price is fixed or determinable and delivery of the service has been rendered . currently , revenue arrangements related to intellectual property provide for the payment of contractually determined fees and other consideration for the grant of certain intellectual property rights related to our patents . these rights typically include some combination of the following : ( i ) the grant of a non-exclusive , retroactive and future license to manufacture and or sell products covered by patents , ( ii ) the release of the licensee from certain claims , and ( iii ) the dismissal of any pending litigation . the intellectual property rights granted typically extend until the expiration of the related patents . pursuant to the terms of these agreements , we have no further obligation with respect to the grant of the non-exclusive retroactive and future licenses , covenants-not-to-sue , releases , and other deliverables , including no express or implied obligation on our part to maintain or upgrade the related technology , or provide future support or services . generally , the agreements provide for the grant of the licenses , covenants-not-to-sue , releases , and other significant deliverables upon execution of the agreement , or upon receipt of the upfront payment . as such , the earnings process is complete and revenue is recognized upon the execution of the agreement , upon receipt of the upfront fee , and when all other revenue recognition criteria have been met . 42 goodwill goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized . goodwill is reviewed for impairment at least annually , and when triggering events occur , in accordance with the provisions of financial accounting standards board ( “ fasb ” ) accounting standards codification ( “ asc ” ) topic 350 , intangibles – goodwill and other . we have four reporting units for purposes of evaluating goodwill impairment and perform our annual goodwill impairment test on december 31. we have the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred . if we can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount , then we would not need to perform the two-step impairment test for the reporting unit . if we can not support such a conclusion or do not elect to perform the qualitative assessment , then the first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of the reporting unit with its carrying amount , including goodwill . if the fair value of the reporting unit exceeds its carrying value , then the second step of the impairment test ( measurement ) does not need to be performed . if the fair value of the reporting unit is less than its carrying value , an indication of goodwill impairment exists for the reporting unit and the entity must perform

liquidity and capital resources as of december 31 , 2016 , we had a cash balance of $ 17,910,000 , which represents a decrease of $ 7,041,000 compared to our cash balance as of december 31 , 2015. we anticipate that our need for capital will increase as xpresspa wins rfps , begins construction on new locations and remodels certain existing locations in order to enhance efficiency and corporate branding . in 2017 , xpresspa plans to open several new locations and is currently working on 25 additional rfps in which it plans to participate . we do n't expect any significant capital will be needed for our group mobile and intellectual property operating segments . we are currently exploring strategic alternatives for fli charge to maximize shareholders value , including additional financing and other options . cash expenditures during the year ended december 31 , 2016 were offset by cash received by our xpresspa , group mobile , fli charge and intellectual property operating segments during the normal course of business as well as cash received for refunds of court fees and our deposits with the courts in germany , brazil , and romania . our average monthly net cash used in operations for the year ended december 31 , 2016 was approximately $ 703,000 compared to average monthly net cash used in operations of approximately $ 214,000 during the year ended december 31 , 2015. this increase in net cash used is driven by the cash spent in our group mobile and fli charge operations and the significant decrease in revenues from our intellectual property operating segment .


 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 as of december 31 , 2016 , we had a cash balance of $ 17,910,000 , which represents a decrease of $ 7,041,000 compared to our cash balance as of december 31 , 2015. we anticipate that our need for capital will increase as xpresspa wins rfps , begins construction on new locations and remodels certain existing locations in order to enhance efficiency and corporate branding . in 2017 , xpresspa plans to open several new locations and is currently working on 25 additional rfps in which it plans to participate . we do n't expect any significant capital will be needed for our group mobile and intellectual property operating segments . we are currently exploring strategic alternatives for fli charge to maximize shareholders value , including additional financing and other options . cash expenditures during the year ended december 31 , 2016 were offset by cash received by our xpresspa , group mobile , fli charge and intellectual property operating segments during the normal course of business as well as cash received for refunds of court fees and our deposits with the courts in germany , brazil , and romania . our average monthly net cash used in operations for the year ended december 31 , 2016 was approximately $ 703,000 compared to average monthly net cash used in operations of approximately $ 214,000 during the year ended december 31 , 2015. this increase in net cash used is driven by the cash spent in our group mobile and fli charge operations and the significant decrease in revenues from our intellectual property operating segment .
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 Suspicious Activity Report : 33 results of operations revenue we recognize revenue from the sale of xpresspa products and services at the point of sale , net of discounts and applicable sales taxes . revenues from the xpresspa wholesale and e-commerce businesses are recorded at the time goods are shipped . we exclude all sales taxes assessed to our customers . sales taxes assessed on revenues are included in accounts payable , accrued expenses and other current liabilities in the consolidated balance sheets until remitted to the state agencies . we record revenue from the product sales of group mobile and fli charge when title and risk of loss are passed to the customer , there is persuasive evidence of an arrangement for sale , delivery has occurred , the sales price is fixed or determinable , and collectability is reasonably assured . our shipping terms typically specify f.o.b . destination , at which time title and risk of loss have passed to the customer . at the time of sale of hardware products , we record an estimate for sales returns and allowances based on historical experience . hardware products sold by us are warranted by the vendor . group mobile uses drop-shipment arrangements with many of its hardware vendors and suppliers to deliver products directly to customers . revenue for drop-shipment arrangements is recorded on a gross basis upon delivery to the customer with contract terms that typically specify f.o.b . destination . revenue is recognized on a gross basis as group mobile is the principal in the transaction as the primary obligor in the arrangement , assumes the inventory risk if the product is returned by the customer , sets the price of the product to the customer , assumes credit risk for the amounts invoiced , and works closely with the customers to determine their hardware specifications . freight billed to customers is recognized as net product revenue and the related freight costs as a cost of goods sold . deferred revenue includes ( i ) payments received from customers in advance of providing products and services and ( ii ) amounts deferred if other conditions of revenue recognition have not been met . we account for funds raised from crowdfunding campaigns and pre-sales as deferred revenue until the product is delivered to customers . revenue from patent licensing is recognized if collectability is reasonably assured , persuasive evidence of an arrangement exists , the sales price is fixed or determinable and delivery of the service has been rendered . currently , revenue arrangements related to intellectual property provide for the payment of contractually determined fees and other consideration for the grant of certain intellectual property rights related to our patents . these rights typically include some combination of the following : ( i ) the grant of a non-exclusive , retroactive and future license to manufacture and or sell products covered by patents , ( ii ) the release of the licensee from certain claims , and ( iii ) the dismissal of any pending litigation . the intellectual property rights granted typically extend until the expiration of the related patents . pursuant to the terms of these agreements , we have no further obligation with respect to the grant of the non-exclusive retroactive and future licenses , covenants-not-to-sue , releases , and other deliverables , including no express or implied obligation on our part to maintain or upgrade the related technology , or provide future support or services . generally , the agreements provide for the grant of the licenses , covenants-not-to-sue , releases , and other significant deliverables upon execution of the agreement , or upon receipt of the upfront payment . as such , the earnings process is complete and revenue is recognized upon the execution of the agreement , upon receipt of the upfront fee , and when all other revenue recognition criteria have been met . 34 intellectual property costs intellectual property costs mainly include expenses incurred in connection with our patent licensing and enforcement activities , patent-related legal expenses paid to external patent counsel ( including contingent legal fees ) , licensing and enforcement related research , consulting and other expenses paid to third parties , as well as related internal payroll expenses and stock-based compensation . in addition , amounts received by us for reimbursements of legal fees in connection with our litigation campaigns are recorded in intellectual property costs as an offset to legal expense . also included in intellectual property costs are royalties owed to previous owners of our intellectual property assets . the royalties fluctuate period to period , based on the amount of licensing revenue we recognize each period , the terms and conditions of agreements executed each period and the mix of specific patent portfolios with varying economic terms and obligations generating revenues each period . depreciation , amortization and impairment property and equipment is stated at cost , net of accumulated depreciation . depreciation is calculated on a straight-line basis over the estimated useful lives of the assets . the useful lives of our property and equipment is based on estimates of the period over which we expect the assets to be of economic benefit to us . leasehold improvements are amortized over the shorter of the useful life of the asset or the term of the lease . amortization of our acquired patent portfolios and other intangible assets are recognized on a straight-line basis over the remaining useful life of the intangible assets ( i.e . , through the expiration date of the patent ) . impairment charges related to our acquired intangible assets are recorded when an impairment indicator exists and the carrying amount of the related asset exceeds its fair value . story_separator_special_tag 41 critical accounting policies while our significant accounting policies are more fully described in the notes to our audited consolidated financial statements for the year ended december 31 , 2016 , which appear elsewhere in this annual report on form 10-k , we believe the following accounting policies to be the most critical in understanding the judgments and estimates we used in preparing our consolidated financial statements for the year ended december 31 , 2016. revenue recognition we recognize revenue from the sale of xpresspa products and services at the point of sale , net of discounts and applicable sales taxes . revenues from the xpresspa wholesale and e-commerce businesses are recorded at the time goods are shipped . we exclude all sales taxes assessed to our customers . sales taxes assessed on revenues are included in accounts payable , accrued expenses and other current liabilities in the consolidated balance sheets until remitted to the state agencies . we record revenue from the product sales of group mobile and fli charge when title and risk of loss are passed to the customer , there is persuasive evidence of an arrangement for sale , delivery has occurred , the sales price is fixed or determinable , and collectability is reasonably assured . our shipping terms typically specify f.o.b . destination , at which time title and risk of loss have passed to the customer . at the time of sale of hardware products , we record an estimate for sales returns and allowances based on historical experience . hardware products sold by us are warranted by the vendor . group mobile uses drop-shipment arrangements with many of its hardware vendors and suppliers to deliver products directly to customers . revenue for drop-shipment arrangements is recorded on a gross basis upon delivery to the customer with contract terms that typically specify f.o.b . destination . revenue is recognized on a gross basis as group mobile is the principal in the transaction as the primary obligor in the arrangement , assumes the inventory risk if the product is returned by the customer , sets the price of the product to the customer , assumes credit risk for the amounts invoiced , and works closely with the customers to determine their hardware specifications . freight billed to customers is recognized as net product revenue and the related freight costs as a cost of goods sold . deferred revenue includes ( i ) payments received from customers in advance of providing products and services and ( ii ) amounts deferred if other conditions of revenue recognition have not been met . we account for funds raised from crowdfunding campaigns and pre-sales as deferred revenue until the product is delivered to customers . revenue from patent licensing is recognized if collectability is reasonably assured , persuasive evidence of an arrangement exists , the sales price is fixed or determinable and delivery of the service has been rendered . currently , revenue arrangements related to intellectual property provide for the payment of contractually determined fees and other consideration for the grant of certain intellectual property rights related to our patents . these rights typically include some combination of the following : ( i ) the grant of a non-exclusive , retroactive and future license to manufacture and or sell products covered by patents , ( ii ) the release of the licensee from certain claims , and ( iii ) the dismissal of any pending litigation . the intellectual property rights granted typically extend until the expiration of the related patents . pursuant to the terms of these agreements , we have no further obligation with respect to the grant of the non-exclusive retroactive and future licenses , covenants-not-to-sue , releases , and other deliverables , including no express or implied obligation on our part to maintain or upgrade the related technology , or provide future support or services . generally , the agreements provide for the grant of the licenses , covenants-not-to-sue , releases , and other significant deliverables upon execution of the agreement , or upon receipt of the upfront payment . as such , the earnings process is complete and revenue is recognized upon the execution of the agreement , upon receipt of the upfront fee , and when all other revenue recognition criteria have been met . 42 goodwill goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized . goodwill is reviewed for impairment at least annually , and when triggering events occur , in accordance with the provisions of financial accounting standards board ( “ fasb ” ) accounting standards codification ( “ asc ” ) topic 350 , intangibles – goodwill and other . we have four reporting units for purposes of evaluating goodwill impairment and perform our annual goodwill impairment test on december 31. we have the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred . if we can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount , then we would not need to perform the two-step impairment test for the reporting unit . if we can not support such a conclusion or do not elect to perform the qualitative assessment , then the first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of the reporting unit with its carrying amount , including goodwill . if the fair value of the reporting unit exceeds its carrying value , then the second step of the impairment test ( measurement ) does not need to be performed . if the fair value of the reporting unit is less than its carrying value , an indication of goodwill impairment exists for the reporting unit and the entity must perform

