we were also recognized in 2015 as a strong performer by forrester research , inc in its independence report , “ the forrester wave : through-channel marketing automation platforms , q3 2015 . ” in recent years , our iapps content manager and iapps commerce products were selected as finalists for the 2014 , 2013 , and 2012 codie awards for best content management solution and best electronic commerce solution , globally . in 2014 and 2013 , bridgeline digital won twenty-five horizon interactive awards for outstanding development of web applications and websites . also in 2013 , the web marketing association sponsored internet advertising competition honored bridgeline digital with three awards for iapps customer websites and b2b magazine selected bridgeline digital as one of the top interactive technology companies in the united states . kmworld magazine editors selected bridgeline digital as one of the 100 companies that matter in knowledge management and also selected iapps as a trend setting product in 2013 . 19 bridgeline digital was incorporated under the laws of the state of delaware on august 28 , 2000. locations the company 's corporate office is located in burlington , massachusetts . the company maintains regional field offices serving the following geographical locations : boston , ma ; chicago , il ; denver , co ; san luis obispo , ca ; and tampa , fl . the company has one wholly-owned subsidiary , bridgeline digital pvt . ltd. located in bangalore , india . sales and marketing bridgeline employs a direct sales force and each sale takes on average 2-6 months to complete . each franchise/multi-unit organization sale takes on average one year to complete . our direct sales force focuses its efforts selling to medium-sized and large companies . these companies are generally categorized in the following vertical markets : ( i ) financial services ; ( ii ) franchises/multi-unit organizations ; ( iii ) retail brand names ; ( iv ) health services and life sciences ; ( v ) technology ( software and hardware ) ; ( vi ) credit unions and regional banks and ( vii ) associations and foundations . we have five sales geographic locations in the united states . we have business development professionals dedicated to identifying and establishing strategic alliances for iapps and iappsds . we have maintained a strategic alliance with ups logistics since 2012. bridgeline and ups logistics signed a multi-year agreement to offer b2b and b2c ecommerce web stores with an end-to-end ecommerce offering comprised of bridgeline 's ecommerce fulfilled solution and ups logistics and fulfillment services . the combined bridgeline and ups logistics offering provides customers with the ability to manage the ecommerce and supply chain fulfillment needs and was designed to benefit mid-market and larger online web stores who seek end to end solutions . we continue to pursue significant strategic alliances that will enhance the sales and distribution opportunities of iapps related intellectual property . acquisitions bridgeline will continue to evaluate expanding its distribution of iapps and its interactive development capabilities through acquisitions . we may make additional acquisitions in the foreseeable future . these potential acquisitions will be consistent with our iapps platform distribution strategy and growth strategy by providing bridgeline with new geographical distribution opportunities , an expanded customer base , an expanded sales force and an expanded developer force . in addition , integrating acquired companies into our existing operations allows us to consolidate the finance , human resources , legal , marketing , research and development of the acquired businesses with our own internal resources , hence reducing the aggregate of these expenses for the combined businesses and resulting in improved operating results . customer information we currently have over 3,000 active customers . for the year ended september 30 , 2016 , one customer represented 10.2 % of the company 's total revenue . for the year ended september 30 , 2015 , there were no customers representing 10 % or more of the company 's total revenue . 20 summary of results of operations total revenue for the fiscal year ended september 30 , 2016 ( “ fiscal 2016 ” ) decreased to $ 15.9 million from $ 19.2 million for the fiscal year ended september 30 , 2015 ( “ fiscal 2015 ” ) . loss from operations for fiscal 2016 was ( $ 3.5 ) million compared with loss from operations of ( $ 16.1 ) million for fiscal 2015. we had a net loss for fiscal 2016 of ( $ 7.8 ) million compared with a net loss of ( $ 16.8 ) million for fiscal 2015. in fiscal 2016 , we converted $ 3.0 million of secured subordinated debt to equity , which resulted in a non-cash inducement charge of $ 3.4 million . in fiscal 2015 , we recorded a goodwill impairment charge of $ 10.5 million , which comprised the majority of the loss in fiscal 2015. this was also a non-cash charge to operations . loss per share attributable to common shareholders for fiscal 2016 was ( $ 0.84 ) compared with loss per share attributable to common shareholders of ( $ 3.88 ) for fiscal 2015. highlights of fiscal 2016 ● subscription and perpetual license revenue increased 5 % to $ 6.1 million for fiscal 2016 . ● licenses and managed hosting comprised 46 % of revenue in fiscal 2016 compared to 38 % in fiscal 2015 ● cost of revenue decreased $ 3.8 million reflecting our commitment to align costs to revenue expectations . ● gross margin improved to 54 % in fiscal 2016 compared to 43 % in fiscal 2015 . ● excluding the goodwill impairment charge in fiscal 2015 , operating expenses decreased $ 1.6 million also reflecting our cost control initiatives . ● we significantly reduced our debt . we reduced our convertible debt and term notes from $ 6 million to zero by converting all debt to equity . story_separator_special_tag revenue for subscription licenses is recognized monthly as the services are delivered . digital engagement services digital engagement services include professional services primarily related to the company 's web development solutions that address specific customer needs such as digital strategy , information architecture and usability engineering , .net development , rich media development , back end integration , search engine optimization , quality assurance and project management . digital engagement services are contracted for on either a fixed price or time and materials basis . for its fixed price engagements , after assigning the relative selling price to the elements of the arrangement , the company applies the proportional performance model ( if not subject to contract accounting ) to recognize revenue based on cost incurred in relation to total estimated cost at completion . the company has determined that labor costs are the most appropriate measure to allocate revenue among reporting periods , as they are the primary input when providing application development services . customers are invoiced monthly or upon the completion of milestones . for milestone based projects , since milestone pricing is based on expected hourly costs and the duration of such engagements is relatively short , this input approach principally mirrors an output approach under the proportional performance model for revenue recognition on such fixed priced engagements . for time and materials contracts , revenues are recognized as the services are provided . digital engagement services also include retained professional services contracted for on an “ on call ” basis or for a certain amount of hours each month . such arrangements generally provide for a guaranteed availability of a number of professional services hours each month on a “ use it or lose it ” basis . for retained professional services sold on a stand-alone basis the company recognizes revenue as the services are delivered or over the term of the contractual retainer period . these arrangements do not require formal customer acceptance and do not grant any future right to labor hours contracted for but not used . 29 subscriptions and perpetual licenses the company licenses its software on either a perpetual or subscription basis . customers who license the software on a perpetual basis receive rights to use the software for an indefinite time period and an option to purchase post-customer support ( “ pcs ” ) . for arrangements that consist of a perpetual license and pcs , as long as vendor specific objective evidence ( “ vsoe ” ) exists for the pcs , then pcs revenue is recognized ratably on a straight-line basis over the period of performance and the perpetual license is recognized on a residual basis . under the residual method , the fair value of the undelivered elements are deferred and the remaining portion of the arrangement fee is allocated to the delivered elements and recognized as revenue , assuming all other revenue recognition criteria have been met . customers may also license the software on a subscription basis , which can be described as “ software as a service ” or “ saas ” . saas is a model of software deployment where an application is hosted as a service provided to customers across the internet . subscription agreements include access to the company 's software application via an internet connection , the related hosting of the application , and pcs . customers receive automatic updates and upgrades , and new releases of the products as soon as they become available . customers can not take possession of the software . subscription agreements are either annual or month-to-month arrangements that provide for termination for convenience by either party upon 90 days ' notice . revenue is recognized monthly as the services are delivered . set up fees paid by customers in connection with subscription services are deferred and recognized ratably over the longer of the life of subscription period or the expected lives of customer relationships . the company continues to evaluate the length of the amortization period of the set up fees as it gains more experience with customer contract renewals . managed service hosting managed service hosting includes hosting arrangements that provide for the use of certain hardware and infrastructure for those customers who do not wish to host our applications independently . hosting agreements are either annual or month-to-month arrangements that provide for termination for convenience by either party generally upon 30-days ' notice . revenue is recognized monthly as the hosting services are delivered . set up fees paid by customers in connection with managed hosting services are deferred and recognized ratably over the longer of the life of the hosting period or the expected lives of customer relationships . the company continues to evaluate the length of the amortization period of the set up fees as it gains more experience with customer contract renewals . multiple element arrangements in accounting for multiple element arrangements , the company follows either asc topic 605-985 revenue recognition software or asc topic 605-25 revenue recognition multiple element arrangements , as applicable . in october 2009 , the fasb issued accounting standards update no . 2009-13 , revenue recognition : multiple-deliverable revenue arrangements ( “ asu 2009-13 ” ) . asu 2009-13 provides amendments to certain paragraphs of previously issued asc subtopic 605-25 – revenue recognition : multiple-deliverable revenue arrangements . in accordance with asu 2009-13 , each deliverable within a multiple-deliverable revenue arrangement is accounted for as a separate unit of accounting if both of the following criteria are met ( 1 ) the delivered item has value to the customer on a standalone basis and ( 2 ) for an arrangement that includes a right of return relative to the delivered item , delivery or performance of the delivered item is considered probable and within our control . if the deliverables do not meet the criteria for being a separate unit of accounting then they are combined with a deliverable that does meet

liquidity and capital resources cash flows operating activities cash used in operating activities was $ 2.7 million for fiscal 2016 , compared to cash used in operating activities of $ 2.8 million for fiscal 2015. although the net loss was reduced in fiscal 2016 , we used funds to pay down accounts payable . investing activities cash used in investing activities was $ 165 thousand for fiscal 2016 compared with $ 187 thousand for fiscal 2015. the decrease was primarily due to less purchases of capital equipment and software in fiscal 2016 than fiscal 2015. financing activities cash provided by financing activities was $ 3.2 million for fiscal 2016 compared with $ 2.1 million for fiscal 2015. the increase was due to proceeds from the sale of common stock of $ 3.7 million and $ 1 million in term notes from a shareholder offset by payments made on bank term loans , our bank line of credit and contingent acquisition payments . at september 30 , 2016 , we had an outstanding balance under our credit line with heritage bank of $ 2.1 million . capital resources and liquidity outlook in june 2016 , the company entered into a new loan and security agreement with heritage bank of commerce ( “ loan agreement ” ) .


 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 flows operating activities cash used in operating activities was $ 2.7 million for fiscal 2016 , compared to cash used in operating activities of $ 2.8 million for fiscal 2015. although the net loss was reduced in fiscal 2016 , we used funds to pay down accounts payable . investing activities cash used in investing activities was $ 165 thousand for fiscal 2016 compared with $ 187 thousand for fiscal 2015. the decrease was primarily due to less purchases of capital equipment and software in fiscal 2016 than fiscal 2015. financing activities cash provided by financing activities was $ 3.2 million for fiscal 2016 compared with $ 2.1 million for fiscal 2015. the increase was due to proceeds from the sale of common stock of $ 3.7 million and $ 1 million in term notes from a shareholder offset by payments made on bank term loans , our bank line of credit and contingent acquisition payments . at september 30 , 2016 , we had an outstanding balance under our credit line with heritage bank of $ 2.1 million . capital resources and liquidity outlook in june 2016 , the company entered into a new loan and security agreement with heritage bank of commerce ( “ loan agreement ” ) .
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 Suspicious Activity Report : we were also recognized in 2015 as a strong performer by forrester research , inc in its independence report , “ the forrester wave : through-channel marketing automation platforms , q3 2015 . ” in recent years , our iapps content manager and iapps commerce products were selected as finalists for the 2014 , 2013 , and 2012 codie awards for best content management solution and best electronic commerce solution , globally . in 2014 and 2013 , bridgeline digital won twenty-five horizon interactive awards for outstanding development of web applications and websites . also in 2013 , the web marketing association sponsored internet advertising competition honored bridgeline digital with three awards for iapps customer websites and b2b magazine selected bridgeline digital as one of the top interactive technology companies in the united states . kmworld magazine editors selected bridgeline digital as one of the 100 companies that matter in knowledge management and also selected iapps as a trend setting product in 2013 . 19 bridgeline digital was incorporated under the laws of the state of delaware on august 28 , 2000. locations the company 's corporate office is located in burlington , massachusetts . the company maintains regional field offices serving the following geographical locations : boston , ma ; chicago , il ; denver , co ; san luis obispo , ca ; and tampa , fl . the company has one wholly-owned subsidiary , bridgeline digital pvt . ltd. located in bangalore , india . sales and marketing bridgeline employs a direct sales force and each sale takes on average 2-6 months to complete . each franchise/multi-unit organization sale takes on average one year to complete . our direct sales force focuses its efforts selling to medium-sized and large companies . these companies are generally categorized in the following vertical markets : ( i ) financial services ; ( ii ) franchises/multi-unit organizations ; ( iii ) retail brand names ; ( iv ) health services and life sciences ; ( v ) technology ( software and hardware ) ; ( vi ) credit unions and regional banks and ( vii ) associations and foundations . we have five sales geographic locations in the united states . we have business development professionals dedicated to identifying and establishing strategic alliances for iapps and iappsds . we have maintained a strategic alliance with ups logistics since 2012. bridgeline and ups logistics signed a multi-year agreement to offer b2b and b2c ecommerce web stores with an end-to-end ecommerce offering comprised of bridgeline 's ecommerce fulfilled solution and ups logistics and fulfillment services . the combined bridgeline and ups logistics offering provides customers with the ability to manage the ecommerce and supply chain fulfillment needs and was designed to benefit mid-market and larger online web stores who seek end to end solutions . we continue to pursue significant strategic alliances that will enhance the sales and distribution opportunities of iapps related intellectual property . acquisitions bridgeline will continue to evaluate expanding its distribution of iapps and its interactive development capabilities through acquisitions . we may make additional acquisitions in the foreseeable future . these potential acquisitions will be consistent with our iapps platform distribution strategy and growth strategy by providing bridgeline with new geographical distribution opportunities , an expanded customer base , an expanded sales force and an expanded developer force . in addition , integrating acquired companies into our existing operations allows us to consolidate the finance , human resources , legal , marketing , research and development of the acquired businesses with our own internal resources , hence reducing the aggregate of these expenses for the combined businesses and resulting in improved operating results . customer information we currently have over 3,000 active customers . for the year ended september 30 , 2016 , one customer represented 10.2 % of the company 's total revenue . for the year ended september 30 , 2015 , there were no customers representing 10 % or more of the company 's total revenue . 20 summary of results of operations total revenue for the fiscal year ended september 30 , 2016 ( “ fiscal 2016 ” ) decreased to $ 15.9 million from $ 19.2 million for the fiscal year ended september 30 , 2015 ( “ fiscal 2015 ” ) . loss from operations for fiscal 2016 was ( $ 3.5 ) million compared with loss from operations of ( $ 16.1 ) million for fiscal 2015. we had a net loss for fiscal 2016 of ( $ 7.8 ) million compared with a net loss of ( $ 16.8 ) million for fiscal 2015. in fiscal 2016 , we converted $ 3.0 million of secured subordinated debt to equity , which resulted in a non-cash inducement charge of $ 3.4 million . in fiscal 2015 , we recorded a goodwill impairment charge of $ 10.5 million , which comprised the majority of the loss in fiscal 2015. this was also a non-cash charge to operations . loss per share attributable to common shareholders for fiscal 2016 was ( $ 0.84 ) compared with loss per share attributable to common shareholders of ( $ 3.88 ) for fiscal 2015. highlights of fiscal 2016 ● subscription and perpetual license revenue increased 5 % to $ 6.1 million for fiscal 2016 . ● licenses and managed hosting comprised 46 % of revenue in fiscal 2016 compared to 38 % in fiscal 2015 ● cost of revenue decreased $ 3.8 million reflecting our commitment to align costs to revenue expectations . ● gross margin improved to 54 % in fiscal 2016 compared to 43 % in fiscal 2015 . ● excluding the goodwill impairment charge in fiscal 2015 , operating expenses decreased $ 1.6 million also reflecting our cost control initiatives . ● we significantly reduced our debt . we reduced our convertible debt and term notes from $ 6 million to zero by converting all debt to equity . story_separator_special_tag revenue for subscription licenses is recognized monthly as the services are delivered . digital engagement services digital engagement services include professional services primarily related to the company 's web development solutions that address specific customer needs such as digital strategy , information architecture and usability engineering , .net development , rich media development , back end integration , search engine optimization , quality assurance and project management . digital engagement services are contracted for on either a fixed price or time and materials basis . for its fixed price engagements , after assigning the relative selling price to the elements of the arrangement , the company applies the proportional performance model ( if not subject to contract accounting ) to recognize revenue based on cost incurred in relation to total estimated cost at completion . the company has determined that labor costs are the most appropriate measure to allocate revenue among reporting periods , as they are the primary input when providing application development services . customers are invoiced monthly or upon the completion of milestones . for milestone based projects , since milestone pricing is based on expected hourly costs and the duration of such engagements is relatively short , this input approach principally mirrors an output approach under the proportional performance model for revenue recognition on such fixed priced engagements . for time and materials contracts , revenues are recognized as the services are provided . digital engagement services also include retained professional services contracted for on an “ on call ” basis or for a certain amount of hours each month . such arrangements generally provide for a guaranteed availability of a number of professional services hours each month on a “ use it or lose it ” basis . for retained professional services sold on a stand-alone basis the company recognizes revenue as the services are delivered or over the term of the contractual retainer period . these arrangements do not require formal customer acceptance and do not grant any future right to labor hours contracted for but not used . 29 subscriptions and perpetual licenses the company licenses its software on either a perpetual or subscription basis . customers who license the software on a perpetual basis receive rights to use the software for an indefinite time period and an option to purchase post-customer support ( “ pcs ” ) . for arrangements that consist of a perpetual license and pcs , as long as vendor specific objective evidence ( “ vsoe ” ) exists for the pcs , then pcs revenue is recognized ratably on a straight-line basis over the period of performance and the perpetual license is recognized on a residual basis . under the residual method , the fair value of the undelivered elements are deferred and the remaining portion of the arrangement fee is allocated to the delivered elements and recognized as revenue , assuming all other revenue recognition criteria have been met . customers may also license the software on a subscription basis , which can be described as “ software as a service ” or “ saas ” . saas is a model of software deployment where an application is hosted as a service provided to customers across the internet . subscription agreements include access to the company 's software application via an internet connection , the related hosting of the application , and pcs . customers receive automatic updates and upgrades , and new releases of the products as soon as they become available . customers can not take possession of the software . subscription agreements are either annual or month-to-month arrangements that provide for termination for convenience by either party upon 90 days ' notice . revenue is recognized monthly as the services are delivered . set up fees paid by customers in connection with subscription services are deferred and recognized ratably over the longer of the life of subscription period or the expected lives of customer relationships . the company continues to evaluate the length of the amortization period of the set up fees as it gains more experience with customer contract renewals . managed service hosting managed service hosting includes hosting arrangements that provide for the use of certain hardware and infrastructure for those customers who do not wish to host our applications independently . hosting agreements are either annual or month-to-month arrangements that provide for termination for convenience by either party generally upon 30-days ' notice . revenue is recognized monthly as the hosting services are delivered . set up fees paid by customers in connection with managed hosting services are deferred and recognized ratably over the longer of the life of the hosting period or the expected lives of customer relationships . the company continues to evaluate the length of the amortization period of the set up fees as it gains more experience with customer contract renewals . multiple element arrangements in accounting for multiple element arrangements , the company follows either asc topic 605-985 revenue recognition software or asc topic 605-25 revenue recognition multiple element arrangements , as applicable . in october 2009 , the fasb issued accounting standards update no . 2009-13 , revenue recognition : multiple-deliverable revenue arrangements ( “ asu 2009-13 ” ) . asu 2009-13 provides amendments to certain paragraphs of previously issued asc subtopic 605-25 – revenue recognition : multiple-deliverable revenue arrangements . in accordance with asu 2009-13 , each deliverable within a multiple-deliverable revenue arrangement is accounted for as a separate unit of accounting if both of the following criteria are met ( 1 ) the delivered item has value to the customer on a standalone basis and ( 2 ) for an arrangement that includes a right of return relative to the delivered item , delivery or performance of the delivered item is considered probable and within our control . if the deliverables do not meet the criteria for being a separate unit of accounting then they are combined with a deliverable that does meet

