those reasons include , without limitation , those described at the beginning of this report under “ statement regarding forward-looking statements , ” as well as those that may be set forth elsewhere in this report . except as otherwise required by law , we do not intend to update any information contained in these forward-looking statements . the following discussion also addresses matters we consider important for an understanding of our financial condition and results of operations as of december 31 , 2016 , and 2015 , as well as our future results . overview we are a cloud-based real estate brokerage organization operating in most u.s. states and one canadian province . as a cloud-based real estate brokerage for the residential real estate market , we have embraced and adopted a number of cloud-based technologies in order to grow into an international brokerage without the burden of physical bricks and mortar or redundant staffing costs . accelerating growth if 2015 was a year of foundational growth , 2016 was the year that exp realty became a true national presence as it increased its net real estate brokerage agent and broker base from just over 850 at the beginning of the year to over 2,400 at the end of 2016 , serving markets in most u.s. states and one canadian province . agent ownership in 2015 , the company extended equity incentive programs whereby agents and brokers of exp realty could become eligible for awards of the company 's common stock through the achievement of production and agent attraction benchmarks . under this program , agents and brokers who qualify , and who remain with exp realty in good standing for 3 years following their eligibility notice , can be awarded shares in the company , in furtherance of the company 's objective to operate an agent-owned brokerage . in 2016 , approximately 1,400 of our agents and brokers were granted equity awards due to reaching milestones set around production and agent attraction efforts , all of which have a 3-year vesting requirement . 17 in 2015 , the company also introduced a program whereby agents and brokers could elect to receive 5 % of their commission payable in the form of restricted company common stock . in 2016 , approximately 825 exp realty agents and brokers took advantage of this program resulting in 785,504 restricted and unregistered shares of common stock being issued . this agent equity program continues to be another element in creating a culture of agent-ownership . expi and platform thinking in recent years , propelled by technology , numerous brokerage firms and others that serve the real estate ecosystem have used education , training and coaching as an attractor in order to develop a following and or customers . activerain was one of the first companies to push into education with activerain university . they were later acquired by market leader which was eventually purchased by trulia and most recently acquired by zillow . zillow had their own educational outreach initiatives called zillow academy . numerous real estate coaches provide training and classes in facilitation of selling coaching services , whether to brokerages on a vendor basis or to individual agents outside of their brokerage relationships . some of the largest brokerage companies have developed coaching programs internally and have plugged individual coaches into the program or system with the named program or system as the marketed brand and source of value rather than the individual coach or trainer . the consequence to the individual coach can be limiting in terms of marketing their own talents and expertise , building a business around those talents , or customizing instruction for each individual agent/client . additionally , plugging agents and coaches into a program or system and tying their success to that program or system limits , if not prevents , an agent from identifying and selecting a coach whose skill set and approach best matches their needs and or learning style . exp realty has held firm in its belief that each individual agent delivers value to individual home buyers and sellers in different ways depending upon the knowledge , skills or niche of the agent and the needs and wants of the consumer . consumers work with agents because of their skills and service individually and generally place greater weight on those individual skill sets , service levels and style than they do on the brokerage brand with which the agent is affiliated . exp realty is working to develop a model and infrastructure for an internal coaching program which approaches the relationship between coach and agent with a similar philosophy . the needs of individual agents vary as do the methods of instruction that are most effective for their learning . this approach aims to offer coaching that draws upon , highlights , promotes and supports some of the best coaches in the industry based upon their individual talents and the corresponding fit to the particular needs to our individual , entrepreneurial professionals . market conditions and trends according to the national association of realtors ( “ nar ” ) , home sale transaction volume increased 8 % in 2016 as a result of both an increase in the number of home sale transactions , combined with average home sale price growth . also according to nar , the housing affordability index has continued to be at historically favorable levels . when the index is above 100 , it indicates that a family earning the median income has sufficient income to purchase a median-priced home , assuming a 20 percent down payment and ability to qualify for a mortgage . story_separator_special_tag while exp realty presently offers lead generation technology to its agents through a relationship with kunversion , another industry leader , this new relationship with cinc is designed to allow exp realty to deliver even more value to its agents through cutting edge idx websites and what many call the industry 's best crm . all exp realty agents will receive access to the cinc platform as part of a small $ 50 per month technology fee . the powered by cinc platform went live in the first quarter of 2017. agents will also receive kunversion for some period after the go-live date . 19 one of the ways that we believe we have been able to grow into as many states and in our opinion remain relevant is by adopting an agile mindset as a company . in this context exp realty continues to regularly deliver value to our agents and brokers , and by prioritizing work based on what our agents and brokers have told us they want , we have been able to develop a company framework that is relevant to our agents and brokers . we have started to implement the net promoter score ( “ nps ” ) into how we evaluate ourselves as a company , as well as introducing nps into how we support our agents and manage transaction flow . by using both nps and more agile management style , systems we have been able to launch and implement value added features and benefits in short order . we believe this offers us a unique advantage in terms of developing value for our agents and brokers . we believe that using tools like nps and having an agile management mindset provides us with the means to stay more relevant to our agents and brokers in an always changing business . we expect that more and more brokerages will eventually use tools similar to nps and agile in their management process which may again reduce the speed at which we are able to add value compared to other brokerages however at this point in time we feel this does give us a competitive advantage in growing exp realty . results of operations for the years ended december 31 , 2016 and 2015 revenues during the year ended december 31 , 2016 , net revenues increased approximately 137 % to $ 54,179,511 from the prior annual period ended december 31 , 2015. our gross revenue increased partially by our on-going success in attracting additional agents and brokers resulting in a higher overall volume of completed transactions . additionally , our success in attracting more seasoned and successful agents and brokers resulted in higher gross revenue transactions than we experienced in the prior periods . as we continue to focus our growth on organic expansion , by attracting additional agents and brokers in untapped geographical north american markets , we expect that our gross revenue will increase significantly for at least the next twelve months . operating expenses replace_table_token_2_th our cost of revenue fluctuates in direct correlation with our gross revenue based on its incurrence being driven by agent commissions and revenue sharing . in addition to fees generated from residential real estate transactions , we generate revenue from fees charged to our agents for monthly access to our technology tools and training platform . the slight decrease in our gross margins , from 14.9 % in 2015 to 13.8 % in 2016 is related to slight increases in additional fees incurred to attract new agents and brokers to support our aggressive growth strategy . general and administrative costs consist of wages , including non-cash based fluctuations in stock compensation , dues , operating leases , utilities , travel , and other general overhead expenses . the increase in general and administrative costs for the year ended december 31 , 2016 was primarily attributable to the re-measurement in the intrinsic value of equity-awards outstanding prior to 2013 totaling $ 20,495,234. excluding this re-measurement cost , our general and administrative costs increased by $ 7,855,669 compared to the same period ended december 31 , 2015. this increase is primarily related to increases related to the 85 % increase in full-time employees inclusive of officer level individuals with higher salaries and stock based awards ; and additional facilities costs to support our approximate 180 % increase in brokers and agents . 20 professional fees include costs related to legal , accounting , and other consultants . the approximate 47 % increase in our professional fees primarily related to non-recurring fees associated with the engagement of professional service providers to support the execution of our agent and broker growth initiatives . during 2016 , we engaged additional third parties to expand our market awareness programs . sales and marketing include costs related to lead capture , digital and print media , trade shows , in addition to other promotional materials . the approximate 170 % increase during 2016 was the result of our growth in the number of agents and brokers , and expanding our brand awareness in existing and prospective geographical regions . story_separator_special_tag use in filings with the sec , and in public disclosures of financial measures , that are not in accordance with us gaap , such as ebitda , omission of non-recurring or infrequent items , and other omissions of non-cash items whether recurring or non-recurring . these measures are derived from methodologies other than in accordance with us gaap . we believe that the omission of non-cash income or expense based on fluctuations in the company 's stock price , significantly outside of its control , is more reflective of the key factors that affect our operating performance . since the equity-linked instruments were issued early in our existence , and there being no further performance requirements associated with earning the awards , we believe that omitting these fluctuations provide a useful supplemental measure in evaluating the performance of our operations and provides

liquidity and capital resources replace_table_token_3_th our net working capital increase is primarily the result of the completion of a private placement of our restricted and unregistered shares sold in december 2016 for net cash proceeds of $ 532,206. at december 31 , 2016 , we had a significant number of transactions pending , resulting in receivables of $ 3,015,767 , a 783 % increase from december 31 , 2015. further , related to the large number of pending transactions as of december 31 , 2016 , our current liabilities increased by approximately 437 % from december 31 , 2015 primarily related to outstanding commissions payable of $ 2,417,621. the following table presents our cash flows for the years ended december 31 , 2016 and 2015 : replace_table_token_4_th net cash provided by operating activities for the year ended december 31 , 2016 increased by approximately 195 % from 2015 primarily as a result of the continued success we are experiencing in our agent equity program providing for the settlement of commissions earned in the form of restricted and unregistered shares of common stock . additionally , our sales volumes significantly increased year over year . our investing activities for december 31 , 2016 and 2015 solely consisted of the acquisition of fixed assets . in addition to leasing and furnishing new office space in reno , we continued aggressive improvement to our core cloud office platform and transactional management systems . throughout the next year , we expect to continue to allocate additional resources for the further development and improvement of our technology . in 2016 , we generated gross cash proceeds from the sale of shares of our restricted and unregistered common stock totaling approximately $ 600,000. in addition , we financed certain insurance policies totaling approximately $ 53,000. off-setting the cash received from the above financing activities , we purchased the non-controlling interest in first cloud mortgage for a total of $ 97,000. we did not enter into any significant financing transaction during 2015. as we continue to pursue or aggressive growth plans , we may pursue additional private placements of our common stock or other financing options .


 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 replace_table_token_3_th our net working capital increase is primarily the result of the completion of a private placement of our restricted and unregistered shares sold in december 2016 for net cash proceeds of $ 532,206. at december 31 , 2016 , we had a significant number of transactions pending , resulting in receivables of $ 3,015,767 , a 783 % increase from december 31 , 2015. further , related to the large number of pending transactions as of december 31 , 2016 , our current liabilities increased by approximately 437 % from december 31 , 2015 primarily related to outstanding commissions payable of $ 2,417,621. the following table presents our cash flows for the years ended december 31 , 2016 and 2015 : replace_table_token_4_th net cash provided by operating activities for the year ended december 31 , 2016 increased by approximately 195 % from 2015 primarily as a result of the continued success we are experiencing in our agent equity program providing for the settlement of commissions earned in the form of restricted and unregistered shares of common stock . additionally , our sales volumes significantly increased year over year . our investing activities for december 31 , 2016 and 2015 solely consisted of the acquisition of fixed assets . in addition to leasing and furnishing new office space in reno , we continued aggressive improvement to our core cloud office platform and transactional management systems . throughout the next year , we expect to continue to allocate additional resources for the further development and improvement of our technology . in 2016 , we generated gross cash proceeds from the sale of shares of our restricted and unregistered common stock totaling approximately $ 600,000. in addition , we financed certain insurance policies totaling approximately $ 53,000. off-setting the cash received from the above financing activities , we purchased the non-controlling interest in first cloud mortgage for a total of $ 97,000. we did not enter into any significant financing transaction during 2015. as we continue to pursue or aggressive growth plans , we may pursue additional private placements of our common stock or other financing options .
```    
 Suspicious Activity Report : those reasons include , without limitation , those described at the beginning of this report under “ statement regarding forward-looking statements , ” as well as those that may be set forth elsewhere in this report . except as otherwise required by law , we do not intend to update any information contained in these forward-looking statements . the following discussion also addresses matters we consider important for an understanding of our financial condition and results of operations as of december 31 , 2016 , and 2015 , as well as our future results . overview we are a cloud-based real estate brokerage organization operating in most u.s. states and one canadian province . as a cloud-based real estate brokerage for the residential real estate market , we have embraced and adopted a number of cloud-based technologies in order to grow into an international brokerage without the burden of physical bricks and mortar or redundant staffing costs . accelerating growth if 2015 was a year of foundational growth , 2016 was the year that exp realty became a true national presence as it increased its net real estate brokerage agent and broker base from just over 850 at the beginning of the year to over 2,400 at the end of 2016 , serving markets in most u.s. states and one canadian province . agent ownership in 2015 , the company extended equity incentive programs whereby agents and brokers of exp realty could become eligible for awards of the company 's common stock through the achievement of production and agent attraction benchmarks . under this program , agents and brokers who qualify , and who remain with exp realty in good standing for 3 years following their eligibility notice , can be awarded shares in the company , in furtherance of the company 's objective to operate an agent-owned brokerage . in 2016 , approximately 1,400 of our agents and brokers were granted equity awards due to reaching milestones set around production and agent attraction efforts , all of which have a 3-year vesting requirement . 17 in 2015 , the company also introduced a program whereby agents and brokers could elect to receive 5 % of their commission payable in the form of restricted company common stock . in 2016 , approximately 825 exp realty agents and brokers took advantage of this program resulting in 785,504 restricted and unregistered shares of common stock being issued . this agent equity program continues to be another element in creating a culture of agent-ownership . expi and platform thinking in recent years , propelled by technology , numerous brokerage firms and others that serve the real estate ecosystem have used education , training and coaching as an attractor in order to develop a following and or customers . activerain was one of the first companies to push into education with activerain university . they were later acquired by market leader which was eventually purchased by trulia and most recently acquired by zillow . zillow had their own educational outreach initiatives called zillow academy . numerous real estate coaches provide training and classes in facilitation of selling coaching services , whether to brokerages on a vendor basis or to individual agents outside of their brokerage relationships . some of the largest brokerage companies have developed coaching programs internally and have plugged individual coaches into the program or system with the named program or system as the marketed brand and source of value rather than the individual coach or trainer . the consequence to the individual coach can be limiting in terms of marketing their own talents and expertise , building a business around those talents , or customizing instruction for each individual agent/client . additionally , plugging agents and coaches into a program or system and tying their success to that program or system limits , if not prevents , an agent from identifying and selecting a coach whose skill set and approach best matches their needs and or learning style . exp realty has held firm in its belief that each individual agent delivers value to individual home buyers and sellers in different ways depending upon the knowledge , skills or niche of the agent and the needs and wants of the consumer . consumers work with agents because of their skills and service individually and generally place greater weight on those individual skill sets , service levels and style than they do on the brokerage brand with which the agent is affiliated . exp realty is working to develop a model and infrastructure for an internal coaching program which approaches the relationship between coach and agent with a similar philosophy . the needs of individual agents vary as do the methods of instruction that are most effective for their learning . this approach aims to offer coaching that draws upon , highlights , promotes and supports some of the best coaches in the industry based upon their individual talents and the corresponding fit to the particular needs to our individual , entrepreneurial professionals . market conditions and trends according to the national association of realtors ( “ nar ” ) , home sale transaction volume increased 8 % in 2016 as a result of both an increase in the number of home sale transactions , combined with average home sale price growth . also according to nar , the housing affordability index has continued to be at historically favorable levels . when the index is above 100 , it indicates that a family earning the median income has sufficient income to purchase a median-priced home , assuming a 20 percent down payment and ability to qualify for a mortgage . story_separator_special_tag while exp realty presently offers lead generation technology to its agents through a relationship with kunversion , another industry leader , this new relationship with cinc is designed to allow exp realty to deliver even more value to its agents through cutting edge idx websites and what many call the industry 's best crm . all exp realty agents will receive access to the cinc platform as part of a small $ 50 per month technology fee . the powered by cinc platform went live in the first quarter of 2017. agents will also receive kunversion for some period after the go-live date . 19 one of the ways that we believe we have been able to grow into as many states and in our opinion remain relevant is by adopting an agile mindset as a company . in this context exp realty continues to regularly deliver value to our agents and brokers , and by prioritizing work based on what our agents and brokers have told us they want , we have been able to develop a company framework that is relevant to our agents and brokers . we have started to implement the net promoter score ( “ nps ” ) into how we evaluate ourselves as a company , as well as introducing nps into how we support our agents and manage transaction flow . by using both nps and more agile management style , systems we have been able to launch and implement value added features and benefits in short order . we believe this offers us a unique advantage in terms of developing value for our agents and brokers . we believe that using tools like nps and having an agile management mindset provides us with the means to stay more relevant to our agents and brokers in an always changing business . we expect that more and more brokerages will eventually use tools similar to nps and agile in their management process which may again reduce the speed at which we are able to add value compared to other brokerages however at this point in time we feel this does give us a competitive advantage in growing exp realty . results of operations for the years ended december 31 , 2016 and 2015 revenues during the year ended december 31 , 2016 , net revenues increased approximately 137 % to $ 54,179,511 from the prior annual period ended december 31 , 2015. our gross revenue increased partially by our on-going success in attracting additional agents and brokers resulting in a higher overall volume of completed transactions . additionally , our success in attracting more seasoned and successful agents and brokers resulted in higher gross revenue transactions than we experienced in the prior periods . as we continue to focus our growth on organic expansion , by attracting additional agents and brokers in untapped geographical north american markets , we expect that our gross revenue will increase significantly for at least the next twelve months . operating expenses replace_table_token_2_th our cost of revenue fluctuates in direct correlation with our gross revenue based on its incurrence being driven by agent commissions and revenue sharing . in addition to fees generated from residential real estate transactions , we generate revenue from fees charged to our agents for monthly access to our technology tools and training platform . the slight decrease in our gross margins , from 14.9 % in 2015 to 13.8 % in 2016 is related to slight increases in additional fees incurred to attract new agents and brokers to support our aggressive growth strategy . general and administrative costs consist of wages , including non-cash based fluctuations in stock compensation , dues , operating leases , utilities , travel , and other general overhead expenses . the increase in general and administrative costs for the year ended december 31 , 2016 was primarily attributable to the re-measurement in the intrinsic value of equity-awards outstanding prior to 2013 totaling $ 20,495,234. excluding this re-measurement cost , our general and administrative costs increased by $ 7,855,669 compared to the same period ended december 31 , 2015. this increase is primarily related to increases related to the 85 % increase in full-time employees inclusive of officer level individuals with higher salaries and stock based awards ; and additional facilities costs to support our approximate 180 % increase in brokers and agents . 20 professional fees include costs related to legal , accounting , and other consultants . the approximate 47 % increase in our professional fees primarily related to non-recurring fees associated with the engagement of professional service providers to support the execution of our agent and broker growth initiatives . during 2016 , we engaged additional third parties to expand our market awareness programs . sales and marketing include costs related to lead capture , digital and print media , trade shows , in addition to other promotional materials . the approximate 170 % increase during 2016 was the result of our growth in the number of agents and brokers , and expanding our brand awareness in existing and prospective geographical regions . story_separator_special_tag use in filings with the sec , and in public disclosures of financial measures , that are not in accordance with us gaap , such as ebitda , omission of non-recurring or infrequent items , and other omissions of non-cash items whether recurring or non-recurring . these measures are derived from methodologies other than in accordance with us gaap . we believe that the omission of non-cash income or expense based on fluctuations in the company 's stock price , significantly outside of its control , is more reflective of the key factors that affect our operating performance . since the equity-linked instruments were issued early in our existence , and there being no further performance requirements associated with earning the awards , we believe that omitting these fluctuations provide a useful supplemental measure in evaluating the performance of our operations and provides

