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The increase was mainly due to severance costs and stock based compensation in relation with the departures of senior executives. Also, recruitment and legal fees were higher in 2017 as compared to 2016 related to the recruitment of new senior executives in the class action lawsuit.Net R decreased by $1.7 million to $5.5 million for the year ended December 31, 2017 as compared to $7.2 million for the year ended December 31, 2016, primarily due to a reduction in research and development expense required to support the Sarnia facility and reduced spending on patents and new applications. Sales and marketing expenses decreased by $1 million to $1.9 million for the year ended December 31, 2017 as compared to $2.9 million for the year ended December 31, 2016, driven mainly by a decrease in salaries benefits and associated costs, including traveling expense following the reorganization of the commercial functions..

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