subject to certain preconditions , basf also will make a series of prepayments to us in the aggregate of $ 22 million during the construction of our planned manufacturing facility in statesboro , georgia . the prepayments will be either credited against amounts invoiced to basf for spaceloft a2 or repaid by us to basf after december 31 , 2023. as a result of our decision to temporarily delay construction of the statesboro facility , we have yet to fulfill the preconditions , and commencement of the prepayments from basf will be delayed until the preconditions are satisfied . our revenue for the year ended december 31 , 2016 was $ 117.7 million , which represented a decrease of 4 % from the year ended december 31 , 2015. net loss for the year ended december 31 , 2016 was $ 12.0 million and diluted loss per share was $ 0.52. key metrics and non-gaap financial measures we regularly review a number of metrics , including the following key metrics , to evaluate our business , measure our performance , identify trends affecting our business , formulate financial projections and make strategic decisions . square foot operating metric we price our product and measure our product shipments in square feet . we estimate our annual nameplate capacity was approximately 50 million square feet of aerogel blankets at december 31 , 2016. we believe the square foot operating metric allows us and our investors to measure the growth in our manufacturing capacity and product shipments on a uniform and consistent basis . the following chart sets forth product shipments associated with recognized revenue in square feet for the periods presented : replace_table_token_5_th adjusted ebitda we use adjusted ebitda , a non-gaap financial measure , as a means to assess our operating performance . we define adjusted ebitda as net income ( loss ) before interest expense , taxes , depreciation , amortization , stock-based compensation expense and other items , which occur from time to time , that we do not believe are indicative of our core operating performance , which included financing costs during the year ended december 31 , 2016. adjusted ebitda is a supplemental measure of our performance that is not presented in accordance with u.s. gaap . adjusted ebitda should not be considered as an alternative to net income ( loss ) or any other measure of financial performance calculated and presented in accordance with u.s. gaap . in addition , our definition and presentation of adjusted ebitda may not be comparable to similarly titled measures presented by other companies . we use adjusted ebitda : as a measure of operating performance because it does not include the impact of items that we do not consider indicative of our core operating performance ; for planning purposes , including the preparation of our annual operating budget , to allocate resources to enhance the financial performance of our business ; and as a performance measure used under our bonus plan . we also believe that the presentation of adjusted ebitda provides useful information to investors with respect to our results of operations and in assessing the performance and value of our business . various measures of ebitda are widely used by investors to measure a company 's operating performance without regard to items that can vary substantially from company to company depending upon financing and accounting methods , book values of assets , capital structures and the methods by which assets were acquired . although measures similar to adjusted ebitda are frequently used by investors and securities analysts in their evaluation of companies , we understand that adjusted ebitda has limitations as an analytical tool , and you should not consider it in isolation or as 46 a substitute for net income , income from operations , net cash provided by operating activities or an analysis of our results of operations as reported under u.s. gaap . some of these limitations are : adjusted ebitda does not reflect our historical cash expenditures or future requirements for capital expenditures or other contractual commitments ; adjusted ebitda does not reflect changes in , or cash requirements for , our working capital needs ; adjusted ebitda does not reflect stock-based compensation expense ; adjusted ebitda does not reflect our tax expense or cash requirements to pay our income taxes ; adjusted ebitda does not reflect our interest expense , or the cash requirements necessary to service interest or principal payments on our debt ; although depreciation , amortization and impairment charges are non-cash charges , the assets being depreciated , amortized or impaired will often have to be replaced in the future , and adjusted ebitda does not reflect any cash requirements for these replacements ; and other companies in our industry may calculate ebitda or adjusted ebitda differently than we do , limiting their usefulness as a comparative measure . because of these limitations , our adjusted ebitda should not be considered as a measure of discretionary cash available to us to reinvest in the growth of our business or as a measure of cash available for us to meet our obligations . to properly and prudently evaluate our business , we encourage you to review the gaap financial statements included elsewhere in this annual report on form 10-k , and not to rely on any single financial measure to evaluate our business . the following table presents a reconciliation of net loss , the most directly comparable gaap measure , to adjusted ebitda for the years presented : replace_table_token_6_th ( 1 ) represents non-cash stock-based compensation related to vesting and modifications of stock option grants , vesting of restricted stock units and vesting of restricted common stock . ( 2 ) interest expense in 2014 consists primarily of fair market value adjustments and issuance costs related to our then outstanding subordinated notes , senior convertible notes and convertible notes and certain imputed interest on previously settled obligations . story_separator_special_tag the average selling price per square foot of our products decreased by an effective $ 0.24 , or 8 % , to $ 2.61 per square foot for the year ended december 31 , 2016 from $ 2.85 per square foot for the year ended december 31 , 2015. the decrease in average selling 52 price reflects a year-over-year decline in the mix of high- priced subsea products , combined with an increase in the mix of products sold to reliance industries limited with project-based pricing . this de crease in average selling price had the effect of decreasing product revenue by $ 10.7 million for the year ended december 31 , 2016. in volume terms , product shipments increased 2.0 million square feet , or 5 % , to 44.3 million square feet of aerogel products for the year ended december 31 , 2016 , as compared to 42.2 million square feet in the year ended december 31 , 2015. the increase in volume was supported by the increase in manufacturing capacity associated with the operation of the third production line in the east providence facility for a full year . the increase in product volume had the effect of increasing product revenue by approximately $ 5.7 million for the year ended december 31 , 2016. research services revenue increased by $ 0.3 million , or 13 % , to $ 2.2 million in 2016 from $ 2.0 million in 2015. the increase was primarily due to the timing and amount of funding available under research contracts during the year ended december 31 , 2016 from the comparable period in 2015. product revenue as a percentage of total revenue was 98 % of total revenue in 2016 and 2015 , respectively . research services revenue was 2 % of total revenue in 2016 and 2015 , respectively . we expect that product revenue will continue to comprise a significant and growing percentage of our total revenue in the long-term due to the anticipated demand growth from adoption of our products in the energy infrastructure market , particularly in the district energy and power markets , and through penetration of new and existing markets , including the building materials market . during 2017 , we expect a decrease in product revenue as a result of the conclusion of the major petrochemical project with reliance industries limited , which comprised 25 % of our product revenue during 2016 , in combination with the impact of constrained capital investment and low activity levels in the global energy infrastructure market . accordingly , we are projecting a decline in product revenue and total revenue in the year ending december 31 , 2017 versus the comparable period in 2016. cost of revenue replace_table_token_12_th total cost of revenue decreased by $ 3.4 million , or 4 % , to $ 94.4 million in 2016 from $ 97.9 million in 2015. the decrease in total cost of revenue was the result of a decrease of $ 6.0 million in material costs , offset , in part , by an increase of $ 2.3 million in manufacturing expense and an increase of $ 0.3 million in cost of research services . product cost of revenue decreased $ 3.7 million , or 4 % , to $ 93.1 million in 2016 from $ 96.9 million in 2015. the $ 3.7 million decrease was the result of a $ 6.0 million decrease in material costs , offset , in part , by a $ 2.3 million increase in manufacturing expense year over year . the increase in manufacturing expense included increases in compensation expense of $ 0.9 million , utility expenses of $ 0.3 million and maintenance and facility expense of $ 1.1 million . the increased level of manufacturing expense was driven by operation of the third production line in the east providence facility for a full year in 2016 versus three quarters in 2015. despite growth in product volume of 5 % during the year ended december 31 , 2016 , material costs declined due to strong improvement in manufacturing yields and a shift in mix to lower cost products versus the comparable period in 2015. product cost of revenue as a percentage of product revenue increased to 81 % during 2016 from 80 % in 2015. this increase was the result of the combination of the increase in manufacturing expense associated with operation of the third production line in the east providence facility for a full year in 2016 and the decline in product revenue associated with the impact of constrained capital investment and low activity levels in the global energy infrastructure market . the impact of the increase in manufacturing expense and decline in product revenue was offset , in part , by the improvement in manufacturing yields and the shift in mix to lower cost products during the year ended december 31 , 2016 versus the comparable period in 2015. we expect that cost of product revenue will decrease during 2017 versus 2016. the projected decrease in cost of product revenue reflects planned actions to reduce manufacturing spending and an expected decrease in material costs due to lower projected 53 sales volumes . however , we expect that cost of product revenue as a percentage of product revenue will increase during the year . this projected increase reflects our expectation that , given high fixed cost levels in our manufacturing facility , the expected percentage reduction in cost of product revenue will not fully offset the expected percentage reduction in revenue in 2017 . research services cost of revenue increased by $ 0.3 million , or 30 % , to $ 1.3 million in 2016 from $ 1.0 million in 2015. the increase in research services cost of revenue was due to the 13 % increase in research services revenue during 2016 and an unfavorable mix of labor and expense required to perform the contracted research . gross profit replace_table_token_13_th gross profit decreased $

primary sources of liquidity our principal sources of liquidity are currently our cash and cash equivalents and our revolving credit facility with silicon valley bank . cash and cash equivalents consist primarily of cash and money market accounts on deposit with banks . as of december 31 , 2016 , we had $ 18.1 million of cash and cash equivalents . at december 31 , 2016 , our debt obligations were limited to $ 0.1 million related to capital lease obligations . at december 31 , 2016 , we also had $ 2.7 million of outstanding letters of credit secured by our revolving credit facility with silicon valley bank . we have maintained a revolving credit facility with silicon valley bank since march 2011 , which has been amended from time to time . under our revolving credit facility , we are permitted to borrow a maximum of $ 20.0 million , subject to continued covenant compliance and borrowing base requirements . at our election , the interest rate applicable to borrowings under the amended revolving credit facility may be based on the prime rate or libor . prime rate-based rates vary from prime rate plus 0.75 % per annum to prime rate plus 1.75 % per annum , while libor-based rates vary from libor plus 3.75 % per annum to libor plus 4.25 % per annum . in addition , we are required to pay a monthly unused revolving line facility fee of 0.5 % per annum of the average unused portion of the revolving credit facility . the revolving credit facility matures on january 28 , 2018. due to the borrowing base limitations of the revolving credit facility , the effective amount available to us under the facility at december 31 , 2016 was $ 12.1 million after giving effect to the $ 2.7 million of letters of credit outstanding .


 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.
     ```primary sources of liquidity our principal sources of liquidity are currently our cash and cash equivalents and our revolving credit facility with silicon valley bank . cash and cash equivalents consist primarily of cash and money market accounts on deposit with banks . as of december 31 , 2016 , we had $ 18.1 million of cash and cash equivalents . at december 31 , 2016 , our debt obligations were limited to $ 0.1 million related to capital lease obligations . at december 31 , 2016 , we also had $ 2.7 million of outstanding letters of credit secured by our revolving credit facility with silicon valley bank . we have maintained a revolving credit facility with silicon valley bank since march 2011 , which has been amended from time to time . under our revolving credit facility , we are permitted to borrow a maximum of $ 20.0 million , subject to continued covenant compliance and borrowing base requirements . at our election , the interest rate applicable to borrowings under the amended revolving credit facility may be based on the prime rate or libor . prime rate-based rates vary from prime rate plus 0.75 % per annum to prime rate plus 1.75 % per annum , while libor-based rates vary from libor plus 3.75 % per annum to libor plus 4.25 % per annum . in addition , we are required to pay a monthly unused revolving line facility fee of 0.5 % per annum of the average unused portion of the revolving credit facility . the revolving credit facility matures on january 28 , 2018. due to the borrowing base limitations of the revolving credit facility , the effective amount available to us under the facility at december 31 , 2016 was $ 12.1 million after giving effect to the $ 2.7 million of letters of credit outstanding .
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 Suspicious Activity Report : subject to certain preconditions , basf also will make a series of prepayments to us in the aggregate of $ 22 million during the construction of our planned manufacturing facility in statesboro , georgia . the prepayments will be either credited against amounts invoiced to basf for spaceloft a2 or repaid by us to basf after december 31 , 2023. as a result of our decision to temporarily delay construction of the statesboro facility , we have yet to fulfill the preconditions , and commencement of the prepayments from basf will be delayed until the preconditions are satisfied . our revenue for the year ended december 31 , 2016 was $ 117.7 million , which represented a decrease of 4 % from the year ended december 31 , 2015. net loss for the year ended december 31 , 2016 was $ 12.0 million and diluted loss per share was $ 0.52. key metrics and non-gaap financial measures we regularly review a number of metrics , including the following key metrics , to evaluate our business , measure our performance , identify trends affecting our business , formulate financial projections and make strategic decisions . square foot operating metric we price our product and measure our product shipments in square feet . we estimate our annual nameplate capacity was approximately 50 million square feet of aerogel blankets at december 31 , 2016. we believe the square foot operating metric allows us and our investors to measure the growth in our manufacturing capacity and product shipments on a uniform and consistent basis . the following chart sets forth product shipments associated with recognized revenue in square feet for the periods presented : replace_table_token_5_th adjusted ebitda we use adjusted ebitda , a non-gaap financial measure , as a means to assess our operating performance . we define adjusted ebitda as net income ( loss ) before interest expense , taxes , depreciation , amortization , stock-based compensation expense and other items , which occur from time to time , that we do not believe are indicative of our core operating performance , which included financing costs during the year ended december 31 , 2016. adjusted ebitda is a supplemental measure of our performance that is not presented in accordance with u.s. gaap . adjusted ebitda should not be considered as an alternative to net income ( loss ) or any other measure of financial performance calculated and presented in accordance with u.s. gaap . in addition , our definition and presentation of adjusted ebitda may not be comparable to similarly titled measures presented by other companies . we use adjusted ebitda : as a measure of operating performance because it does not include the impact of items that we do not consider indicative of our core operating performance ; for planning purposes , including the preparation of our annual operating budget , to allocate resources to enhance the financial performance of our business ; and as a performance measure used under our bonus plan . we also believe that the presentation of adjusted ebitda provides useful information to investors with respect to our results of operations and in assessing the performance and value of our business . various measures of ebitda are widely used by investors to measure a company 's operating performance without regard to items that can vary substantially from company to company depending upon financing and accounting methods , book values of assets , capital structures and the methods by which assets were acquired . although measures similar to adjusted ebitda are frequently used by investors and securities analysts in their evaluation of companies , we understand that adjusted ebitda has limitations as an analytical tool , and you should not consider it in isolation or as 46 a substitute for net income , income from operations , net cash provided by operating activities or an analysis of our results of operations as reported under u.s. gaap . some of these limitations are : adjusted ebitda does not reflect our historical cash expenditures or future requirements for capital expenditures or other contractual commitments ; adjusted ebitda does not reflect changes in , or cash requirements for , our working capital needs ; adjusted ebitda does not reflect stock-based compensation expense ; adjusted ebitda does not reflect our tax expense or cash requirements to pay our income taxes ; adjusted ebitda does not reflect our interest expense , or the cash requirements necessary to service interest or principal payments on our debt ; although depreciation , amortization and impairment charges are non-cash charges , the assets being depreciated , amortized or impaired will often have to be replaced in the future , and adjusted ebitda does not reflect any cash requirements for these replacements ; and other companies in our industry may calculate ebitda or adjusted ebitda differently than we do , limiting their usefulness as a comparative measure . because of these limitations , our adjusted ebitda should not be considered as a measure of discretionary cash available to us to reinvest in the growth of our business or as a measure of cash available for us to meet our obligations . to properly and prudently evaluate our business , we encourage you to review the gaap financial statements included elsewhere in this annual report on form 10-k , and not to rely on any single financial measure to evaluate our business . the following table presents a reconciliation of net loss , the most directly comparable gaap measure , to adjusted ebitda for the years presented : replace_table_token_6_th ( 1 ) represents non-cash stock-based compensation related to vesting and modifications of stock option grants , vesting of restricted stock units and vesting of restricted common stock . ( 2 ) interest expense in 2014 consists primarily of fair market value adjustments and issuance costs related to our then outstanding subordinated notes , senior convertible notes and convertible notes and certain imputed interest on previously settled obligations . story_separator_special_tag the average selling price per square foot of our products decreased by an effective $ 0.24 , or 8 % , to $ 2.61 per square foot for the year ended december 31 , 2016 from $ 2.85 per square foot for the year ended december 31 , 2015. the decrease in average selling 52 price reflects a year-over-year decline in the mix of high- priced subsea products , combined with an increase in the mix of products sold to reliance industries limited with project-based pricing . this de crease in average selling price had the effect of decreasing product revenue by $ 10.7 million for the year ended december 31 , 2016. in volume terms , product shipments increased 2.0 million square feet , or 5 % , to 44.3 million square feet of aerogel products for the year ended december 31 , 2016 , as compared to 42.2 million square feet in the year ended december 31 , 2015. the increase in volume was supported by the increase in manufacturing capacity associated with the operation of the third production line in the east providence facility for a full year . the increase in product volume had the effect of increasing product revenue by approximately $ 5.7 million for the year ended december 31 , 2016. research services revenue increased by $ 0.3 million , or 13 % , to $ 2.2 million in 2016 from $ 2.0 million in 2015. the increase was primarily due to the timing and amount of funding available under research contracts during the year ended december 31 , 2016 from the comparable period in 2015. product revenue as a percentage of total revenue was 98 % of total revenue in 2016 and 2015 , respectively . research services revenue was 2 % of total revenue in 2016 and 2015 , respectively . we expect that product revenue will continue to comprise a significant and growing percentage of our total revenue in the long-term due to the anticipated demand growth from adoption of our products in the energy infrastructure market , particularly in the district energy and power markets , and through penetration of new and existing markets , including the building materials market . during 2017 , we expect a decrease in product revenue as a result of the conclusion of the major petrochemical project with reliance industries limited , which comprised 25 % of our product revenue during 2016 , in combination with the impact of constrained capital investment and low activity levels in the global energy infrastructure market . accordingly , we are projecting a decline in product revenue and total revenue in the year ending december 31 , 2017 versus the comparable period in 2016. cost of revenue replace_table_token_12_th total cost of revenue decreased by $ 3.4 million , or 4 % , to $ 94.4 million in 2016 from $ 97.9 million in 2015. the decrease in total cost of revenue was the result of a decrease of $ 6.0 million in material costs , offset , in part , by an increase of $ 2.3 million in manufacturing expense and an increase of $ 0.3 million in cost of research services . product cost of revenue decreased $ 3.7 million , or 4 % , to $ 93.1 million in 2016 from $ 96.9 million in 2015. the $ 3.7 million decrease was the result of a $ 6.0 million decrease in material costs , offset , in part , by a $ 2.3 million increase in manufacturing expense year over year . the increase in manufacturing expense included increases in compensation expense of $ 0.9 million , utility expenses of $ 0.3 million and maintenance and facility expense of $ 1.1 million . the increased level of manufacturing expense was driven by operation of the third production line in the east providence facility for a full year in 2016 versus three quarters in 2015. despite growth in product volume of 5 % during the year ended december 31 , 2016 , material costs declined due to strong improvement in manufacturing yields and a shift in mix to lower cost products versus the comparable period in 2015. product cost of revenue as a percentage of product revenue increased to 81 % during 2016 from 80 % in 2015. this increase was the result of the combination of the increase in manufacturing expense associated with operation of the third production line in the east providence facility for a full year in 2016 and the decline in product revenue associated with the impact of constrained capital investment and low activity levels in the global energy infrastructure market . the impact of the increase in manufacturing expense and decline in product revenue was offset , in part , by the improvement in manufacturing yields and the shift in mix to lower cost products during the year ended december 31 , 2016 versus the comparable period in 2015. we expect that cost of product revenue will decrease during 2017 versus 2016. the projected decrease in cost of product revenue reflects planned actions to reduce manufacturing spending and an expected decrease in material costs due to lower projected 53 sales volumes . however , we expect that cost of product revenue as a percentage of product revenue will increase during the year . this projected increase reflects our expectation that , given high fixed cost levels in our manufacturing facility , the expected percentage reduction in cost of product revenue will not fully offset the expected percentage reduction in revenue in 2017 . research services cost of revenue increased by $ 0.3 million , or 30 % , to $ 1.3 million in 2016 from $ 1.0 million in 2015. the increase in research services cost of revenue was due to the 13 % increase in research services revenue during 2016 and an unfavorable mix of labor and expense required to perform the contracted research . gross profit replace_table_token_13_th gross profit decreased $

