we help our clients achieve their organizational missions for mobility management and security objectives in this challenging and complex business environment . we offer our tm2 solutions through a flexible managed services model which includes both a scalable and comprehensive set of functional capabilities that can be used by any customer to meet the most common functional , technical and security requirements for mobility management . our tm2 solutions were designed and implemented with flexibility in mind such that it can accommodate a large variety of customer requirements through simple configuration settings rather than through costly software development . the flexibility of our tm2 solutions enables our customers to be able to quickly expand or contract their mobility management requirements . our tm2 solutions are hosted and accessible on-demand through a secure federal government certified proprietary portal that provides our customers with the ability to manage , analyze and protect their valuable communications assets , and deploy identity management solutions that provide secured virtual and physical access to restricted environments . strategic focus we executed on our key initiative for 2020 by winning the re-competed u.s. department of homeland security indefinite delivery/indefinite quantity ( dhs cwms 2.0 idiq ) and successfully supported the 2020 census . in addition , we focused on increasing our customer base and our sales pipeline and leveraging our strategic relationships with key system integrators and strategic partners to capture additional market share . in fiscal 2021 , we will continue to focus on the following key goals : ● selling high margin managed services , ● growing our sales pipeline by investing in our business development and sales team assets , ● pursuing additional opportunities with our key systems integrator and strategic partners , ● improving our proprietary platform and products , which includes pursuing fedramp certification for itms and maintaining our atos with our federal government agencies , as well as upgrading our secure identity management technology , ● working to successfully deliver and expand the scope of work under the newly awarded dhs cwms 2.0 idiq , and ● expanding our solution offerings into the commercial space . our longer-term strategic focus and goals are driven by our need to expand our critical mass so that we have more flexibility to fund investments in technology solutions and introduce new sales and marketing initiatives to expand our marketplace share and increase the breadth of our offerings in order to improve company sustainability and growth . our strategy for achieving our longer-term goals include : ● pursuing accretive and strategic acquisitions to expand our solutions and our customer base , ● delivering new incremental offerings to add to our existing tm2 offering , ● developing and testing innovative new offerings that enhance our tm2 offering , and ● transitioning our data center and support infrastructure into a more cost-effective and federally approved cloud environment to comply with perceived future contract requirements . we believe these actions could drive a strategic repositioning our tm2 offering and may include the sale of non-aligned offerings coupled with acquisitions of complementary and supplementary offerings that could result in a more focused core set of tm2 offerings . 32 critical accounting policies and estimates refer to note 2 to the consolidated financial statements for a summary of our significant accounting policies referenced , as applicable , to other notes . in many cases , the accounting treatment of a particular transaction is specifically dictated by u.s. gaap and does not require management 's judgment in its application . our senior management has reviewed these critical accounting policies and related disclosures with its audit committee . see note 2 to consolidated financial statements , which contain additional information regarding accounting policies and other disclosures required by u.s. gaap . the following section below provides information about certain critical accounting policies that are important to the consolidated financial statements and that require significant management assumptions and judgments . segments segments are defined by authoritative guidance as components of a company in which separate financial information is available and is evaluated by the chief operating decision maker ( codm ) , or a decision-making group , in deciding how to allocate resources and in assessing performance . our codm is our chief executive officer . our customers view our market as a singular business and demand an integrated and scalable suite of enterprise-wide solutions . our tm2 offerings are substantially managed service driven solutions that use our proprietary technology platform to deliver our services . the amount of labor required to perform our contract obligations may vary significantly contract to contract depending on the customer 's specific requirements ; however , the way in which we perform these services is consistent across the company and requires a connected group of internal subject matter experts and support personnel . in order to evaluate a managed service business model our codm and the executive management team measure financial performance based on our overall mixture of managed and carrier services and related margins . these financial metrics provide a stronger indication of how we are managing our key customer relationships ; and it also determines our overall profitability . we present a single segment for purposes of financial reporting and prepared consolidated financial statements upon that basis . revenue recognition our managed services solutions may require a combination of labor , third party products and services . our managed services are generally not interdependent and our contract performance obligations are delivered consistently on a monthly basis . we do not typically have undelivered performance obligations in these arrangements that would require us to spread our revenue over a longer period of time . story_separator_special_tag our cost of revenues may fluctuate due to accessories sales activities which depends heavily on customer mobility equipment accessory requirements . gross profit gross profit for the year ended was approximately $ 20.4 million ( or 11 % of revenues ) , as compared to approximately $ 17.4 million ( or 17 % of revenues ) in 2019. the dollar increase in gross profit reflects higher managed services revenue as compared to last year . operating expenses sales and marketing expense for the year ended december 31 , 2020 was approximately $ 1.9 million ( or 1.0 % of revenues ) , as compared to approximately $ 1.7 million ( or 1.6 % of revenues ) in 2019. increase reflects investment in business development , partially offset by reduction in travel costs . general and administrative expenses for the year ended december 31 , 2020 were approximately $ 14.3 million ( or 8 % of revenues ) , as compared to approximately $ 13.8 million ( or 14 % of revenues ) in 2019. the increase in general and administrative expense reflects overhead and administrative costs to support the increased business and costs related to supporting our infrastructure in a cloud environment , as well as an increase in share-based compensation expense compared to last year , partially offset by reduced travel costs . 38 product development costs associated with our with our proprietary platform for the years ended december 31 , 2020 and 2019 were approximately $ 903,000 and $ 146,000 , respectively , which were capitalized . depreciation and amortization expense for the year ended december 31 , 2020 was approximately $ 1,091,000 , as compared to approximately $ 988,100 in 2019. the increase in depreciation and amortization expense reflects the increase in our depreciable asset base . other ( expense ) income net other expense for the year ended december 31 , 2020 was approximately $ 299,000 as compared to approximately $ 266,400 in 2019. the increase in net other expense is primarily driven by the decrease in other income . ( benefit ) provision for income taxes income tax ( benefit ) provision for the year ended december 31 , 2020 was approximately $ ( 7.4 ) million , as compared to approximately $ 0.4 million in 2019. the current income tax provision included reversal of valuation allowance of $ 8.2 million discussed above , partially offset by $ 0.8 million of current year tax expense that resulted in a tax benefit of $ 7.4 million . net income primarily as a result of the increased revenue from the 2020 census project that was completed in 2020 , net income for the year ended december 31 , 2020 increased to approximately $ 10.3 million as compared to a net income of approximately $ 0.2 million in 2019. liquidity and capital net working capital our immediate sources of liquidity include cash and cash equivalents , accounts receivable , unbilled receivables and access to a working capital credit facility with atlantic union bank for up to $ 5.0 million . in addition , we recently established an at-the-market ( atm ) equity sales program ( described below ) that permits us to sell , from time to time , up to $ 24.0 million of our common stock through the sales agents under the program . there is no assurance that , if needed , we will be able to raise capital on favorable terms or at all . at december 31 , 2020 , our net working capital was approximately $ 13.0 million as compared to $ 5.0 million at december 31 , 2019. the increase in net working capital was primarily driven by increases in revenue , and proceeds from issuance of common stock through the atm sales program , and temporary payable timing differences . we may need to raise additional capital to fund major growth initiatives and or acquisitions and there can be no assurance that additional capital will be available on acceptable terms or at all . atm sales program on august 18 , 2020 , we entered into an at-the-market issuance sales agreement ( the “ sales agreement ” ) with b. riley securities , inc. , the benchmark company , llc and spartan capital securities , llc which establishes an atm equity program pursuant to which we may offer and sell up to $ 24.0 million of shares of our common stock , par value $ 0.001 per share , from time to time as set forth in the sales agreement . we have no obligation to sell any of the shares , and , at any time , we may suspend offers under the sales agreement or terminate the sales agreement . we sold 399,000 shares during the three months ended december 31 , 2020 under the atm program and had remaining capacity of $ 20.0 million as of december 31 , 2020. subsequent to december 31 , 2020 , the company sold 100,687 shares for gross proceeds of $ 1.1 million . 39 cash flows from operating activities cash provided by operating activities provides an indication of our ability to generate sufficient cash flow from our recurring business activities . our single largest cash operating expense is labor and company sponsored benefits . our second largest cash operating expense is our facility costs and related technology communication costs to support delivery of our services to our customers . we lease our facilities under non-cancellable long-term contracts . any changes to our fixed labor and or infrastructure costs may require a significant amount of time to take effect depending on the nature of the change made and cash payments to terminate any agreements that have not yet expired . we experience temporary collection timing differences from time to time due to customer invoice processing delays that are often beyond our control , including intermittent u.s. federal government shutdowns related to budgetary funding issues . for the year ended december 31

cash flows from financing activities cash used in financing activities provides an indication of our debt financing and proceeds from capital raise transactions and stock option exercises . for the year ended december 31 , 2020 , cash used in financing activities was approximately $ 3.7 million and consisted of lease principal repayments of approximately $ 608,000 , proceeds from issuance of common stock through the atm sales program of $ 4.3 million , net of issuance costs , and repurchases of our common stock of $ 10,100. the company was advanced and repaid approximately $ 1.9 million in cumulative line of credit advances during the year . 40 for the year ended december 31 , 2019 , cash used in financing activities was approximately $ 0.8 million and consisted of lease principal repayments of approximately $ 473,300 , payment of debt issuance costs of $ 5,000 , and repurchases of our common stock of $ 366,000. the company was advanced and repaid approximately $ 6.8 million in cumulative line of credit advances during the year . net effect of exchange rate on cash and equivalents for the year ended december 31 , 2020 , the appreciation of the euro relative to the us dollar increased the translated value of our foreign cash balances by approximately $ 155,500 as compared to last year .


 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.
     ```cash flows from financing activities cash used in financing activities provides an indication of our debt financing and proceeds from capital raise transactions and stock option exercises . for the year ended december 31 , 2020 , cash used in financing activities was approximately $ 3.7 million and consisted of lease principal repayments of approximately $ 608,000 , proceeds from issuance of common stock through the atm sales program of $ 4.3 million , net of issuance costs , and repurchases of our common stock of $ 10,100. the company was advanced and repaid approximately $ 1.9 million in cumulative line of credit advances during the year . 40 for the year ended december 31 , 2019 , cash used in financing activities was approximately $ 0.8 million and consisted of lease principal repayments of approximately $ 473,300 , payment of debt issuance costs of $ 5,000 , and repurchases of our common stock of $ 366,000. the company was advanced and repaid approximately $ 6.8 million in cumulative line of credit advances during the year . net effect of exchange rate on cash and equivalents for the year ended december 31 , 2020 , the appreciation of the euro relative to the us dollar increased the translated value of our foreign cash balances by approximately $ 155,500 as compared to last year .
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 Suspicious Activity Report : we help our clients achieve their organizational missions for mobility management and security objectives in this challenging and complex business environment . we offer our tm2 solutions through a flexible managed services model which includes both a scalable and comprehensive set of functional capabilities that can be used by any customer to meet the most common functional , technical and security requirements for mobility management . our tm2 solutions were designed and implemented with flexibility in mind such that it can accommodate a large variety of customer requirements through simple configuration settings rather than through costly software development . the flexibility of our tm2 solutions enables our customers to be able to quickly expand or contract their mobility management requirements . our tm2 solutions are hosted and accessible on-demand through a secure federal government certified proprietary portal that provides our customers with the ability to manage , analyze and protect their valuable communications assets , and deploy identity management solutions that provide secured virtual and physical access to restricted environments . strategic focus we executed on our key initiative for 2020 by winning the re-competed u.s. department of homeland security indefinite delivery/indefinite quantity ( dhs cwms 2.0 idiq ) and successfully supported the 2020 census . in addition , we focused on increasing our customer base and our sales pipeline and leveraging our strategic relationships with key system integrators and strategic partners to capture additional market share . in fiscal 2021 , we will continue to focus on the following key goals : ● selling high margin managed services , ● growing our sales pipeline by investing in our business development and sales team assets , ● pursuing additional opportunities with our key systems integrator and strategic partners , ● improving our proprietary platform and products , which includes pursuing fedramp certification for itms and maintaining our atos with our federal government agencies , as well as upgrading our secure identity management technology , ● working to successfully deliver and expand the scope of work under the newly awarded dhs cwms 2.0 idiq , and ● expanding our solution offerings into the commercial space . our longer-term strategic focus and goals are driven by our need to expand our critical mass so that we have more flexibility to fund investments in technology solutions and introduce new sales and marketing initiatives to expand our marketplace share and increase the breadth of our offerings in order to improve company sustainability and growth . our strategy for achieving our longer-term goals include : ● pursuing accretive and strategic acquisitions to expand our solutions and our customer base , ● delivering new incremental offerings to add to our existing tm2 offering , ● developing and testing innovative new offerings that enhance our tm2 offering , and ● transitioning our data center and support infrastructure into a more cost-effective and federally approved cloud environment to comply with perceived future contract requirements . we believe these actions could drive a strategic repositioning our tm2 offering and may include the sale of non-aligned offerings coupled with acquisitions of complementary and supplementary offerings that could result in a more focused core set of tm2 offerings . 32 critical accounting policies and estimates refer to note 2 to the consolidated financial statements for a summary of our significant accounting policies referenced , as applicable , to other notes . in many cases , the accounting treatment of a particular transaction is specifically dictated by u.s. gaap and does not require management 's judgment in its application . our senior management has reviewed these critical accounting policies and related disclosures with its audit committee . see note 2 to consolidated financial statements , which contain additional information regarding accounting policies and other disclosures required by u.s. gaap . the following section below provides information about certain critical accounting policies that are important to the consolidated financial statements and that require significant management assumptions and judgments . segments segments are defined by authoritative guidance as components of a company in which separate financial information is available and is evaluated by the chief operating decision maker ( codm ) , or a decision-making group , in deciding how to allocate resources and in assessing performance . our codm is our chief executive officer . our customers view our market as a singular business and demand an integrated and scalable suite of enterprise-wide solutions . our tm2 offerings are substantially managed service driven solutions that use our proprietary technology platform to deliver our services . the amount of labor required to perform our contract obligations may vary significantly contract to contract depending on the customer 's specific requirements ; however , the way in which we perform these services is consistent across the company and requires a connected group of internal subject matter experts and support personnel . in order to evaluate a managed service business model our codm and the executive management team measure financial performance based on our overall mixture of managed and carrier services and related margins . these financial metrics provide a stronger indication of how we are managing our key customer relationships ; and it also determines our overall profitability . we present a single segment for purposes of financial reporting and prepared consolidated financial statements upon that basis . revenue recognition our managed services solutions may require a combination of labor , third party products and services . our managed services are generally not interdependent and our contract performance obligations are delivered consistently on a monthly basis . we do not typically have undelivered performance obligations in these arrangements that would require us to spread our revenue over a longer period of time . story_separator_special_tag our cost of revenues may fluctuate due to accessories sales activities which depends heavily on customer mobility equipment accessory requirements . gross profit gross profit for the year ended was approximately $ 20.4 million ( or 11 % of revenues ) , as compared to approximately $ 17.4 million ( or 17 % of revenues ) in 2019. the dollar increase in gross profit reflects higher managed services revenue as compared to last year . operating expenses sales and marketing expense for the year ended december 31 , 2020 was approximately $ 1.9 million ( or 1.0 % of revenues ) , as compared to approximately $ 1.7 million ( or 1.6 % of revenues ) in 2019. increase reflects investment in business development , partially offset by reduction in travel costs . general and administrative expenses for the year ended december 31 , 2020 were approximately $ 14.3 million ( or 8 % of revenues ) , as compared to approximately $ 13.8 million ( or 14 % of revenues ) in 2019. the increase in general and administrative expense reflects overhead and administrative costs to support the increased business and costs related to supporting our infrastructure in a cloud environment , as well as an increase in share-based compensation expense compared to last year , partially offset by reduced travel costs . 38 product development costs associated with our with our proprietary platform for the years ended december 31 , 2020 and 2019 were approximately $ 903,000 and $ 146,000 , respectively , which were capitalized . depreciation and amortization expense for the year ended december 31 , 2020 was approximately $ 1,091,000 , as compared to approximately $ 988,100 in 2019. the increase in depreciation and amortization expense reflects the increase in our depreciable asset base . other ( expense ) income net other expense for the year ended december 31 , 2020 was approximately $ 299,000 as compared to approximately $ 266,400 in 2019. the increase in net other expense is primarily driven by the decrease in other income . ( benefit ) provision for income taxes income tax ( benefit ) provision for the year ended december 31 , 2020 was approximately $ ( 7.4 ) million , as compared to approximately $ 0.4 million in 2019. the current income tax provision included reversal of valuation allowance of $ 8.2 million discussed above , partially offset by $ 0.8 million of current year tax expense that resulted in a tax benefit of $ 7.4 million . net income primarily as a result of the increased revenue from the 2020 census project that was completed in 2020 , net income for the year ended december 31 , 2020 increased to approximately $ 10.3 million as compared to a net income of approximately $ 0.2 million in 2019. liquidity and capital net working capital our immediate sources of liquidity include cash and cash equivalents , accounts receivable , unbilled receivables and access to a working capital credit facility with atlantic union bank for up to $ 5.0 million . in addition , we recently established an at-the-market ( atm ) equity sales program ( described below ) that permits us to sell , from time to time , up to $ 24.0 million of our common stock through the sales agents under the program . there is no assurance that , if needed , we will be able to raise capital on favorable terms or at all . at december 31 , 2020 , our net working capital was approximately $ 13.0 million as compared to $ 5.0 million at december 31 , 2019. the increase in net working capital was primarily driven by increases in revenue , and proceeds from issuance of common stock through the atm sales program , and temporary payable timing differences . we may need to raise additional capital to fund major growth initiatives and or acquisitions and there can be no assurance that additional capital will be available on acceptable terms or at all . atm sales program on august 18 , 2020 , we entered into an at-the-market issuance sales agreement ( the “ sales agreement ” ) with b. riley securities , inc. , the benchmark company , llc and spartan capital securities , llc which establishes an atm equity program pursuant to which we may offer and sell up to $ 24.0 million of shares of our common stock , par value $ 0.001 per share , from time to time as set forth in the sales agreement . we have no obligation to sell any of the shares , and , at any time , we may suspend offers under the sales agreement or terminate the sales agreement . we sold 399,000 shares during the three months ended december 31 , 2020 under the atm program and had remaining capacity of $ 20.0 million as of december 31 , 2020. subsequent to december 31 , 2020 , the company sold 100,687 shares for gross proceeds of $ 1.1 million . 39 cash flows from operating activities cash provided by operating activities provides an indication of our ability to generate sufficient cash flow from our recurring business activities . our single largest cash operating expense is labor and company sponsored benefits . our second largest cash operating expense is our facility costs and related technology communication costs to support delivery of our services to our customers . we lease our facilities under non-cancellable long-term contracts . any changes to our fixed labor and or infrastructure costs may require a significant amount of time to take effect depending on the nature of the change made and cash payments to terminate any agreements that have not yet expired . we experience temporary collection timing differences from time to time due to customer invoice processing delays that are often beyond our control , including intermittent u.s. federal government shutdowns related to budgetary funding issues . for the year ended december 31

