the equity features contained in our investment portfolio are structured to realize capital appreciation over the long-term and typically do not generate current income in the form of dividends or interest . we have historically made initial investments of $ 500,000 to $ 1,000,000 directly in companies through equity or in debt or loan instruments and frequently provided follow-on investments during our investment tenure . the debt instruments generally have a maturity of not more than five years and usually have detachable equity warrants . interest may be paid currently or deferred , based on the investment structure negotiated . we may exit investments through the maturation of a debt security or when a liquidity event takes place , such as the sale , recapitalization , or initial public offering of a portfolio company . the method and timing of the disposition of our portfolio investments can be critical to the realization of maximum total return . we generally expect to dispose of our equity securities through private sales of securities to other investors or through an outright sale of the portfolio company or a merger . we anticipate our debt investments will be repaid with interest and hope to realize further appreciation from the warrants or other equity type instruments we receive in connection with the investment . we fund new investments and operating expenses through existing cash balances , investment returns , and interest and principal payments from our portfolio companies 12 2017 portfolio and investment activity we believe the change in net asset value over time is the leading valuation metric of our performance . exits from our portfolio holdings are the key driver of growth in net asset value over time . net asset value of our portfolio decreased to $ 5.05 per share , or $ 31.9 million , at december 31 , 2017 , down ( $ 0.11 ) per share , or ( 2.1 % ) , compared with net asset value of $ 5.16 per share , or $ 32.6 million , at the end of the prior year . at year end , the estimated value of our portfolio , which included securities from 30 active companies , was $ 32.3 million . this value included $ 4.4 million in net pre-tax unrealized depreciation . approximately 58 % of the portfolio was equity investments with the remainder being debt and loan investments . the portfolio generated approximately $ 1.5 million in interest , fee , dividend and other income . during 2017 , we made $ 5.4 million of new investments in 8 companies , of which one was a new portfolio company . outlook at the end of 2017 , we had $ 6.3 million in cash available for future investments and expenses , a decrease from $ 12.3 million at the end of 2016. the decrease was primarily due to $ 5.4 million of investments originated during 2017 as well as funding of ongoing operating expenses . we continue to work with the sba in determining an optimal structure within its regulatory parameters which , once completed , may result in new sba leverage commitments in 2018. we believe the combination of cash on hand , proceeds from portfolio exits , potential additional sba leverage , and prospective investment income provide sufficient capital for us to continue to add new investments to our portfolio while reinvesting in existing portfolio companies that demonstrate continued growth potential . the following short and long-term trends provide us confidence in our ability to grow rand : we expect that well run businesses will require capital to grow and should be able to compete effectively given the strong macroeconomic environment and eager reception of new technologies and service concepts . we continue to manage risk by investing with other investors , when possible . we are actively involved with the governance and management of our portfolio companies , which enables us to support their operating and marketing efforts and facilitate their growth . as our portfolio expands , we are able to better leverage our infrastructure . we have sufficient cash to invest in new opportunities and to repurchase shares . at year end , we had authorization to repurchase an additional 458,954 shares of our common stock . however , our prioritized use of cash continues to be growing our portfolio . critical accounting policies we prepare our consolidated financial statements in accordance with united states generally accepted accounting principles , or gaap , which require the use of estimates and assumptions that affect the reported amounts of assets and liabilities . for a summary of all significant accounting policies , including critical accounting policies , see note 1 to the consolidated financial statements in item 8 of this annual report . the increasing complexity of the business environment and applicable authoritative accounting guidance require us to closely monitor our accounting policies and procedures . we have two critical accounting policies that require the use of significant judgment . the following summary of critical accounting policies is intended to enhance a reader 's ability to assess our financial condition and results of operations and the potential volatility due to changes in estimates . 13 valuation of investments investments are valued at fair value as determined in good faith by management and approved by our board of directors . we invest in loan , debt , and equity instruments and there is no single standard for determining fair value of these investments . as a result , determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistent valuation process . we analyze and value each investment quarterly , and record unrealized depreciation for an investment that we believe has become impaired , including where collection of a loan or realization of the recorded value of an equity security is doubtful . story_separator_special_tag the financing fee income based on the existing portfolio is expected to be approximately $ 20,000 in 2017 , $ 15,000 in 2018 , $ 11,000 in 2019 and $ 300 in 2020. fees paid for board service at the portfolio companies were $ 4,000 and $ 11,000 for the years ended december 31 , 2016 and 2015 , respectively . expenses comparison of the years ended december 31 , 2017 and 2016 december 31 , 2017 december 31 , 2016 decrease % decrease total expenses $ 2,010,977 $ 3,401,037 ( $ 1,390,060 ) ( 41 % ) operating expenses consist predominately of compensation expense , including profit sharing , and related benefits , interest expense on outstanding sba borrowings , and general and administrative expenses including shareholder and office expenses and professional fees . the decrease in expenses during the year ended december 31 , 2017 versus the same period in 2016 was primarily caused by a decrease of $ 1,373,052 in bonus and profit sharing expense related to the gemcor ii , llc ( gemcor ) exit in early 2016. gemcor sold its assets in march 2016 and based on our ownership percentage , we received gross cash proceeds of approximately $ 13.8 million , excluding an escrow receivable , and realized a gain , before income taxes , of approximately $ 13.2 million from the sale . as a result of this sale , we recognized $ 1,385,052 under our profit sharing plan during the year ended december 31 , 2016. there were no amounts earned pursuant to the profit sharing plan for the year ended december 31 , 2017. comparison of the years ended december 31 , 2016 and 2015 december 31 , 2016 december 31 , 2015 increase % increase total expenses $ 3,401,037 $ 1,817,279 $ 1,583,758 87 % 21 the increase in operating expenses during 2016 was comprised primarily of a $ 1,262,552 increase in bonus and profit sharing expense , due to the gemcor sale in 2016 , and a $ 137,629 increase in professional fees . our largest portfolio company , in terms of fair value , gemcor ii , llc ( gemcor ) sold its assets during march 2016 and , based on our ownership percentage , we received gross cash proceeds of approximately $ 14.1 million . the realized gain from the sale , before income taxes , was $ 14,620,063 and included $ 1,100,000 that continued to be held in escrow at december 31 , 2016. the escrow holdback is recorded in other assets on the accompanying consolidated statement of financial position . the escrow was released during 2017. related to this asset sale , we accrued $ 1,270,052 under our profit sharing plan for the year ended december 31 , 2016 , that is payable to our executive officers . recording of the profit sharing expense is primarily based on net realized gains , which may be in years subsequent to when the unrealized appreciation is recognized on the underlying investments in the financial statements . this may cause a recognition of profit sharing expense in a period later than when the appreciation is recognized , as was the case in 2016. there were no amounts earned pursuant to the profit sharing plan for the year ended december 31 , 2015. professional fees were also higher during the year ended december 31 , 2016 versus 2015 because we incurred additional expenses in connection with developing and implementing our long-term growth strategy . these expenses included external legal , tax consulting and other advisory expenses to support refinement of our strategy , which involved assessing options relative to the complex regulatory environment in which we operate . net realized gains and losses on investments december 31 , 2017 december 31 , 2016 december 31 , 2015 net realized gain ( loss ) on sales and dispositions , before income tax expense ( benefit ) $ 138,240 $ 14,138,203 ( $ 42,469 ) during the year ended december 31 , 2017 , one of our portfolio companies , athenex inc. ( athenex ) completed an initial public offering and its common stock became publicly traded on the nasdaq global select market under the symbol atnx . we sold our shares in athenex and recognized a net realized gain , before income taxes , of $ 638,240 on the sale of the 46,296 athenex shares . in addition , during 2017 , we realized a loss of $ 500,000 on our investment in city dining cards ( loupe ) when the company ceased operations . during the first quarter of 2016 our portfolio company , gemcor ii , llc , sold its assets , and accordingly , we received gross cash proceeds of approximately $ 14.1 million , excluding amounts held in escrow , and recognized a realized gain , before income taxes , of $ 14,620,063. the escrow holdback at december 31 , 2016 was $ 1,100,000 and is recorded in other assets on the accompanying consolidated statement of financial position . the escrow was released during 2017. in addition , we recorded a realized gain of $ 168,140 during the year ended december 31 , 2016 from the earn out provision in connection with the 2014 sale of quadpharma , llc to athenex inc. we realized a loss of $ 650,000 on our investment in statisfy , inc. ( statisfy ) during the year ended december 31 , 2016 when the company ceased operations . during the year ended december 31 , 2015 , we recognized a net realized gain , before income taxes , of $ 262,925 on the sale of 301,582 shares of synacor , inc. ( synacor ) . synacor trades on the nasdaq global market under the symbol sync . as of december 31 , 2015 , we did not own any shares of synacor . we recognized a realized loss of $ 5,394 on an adjustment to the binoptics corporation ( binoptics )

liquidity and capital resources our principal objective is to achieve capital appreciation . therefore , a significant portion of the investment portfolio is structured to maximize the potential for capital appreciation and may provide little or no current yield in the form of dividends or interest payments . as of december 31 , 2017 , our total liquidity consisted of $ 6,262,039 in cash . net cash used by operating activities has averaged approximately $ 2,314,000 over the last three years . the average cash used for investments in portfolio companies has averaged approximately $ 6,084,000 over the last three years . our cash flow may fluctuate based on the timing of the receipt of dividend income , realized exits and the associated income taxes paid . we will generally use cash to fund our operating expenses and to invest in companies as we build our portfolio . we anticipate that we will continue to exit investments . however , the timing of liquidation events within the portfolio is difficult to project . as of december 31 , 2017 , we did not have any outstanding commitments to borrow funds from the sba . starting in 2022 ( see footnote 5 in the notes to the consolidated financial statements ) our outstanding sba debt begins to reach maturity and this will require us to identify sources of future funding if liquidation of investments is not sufficient to fund operations and repay the sba debt obligation .


 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 our principal objective is to achieve capital appreciation . therefore , a significant portion of the investment portfolio is structured to maximize the potential for capital appreciation and may provide little or no current yield in the form of dividends or interest payments . as of december 31 , 2017 , our total liquidity consisted of $ 6,262,039 in cash . net cash used by operating activities has averaged approximately $ 2,314,000 over the last three years . the average cash used for investments in portfolio companies has averaged approximately $ 6,084,000 over the last three years . our cash flow may fluctuate based on the timing of the receipt of dividend income , realized exits and the associated income taxes paid . we will generally use cash to fund our operating expenses and to invest in companies as we build our portfolio . we anticipate that we will continue to exit investments . however , the timing of liquidation events within the portfolio is difficult to project . as of december 31 , 2017 , we did not have any outstanding commitments to borrow funds from the sba . starting in 2022 ( see footnote 5 in the notes to the consolidated financial statements ) our outstanding sba debt begins to reach maturity and this will require us to identify sources of future funding if liquidation of investments is not sufficient to fund operations and repay the sba debt obligation .
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 Suspicious Activity Report : the equity features contained in our investment portfolio are structured to realize capital appreciation over the long-term and typically do not generate current income in the form of dividends or interest . we have historically made initial investments of $ 500,000 to $ 1,000,000 directly in companies through equity or in debt or loan instruments and frequently provided follow-on investments during our investment tenure . the debt instruments generally have a maturity of not more than five years and usually have detachable equity warrants . interest may be paid currently or deferred , based on the investment structure negotiated . we may exit investments through the maturation of a debt security or when a liquidity event takes place , such as the sale , recapitalization , or initial public offering of a portfolio company . the method and timing of the disposition of our portfolio investments can be critical to the realization of maximum total return . we generally expect to dispose of our equity securities through private sales of securities to other investors or through an outright sale of the portfolio company or a merger . we anticipate our debt investments will be repaid with interest and hope to realize further appreciation from the warrants or other equity type instruments we receive in connection with the investment . we fund new investments and operating expenses through existing cash balances , investment returns , and interest and principal payments from our portfolio companies 12 2017 portfolio and investment activity we believe the change in net asset value over time is the leading valuation metric of our performance . exits from our portfolio holdings are the key driver of growth in net asset value over time . net asset value of our portfolio decreased to $ 5.05 per share , or $ 31.9 million , at december 31 , 2017 , down ( $ 0.11 ) per share , or ( 2.1 % ) , compared with net asset value of $ 5.16 per share , or $ 32.6 million , at the end of the prior year . at year end , the estimated value of our portfolio , which included securities from 30 active companies , was $ 32.3 million . this value included $ 4.4 million in net pre-tax unrealized depreciation . approximately 58 % of the portfolio was equity investments with the remainder being debt and loan investments . the portfolio generated approximately $ 1.5 million in interest , fee , dividend and other income . during 2017 , we made $ 5.4 million of new investments in 8 companies , of which one was a new portfolio company . outlook at the end of 2017 , we had $ 6.3 million in cash available for future investments and expenses , a decrease from $ 12.3 million at the end of 2016. the decrease was primarily due to $ 5.4 million of investments originated during 2017 as well as funding of ongoing operating expenses . we continue to work with the sba in determining an optimal structure within its regulatory parameters which , once completed , may result in new sba leverage commitments in 2018. we believe the combination of cash on hand , proceeds from portfolio exits , potential additional sba leverage , and prospective investment income provide sufficient capital for us to continue to add new investments to our portfolio while reinvesting in existing portfolio companies that demonstrate continued growth potential . the following short and long-term trends provide us confidence in our ability to grow rand : we expect that well run businesses will require capital to grow and should be able to compete effectively given the strong macroeconomic environment and eager reception of new technologies and service concepts . we continue to manage risk by investing with other investors , when possible . we are actively involved with the governance and management of our portfolio companies , which enables us to support their operating and marketing efforts and facilitate their growth . as our portfolio expands , we are able to better leverage our infrastructure . we have sufficient cash to invest in new opportunities and to repurchase shares . at year end , we had authorization to repurchase an additional 458,954 shares of our common stock . however , our prioritized use of cash continues to be growing our portfolio . critical accounting policies we prepare our consolidated financial statements in accordance with united states generally accepted accounting principles , or gaap , which require the use of estimates and assumptions that affect the reported amounts of assets and liabilities . for a summary of all significant accounting policies , including critical accounting policies , see note 1 to the consolidated financial statements in item 8 of this annual report . the increasing complexity of the business environment and applicable authoritative accounting guidance require us to closely monitor our accounting policies and procedures . we have two critical accounting policies that require the use of significant judgment . the following summary of critical accounting policies is intended to enhance a reader 's ability to assess our financial condition and results of operations and the potential volatility due to changes in estimates . 13 valuation of investments investments are valued at fair value as determined in good faith by management and approved by our board of directors . we invest in loan , debt , and equity instruments and there is no single standard for determining fair value of these investments . as a result , determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistent valuation process . we analyze and value each investment quarterly , and record unrealized depreciation for an investment that we believe has become impaired , including where collection of a loan or realization of the recorded value of an equity security is doubtful . story_separator_special_tag the financing fee income based on the existing portfolio is expected to be approximately $ 20,000 in 2017 , $ 15,000 in 2018 , $ 11,000 in 2019 and $ 300 in 2020. fees paid for board service at the portfolio companies were $ 4,000 and $ 11,000 for the years ended december 31 , 2016 and 2015 , respectively . expenses comparison of the years ended december 31 , 2017 and 2016 december 31 , 2017 december 31 , 2016 decrease % decrease total expenses $ 2,010,977 $ 3,401,037 ( $ 1,390,060 ) ( 41 % ) operating expenses consist predominately of compensation expense , including profit sharing , and related benefits , interest expense on outstanding sba borrowings , and general and administrative expenses including shareholder and office expenses and professional fees . the decrease in expenses during the year ended december 31 , 2017 versus the same period in 2016 was primarily caused by a decrease of $ 1,373,052 in bonus and profit sharing expense related to the gemcor ii , llc ( gemcor ) exit in early 2016. gemcor sold its assets in march 2016 and based on our ownership percentage , we received gross cash proceeds of approximately $ 13.8 million , excluding an escrow receivable , and realized a gain , before income taxes , of approximately $ 13.2 million from the sale . as a result of this sale , we recognized $ 1,385,052 under our profit sharing plan during the year ended december 31 , 2016. there were no amounts earned pursuant to the profit sharing plan for the year ended december 31 , 2017. comparison of the years ended december 31 , 2016 and 2015 december 31 , 2016 december 31 , 2015 increase % increase total expenses $ 3,401,037 $ 1,817,279 $ 1,583,758 87 % 21 the increase in operating expenses during 2016 was comprised primarily of a $ 1,262,552 increase in bonus and profit sharing expense , due to the gemcor sale in 2016 , and a $ 137,629 increase in professional fees . our largest portfolio company , in terms of fair value , gemcor ii , llc ( gemcor ) sold its assets during march 2016 and , based on our ownership percentage , we received gross cash proceeds of approximately $ 14.1 million . the realized gain from the sale , before income taxes , was $ 14,620,063 and included $ 1,100,000 that continued to be held in escrow at december 31 , 2016. the escrow holdback is recorded in other assets on the accompanying consolidated statement of financial position . the escrow was released during 2017. related to this asset sale , we accrued $ 1,270,052 under our profit sharing plan for the year ended december 31 , 2016 , that is payable to our executive officers . recording of the profit sharing expense is primarily based on net realized gains , which may be in years subsequent to when the unrealized appreciation is recognized on the underlying investments in the financial statements . this may cause a recognition of profit sharing expense in a period later than when the appreciation is recognized , as was the case in 2016. there were no amounts earned pursuant to the profit sharing plan for the year ended december 31 , 2015. professional fees were also higher during the year ended december 31 , 2016 versus 2015 because we incurred additional expenses in connection with developing and implementing our long-term growth strategy . these expenses included external legal , tax consulting and other advisory expenses to support refinement of our strategy , which involved assessing options relative to the complex regulatory environment in which we operate . net realized gains and losses on investments december 31 , 2017 december 31 , 2016 december 31 , 2015 net realized gain ( loss ) on sales and dispositions , before income tax expense ( benefit ) $ 138,240 $ 14,138,203 ( $ 42,469 ) during the year ended december 31 , 2017 , one of our portfolio companies , athenex inc. ( athenex ) completed an initial public offering and its common stock became publicly traded on the nasdaq global select market under the symbol atnx . we sold our shares in athenex and recognized a net realized gain , before income taxes , of $ 638,240 on the sale of the 46,296 athenex shares . in addition , during 2017 , we realized a loss of $ 500,000 on our investment in city dining cards ( loupe ) when the company ceased operations . during the first quarter of 2016 our portfolio company , gemcor ii , llc , sold its assets , and accordingly , we received gross cash proceeds of approximately $ 14.1 million , excluding amounts held in escrow , and recognized a realized gain , before income taxes , of $ 14,620,063. the escrow holdback at december 31 , 2016 was $ 1,100,000 and is recorded in other assets on the accompanying consolidated statement of financial position . the escrow was released during 2017. in addition , we recorded a realized gain of $ 168,140 during the year ended december 31 , 2016 from the earn out provision in connection with the 2014 sale of quadpharma , llc to athenex inc. we realized a loss of $ 650,000 on our investment in statisfy , inc. ( statisfy ) during the year ended december 31 , 2016 when the company ceased operations . during the year ended december 31 , 2015 , we recognized a net realized gain , before income taxes , of $ 262,925 on the sale of 301,582 shares of synacor , inc. ( synacor ) . synacor trades on the nasdaq global market under the symbol sync . as of december 31 , 2015 , we did not own any shares of synacor . we recognized a realized loss of $ 5,394 on an adjustment to the binoptics corporation ( binoptics )

