services revenues services revenues are derived from professional services that include developing , implementing , integrating , automating and extending business processes , technology infrastructure , and software applications . professional services revenues are recognized over time as services are rendered . most of our projects are performed on a time and materials basis , while a portion of our revenues is derived from projects performed on a fixed fee or fixed fee percent complete basis . for time and material projects , revenues are recognized and billed by multiplying the number of hours our professionals expend in the performance of the project by the hourly rates . for fixed fee contracts , revenues are recognized and billed by multiplying the established fixed rate per time period by the number of time periods elapsed . for fixed fee percent complete projects , revenues are generally recognized using an input method based on the ratio of hours expended to total estimated hours . fixed fee percent complete engagements represented approximately 7 % of our services revenues for the year ended december 31 , 2019 compared to 8 % for each of the years ended december 31 , 2018 and 2017 . on most projects , we are reimbursed for out-of-pocket expenses including travel and other project-related expenses . these reimbursements are included as a component of the transaction price of the respective professional services contract . the aggregate amount of reimbursed expenses will fluctuate depending on the location of our clients , the total number of our projects that require travel , and whether our arrangements with our clients provide for the reimbursement of such expenses . in conjunction with services provided , we occasionally receive referral fees under partner programs . these referral fees are recognized at a point in time when earned and recorded within services revenues . software and hardware revenues software and hardware revenues are derived from sales of third-party software and hardware resales , in which we are considered the agent , and sales of internally developed software , in which we are considered the principal . revenues from sales of third-party software and hardware are recorded on a net basis , while revenues from internally developed software sales are recorded on a gross basis . software and hardware revenues are expected to fluctuate depending on our clients ' demand for these products . there are no significant cancellation or termination-type provisions for our software and hardware sales . contracts for our professional services provide for a general right , to the client or us , to cancel or terminate the contract within a given period of time ( generally 10 to 30 days ' notice is required ) . the client is responsible for any time and expenses incurred up to the date of cancellation or termination of the contract . cost of revenues cost of revenues consists of costs of services and software and hardware costs . costs of services consists primarily of cash and non-cash compensation and benefits ( including bonuses and non-cash compensation related to equity awards ) , costs associated with subcontractors , reimbursable expenses and other project-related expenses . cost of revenues does not include depreciation of 21 assets used in the production of revenues which are primarily personal computers , servers , and other information technology related equipment . upon adoption of asc topic 606 on january 1 , 2018 , sales of third-party software and hardware were presented on a net basis , and as such , third-party software and hardware costs are no longer presented within cost of revenue in the current and prior year . our cost of services as a percentage of services revenues is affected by the utilization rates of our professionals ( defined as the percentage of our professionals ' time billed to clients divided by the total available hours in the respective period ) , the salaries we pay our professionals , and the average billing rate we receive from our clients . if a project ends earlier than scheduled , we retain professionals in advance of receiving project assignments , or demand for our services declines , our utilization rate will decline and adversely affect our cost of services as a percentage of services revenues . selling , general , and administrative expenses selling , general and administrative ( “ sg & a ” ) expenses are primarily composed of sales-related costs , general and administrative salaries , stock compensation expense , office costs , recruiting expense , variable compensation costs , marketing costs and other miscellaneous expenses . we have access to sales leads generated by our software vendors whose products we use to design and implement solutions for our clients . these relationships enable us to optimize our selling costs and sales cycle times and increase win rates through leveraging our partners ' marketing efforts and endorsements . plans for growth and acquisitions our goal is to continue to build one of the leading information technology consulting firms by expanding our relationships with existing and new clients and through the continuation of our disciplined acquisition strategy . our future growth plan includes expanding our business with a primary focus on customers in the united states , both organically and through acquisitions . we also intend to further leverage and expand our offshore capabilities to support our future growth and provide our clients flexible options for project delivery . when analyzing revenue growth by base business compared to acquired companies in the results of operations section below , revenue attributable to base business includes revenue from an acquired company that has been owned for a full four quarters after the date of acquisition . story_separator_special_tag third-party software and hardware revenues are recognized and invoiced when the company fulfills its obligation to arrange the sale , which occurs when the purchase order with the vendor is executed and the customer has access to the software or the hardware has been shipped to the customer . internally developed software revenues are recognized and invoiced when control is transferred to the customer , which occurs when the software has been made available to the customer and the license term has commenced . revenues from third-party software and hardware sales are recorded on a net basis , while revenues from internally developed software sales are recorded on a gross basis . there are no significant cancellation or termination-type provisions for the company 's software and hardware sales , and the term between invoicing and payment due date is not significant . arrangements with clients may contain multiple promises such as delivery of software , hardware , professional services or post-contract support services . these promises are accounted for as separate performance obligations if they are distinct . for arrangements with clients that contain multiple performance obligations , the transaction price is allocated to the separate performance obligations based on estimated relative standalone selling price , which is estimated by the expected cost plus a margin approach , taking into consideration market conditions and competitive factors . since the duration of contracts that contain multiple performance obligations is typically short given contract cancellation provisions , the allocation of the transaction price to the separate performance obligations is not considered a significant estimate . revenues are presented net of taxes assessed by governmental authorities . sales taxes are generally collected and subsequently remitted on all software and hardware sales and certain services transactions as appropriate . allowance for doubtful accounts is based upon specific identification of likely and probable losses . each accounting period , accounts receivable is evaluated for risk associated with a client 's inability to make contractual payments , historical experience and other currently available information . billed and unbilled receivables that are specifically identified as being at risk are provided for with a charge to revenue or bad debts as appropriate in the period the risk is identified . considerable judgment is used in assessing the ultimate realization of these receivables , including reviewing the financial stability of the client , evaluating the successful mitigation of service delivery disputes , and gauging current market conditions . if the evaluation of service delivery issues or a client 's ability to pay is incorrect , future reductions to revenue or bad debt expense may be incurred . purchase accounting and related fair value measurements the company allocates the purchase price , including contingent consideration , of our acquisitions to the assets and liabilities acquired , including identifiable intangible assets , based on their respective fair values at the date of acquisition . such fair market value assessments are primarily based on third-party valuations using assumptions developed by management that require significant judgments and estimates that can change materially as additional information becomes available . the purchase 28 price allocated to intangibles is based on unobservable factors , including but not limited to , projected revenues , expenses , customer attrition rates , royalty rates , a weighted average cost of capital , among others . the weighted average cost of capital uses a market participant 's cost of equity and after-tax cost of debt and reflects the risks inherent in the cash flows . the approach to valuing the initial contingent consideration associated with the purchase price also uses similar unobservable factors such as projected revenues and expenses over the term of the contingent earn-out period , discounted for the period over which the contingent consideration is measured , and volatility rates . based upon these assumptions , the initial contingent consideration is then valued using a monte carlo simulation . the company finalizes the purchase price allocation once certain initial accounting valuation estimates are finalized , and no later than 12 months following the acquisition date . convertible debt in accordance with accounting for debt with conversion and other options , the company bifurcated the principal amount of the notes issued on september 11 , 2018 into liability and equity components . the initial liability component of the notes was valued based on the contractual cash flows discounted at an appropriate comparable market non-convertible debt borrowing rate at the date of issuance of 5.7 % . the equity component representing the conversion option and calculated as the residual amount of the proceeds was recorded as an increase in additional paid-in capital within stockholders ' equity , partially offset by the associated deferred tax effect . the amount recorded within additional paid-in capital is not to be remeasured as long as it continues to meet the conditions for equity classification . the resulting debt discount is being amortized to interest expense using the effective interest method over the period from the issuance date through the contractual maturity date of september 15 , 2023. the company utilizes the treasury stock method to calculate the effects of the notes on diluted earnings per share . in connection with the issuance of the notes , the company entered into notes hedges with the option counterparties . the notes hedges provide the company with the option to acquire , on a net settlement basis , shares of common stock equal to the number of shares of common stock that notionally underlie the notes and corresponds to the conversion price of the notes . if the company elects cash settlement and exercises the notes hedges , the aggregate amount of cash received from the option counterparties will cover the aggregate amount of cash that the company would be required to pay to the holders of the notes , less the principal amount thereof . the notes hedges do not meet the criteria for separate accounting as a derivative as they are indexed to the

net cash provided by operating activities net cash provided by operating activities for the year ended december 31 , 2019 was $ 78.0 million compared to $ 68.6 million for the year ended december 31 , 2018 . for the year ended december 31 , 2019 , the components of operating cash flows were net income of $ 37.1 million plus net non-cash charges of $ 45.0 million and investments in net operating assets of $ 4.2 million . the primary components of operating cash flows for the year ended december 31 , 2018 were net income of $ 24.6 million plus net non-cash charges of $ 40.8 million and reductions in net operating assets of $ 3.2 million . net cash used in investing activities during the year ended december 31 , 2019 , we used $ 11.1 million for acquisitions and $ 9.3 million to purchase property and equipment and to develop software . during the year ended december 31 , 2018 , we used $ 26.6 million for acquisitions and $ 4.7 million to purchase property and equipment and to develop software . net cash ( used in ) provided by financing activities for the year ended december 31 , 2019 , we used $ 20.6 million to repurchase shares of our common stock through the stock repurchase program , used $ 7.3 million to remit taxes withheld as part of a net share settlement of restricted stock vesting and used $ 4.3 million to settle the contingent consideration for the purchase of southport . we also received proceeds from sales of stock through the employee stock purchase plan of $ 0.2 million . for the year ended december 31 , 2018 , we received $ 138.9 million of proceeds from the issuance of the notes , net of issuance costs , received $ 12.1 million of proceeds from the sale of the notes warrants and paid $ 20.7 million for the privately negotiated notes hedges .


 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.
     ```net cash provided by operating activities net cash provided by operating activities for the year ended december 31 , 2019 was $ 78.0 million compared to $ 68.6 million for the year ended december 31 , 2018 . for the year ended december 31 , 2019 , the components of operating cash flows were net income of $ 37.1 million plus net non-cash charges of $ 45.0 million and investments in net operating assets of $ 4.2 million . the primary components of operating cash flows for the year ended december 31 , 2018 were net income of $ 24.6 million plus net non-cash charges of $ 40.8 million and reductions in net operating assets of $ 3.2 million . net cash used in investing activities during the year ended december 31 , 2019 , we used $ 11.1 million for acquisitions and $ 9.3 million to purchase property and equipment and to develop software . during the year ended december 31 , 2018 , we used $ 26.6 million for acquisitions and $ 4.7 million to purchase property and equipment and to develop software . net cash ( used in ) provided by financing activities for the year ended december 31 , 2019 , we used $ 20.6 million to repurchase shares of our common stock through the stock repurchase program , used $ 7.3 million to remit taxes withheld as part of a net share settlement of restricted stock vesting and used $ 4.3 million to settle the contingent consideration for the purchase of southport . we also received proceeds from sales of stock through the employee stock purchase plan of $ 0.2 million . for the year ended december 31 , 2018 , we received $ 138.9 million of proceeds from the issuance of the notes , net of issuance costs , received $ 12.1 million of proceeds from the sale of the notes warrants and paid $ 20.7 million for the privately negotiated notes hedges .
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 Suspicious Activity Report : services revenues services revenues are derived from professional services that include developing , implementing , integrating , automating and extending business processes , technology infrastructure , and software applications . professional services revenues are recognized over time as services are rendered . most of our projects are performed on a time and materials basis , while a portion of our revenues is derived from projects performed on a fixed fee or fixed fee percent complete basis . for time and material projects , revenues are recognized and billed by multiplying the number of hours our professionals expend in the performance of the project by the hourly rates . for fixed fee contracts , revenues are recognized and billed by multiplying the established fixed rate per time period by the number of time periods elapsed . for fixed fee percent complete projects , revenues are generally recognized using an input method based on the ratio of hours expended to total estimated hours . fixed fee percent complete engagements represented approximately 7 % of our services revenues for the year ended december 31 , 2019 compared to 8 % for each of the years ended december 31 , 2018 and 2017 . on most projects , we are reimbursed for out-of-pocket expenses including travel and other project-related expenses . these reimbursements are included as a component of the transaction price of the respective professional services contract . the aggregate amount of reimbursed expenses will fluctuate depending on the location of our clients , the total number of our projects that require travel , and whether our arrangements with our clients provide for the reimbursement of such expenses . in conjunction with services provided , we occasionally receive referral fees under partner programs . these referral fees are recognized at a point in time when earned and recorded within services revenues . software and hardware revenues software and hardware revenues are derived from sales of third-party software and hardware resales , in which we are considered the agent , and sales of internally developed software , in which we are considered the principal . revenues from sales of third-party software and hardware are recorded on a net basis , while revenues from internally developed software sales are recorded on a gross basis . software and hardware revenues are expected to fluctuate depending on our clients ' demand for these products . there are no significant cancellation or termination-type provisions for our software and hardware sales . contracts for our professional services provide for a general right , to the client or us , to cancel or terminate the contract within a given period of time ( generally 10 to 30 days ' notice is required ) . the client is responsible for any time and expenses incurred up to the date of cancellation or termination of the contract . cost of revenues cost of revenues consists of costs of services and software and hardware costs . costs of services consists primarily of cash and non-cash compensation and benefits ( including bonuses and non-cash compensation related to equity awards ) , costs associated with subcontractors , reimbursable expenses and other project-related expenses . cost of revenues does not include depreciation of 21 assets used in the production of revenues which are primarily personal computers , servers , and other information technology related equipment . upon adoption of asc topic 606 on january 1 , 2018 , sales of third-party software and hardware were presented on a net basis , and as such , third-party software and hardware costs are no longer presented within cost of revenue in the current and prior year . our cost of services as a percentage of services revenues is affected by the utilization rates of our professionals ( defined as the percentage of our professionals ' time billed to clients divided by the total available hours in the respective period ) , the salaries we pay our professionals , and the average billing rate we receive from our clients . if a project ends earlier than scheduled , we retain professionals in advance of receiving project assignments , or demand for our services declines , our utilization rate will decline and adversely affect our cost of services as a percentage of services revenues . selling , general , and administrative expenses selling , general and administrative ( “ sg & a ” ) expenses are primarily composed of sales-related costs , general and administrative salaries , stock compensation expense , office costs , recruiting expense , variable compensation costs , marketing costs and other miscellaneous expenses . we have access to sales leads generated by our software vendors whose products we use to design and implement solutions for our clients . these relationships enable us to optimize our selling costs and sales cycle times and increase win rates through leveraging our partners ' marketing efforts and endorsements . plans for growth and acquisitions our goal is to continue to build one of the leading information technology consulting firms by expanding our relationships with existing and new clients and through the continuation of our disciplined acquisition strategy . our future growth plan includes expanding our business with a primary focus on customers in the united states , both organically and through acquisitions . we also intend to further leverage and expand our offshore capabilities to support our future growth and provide our clients flexible options for project delivery . when analyzing revenue growth by base business compared to acquired companies in the results of operations section below , revenue attributable to base business includes revenue from an acquired company that has been owned for a full four quarters after the date of acquisition . story_separator_special_tag third-party software and hardware revenues are recognized and invoiced when the company fulfills its obligation to arrange the sale , which occurs when the purchase order with the vendor is executed and the customer has access to the software or the hardware has been shipped to the customer . internally developed software revenues are recognized and invoiced when control is transferred to the customer , which occurs when the software has been made available to the customer and the license term has commenced . revenues from third-party software and hardware sales are recorded on a net basis , while revenues from internally developed software sales are recorded on a gross basis . there are no significant cancellation or termination-type provisions for the company 's software and hardware sales , and the term between invoicing and payment due date is not significant . arrangements with clients may contain multiple promises such as delivery of software , hardware , professional services or post-contract support services . these promises are accounted for as separate performance obligations if they are distinct . for arrangements with clients that contain multiple performance obligations , the transaction price is allocated to the separate performance obligations based on estimated relative standalone selling price , which is estimated by the expected cost plus a margin approach , taking into consideration market conditions and competitive factors . since the duration of contracts that contain multiple performance obligations is typically short given contract cancellation provisions , the allocation of the transaction price to the separate performance obligations is not considered a significant estimate . revenues are presented net of taxes assessed by governmental authorities . sales taxes are generally collected and subsequently remitted on all software and hardware sales and certain services transactions as appropriate . allowance for doubtful accounts is based upon specific identification of likely and probable losses . each accounting period , accounts receivable is evaluated for risk associated with a client 's inability to make contractual payments , historical experience and other currently available information . billed and unbilled receivables that are specifically identified as being at risk are provided for with a charge to revenue or bad debts as appropriate in the period the risk is identified . considerable judgment is used in assessing the ultimate realization of these receivables , including reviewing the financial stability of the client , evaluating the successful mitigation of service delivery disputes , and gauging current market conditions . if the evaluation of service delivery issues or a client 's ability to pay is incorrect , future reductions to revenue or bad debt expense may be incurred . purchase accounting and related fair value measurements the company allocates the purchase price , including contingent consideration , of our acquisitions to the assets and liabilities acquired , including identifiable intangible assets , based on their respective fair values at the date of acquisition . such fair market value assessments are primarily based on third-party valuations using assumptions developed by management that require significant judgments and estimates that can change materially as additional information becomes available . the purchase 28 price allocated to intangibles is based on unobservable factors , including but not limited to , projected revenues , expenses , customer attrition rates , royalty rates , a weighted average cost of capital , among others . the weighted average cost of capital uses a market participant 's cost of equity and after-tax cost of debt and reflects the risks inherent in the cash flows . the approach to valuing the initial contingent consideration associated with the purchase price also uses similar unobservable factors such as projected revenues and expenses over the term of the contingent earn-out period , discounted for the period over which the contingent consideration is measured , and volatility rates . based upon these assumptions , the initial contingent consideration is then valued using a monte carlo simulation . the company finalizes the purchase price allocation once certain initial accounting valuation estimates are finalized , and no later than 12 months following the acquisition date . convertible debt in accordance with accounting for debt with conversion and other options , the company bifurcated the principal amount of the notes issued on september 11 , 2018 into liability and equity components . the initial liability component of the notes was valued based on the contractual cash flows discounted at an appropriate comparable market non-convertible debt borrowing rate at the date of issuance of 5.7 % . the equity component representing the conversion option and calculated as the residual amount of the proceeds was recorded as an increase in additional paid-in capital within stockholders ' equity , partially offset by the associated deferred tax effect . the amount recorded within additional paid-in capital is not to be remeasured as long as it continues to meet the conditions for equity classification . the resulting debt discount is being amortized to interest expense using the effective interest method over the period from the issuance date through the contractual maturity date of september 15 , 2023. the company utilizes the treasury stock method to calculate the effects of the notes on diluted earnings per share . in connection with the issuance of the notes , the company entered into notes hedges with the option counterparties . the notes hedges provide the company with the option to acquire , on a net settlement basis , shares of common stock equal to the number of shares of common stock that notionally underlie the notes and corresponds to the conversion price of the notes . if the company elects cash settlement and exercises the notes hedges , the aggregate amount of cash received from the option counterparties will cover the aggregate amount of cash that the company would be required to pay to the holders of the notes , less the principal amount thereof . the notes hedges do not meet the criteria for separate accounting as a derivative as they are indexed to the

