we commenced a commercial launch of our free application in the united kingdom in late 2013 and commenced an initial soft launch of the full dario solution ( including the app and the dario blood glucose monitoring system ) in selected jurisdictions in march 2014 and continued to scale up launch during 2014 in the united kingdom , the netherlands and new zealand , and during 2015 in australia , israel and canada , with the goal of collecting customer feedback to refine our longer-term roll-out strategy . we are consistently adding new additional features and functionality in making dario the new standard of care in diabetes data management . through our israeli subsidiary , labstyle innovation ltd. , our plan of operations is to continue the development of our software and hardware offerings and related technology . during 2015 , we successfully launched the dario smart diabetes management solution according to plan and are currently expanding the launch to other jurisdictions . in 2016 , we established our direct to consumer model in the u.s. to achieve higher and faster penetration into the market during the launch phase . we have invested in a robust digital marketing department with in-house platforms , experienced personnel and robust infrastructures to support expected growth of users and online subscribers in this market . during the third quarter of 2016 we expanded these effort to include australia as well . in 2017 , we expanded our direct to consumer marketing efforts in the united kingdom in cooperation with our local distributor and launched similar marketing efforts in germany . in support of these goals , we intend to utilize our funds for the following activities : · ramp up of mass production , marketing and distribution and sales efforts related to the dario smart diabetes management solution and the dario engage platform ; . 52 · develop our customer support and telemarketing services in order to support the expect growth of our revenues and the increase of user , and service provider who will use our platform to better serve people with diabetes and improve their clinical outcome ; · continued product and software development , and related activities ( including costs associated with application development and data storage capabilities as well as any necessary design modifications to the various elements of the dario smart diabetes management solution , the dario engage platform and the dario intelligence tools and capabilities ) ; · continued work on registration of our patents worldwide ; · regulatory and quality assurance matters ; · professional fees associated with being a publicly reporting company ; and · general and administrative matters . readers are cautioned that , according to our management 's estimates , based on our budget and the initial launch of our commercial sales , we believe that we will have sufficient resources to continue our activity only into march 2019 without raising additional capital . this includes an amount of anticipated inflows from sales of dario through direct sales in the united states and through distribution partners . as such , we have a significant present need for capital . if we are unable to scale up our commercial launch of dario or meet our commercial sales targets ( or if we are unable to ramp up revenues ) , and if we are unable to obtain additional capital resources in the near term , we may be unable to continue activities , absent a material alternations in our business plans and our business might fail . critical accounting policies our consolidated financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the united states ( “ us gaap ” ) . our fiscal year ends december 31. this management 's discussion and analysis of financial condition and results of operations discuss our consolidated financial statements , which have been prepared in accordance with us gaap . the preparation of these consolidated financial statements requires making estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements , as well as the reported revenues and expenses for the reporting periods . on an ongoing basis , we evaluate such estimates and judgments . we base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ ( perhaps significantly ) from these estimates under different assumptions or conditions . while all the accounting policies impact the consolidated financial statements , certain policies may be viewed to be critical . our management believes that the accounting policies which involve more significant judgments and estimates used in the preparation of our consolidated financial statements , include revenue recognition , inventories , liability related to certain warrants , and accounting for production lines and its related useful life and impairment . revenue recognition we derive revenues from the sale of our device-specific disposables test strip cartridges , lancets and our dario blood glucose monitoring system through distributors or directly to end users . the dario smart diabetes management application is offered for a free download and we do not have a recurring hosting commitment with our end users relating specifically to the application . 53 revenues from product sales are recognized in accordance with asc 605-10 , “ revenue recognition ” , when delivery has occurred , persuasive evidence of an agreement exists , the vendor 's fee is fixed or determinable , no further obligation exists and collectability is probable . we generally do not grant a right of return . story_separator_special_tag story_separator_special_tag 10pt times new roman , times , serif ; margin : 0pt 0 ; text-indent : 0.5in `` > the following tables sets forth selected cash flow information for the periods indicated : replace_table_token_10_th 58 net cash used in operating activities net cash used in operating activities was $ 10,619,000 for the year ended december 31 , 2017 compared to $ 8,379,000 used in operations for the same period in 2016. cash used in operations increased mainly due to increase in our research and development expenses and in our sales and marketing activities in promoting our product sales . net cash used in investing activities net cash used in investing activities was $ 219,000 for the year ended december 31 , 2016 compared to $ 947,000 for the year ended december 31 , 2016. cash used in investing activities decreased mainly due to lower investment in manufacturing facilities to support the increase in sales . net cash provided by financing activities net cash provided by financing activities was $ 13,463,000 for the year ended december 31 , 2017 compared to $ 7,748,000 for the year ended december 31 , 2016. during the year ended december 31 , 2017 , we raised net proceeds in an amount of approximately $ 13,463,000 , of which approximately $ 4,793,000 was raised through our august 2017 offering . contractual obligations set forth below is a summary of our current obligations as of december 31 , 2017 to make future payments due by the period indicated below , excluding payables and accruals . we expect to be able to meet our obligations in the ordinary course . operating lease obligations are for motor vehicle and real property leases which we use in our business . purchasing obligations consists of outstanding purchase orders for materials and services from our vendors . replace_table_token_11_th off-balance sheet arrangements we did not have during the periods presented , and we do not currently have , any off-balance sheet arrangements as defined under securities and exchange commission rules . contingencies we account for our contingent liabilities in accordance with asc 450 “ contingencies “ . a provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated . with respect to legal matters , provisions are reviewed and adjusted to reflect the impact of negotiations , estimated settlements , legal rulings , advice of legal counsel and other information and events pertaining to a particular matter . currently , we are not a party to any ligation that we believe could have a material adverse effect on our business , financial position , results of operations or cash flows . 59 recently issued and adopted accounting pronouncements in may 2014 , the financial accounting standards board ( “ fasb ” ) issued accounting standard update ( “ asu ” ) 2014-09 , “ revenue from contracts with customers ” topic 606 ) . this asu provides a five-step approach to account for revenue arising from contracts with customers . the asu requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . this revenue standard will be effective for the company starting the first quarter of 2019. the new revenue standard permits companies to either apply the requirements retrospectively to all prior periods presented or apply the requirements in the year of adoption through a modified retrospective approach with a cumulative adjustment . we are currently in the process of determining the method of adoption and assessing the impact of asu on our consolidated financial position , results of operations and cash flows . in february 2016 , the fasb issued asu no . 2016-02 , “ leases ( topic 842 ) , ” which is intended to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements . in order to meet that objective , the new standard requires recognition of the assets and liabilities that arise from leases . a lessee will be required to recognize on the balance sheet the assets and liabilities for leases with lease terms of more than 12 months . accounting by lessors will remain largely unchanged from current u.s. generally accepted accounting principles . the new standard is effective for public companies for fiscal years beginning after december 15 , 2018 , and interim periods within those years , with early adoption permitted . we are currently evaluating the effect that adopting this standard will have on the consolidated financial statements and related disclosures . in november 2016 , the fasb issued accounting standards update no . 2016-18 , statement of cash flows ( topic 230 ) : restricted cash ( asu 2016-18 ) , which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows . this guidance will be effective from the first quarter of 2019 and early adoption is permitted . we do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements and related disclosures . in may 2017 , the fasb issued asu 2017-09 , “ compensation - stock compensation ( topic 718 ) , scope of modification accounting . ” this asu clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications . entities will apply the modification accounting guidance if the value , vesting conditions or classification of the award changes . they will have to make all of the disclosures about modifications that are required today , in addition to disclosing that compensation expense

liquidity and capital resources as of december 31 , 2017 , we had approximately $ 3,718,000 in cash and cash equivalents compared to $ 1,093,000 at december 31 , 2016. we have experienced cumulative losses of $ 70,958,000 from inception ( august 11 , 2011 ) through december 31 , 2017 , and have a stockholders ' equity of $ 3,941,000 at december 31 , 2017. in addition , we have not completed our efforts to establish a stable recurring source of revenues sufficient to cover our operating costs and expect to continue to generate losses for the foreseeable future . there is no assurances that we will be able to obtain an adequate level of financing needed for our near term requirements or the long-term development and commercialization of our product . these conditions raise substantial doubt about our ability to continue as a “ going concern ” . since inception , we have financed our operations primarily through private placements and public offerings of our common stock and warrants to purchase shares of our common stock , receiving aggregate net proceeds totaling $ 52,263,000 as of december 31 , 2017. on january 9 , 2017 , we commenced a private placement offering of up to $ 5,100,000 consisting of up to 1,821,437 shares of common stock and warrants to purchase up to 1,821,437 shares of common stock . the warrants are exercisable after the six month anniversary of each respective closing and will expire on the 5 year anniversary of their issuance .


 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 , 2017 , we had approximately $ 3,718,000 in cash and cash equivalents compared to $ 1,093,000 at december 31 , 2016. we have experienced cumulative losses of $ 70,958,000 from inception ( august 11 , 2011 ) through december 31 , 2017 , and have a stockholders ' equity of $ 3,941,000 at december 31 , 2017. in addition , we have not completed our efforts to establish a stable recurring source of revenues sufficient to cover our operating costs and expect to continue to generate losses for the foreseeable future . there is no assurances that we will be able to obtain an adequate level of financing needed for our near term requirements or the long-term development and commercialization of our product . these conditions raise substantial doubt about our ability to continue as a “ going concern ” . since inception , we have financed our operations primarily through private placements and public offerings of our common stock and warrants to purchase shares of our common stock , receiving aggregate net proceeds totaling $ 52,263,000 as of december 31 , 2017. on january 9 , 2017 , we commenced a private placement offering of up to $ 5,100,000 consisting of up to 1,821,437 shares of common stock and warrants to purchase up to 1,821,437 shares of common stock . the warrants are exercisable after the six month anniversary of each respective closing and will expire on the 5 year anniversary of their issuance .
```    
 Suspicious Activity Report : we commenced a commercial launch of our free application in the united kingdom in late 2013 and commenced an initial soft launch of the full dario solution ( including the app and the dario blood glucose monitoring system ) in selected jurisdictions in march 2014 and continued to scale up launch during 2014 in the united kingdom , the netherlands and new zealand , and during 2015 in australia , israel and canada , with the goal of collecting customer feedback to refine our longer-term roll-out strategy . we are consistently adding new additional features and functionality in making dario the new standard of care in diabetes data management . through our israeli subsidiary , labstyle innovation ltd. , our plan of operations is to continue the development of our software and hardware offerings and related technology . during 2015 , we successfully launched the dario smart diabetes management solution according to plan and are currently expanding the launch to other jurisdictions . in 2016 , we established our direct to consumer model in the u.s. to achieve higher and faster penetration into the market during the launch phase . we have invested in a robust digital marketing department with in-house platforms , experienced personnel and robust infrastructures to support expected growth of users and online subscribers in this market . during the third quarter of 2016 we expanded these effort to include australia as well . in 2017 , we expanded our direct to consumer marketing efforts in the united kingdom in cooperation with our local distributor and launched similar marketing efforts in germany . in support of these goals , we intend to utilize our funds for the following activities : · ramp up of mass production , marketing and distribution and sales efforts related to the dario smart diabetes management solution and the dario engage platform ; . 52 · develop our customer support and telemarketing services in order to support the expect growth of our revenues and the increase of user , and service provider who will use our platform to better serve people with diabetes and improve their clinical outcome ; · continued product and software development , and related activities ( including costs associated with application development and data storage capabilities as well as any necessary design modifications to the various elements of the dario smart diabetes management solution , the dario engage platform and the dario intelligence tools and capabilities ) ; · continued work on registration of our patents worldwide ; · regulatory and quality assurance matters ; · professional fees associated with being a publicly reporting company ; and · general and administrative matters . readers are cautioned that , according to our management 's estimates , based on our budget and the initial launch of our commercial sales , we believe that we will have sufficient resources to continue our activity only into march 2019 without raising additional capital . this includes an amount of anticipated inflows from sales of dario through direct sales in the united states and through distribution partners . as such , we have a significant present need for capital . if we are unable to scale up our commercial launch of dario or meet our commercial sales targets ( or if we are unable to ramp up revenues ) , and if we are unable to obtain additional capital resources in the near term , we may be unable to continue activities , absent a material alternations in our business plans and our business might fail . critical accounting policies our consolidated financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the united states ( “ us gaap ” ) . our fiscal year ends december 31. this management 's discussion and analysis of financial condition and results of operations discuss our consolidated financial statements , which have been prepared in accordance with us gaap . the preparation of these consolidated financial statements requires making estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements , as well as the reported revenues and expenses for the reporting periods . on an ongoing basis , we evaluate such estimates and judgments . we base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ ( perhaps significantly ) from these estimates under different assumptions or conditions . while all the accounting policies impact the consolidated financial statements , certain policies may be viewed to be critical . our management believes that the accounting policies which involve more significant judgments and estimates used in the preparation of our consolidated financial statements , include revenue recognition , inventories , liability related to certain warrants , and accounting for production lines and its related useful life and impairment . revenue recognition we derive revenues from the sale of our device-specific disposables test strip cartridges , lancets and our dario blood glucose monitoring system through distributors or directly to end users . the dario smart diabetes management application is offered for a free download and we do not have a recurring hosting commitment with our end users relating specifically to the application . 53 revenues from product sales are recognized in accordance with asc 605-10 , “ revenue recognition ” , when delivery has occurred , persuasive evidence of an agreement exists , the vendor 's fee is fixed or determinable , no further obligation exists and collectability is probable . we generally do not grant a right of return . story_separator_special_tag story_separator_special_tag 10pt times new roman , times , serif ; margin : 0pt 0 ; text-indent : 0.5in `` > the following tables sets forth selected cash flow information for the periods indicated : replace_table_token_10_th 58 net cash used in operating activities net cash used in operating activities was $ 10,619,000 for the year ended december 31 , 2017 compared to $ 8,379,000 used in operations for the same period in 2016. cash used in operations increased mainly due to increase in our research and development expenses and in our sales and marketing activities in promoting our product sales . net cash used in investing activities net cash used in investing activities was $ 219,000 for the year ended december 31 , 2016 compared to $ 947,000 for the year ended december 31 , 2016. cash used in investing activities decreased mainly due to lower investment in manufacturing facilities to support the increase in sales . net cash provided by financing activities net cash provided by financing activities was $ 13,463,000 for the year ended december 31 , 2017 compared to $ 7,748,000 for the year ended december 31 , 2016. during the year ended december 31 , 2017 , we raised net proceeds in an amount of approximately $ 13,463,000 , of which approximately $ 4,793,000 was raised through our august 2017 offering . contractual obligations set forth below is a summary of our current obligations as of december 31 , 2017 to make future payments due by the period indicated below , excluding payables and accruals . we expect to be able to meet our obligations in the ordinary course . operating lease obligations are for motor vehicle and real property leases which we use in our business . purchasing obligations consists of outstanding purchase orders for materials and services from our vendors . replace_table_token_11_th off-balance sheet arrangements we did not have during the periods presented , and we do not currently have , any off-balance sheet arrangements as defined under securities and exchange commission rules . contingencies we account for our contingent liabilities in accordance with asc 450 “ contingencies “ . a provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated . with respect to legal matters , provisions are reviewed and adjusted to reflect the impact of negotiations , estimated settlements , legal rulings , advice of legal counsel and other information and events pertaining to a particular matter . currently , we are not a party to any ligation that we believe could have a material adverse effect on our business , financial position , results of operations or cash flows . 59 recently issued and adopted accounting pronouncements in may 2014 , the financial accounting standards board ( “ fasb ” ) issued accounting standard update ( “ asu ” ) 2014-09 , “ revenue from contracts with customers ” topic 606 ) . this asu provides a five-step approach to account for revenue arising from contracts with customers . the asu requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . this revenue standard will be effective for the company starting the first quarter of 2019. the new revenue standard permits companies to either apply the requirements retrospectively to all prior periods presented or apply the requirements in the year of adoption through a modified retrospective approach with a cumulative adjustment . we are currently in the process of determining the method of adoption and assessing the impact of asu on our consolidated financial position , results of operations and cash flows . in february 2016 , the fasb issued asu no . 2016-02 , “ leases ( topic 842 ) , ” which is intended to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements . in order to meet that objective , the new standard requires recognition of the assets and liabilities that arise from leases . a lessee will be required to recognize on the balance sheet the assets and liabilities for leases with lease terms of more than 12 months . accounting by lessors will remain largely unchanged from current u.s. generally accepted accounting principles . the new standard is effective for public companies for fiscal years beginning after december 15 , 2018 , and interim periods within those years , with early adoption permitted . we are currently evaluating the effect that adopting this standard will have on the consolidated financial statements and related disclosures . in november 2016 , the fasb issued accounting standards update no . 2016-18 , statement of cash flows ( topic 230 ) : restricted cash ( asu 2016-18 ) , which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows . this guidance will be effective from the first quarter of 2019 and early adoption is permitted . we do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements and related disclosures . in may 2017 , the fasb issued asu 2017-09 , “ compensation - stock compensation ( topic 718 ) , scope of modification accounting . ” this asu clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications . entities will apply the modification accounting guidance if the value , vesting conditions or classification of the award changes . they will have to make all of the disclosures about modifications that are required today , in addition to disclosing that compensation expense

