we believe that our two product platforms , subject to appropriate regulatory clearance and approval , will deliver better patient outcomes , enhance revenue potential for both physicians and hospitals , and reduce costs to the healthcare system . in 2010 , we received regulatory clearance from the fda to market our clearpoint system in the u.s. for general neurological procedures . in 2011 , we also obtained ce marking approval for our clearpoint system , which enables us to sell our clearpoint system in the european union . substantially all our product revenues for the years ended december 31 , 2017 and 2016 relate to sales of our clearpoint system products . we do not have regulatory clearance or approval to sell our cleartrace system for commercial use . we have financed our operations and internal growth primarily through the sale of equity securities , the issuance of convertible and other secured notes , and license arrangements . we have incurred significant losses since our inception in 1998 as we have devoted substantial efforts to research and development . as of december 31 , 2017 , we had accumulated losses of approximately $ 101 million . we may continue to incur operating losses as we commercialize our clearpoint system products , continue to develop our cleartrace system , and expand our business . factors which may influence future results of operations the following is a description of factors which may influence our future results of operations , and which we believe are important to an understanding of our business and results of operations . revenues in 2010 , we received 510 ( k ) clearance from the fda to market our clearpoint system in the u.s. for general neurological procedures . future revenues from sales of our clearpoint system products are difficult to predict and may not be sufficient to offset our continuing research and development expenses and our increasing selling , general and administrative expenses . we can not sell our cleartrace system for commercial use until we receive regulatory clearance or approval . generating recurring revenues from the sale of functional neurological products is an important part of our business model for our clearpoint system . we anticipate that , over time , recurring revenues will constitute an increasing percentage of our total revenues as we leverage installations of our clearpoint system to generate recurring sales of our functional neurological products . our product revenues were approximately $ 7.0 million and $ 5.6 million for the years ended december 31 , 2017 and 2016 and were almost entirely related to our clearpoint system . our revenue recognition policies are more fully described in the “ critical accounting policies and significant judgments and estimates ” section below . cost of revenues cost of revenues includes the direct costs associated with the assembly and purchase of components for functional neurological products , drug delivery and biologic products , and clearpoint capital equipment which we have sold , and for which we have recognized the revenue in accordance with our revenue recognition policy . cost of product revenues also includes the allocation of manufacturing overhead costs and depreciation of loaned systems installed under our clearpoint placement program , as well as provisions for obsolete , impaired , or excess inventory . 42 research and development costs our research and development costs consist primarily of costs associated with the conceptualization , design , testing , and prototyping of our clearpoint system products ( and , prior to its suspension of development in 2015 , of our cleartrace system components ) . such costs include salaries , travel , and benefits for research and development personnel , including related share-based compensation ; materials and laboratory supplies in research and development activities ; consultant costs ; sponsored research and product development with third parties ; and licensing costs related to technology not yet commercialized . we anticipate that , over time , our research and development costs may increase as we : ( i ) continue to develop enhancements to our clearpoint system ; ( ii ) resume our cleartrace system product development efforts ; and ( iii ) seek to expand the application of our technological platforms . from our inception through december 31 , 2017 , we have incurred approximately $ 51 million in research and development expenses . product development timelines , likelihood of success , and total costs can vary widely by product candidate . there are also risks inherent in the regulatory clearance and approval process . at this time , we are unable to estimate with any certainty the costs that we will incur in either the further development of our cleartrace system for commercialization , or in our efforts to expand the application of our technological platforms . selling , general and administrative expenses our selling , general and administrative expenses consist primarily of salaries , incentive-based and share-based compensation , and travel and benefits ; marketing costs ; professional fees , including fees for attorneys and outside accountants ; occupancy costs ; insurance ; and other general and administrative expenses , which include , but are not limited to , corporate licenses , director fees , hiring costs , taxes , postage , office supplies and meeting costs . our selling , general and administrative expenses are expected to increase due to costs associated with the commercialization of our clearpoint system and the increased headcount necessary to support growth in operations . story_separator_special_tag research and development costs were $ 2.8 million for year ended december 31 , 2017 , compared to $ 2.6 million for the same period in 2016 , an increase of $ 186,000 , or 7 % . the increase was due primarily to : ( a ) payments aggregating $ 661,000 , the majority of which was in the form of shares of our common stock , required under certain license and product co-development agreements entered into in april 2017 ; and ( b ) an increase of $ 87,000 in regulatory legal fees related to increased filing activity in 2017 , relative to 2016 , that were partially offset by : ( c ) an aggregate decrease of $ 373,000 in software development and intellectual property-related costs ; and ( c ) a decrease of $ 168,000 in personnel costs related to a lower headcount during 2017 , relative to 2016 . 45 sales and marketing expenses . sales and marketing expenses were $ 4.0 million for the year ended december 31 , 2017 , compared to $ 3.8 million for the same period in 2016 , an increase of $ 179,000 , or 5 % . this increase was primarily due to an increase of $ 143,000 in personnel-related expenses due to increased headcount during 2017 , relative to 2016. general and administrative expenses . general and administrative expenses were $ 4.0 million for the year ended december 31 , 2017 , compared to $ 4.2 million for the same period in 2016 , a decrease of $ 144,000 , or 3 % . the decrease was due primarily to : ( a ) a decrease of $ 629,000 in professional fees , primarily related to financing activities undertaken in 2016 that did not recur during 2017 ; and ( b ) a decrease of $ 246,000 in stock-based compensation , due to the suspension during 2017 of stock-based grants pending stockholder approval of the second amended and restated incentive compensation plan in october 2017. these decreases were partially offset by : ( a ) an increase of $ 235,000 in recruiting and hiring costs related to the november 2017 change in our chief executive officer ; ( b ) an increase of $ 167,000 in general corporate legal fees ; ( c ) an increase of $ 49,000 in investor relations costs ; ( d ) an increase of $ 32,000 in insurance premiums . other income ( expense ) . during the years ended december 31 , 2017 and 2016 , we recorded gains of $ 25,000 and $ 1.1 million , respectively , resulting from changes in the fair value of our derivative liabilities . such derivative liabilities related to : ( a ) warrants issued with either or both net-cash settlement and down-round price protection provisions in connection with 2012 and 2013 private placement transactions ; ( b ) the june 2016 amendment of the new brainlab note as discussed in note 5 to the consolidated financial statements included elsewhere in the annual report and as discussed below ; and ( c ) the august 2016 amendments , entered into with the 2014 convertible note holders , as discussed in note 5 to the consolidated financial statements included elsewhere in the annual report and as discussed below . in april 2016 , we entered into the 2016 purchase agreement with brainlab under which the brainlab note was restructured and reissued as the new brainlab note . as a result , we recorded a debt restructuring gain of $ 941,000. in june 2016 , we entered into the june 2016 amendments with brainlab , with respect to the new brainlab note , and with the 2014 convertible note holders . based on the provisions of the june 2016 amendments , on june 30 , 2016 , we recorded a debt restructuring loss of $ 820,000 resulting from the restructuring of the new brainlab note and those 2014 secured notes subject to the june 2016 amendments . in august 2016 , we entered into the august 2016 amendments with the 2014 convertible note holders . based on the provisions of the august 2016 amendments , on august 30 , 2016 we recorded a debt restructuring loss of approximately $ 933,000 , representing the aggregate difference in the fair value of the derivative liabilities created by the june 2016 amendments between the points in time ( i ) immediately preceding , and ( ii ) immediately subsequent to , the execution of the august 2016 amendments . during the year ended december 31 , 2017 , we recorded other income of $ 17,000 , as compared with other income of $ 216,000 recorded during the same period in 2016 , representing a decrease of $ 199,000 , or 92 % . this decrease was due primarily to grant income from a u.s. federal agency of $ 203,000 earned from a project in process during the 2016 , which was discontinued by the agency later in 2016. we have not since undertaken any additional such projects . net interest expense for the year ended december 31 , 2017 was $ 873,000 , compared with $ 1.1 million for the same period in 2016. the decrease was due primarily to the conversion of an aggregate $ 1.74 million in principal balance of the 2014 secured convertible notes held by the 2014 convertible note holders in connection with the 2016 pipe and pursuant to the terms of the august 2016 amendments , as discussed in note 5 to the consolidated financial statements included elsewhere in this annual report . story_separator_special_tag style= `` margin-top : 0pt ; margin-bottom : 0pt ; font : 10pt times new roman , times , serif `` > ● the scope , rate of progress and cost of our ongoing product development activities relating to our clearpoint system ; ● the cost and timing of expanding our sales , clinical support , marketing and distribution

liquidity and capital resources at december 31 , 2017 , we had cash and cash equivalent balances aggregating $ 9.3 million , resulting primarily from completion of the 2017 pipe discussed in note 6 to the consolidated financial statements included elsewhere in this annual report . net cash used in operating activities was $ 6.0 million and $ 5.8 million for the years ended december 31 , 2017 and 2016 , respectively . our plans for the next twelve months reflect management 's anticipation of increases in revenues from sales of the clearpoint system and related disposable products resulting from greater utilization at existing installed sites and the installation of the clearpoint system at new sites . management also anticipates increases over the next twelve months in operating expenses to support the expected increase in revenues , with resulting decreases in loss from operations and in cash flow used in operations . there is no assurance , however , that we will be able to achieve our anticipated results , and even in the event such results are achieved , we expect to continue to consume cash in our operations over at least the next twelve months . 46 as a result of the foregoing , we believe we will have sufficient cash resources to support our operations for at least the next twelve months . cash flows cash activity for the years ended december 31 , 2017 and 2016 is summarized as follows : replace_table_token_3_th net cash flows from operating activities . we used $ 6.0 million and $ 5.8 million of cash for operating activities in 2017 and 2016 , respectively .


 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 at december 31 , 2017 , we had cash and cash equivalent balances aggregating $ 9.3 million , resulting primarily from completion of the 2017 pipe discussed in note 6 to the consolidated financial statements included elsewhere in this annual report . net cash used in operating activities was $ 6.0 million and $ 5.8 million for the years ended december 31 , 2017 and 2016 , respectively . our plans for the next twelve months reflect management 's anticipation of increases in revenues from sales of the clearpoint system and related disposable products resulting from greater utilization at existing installed sites and the installation of the clearpoint system at new sites . management also anticipates increases over the next twelve months in operating expenses to support the expected increase in revenues , with resulting decreases in loss from operations and in cash flow used in operations . there is no assurance , however , that we will be able to achieve our anticipated results , and even in the event such results are achieved , we expect to continue to consume cash in our operations over at least the next twelve months . 46 as a result of the foregoing , we believe we will have sufficient cash resources to support our operations for at least the next twelve months . cash flows cash activity for the years ended december 31 , 2017 and 2016 is summarized as follows : replace_table_token_3_th net cash flows from operating activities . we used $ 6.0 million and $ 5.8 million of cash for operating activities in 2017 and 2016 , respectively .
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 Suspicious Activity Report : we believe that our two product platforms , subject to appropriate regulatory clearance and approval , will deliver better patient outcomes , enhance revenue potential for both physicians and hospitals , and reduce costs to the healthcare system . in 2010 , we received regulatory clearance from the fda to market our clearpoint system in the u.s. for general neurological procedures . in 2011 , we also obtained ce marking approval for our clearpoint system , which enables us to sell our clearpoint system in the european union . substantially all our product revenues for the years ended december 31 , 2017 and 2016 relate to sales of our clearpoint system products . we do not have regulatory clearance or approval to sell our cleartrace system for commercial use . we have financed our operations and internal growth primarily through the sale of equity securities , the issuance of convertible and other secured notes , and license arrangements . we have incurred significant losses since our inception in 1998 as we have devoted substantial efforts to research and development . as of december 31 , 2017 , we had accumulated losses of approximately $ 101 million . we may continue to incur operating losses as we commercialize our clearpoint system products , continue to develop our cleartrace system , and expand our business . factors which may influence future results of operations the following is a description of factors which may influence our future results of operations , and which we believe are important to an understanding of our business and results of operations . revenues in 2010 , we received 510 ( k ) clearance from the fda to market our clearpoint system in the u.s. for general neurological procedures . future revenues from sales of our clearpoint system products are difficult to predict and may not be sufficient to offset our continuing research and development expenses and our increasing selling , general and administrative expenses . we can not sell our cleartrace system for commercial use until we receive regulatory clearance or approval . generating recurring revenues from the sale of functional neurological products is an important part of our business model for our clearpoint system . we anticipate that , over time , recurring revenues will constitute an increasing percentage of our total revenues as we leverage installations of our clearpoint system to generate recurring sales of our functional neurological products . our product revenues were approximately $ 7.0 million and $ 5.6 million for the years ended december 31 , 2017 and 2016 and were almost entirely related to our clearpoint system . our revenue recognition policies are more fully described in the “ critical accounting policies and significant judgments and estimates ” section below . cost of revenues cost of revenues includes the direct costs associated with the assembly and purchase of components for functional neurological products , drug delivery and biologic products , and clearpoint capital equipment which we have sold , and for which we have recognized the revenue in accordance with our revenue recognition policy . cost of product revenues also includes the allocation of manufacturing overhead costs and depreciation of loaned systems installed under our clearpoint placement program , as well as provisions for obsolete , impaired , or excess inventory . 42 research and development costs our research and development costs consist primarily of costs associated with the conceptualization , design , testing , and prototyping of our clearpoint system products ( and , prior to its suspension of development in 2015 , of our cleartrace system components ) . such costs include salaries , travel , and benefits for research and development personnel , including related share-based compensation ; materials and laboratory supplies in research and development activities ; consultant costs ; sponsored research and product development with third parties ; and licensing costs related to technology not yet commercialized . we anticipate that , over time , our research and development costs may increase as we : ( i ) continue to develop enhancements to our clearpoint system ; ( ii ) resume our cleartrace system product development efforts ; and ( iii ) seek to expand the application of our technological platforms . from our inception through december 31 , 2017 , we have incurred approximately $ 51 million in research and development expenses . product development timelines , likelihood of success , and total costs can vary widely by product candidate . there are also risks inherent in the regulatory clearance and approval process . at this time , we are unable to estimate with any certainty the costs that we will incur in either the further development of our cleartrace system for commercialization , or in our efforts to expand the application of our technological platforms . selling , general and administrative expenses our selling , general and administrative expenses consist primarily of salaries , incentive-based and share-based compensation , and travel and benefits ; marketing costs ; professional fees , including fees for attorneys and outside accountants ; occupancy costs ; insurance ; and other general and administrative expenses , which include , but are not limited to , corporate licenses , director fees , hiring costs , taxes , postage , office supplies and meeting costs . our selling , general and administrative expenses are expected to increase due to costs associated with the commercialization of our clearpoint system and the increased headcount necessary to support growth in operations . story_separator_special_tag research and development costs were $ 2.8 million for year ended december 31 , 2017 , compared to $ 2.6 million for the same period in 2016 , an increase of $ 186,000 , or 7 % . the increase was due primarily to : ( a ) payments aggregating $ 661,000 , the majority of which was in the form of shares of our common stock , required under certain license and product co-development agreements entered into in april 2017 ; and ( b ) an increase of $ 87,000 in regulatory legal fees related to increased filing activity in 2017 , relative to 2016 , that were partially offset by : ( c ) an aggregate decrease of $ 373,000 in software development and intellectual property-related costs ; and ( c ) a decrease of $ 168,000 in personnel costs related to a lower headcount during 2017 , relative to 2016 . 45 sales and marketing expenses . sales and marketing expenses were $ 4.0 million for the year ended december 31 , 2017 , compared to $ 3.8 million for the same period in 2016 , an increase of $ 179,000 , or 5 % . this increase was primarily due to an increase of $ 143,000 in personnel-related expenses due to increased headcount during 2017 , relative to 2016. general and administrative expenses . general and administrative expenses were $ 4.0 million for the year ended december 31 , 2017 , compared to $ 4.2 million for the same period in 2016 , a decrease of $ 144,000 , or 3 % . the decrease was due primarily to : ( a ) a decrease of $ 629,000 in professional fees , primarily related to financing activities undertaken in 2016 that did not recur during 2017 ; and ( b ) a decrease of $ 246,000 in stock-based compensation , due to the suspension during 2017 of stock-based grants pending stockholder approval of the second amended and restated incentive compensation plan in october 2017. these decreases were partially offset by : ( a ) an increase of $ 235,000 in recruiting and hiring costs related to the november 2017 change in our chief executive officer ; ( b ) an increase of $ 167,000 in general corporate legal fees ; ( c ) an increase of $ 49,000 in investor relations costs ; ( d ) an increase of $ 32,000 in insurance premiums . other income ( expense ) . during the years ended december 31 , 2017 and 2016 , we recorded gains of $ 25,000 and $ 1.1 million , respectively , resulting from changes in the fair value of our derivative liabilities . such derivative liabilities related to : ( a ) warrants issued with either or both net-cash settlement and down-round price protection provisions in connection with 2012 and 2013 private placement transactions ; ( b ) the june 2016 amendment of the new brainlab note as discussed in note 5 to the consolidated financial statements included elsewhere in the annual report and as discussed below ; and ( c ) the august 2016 amendments , entered into with the 2014 convertible note holders , as discussed in note 5 to the consolidated financial statements included elsewhere in the annual report and as discussed below . in april 2016 , we entered into the 2016 purchase agreement with brainlab under which the brainlab note was restructured and reissued as the new brainlab note . as a result , we recorded a debt restructuring gain of $ 941,000. in june 2016 , we entered into the june 2016 amendments with brainlab , with respect to the new brainlab note , and with the 2014 convertible note holders . based on the provisions of the june 2016 amendments , on june 30 , 2016 , we recorded a debt restructuring loss of $ 820,000 resulting from the restructuring of the new brainlab note and those 2014 secured notes subject to the june 2016 amendments . in august 2016 , we entered into the august 2016 amendments with the 2014 convertible note holders . based on the provisions of the august 2016 amendments , on august 30 , 2016 we recorded a debt restructuring loss of approximately $ 933,000 , representing the aggregate difference in the fair value of the derivative liabilities created by the june 2016 amendments between the points in time ( i ) immediately preceding , and ( ii ) immediately subsequent to , the execution of the august 2016 amendments . during the year ended december 31 , 2017 , we recorded other income of $ 17,000 , as compared with other income of $ 216,000 recorded during the same period in 2016 , representing a decrease of $ 199,000 , or 92 % . this decrease was due primarily to grant income from a u.s. federal agency of $ 203,000 earned from a project in process during the 2016 , which was discontinued by the agency later in 2016. we have not since undertaken any additional such projects . net interest expense for the year ended december 31 , 2017 was $ 873,000 , compared with $ 1.1 million for the same period in 2016. the decrease was due primarily to the conversion of an aggregate $ 1.74 million in principal balance of the 2014 secured convertible notes held by the 2014 convertible note holders in connection with the 2016 pipe and pursuant to the terms of the august 2016 amendments , as discussed in note 5 to the consolidated financial statements included elsewhere in this annual report . story_separator_special_tag style= `` margin-top : 0pt ; margin-bottom : 0pt ; font : 10pt times new roman , times , serif `` > ● the scope , rate of progress and cost of our ongoing product development activities relating to our clearpoint system ; ● the cost and timing of expanding our sales , clinical support , marketing and distribution

