ebitda provides us with a measure of financial performance , independent of items that are beyond the control of management in the short-term , such as dividends required on preferred stock , depreciation and amortization , taxation and interest expense associated with our capital structure . this metric measures our financial performance based on operational factors that management can impact in the short-term , namely the cost structure or expenses of the organization . ebitda is one of the metrics used by senior management and the board of directors to review the financial performance of the business on a regular basis . ebitda is also used by research analysts and investors to evaluate the performance and value of companies in our industry . limitations of ebitda ebitda has limitations as an analytical tool . it should not be viewed in isolation or as a substitute for u.s. gaap measures of earnings . material limitations in making the adjustments to our earnings to calculate ebitda , and using this non-u.s. gaap financial measure as compared to u.s. gaap net income ( loss ) , include : the cash portion of dividends , interest expense and income tax ( benefit ) provision generally represent charges ( gains ) , which may significantly affect our financial results ; and 16 depreciation and amortization , though not directly affecting our current cash position , represent the wear and tear and or reduction in value of our fixed assets and may be indicative of future needs for capital expendi tures . an investor or potential investor may find this item important in evaluating our performance , results of operations and financial position . we use non-u.s. gaap financial measures to supplement our u.s. gaap results in order to provide a more complete understanding of the factors and trends affecting our business . ebitda is not an alternative to net income , income from operations or cash flows provided by or used in operations as calculated and presented in accordance with u.s. gaap . you should not rely on ebitda as a substitute for any such u.s. gaap financial measure . we strongly urge you to review the reconciliation of ebitda to u.s. gaap net income ( loss ) attributable to common stockholders , along with our consolidated financial statements included herein . we also strongly urge you to not rely on any single financial measure to evaluate our business . in addition , because ebitda is not a measure of financial performance under u.s. gaap and is susceptible to varying calculations , the ebitda measure , as presented in this report , may differ from and may not be comparable to similarly titled measures used by other companies . the table below shows the reconciliation of net loss attributable to common stockholders to ebitda for the years ended december 31 , 2017 and 2016 ( dollars in thousands ) : replace_table_token_4_th backlog backlog is another non-u.s.gaap indicator management uses to measure the level of outstanding orders . the order backlog at december 31 , 2017 and december 31 , 2016 was $ 18.88 million and $ 13.50 million , respectively . foreign joint ventures : summary financial information of bomay and miefe in u.s. dollars was as follows at december 31 , 2017 and 2016 ( in thousands ) : replace_table_token_5_th 17 the company 's investments in and advances to its foreign joint ventures ' operations were as follows as of december 31 , 2017 and 2016 : replace_table_token_6_th * accumulated statutory reserves in equity method investments of $ 2.81 million and $ 2.89 million at december 31 , 2017 and 2016 , respectively , are included in aeti 's consolidated retained earnings . in accordance with the people 's republic of china , ( “ prc ” ) , regulations on enterprises with foreign ownership , an enterprise established in the prc with foreign ownership is required to provide for certain statutory reserves , namely ( i ) general reserve fund , ( ii ) enterprise expansion fund and ( iii ) staff welfare and bonus fund , which are appropriated from net profit as reported in the enterprise 's prc statutory accounts . a non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors . the aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends . the company accounts for its investments in foreign joint ventures ' operations using the equity method of accounting . under the equity method , the company 's share of the joint ventures ' operations ' earnings or loss is recognized in the consolidated statements of operations as equity income ( loss ) from foreign joint ventures ' operations . joint venture income increases the carrying value of the joint ventures and joint venture losses reduce the carrying value . dividends received from the joint ventures reduce the carrying value . the equity income for the company 's interest in the two joint ventures for 2017 and 2016 was : bomay $ 0.43 million vs. $ 0.80 million and miefe $ 0.22 million vs. ( $ 0.27 ) million . in november 2017 , the company executed a letter of intent to divest of its ownership interest in miefe . as a result , the investment in miefe was written down to zero excluding foreign currency translation of $ 0.21 million which will be adjusted upon the completion of the disposal . historically , the operating results of bomay have appeared almost seasonal as budgets were established for new years in march and the company worked to complete production to meet targets . most of bomay 's production is for bomco for the chinese national petroleum corporation , ( “ cnpc ” ) , for land drilling in china and in other international markets where bomco or cnpc have relationships . story_separator_special_tag related translation adjustments are reported as comprehensive income , net of deferred income taxes , which is a separate component of stockholders ' equity , whereas gains and losses resulting from foreign currency transactions are included in results of operations . federal income taxes – the liability method is used in accounting for federal income taxes . under this method , deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse . the realizability of deferred tax assets are evaluated annually and a valuation allowance is provided if it is more likely than not that the deferred tax assets will not give rise to future benefits in the company 's tax returns . as of december 31 , 2017 and 2016 , management believed there was uncertainty regarding the future realizability of deferred tax assets and a valuation allowance was established for the entire deferred tax asset balance . contingencies – the company records an estimated loss from a loss contingency when information indicates that it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated . contingencies are often resolved over long time periods , are based on unique facts and circumstances , and are inherently uncertain . the company regularly evaluates the current information that is available to determine whether such accruals should be adjusted or other disclosures related to contingencies are required . the company is a party to a number of legal proceedings in the normal course of business for which appropriate provisions have been made if it is believed an ultimate loss is probable . the ultimate resolution of these matters , individually or in the aggregate , is not likely to have a material impact on the company 's consolidated financial position or results of operations . during 2017 , the company 's business operations in houston and beaumont texas were adversely impacted by hurricane harvey . although the company 's facilities did not sustain any damage , operations were temporarily idled , delaying the schedules of customer projects resulting in a $ 2.5 million negative revenue impact . the company maintains business interruption insurance and has filed a business interruption claim . we subsequently received proceeds of $ 0.12 million in january , 2018 and it is anticipated that any additional proceeds resulting from this business interruption claim would be recorded no earlier than q2 2018. equity income from foreign joint ventures ' operations – the company accounts for its investments in foreign joint ventures ' using the equity method . under the equity method , the company records its pro-rata share of foreign joint ventures ' income or losses and adjusts the basis of its investment accordingly . dividends received from the joint ventures , if any , are recorded as reductions to the investment balance . carrying value of joint venture investments – the company evaluates the carrying value of equity method investments as to whether an impairment adjustment may be necessary . in making this evaluation , a variety of quantitative and qualitative factors are considered including international , national and local economic , political and market conditions , industry trends and prospects , liquidity and capital resources and other pertinent factors . based on the most recent review at december 31 , 2017 and december 31 , 2016 , management believes the carrying value of investments in foreign joint ventures is recoverable . recently issued accounting pronouncements in may 2014 , the financial accounting standards board ( “ fasb ” ) issued accounting standards update ( “ asu ” ) no . 2014-09 , revenue from contracts with customers , which supersedes nearly all existing revenue recognition guidance under u.s. gaap . the core principle of asu no . 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services . asu no . 2014-09 defines a five step process to achieve this core principle and , in doing so , more judgment and estimates may be required under existing u.s. gaap . the standard is effective for annual periods beginning after december 15 , 2016 , and interim periods therein , using either of the following transition methods : ( i ) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients , or ( ii ) a retrospective approach with the cumulative effect of initially adopting asu no . 2014-09 recognized at the date of adoption ( which includes additional footnote disclosures ) . in july 2015 , the fasb issued asu no . 2015-14 which delayed the effective date of asu no . 2014-09 by one year ( effective for annual periods beginning after december 15 , 2017 ) . the company adopted asu 2014-09 , effective january 1 , 2018 , using the modified retrospective method . the adoption of the standard will not have a material impact on the company 's revenue recognition policies , other than enhanced disclosures related to the disaggregation of revenues from contracts with customers , the company 's performance obligations and any significant judgments . in august 2014 , the fasb issued an accounting standards update which requires management to assess whether there are conditions or events , considered in the aggregate , that raise substantial doubt about the entity 's ability to continue as a going concern within one year after the financial statements are issued . if substantial doubt exists , additional disclosures are required . this update was effective beginning with the company 's annual period ended december 31 , 2016. the company 's

liquidity and capital resources replace_table_token_8_th * “ consolidated net worth ” represents the company 's consolidated total assets less consolidated total liabilities . aeti 's long-term debt as of december 31 , 2017 was $ 5.52 million on which payments were current . see note 8 notes payable to the consolidated financial statements included in this report for discussion of recent financial activity . notes payable on march 23 , 2017 the company entered into a $ 7.00 million senior secured term note with a third-party lender . the note is payable in monthly interest only payments in arrears at a fixed rate of 11.50 % . principal of $ 0.50 million was paid on june 30 , 2017. the note was amended november 13 , 2017 requiring minimum principal reductions of $ 30,000 per month beginning in april 2018 and with the remaining balance due march 23 , 2021. the company continues to monitor its liquidity position closely and depending on the business needs may raise cash in the form of debt , equity or a combination of both , subject to lender approval . however , there can be no assura nce that additional capital can be obtained or that it can be obtained at terms that are favorable to us and our existing stockholders . uses and sources of liquidity our primary need for liquidity is to fund working capital requirements of our businesses , capital expenditures and for general corporate purposes , including debt repayment . we have incurred losses and experienced negative operating cash flows for the past several years , and accordingly , the company has taken a number of actions to continue to support its operations and meet its obligations .


 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_8_th * “ consolidated net worth ” represents the company 's consolidated total assets less consolidated total liabilities . aeti 's long-term debt as of december 31 , 2017 was $ 5.52 million on which payments were current . see note 8 notes payable to the consolidated financial statements included in this report for discussion of recent financial activity . notes payable on march 23 , 2017 the company entered into a $ 7.00 million senior secured term note with a third-party lender . the note is payable in monthly interest only payments in arrears at a fixed rate of 11.50 % . principal of $ 0.50 million was paid on june 30 , 2017. the note was amended november 13 , 2017 requiring minimum principal reductions of $ 30,000 per month beginning in april 2018 and with the remaining balance due march 23 , 2021. the company continues to monitor its liquidity position closely and depending on the business needs may raise cash in the form of debt , equity or a combination of both , subject to lender approval . however , there can be no assura nce that additional capital can be obtained or that it can be obtained at terms that are favorable to us and our existing stockholders . uses and sources of liquidity our primary need for liquidity is to fund working capital requirements of our businesses , capital expenditures and for general corporate purposes , including debt repayment . we have incurred losses and experienced negative operating cash flows for the past several years , and accordingly , the company has taken a number of actions to continue to support its operations and meet its obligations .
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 Suspicious Activity Report : ebitda provides us with a measure of financial performance , independent of items that are beyond the control of management in the short-term , such as dividends required on preferred stock , depreciation and amortization , taxation and interest expense associated with our capital structure . this metric measures our financial performance based on operational factors that management can impact in the short-term , namely the cost structure or expenses of the organization . ebitda is one of the metrics used by senior management and the board of directors to review the financial performance of the business on a regular basis . ebitda is also used by research analysts and investors to evaluate the performance and value of companies in our industry . limitations of ebitda ebitda has limitations as an analytical tool . it should not be viewed in isolation or as a substitute for u.s. gaap measures of earnings . material limitations in making the adjustments to our earnings to calculate ebitda , and using this non-u.s. gaap financial measure as compared to u.s. gaap net income ( loss ) , include : the cash portion of dividends , interest expense and income tax ( benefit ) provision generally represent charges ( gains ) , which may significantly affect our financial results ; and 16 depreciation and amortization , though not directly affecting our current cash position , represent the wear and tear and or reduction in value of our fixed assets and may be indicative of future needs for capital expendi tures . an investor or potential investor may find this item important in evaluating our performance , results of operations and financial position . we use non-u.s. gaap financial measures to supplement our u.s. gaap results in order to provide a more complete understanding of the factors and trends affecting our business . ebitda is not an alternative to net income , income from operations or cash flows provided by or used in operations as calculated and presented in accordance with u.s. gaap . you should not rely on ebitda as a substitute for any such u.s. gaap financial measure . we strongly urge you to review the reconciliation of ebitda to u.s. gaap net income ( loss ) attributable to common stockholders , along with our consolidated financial statements included herein . we also strongly urge you to not rely on any single financial measure to evaluate our business . in addition , because ebitda is not a measure of financial performance under u.s. gaap and is susceptible to varying calculations , the ebitda measure , as presented in this report , may differ from and may not be comparable to similarly titled measures used by other companies . the table below shows the reconciliation of net loss attributable to common stockholders to ebitda for the years ended december 31 , 2017 and 2016 ( dollars in thousands ) : replace_table_token_4_th backlog backlog is another non-u.s.gaap indicator management uses to measure the level of outstanding orders . the order backlog at december 31 , 2017 and december 31 , 2016 was $ 18.88 million and $ 13.50 million , respectively . foreign joint ventures : summary financial information of bomay and miefe in u.s. dollars was as follows at december 31 , 2017 and 2016 ( in thousands ) : replace_table_token_5_th 17 the company 's investments in and advances to its foreign joint ventures ' operations were as follows as of december 31 , 2017 and 2016 : replace_table_token_6_th * accumulated statutory reserves in equity method investments of $ 2.81 million and $ 2.89 million at december 31 , 2017 and 2016 , respectively , are included in aeti 's consolidated retained earnings . in accordance with the people 's republic of china , ( “ prc ” ) , regulations on enterprises with foreign ownership , an enterprise established in the prc with foreign ownership is required to provide for certain statutory reserves , namely ( i ) general reserve fund , ( ii ) enterprise expansion fund and ( iii ) staff welfare and bonus fund , which are appropriated from net profit as reported in the enterprise 's prc statutory accounts . a non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors . the aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends . the company accounts for its investments in foreign joint ventures ' operations using the equity method of accounting . under the equity method , the company 's share of the joint ventures ' operations ' earnings or loss is recognized in the consolidated statements of operations as equity income ( loss ) from foreign joint ventures ' operations . joint venture income increases the carrying value of the joint ventures and joint venture losses reduce the carrying value . dividends received from the joint ventures reduce the carrying value . the equity income for the company 's interest in the two joint ventures for 2017 and 2016 was : bomay $ 0.43 million vs. $ 0.80 million and miefe $ 0.22 million vs. ( $ 0.27 ) million . in november 2017 , the company executed a letter of intent to divest of its ownership interest in miefe . as a result , the investment in miefe was written down to zero excluding foreign currency translation of $ 0.21 million which will be adjusted upon the completion of the disposal . historically , the operating results of bomay have appeared almost seasonal as budgets were established for new years in march and the company worked to complete production to meet targets . most of bomay 's production is for bomco for the chinese national petroleum corporation , ( “ cnpc ” ) , for land drilling in china and in other international markets where bomco or cnpc have relationships . story_separator_special_tag related translation adjustments are reported as comprehensive income , net of deferred income taxes , which is a separate component of stockholders ' equity , whereas gains and losses resulting from foreign currency transactions are included in results of operations . federal income taxes – the liability method is used in accounting for federal income taxes . under this method , deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse . the realizability of deferred tax assets are evaluated annually and a valuation allowance is provided if it is more likely than not that the deferred tax assets will not give rise to future benefits in the company 's tax returns . as of december 31 , 2017 and 2016 , management believed there was uncertainty regarding the future realizability of deferred tax assets and a valuation allowance was established for the entire deferred tax asset balance . contingencies – the company records an estimated loss from a loss contingency when information indicates that it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated . contingencies are often resolved over long time periods , are based on unique facts and circumstances , and are inherently uncertain . the company regularly evaluates the current information that is available to determine whether such accruals should be adjusted or other disclosures related to contingencies are required . the company is a party to a number of legal proceedings in the normal course of business for which appropriate provisions have been made if it is believed an ultimate loss is probable . the ultimate resolution of these matters , individually or in the aggregate , is not likely to have a material impact on the company 's consolidated financial position or results of operations . during 2017 , the company 's business operations in houston and beaumont texas were adversely impacted by hurricane harvey . although the company 's facilities did not sustain any damage , operations were temporarily idled , delaying the schedules of customer projects resulting in a $ 2.5 million negative revenue impact . the company maintains business interruption insurance and has filed a business interruption claim . we subsequently received proceeds of $ 0.12 million in january , 2018 and it is anticipated that any additional proceeds resulting from this business interruption claim would be recorded no earlier than q2 2018. equity income from foreign joint ventures ' operations – the company accounts for its investments in foreign joint ventures ' using the equity method . under the equity method , the company records its pro-rata share of foreign joint ventures ' income or losses and adjusts the basis of its investment accordingly . dividends received from the joint ventures , if any , are recorded as reductions to the investment balance . carrying value of joint venture investments – the company evaluates the carrying value of equity method investments as to whether an impairment adjustment may be necessary . in making this evaluation , a variety of quantitative and qualitative factors are considered including international , national and local economic , political and market conditions , industry trends and prospects , liquidity and capital resources and other pertinent factors . based on the most recent review at december 31 , 2017 and december 31 , 2016 , management believes the carrying value of investments in foreign joint ventures is recoverable . recently issued accounting pronouncements in may 2014 , the financial accounting standards board ( “ fasb ” ) issued accounting standards update ( “ asu ” ) no . 2014-09 , revenue from contracts with customers , which supersedes nearly all existing revenue recognition guidance under u.s. gaap . the core principle of asu no . 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services . asu no . 2014-09 defines a five step process to achieve this core principle and , in doing so , more judgment and estimates may be required under existing u.s. gaap . the standard is effective for annual periods beginning after december 15 , 2016 , and interim periods therein , using either of the following transition methods : ( i ) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients , or ( ii ) a retrospective approach with the cumulative effect of initially adopting asu no . 2014-09 recognized at the date of adoption ( which includes additional footnote disclosures ) . in july 2015 , the fasb issued asu no . 2015-14 which delayed the effective date of asu no . 2014-09 by one year ( effective for annual periods beginning after december 15 , 2017 ) . the company adopted asu 2014-09 , effective january 1 , 2018 , using the modified retrospective method . the adoption of the standard will not have a material impact on the company 's revenue recognition policies , other than enhanced disclosures related to the disaggregation of revenues from contracts with customers , the company 's performance obligations and any significant judgments . in august 2014 , the fasb issued an accounting standards update which requires management to assess whether there are conditions or events , considered in the aggregate , that raise substantial doubt about the entity 's ability to continue as a going concern within one year after the financial statements are issued . if substantial doubt exists , additional disclosures are required . this update was effective beginning with the company 's annual period ended december 31 , 2016. the company 's

