Ability Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2017. For the quarter, the company reported revenue of USD 797,000 against USD 6,463,000 a year ago. Operating loss was USD 3,055,000 against operating income of USD 1,023,000 a year ago. Loss before income taxes was USD 2,988,000 against income before income taxes of USD 1,002,000 a year ago. Net loss was USD 3,000,000 against net loss of USD 242,000 a year ago. Basic and diluted loss per share was USD 0.12 against USD 0.01 a year ago. LBITDA was USD 2,934,000 against EBITDA of USD 1,057,000 a year ago. Net cash used in operating activities was USD 3,359,000 against USD 1,164,000 a year ago. Due to the significant decline in revenues and an increase in legal and professional services fees, the company has suffered losses from operations, and has a net capital deficiency that, along with other matters, raises a substantial doubt about its ability to continue as a going concern. The decrease in Revenue was primarily due to customer adoption of ULIN, which has been much slower than the company had anticipated, as well as decrease in sales of company's legacy products as a result of the ongoing transition to a revenue stream more focused on ULIN. The decrease in operating loss was due to lower revenues, and higher general and administrative expenses, primarily increased legal and professional fees.