on march 16 , 2018 ( “ closing date ” ) , the company entered into and closed an asset purchase agreement dated march 1 , 2018 ( the “ ecs purchase agreement ” ) with ecs prepaid llc ( “ ecs ” ) , a missouri limited liability company , pursuant to which the company purchased certain assets from ecs , including , but not limited to , the processing prepaid platform , servers , pos terminals , customer list , a processing software program and goodwill , in consideration of $ 1,100,000 of which $ 100,000 was paid on the closing date and the balance is to be paid pursuant to a secured promissory note in the amount of $ 1,000,000 ( the “ ecs note ” ) . in addition , the company issued 500,000 shares of common stock of the company ( the “ ecs shares ” ) and warrants to purchase 500,000 shares of common stock ( the “ ecs warrants ” ) . the ecs warrants were assigned by ecs to dennis winfrey . the ecs warrants are exercisable for a period of five years at a fixed exercise price of $ 1.85 per share and contain standard anti-dilution protection . under the esc note , which is secured by the assets acquired by the company from ecs , the company is required to make ten equal payments of $ 100,000 commencing on april 15 , 2018. the company may prepay the ecs note at any time without penalty . the ecs note is a short-term debt obligation that is material to the company . on april 2 , 2018 ( “ closing date ” ) , the company entered into and closed an asset purchase agreement ( the “ electronic purchase agreement ” ) with electronic check services inc. ( “ electronic check ” ) , a missouri corporation , pursuant to which the company purchased certain assets from electronic check , including , but not limited to , assets associated with software that validates written check authenticity , in consideration of $ 75,000 paid on the closing date . in addition , the company issued 250,000 shares of common stock of the company ( the “ electronic shares ” ) and warrants to purchase 250,000 shares of common stock ( the “ electronic warrants ” ) . the electronic warrants were assigned by electronic check to dennis winfrey , the shareholder of electronic check . the electronic warrants are exercisable for a period of five years at a fixed exercise price of $ 2.70 per share and contain standard anti-dilution protection . on april 2 , 2018 , the company entered into and closed an asset purchase agreement ( the “ central purchase agreement ” ) with central state legal services inc. ( “ central ” ) , a missouri corporation , pursuant to which the company purchased certain assets from central , including , but not limited to , assets associated with the a system to recover funds from returned checks , in consideration of $ 25,000 paid on the closing date . derron winfrey , the coo of the company , is a director and president of electronic check and central . derron winfrey 's parents are the shareholders of check and central . on or around november 10 , 2017 , ugopherservices experienced a suspension of operations on the terminals that the company acquired in its acquisition on september 1 , 2017 from rwj advanced marketing llc . management of the company believes that this shutdown came as a result of the decision of paypal holdings inc. ( “ paypal ” ) decision to suspend operations of tio networks ( “ tio ” ) , and appears to have affected all of tio 's customers . tio was acquired by paypal in or around july 2017. prior to the suspension , the company received no notice from tio , or from rwj advanced marketing llc , which sold the assets to ugopherservices , that the suspension would be taking place . although the company worked diligently to contain the fallout from the suspension of operations by tio , the vast majority of the customers that were acquired as part of the transaction defected as a result . the subsequent acquisition of ecs was done partly to stem the customer defections , as many of the customers of ugopherservices sought the services of ecs . in doing so , the company got many , though not all , of the customers back . on a combined basis , there were approximately 9,400 points of sale as a result of acquiring certain assets from both rwj advanced marketing llc and ecs . 27 the company is currently in litigation with rwj advanced marketing , llc , its executives and other third parties , and wrote off a substantial portion of its investment in ugopherservices from september 1 , 2017. the company 's position is that it was defrauded by the seller and certain third parties due to the lack of disclosure of tio 's decision to suspend operations . on september 30 , 2019 , the company entered into an asset purchase agreement with surge holdings , inc. , a nevada corporation ( “ surg ” ) pursuant to which the company agreed to sell and assign to surg all the assets and certain specified liabilities of its ecs prepaid , electronic check services and the central state legal services businesses in consideration of $ 5,000,000 to be paid through the issuance of 3,333,333 shares of surg 's common stock and a convertible promissory note in favor of the company in the principal amount of $ 4,000,000. the 3,333,333 shares of surg 's common stock have been pledged to a third party for providing working capital needs of the company . story_separator_special_tag the purpose of gbt tokenize is to develop , maintain and support source codes for its proprietary technologies including advanced mobile chip technologies , tracking , radio technologies , ai core engine , electronic design automation , mesh , games , data storage , networking , it services , business process outsourcing development services , customer service , technical support and quality assurance for business , customizable and dedicated inbound and outbound calls solutions , as well as digital communications processing for enterprises and startups ( “ technology portfolio ” ) , throughout the state of california . upon generating any revenue from the technology portfolio , the joint venture will earn the first right of refusal for other territories . tokenize shall contribute the services and resources for the development of the technology portfolio to gbt tokenize . the company shall contribute 100,000,000 shares of common stock of the company ( “ gbt shares ” ) to gbt tokenize . tokenize and the company will each own 50 % of gbt tokenize . the company pledged its 50 % ownership in gbt tokenize and its 100 % ownership of greenwich to tokenize to secure its technology portfolio investment . the company shall appoint two directors and tokenize shall appoint one director of gbt tokenize . 30 in addition , gbt tokenize and gonzalez entered into a consulting agreement in which gonzalez is engaged to provide services in consideration of $ 33,333.33 per month payable quarterly which may be paid in shares of common stock calculated by the amount owed divided by the company 's 10-day vwap . gonzalez will provide services in connection with the development of the business as well as gbt tokenize 's capital raising efforts . the term of the consulting agreement is two years . the closing of the tokenize agreement occurred on march 9 , 2020. covid-19 pandemic the company operates in a high-tech marketplace and relies on professionals and partnerships all over the world , which is impacted by the global pandemic , causing the company 's resources to be affected . our business operations have been and may continue to be materially and adversely affected by the coronavirus disease covid-19 . an outbreak of respiratory illness caused by covid-19 emerged in wuhan city , hubei province , prc , in late 2019 and has been expanding globally . covid-19 is considered to be highly contagious and poses a serious public health threat . on march 19 , 2020 , the california governor announced the lockdown of california in an attempt to slow the spread of the virus . since then , other measures have been imposed in other countries and major cities in the usa , including los angeles , and throughout the world in an effort to contain the covid-19 outbreak . the world health organization ( the “ who ” ) is closely monitoring and evaluating the situation . on march 11 , 2020 , the who declared the outbreak of covid-19 a pandemic , expanding its assessment of the threat beyond the global health emergency it had announced in january . any outbreak of such epidemic illness or other adverse public health developments in the usa or elsewhere in the world may materially and adversely affect the global economy , our markets and our business . in the first quarter of 2020 , the covid-19 outbreak has caused disruptions in our development operations , which have resulted in delays on exiting projects . a prolonged disruption or any further unforeseen delay in our operations of the development , delivery and assembly process within any of our activities could continue to result in , increased costs and reduced revenue . we can not foresee whether the outbreak of covid-19 will be effectively contained , nor can we predict the severity and duration of its impact . if the outbreak of covid-19 is not effectively and timely controlled , our business operations and financial condition may be materially and adversely affected as a result of the deteriorating market outlook for sales , the slowdown in regional and national economic growth , weakened liquidity and financial condition of our customers and vendors or other factors that we can not foresee . any of these factors and other factors beyond our control could have an adverse effect on the overall business environment , cause uncertainties , cause our business to suffer in ways that we can not predict and materially and adversely impact our business , financial condition and results of operations results of operations : year ended december 31 , 2019 and december 31 , 2018 a comparison of the statements of operations for the year ended december 31 , 2019 and 2018 is as follows : replace_table_token_5_th 31 sales for the year ended december 31 , 2019 were $ 19,277,058 , compared to $ 14,507,869 for the year ended december 31 , 2018. the increase of $ 4,769,189 or 32.9 % was a result of increased sales generated from a new contract from our ugo subsidiary . our gross margins for the year ended december 31 , 2019 were 5.3 % , compared to 7.8 % for the same period in 2018. the change in the gross margin was due to licensing revenue generated during the year ended december 31 , 2018 that had a very high gross margin . operating expenses for the year ended december 31 , 2019 were $ 177,067,794 , compared to $ 46,539,037 for the same period in 2019. the increase of $ 131,528,757 or 282.6 % was due to the fair value of warrants issued of $ 120,476,603 as a result of anti-dilution provisions in certain warrants previously issued and a charge $ 48,631,534 related to the impairment of assets during the year ended december 31 , 2019 compared to a charge of $ 7,132,286 during 2018 ; offset by i ) a decrease in common stock issued for services that went from $ 13,641,225

liquidity and capital resources our cash was $ 59,634 and $ 1,863,510 at december 31 , 2019 and 2018 , respectively . cash used in operating activities during the year ended december 31 , 2019 was $ 6,623,463 , compared to cash provided by operating activities of $ 4,651,829 during the same period in 2018. significant differences exist between the periods , including common stock and warrants issued for services , amortization of intangible assets , amortization of debt discount , financing costs , impairment of assets and unrealized gain on marketable equity securities . our working capital position worsened going from a working capital deficit of $ 3,797,666 at december 31 , 2018 to a working capital deficit of $ 11,830,572 at december 31 , 2019 , principally as a result of the decrease in marketable equity securities ; an increase in accounts payable and accrued expenses ; an increase in accrued settlement and an increase in note payable . cash flows used in investing activities were $ 1,152,418 during the year ended december 31 , 2019 , compared to $ 479,979 for the same period in 2018. the increase is due to the amount paid for an investment during the year ended december 31 , 2019. cash from financing activities for the year ended december 31 , 2019 was $ 5,972,005 , compared to $ 5,690,256 for the same period in 2018. the increase is due to the issuance of a convertible notes and the sale of common stock in 2019. we sustained net losses of $ 186,505,119 for the year ended december 31 , 2019. in addition , we had a working capital deficit of $ 11,830,572 and accumulated deficit of $ 252,656,451 at december 31 , 2019. in september of 2017 we purchased the assets of rwj advanced marketing , llc , and then after ecs prepaid llc , electronic check services , inc. and central states legal services , inc. in 2018. rwj and ecs have historically generated significant revenues which we do not expect to continue in the future , as the company divested its investment in ecs prepaid llc , electronic check services , inc. and central states legal services ,


 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 our cash was $ 59,634 and $ 1,863,510 at december 31 , 2019 and 2018 , respectively . cash used in operating activities during the year ended december 31 , 2019 was $ 6,623,463 , compared to cash provided by operating activities of $ 4,651,829 during the same period in 2018. significant differences exist between the periods , including common stock and warrants issued for services , amortization of intangible assets , amortization of debt discount , financing costs , impairment of assets and unrealized gain on marketable equity securities . our working capital position worsened going from a working capital deficit of $ 3,797,666 at december 31 , 2018 to a working capital deficit of $ 11,830,572 at december 31 , 2019 , principally as a result of the decrease in marketable equity securities ; an increase in accounts payable and accrued expenses ; an increase in accrued settlement and an increase in note payable . cash flows used in investing activities were $ 1,152,418 during the year ended december 31 , 2019 , compared to $ 479,979 for the same period in 2018. the increase is due to the amount paid for an investment during the year ended december 31 , 2019. cash from financing activities for the year ended december 31 , 2019 was $ 5,972,005 , compared to $ 5,690,256 for the same period in 2018. the increase is due to the issuance of a convertible notes and the sale of common stock in 2019. we sustained net losses of $ 186,505,119 for the year ended december 31 , 2019. in addition , we had a working capital deficit of $ 11,830,572 and accumulated deficit of $ 252,656,451 at december 31 , 2019. in september of 2017 we purchased the assets of rwj advanced marketing , llc , and then after ecs prepaid llc , electronic check services , inc. and central states legal services , inc. in 2018. rwj and ecs have historically generated significant revenues which we do not expect to continue in the future , as the company divested its investment in ecs prepaid llc , electronic check services , inc. and central states legal services ,
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 Suspicious Activity Report : on march 16 , 2018 ( “ closing date ” ) , the company entered into and closed an asset purchase agreement dated march 1 , 2018 ( the “ ecs purchase agreement ” ) with ecs prepaid llc ( “ ecs ” ) , a missouri limited liability company , pursuant to which the company purchased certain assets from ecs , including , but not limited to , the processing prepaid platform , servers , pos terminals , customer list , a processing software program and goodwill , in consideration of $ 1,100,000 of which $ 100,000 was paid on the closing date and the balance is to be paid pursuant to a secured promissory note in the amount of $ 1,000,000 ( the “ ecs note ” ) . in addition , the company issued 500,000 shares of common stock of the company ( the “ ecs shares ” ) and warrants to purchase 500,000 shares of common stock ( the “ ecs warrants ” ) . the ecs warrants were assigned by ecs to dennis winfrey . the ecs warrants are exercisable for a period of five years at a fixed exercise price of $ 1.85 per share and contain standard anti-dilution protection . under the esc note , which is secured by the assets acquired by the company from ecs , the company is required to make ten equal payments of $ 100,000 commencing on april 15 , 2018. the company may prepay the ecs note at any time without penalty . the ecs note is a short-term debt obligation that is material to the company . on april 2 , 2018 ( “ closing date ” ) , the company entered into and closed an asset purchase agreement ( the “ electronic purchase agreement ” ) with electronic check services inc. ( “ electronic check ” ) , a missouri corporation , pursuant to which the company purchased certain assets from electronic check , including , but not limited to , assets associated with software that validates written check authenticity , in consideration of $ 75,000 paid on the closing date . in addition , the company issued 250,000 shares of common stock of the company ( the “ electronic shares ” ) and warrants to purchase 250,000 shares of common stock ( the “ electronic warrants ” ) . the electronic warrants were assigned by electronic check to dennis winfrey , the shareholder of electronic check . the electronic warrants are exercisable for a period of five years at a fixed exercise price of $ 2.70 per share and contain standard anti-dilution protection . on april 2 , 2018 , the company entered into and closed an asset purchase agreement ( the “ central purchase agreement ” ) with central state legal services inc. ( “ central ” ) , a missouri corporation , pursuant to which the company purchased certain assets from central , including , but not limited to , assets associated with the a system to recover funds from returned checks , in consideration of $ 25,000 paid on the closing date . derron winfrey , the coo of the company , is a director and president of electronic check and central . derron winfrey 's parents are the shareholders of check and central . on or around november 10 , 2017 , ugopherservices experienced a suspension of operations on the terminals that the company acquired in its acquisition on september 1 , 2017 from rwj advanced marketing llc . management of the company believes that this shutdown came as a result of the decision of paypal holdings inc. ( “ paypal ” ) decision to suspend operations of tio networks ( “ tio ” ) , and appears to have affected all of tio 's customers . tio was acquired by paypal in or around july 2017. prior to the suspension , the company received no notice from tio , or from rwj advanced marketing llc , which sold the assets to ugopherservices , that the suspension would be taking place . although the company worked diligently to contain the fallout from the suspension of operations by tio , the vast majority of the customers that were acquired as part of the transaction defected as a result . the subsequent acquisition of ecs was done partly to stem the customer defections , as many of the customers of ugopherservices sought the services of ecs . in doing so , the company got many , though not all , of the customers back . on a combined basis , there were approximately 9,400 points of sale as a result of acquiring certain assets from both rwj advanced marketing llc and ecs . 27 the company is currently in litigation with rwj advanced marketing , llc , its executives and other third parties , and wrote off a substantial portion of its investment in ugopherservices from september 1 , 2017. the company 's position is that it was defrauded by the seller and certain third parties due to the lack of disclosure of tio 's decision to suspend operations . on september 30 , 2019 , the company entered into an asset purchase agreement with surge holdings , inc. , a nevada corporation ( “ surg ” ) pursuant to which the company agreed to sell and assign to surg all the assets and certain specified liabilities of its ecs prepaid , electronic check services and the central state legal services businesses in consideration of $ 5,000,000 to be paid through the issuance of 3,333,333 shares of surg 's common stock and a convertible promissory note in favor of the company in the principal amount of $ 4,000,000. the 3,333,333 shares of surg 's common stock have been pledged to a third party for providing working capital needs of the company . story_separator_special_tag the purpose of gbt tokenize is to develop , maintain and support source codes for its proprietary technologies including advanced mobile chip technologies , tracking , radio technologies , ai core engine , electronic design automation , mesh , games , data storage , networking , it services , business process outsourcing development services , customer service , technical support and quality assurance for business , customizable and dedicated inbound and outbound calls solutions , as well as digital communications processing for enterprises and startups ( “ technology portfolio ” ) , throughout the state of california . upon generating any revenue from the technology portfolio , the joint venture will earn the first right of refusal for other territories . tokenize shall contribute the services and resources for the development of the technology portfolio to gbt tokenize . the company shall contribute 100,000,000 shares of common stock of the company ( “ gbt shares ” ) to gbt tokenize . tokenize and the company will each own 50 % of gbt tokenize . the company pledged its 50 % ownership in gbt tokenize and its 100 % ownership of greenwich to tokenize to secure its technology portfolio investment . the company shall appoint two directors and tokenize shall appoint one director of gbt tokenize . 30 in addition , gbt tokenize and gonzalez entered into a consulting agreement in which gonzalez is engaged to provide services in consideration of $ 33,333.33 per month payable quarterly which may be paid in shares of common stock calculated by the amount owed divided by the company 's 10-day vwap . gonzalez will provide services in connection with the development of the business as well as gbt tokenize 's capital raising efforts . the term of the consulting agreement is two years . the closing of the tokenize agreement occurred on march 9 , 2020. covid-19 pandemic the company operates in a high-tech marketplace and relies on professionals and partnerships all over the world , which is impacted by the global pandemic , causing the company 's resources to be affected . our business operations have been and may continue to be materially and adversely affected by the coronavirus disease covid-19 . an outbreak of respiratory illness caused by covid-19 emerged in wuhan city , hubei province , prc , in late 2019 and has been expanding globally . covid-19 is considered to be highly contagious and poses a serious public health threat . on march 19 , 2020 , the california governor announced the lockdown of california in an attempt to slow the spread of the virus . since then , other measures have been imposed in other countries and major cities in the usa , including los angeles , and throughout the world in an effort to contain the covid-19 outbreak . the world health organization ( the “ who ” ) is closely monitoring and evaluating the situation . on march 11 , 2020 , the who declared the outbreak of covid-19 a pandemic , expanding its assessment of the threat beyond the global health emergency it had announced in january . any outbreak of such epidemic illness or other adverse public health developments in the usa or elsewhere in the world may materially and adversely affect the global economy , our markets and our business . in the first quarter of 2020 , the covid-19 outbreak has caused disruptions in our development operations , which have resulted in delays on exiting projects . a prolonged disruption or any further unforeseen delay in our operations of the development , delivery and assembly process within any of our activities could continue to result in , increased costs and reduced revenue . we can not foresee whether the outbreak of covid-19 will be effectively contained , nor can we predict the severity and duration of its impact . if the outbreak of covid-19 is not effectively and timely controlled , our business operations and financial condition may be materially and adversely affected as a result of the deteriorating market outlook for sales , the slowdown in regional and national economic growth , weakened liquidity and financial condition of our customers and vendors or other factors that we can not foresee . any of these factors and other factors beyond our control could have an adverse effect on the overall business environment , cause uncertainties , cause our business to suffer in ways that we can not predict and materially and adversely impact our business , financial condition and results of operations results of operations : year ended december 31 , 2019 and december 31 , 2018 a comparison of the statements of operations for the year ended december 31 , 2019 and 2018 is as follows : replace_table_token_5_th 31 sales for the year ended december 31 , 2019 were $ 19,277,058 , compared to $ 14,507,869 for the year ended december 31 , 2018. the increase of $ 4,769,189 or 32.9 % was a result of increased sales generated from a new contract from our ugo subsidiary . our gross margins for the year ended december 31 , 2019 were 5.3 % , compared to 7.8 % for the same period in 2018. the change in the gross margin was due to licensing revenue generated during the year ended december 31 , 2018 that had a very high gross margin . operating expenses for the year ended december 31 , 2019 were $ 177,067,794 , compared to $ 46,539,037 for the same period in 2019. the increase of $ 131,528,757 or 282.6 % was due to the fair value of warrants issued of $ 120,476,603 as a result of anti-dilution provisions in certain warrants previously issued and a charge $ 48,631,534 related to the impairment of assets during the year ended december 31 , 2019 compared to a charge of $ 7,132,286 during 2018 ; offset by i ) a decrease in common stock issued for services that went from $ 13,641,225

