our technology and solutions include : digital merchandising systems and omni-channel customer engagement systems ; content creation , production and scheduling programs and systems ; a comprehensive series of recurring maintenance , support , and field service offerings ; interactive digital shopping assistants , advisors and kiosks ; and , other interactive marketing technologies such as mobile , social media , point-of-sale transactions , beaconing and web-based media that enable our customers to transform how they engage with consumers . our main operations are conducted directly through creative realities , inc. and our wholly owned subsidiaries allure global solutions , inc. , a georgia corporation , creative realities canada , inc. , a canadian corporation , and conexus world global , llc , a kentucky limited liability company . our other wholly owned subsidiary creative realities , llc , a delaware limited liability company , has been effectively dormant since october 2015 , the date of the merger with conexus world global , llc . we generate revenue in our business by : ● consulting with our customers to determine the technologies and solutions required to achieve their specific goals , strategies and objectives ; ● designing our customers ' digital marketing experiences , content and interfaces ; ● engineering the systems architecture delivering the digital marketing experiences we design – both software and hardware – and integrating those systems into a customized , reliable and effective digital marketing experience ; ● managing the efficient , timely and cost-effective deployment of our digital marketing technology solutions for our customers ; ● delivering and updating the content of our digital marketing technology solutions using a suite of advanced media , content and network management software products ; and ● maintaining our customers ' digital marketing technology solutions by : providing content production and related services ; creating additional software-based features and functionality ; hosting the solutions ; monitoring solution service levels ; and responding to and or managing remote or onsite field service maintenance , troubleshooting and support calls . these activities generate revenue through : bundled-solution sales ; consulting services , experience design , content development and production , software development , engineering , implementation , and field services ; software license fees ; and maintenance and support services related to our software , managed systems and solutions . our sources of revenue we generate revenue through digital marketing solution sales , which include system hardware , professional and implementation services , software design and development , software licensing , deployment , and maintenance and support services . 21 we currently market and sell our technology and solutions primarily through our sales and business development personnel , but we also utilize agents , strategic partners , and lead generators who provide us with access to additional sales , business development and licensing opportunities . our expenses our expenses are primarily comprised of three categories : sales and marketing , research and development , and general and administrative . sales and marketing expenses include salaries and benefits for our sales , business development solution management and marketing personnel , and commissions paid on sales . this category also includes amounts spent on marketing networking events , promotional materials , hardware and software to prospective new customers , including those expenses incurred in trade shows and product demonstrations , and other related expenses . our research and development expenses represent the salaries and benefits of those individuals who develop and maintain our proprietary software platforms and other software applications we design and sell to our customers . our general and administrative expenses consist of corporate overhead , including administrative salaries , real property lease payments , salaries and benefits for our corporate officers and other expenses such as legal and accounting fees . critical accounting policies and estimates our management is responsible for our financial statements and has evaluated the accounting policies to be used in their preparation . our management believes these policies are reasonable and appropriate . the company 's significant accounting policies are described in note 2 summary of significant accounting policies of the company 's consolidated financial statements included within part ii , item 8 of this report . the following discussion identifies those accounting policies that we believe are critical in the preparation of our financial statements , the judgments and uncertainties affecting the application of those policies and the possibility that materially different amounts will be reported under different conditions or using different assumptions . the preparation of financial statements in conformity with gaap requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . our actual results could differ from those estimates . revenue recognition on january 1 , 2018 , we adopted financial accounting standards board ( “ fasb ” ) accounting standards codification ( “ asc ” ) 606 , revenue from contracts with customers ( “ asc 606 ” ) using the modified retrospective method for all contracts not completed as of the date of adoption . results for reporting periods beginning on or after january 1 , 2018 are presented under asc 606 , while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period . under this method , we concluded that the cumulative effect of applying this guidance was not material to the financial statements and no adjustment to the opening balance of accumulated deficit was required on the adoption date . story_separator_special_tag interest expense see note 9 loans payable to the consolidated financial statements for a discussion of the company 's debt and related interest expense obligations . change in fair value of warrant liability all of the company 's outstanding warrants classified as liabilities expired during the three months ended september 30 , 2019. see note 6 fair value measurement to the consolidated financial statements for a discussion of the company 's non-cash change in warrant liability . gain on settlement of obligations during the year ended december 31 , 2019 , the company settled and or wrote off obligations of $ 3,178 for $ 1,132 cash payment and recognized a gain of $ 2,046 . $ 1,619 of this gain related to settlement of legacy sales commissions due to a third-party vendor which were settled with a cash payment of $ 1,100 during the three-months ended december 31 , 2019. the remaining settlements related to legacy accounts payable deemed to no longer be legal obligations to vendors . in 2018 , the company settled and or wrote off obligations of $ 313 for $ 58 cash payment and recognized a gain of $ 255. this obligation included $ 30 of accrued wage labor liabilities no longer anticipated to be pursued against the company . 26 debt conversion expense the company recorded debt conversion expense of $ 5,055 in connection with issuance of incentive shares issued upon conversion of the convertible promissory notes into common stock on november 19 , 2018 in conjunction with the public offering . see note 9 loans payable to the consolidated financial statements . there was no such corresponding activity and expense in 2019. dividends on preferred stock the company issued common stock dividends on series a convertible preferred stock of $ 345 during the year-ended december 31 , 2018. there was no outstanding preferred stock in 2019 and no such dividends were issued during the year-ended december 31 , 2019. preferred stock conversion expense the company recorded preferred stock conversion expense of $ 3,932 , which is reflected as a loss to common shareholders , in connection with issuance of incentive shares issued upon conversion of the series a preferred stock into common stock on november 19 , 2018 in conjunction with the public offering . see note 13 convertible preferred stock to the consolidated financial statements . there was no such corresponding activity and expense in 2019. summary unaudited quarterly financial information the following represents unaudited financial information derived from the company 's annual and quarterly financial statements : replace_table_token_2_th replace_table_token_3_th supplemental operating results on a non-gaap basis the following non-gaap data , which adjusts for the categories of expenses described below , is a non-gaap financial measure . our management believes that this non-gaap financial measure is useful information for investors , shareholders and other stakeholders of our company in gauging our results of operations on an ongoing basis . we believe that ebitda is a performance measure and not a liquidity measure , and therefore a reconciliation between net loss/income and ebitda and adjusted ebitda has been provided . ebitda should not be considered as an alternative to net loss/income as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of cash flows , in each case as determined in accordance with gaap , or as a measure of liquidity . in addition , ebitda does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows . we do not intend the presentation of these non-gaap measures to be considered in isolation or as a substitute for results prepared in accordance with gaap . these non-gaap measures should be read only in conjunction with our consolidated financial statements prepared in accordance with gaap . 27 replace_table_token_4_th story_separator_special_tag 10pt `` > on november 9 , 2018 , slipstream extended the maturity date of our term loan and revolving loan to august 16 , 2020. in conjunction with the extension of the maturity date of our term loan , we agreed that the cash portion of the interest rate would increase from 8.0 % per annum to 10.0 % per annum effective july 1 , 2019 . 28 management believes that , based on ( i ) the extension of the maturity date on our term loan and revolving loans , and ( ii ) our operational forecast through 2021 , we can continue as a going concern through at least march 31 , 2021. however , given our net losses , cash used in operating activities and working capital deficit , we obtained a continued support letter from slipstream through march 31 , 2021. we can provide no assurance that our ongoing operational efforts will be successful which could have a material adverse effect on our results of operations and cash flows . see note 9 loans payable to the consolidated financial statements for an additional discussion of the company 's debt obligations . operating activities we do not currently generate positive cash flow . our operational costs have been greater than sales generated to date . as of december 31 , 2019 , we had an accumulated deficit of $ 35,643. the cash flows used in operating activities was ( $ 970 ) and ( $ 1,564 ) for the years ended december 31 , 2019 and 2018 , respectively . the majority of the cash consumed by operations for both periods was attributed to our net losses . for the years ended december 31 , 2019 and 2018 , our net loss attributable to common shareholders was $ ( 1,008 ) and ( $ 15,191 ) when adjusted for gain on settlements of obligations , respectively . included in our net losses were non-cash charges consisting of depreciation , amortization of debt discount related to convertible preferred stock / issued for debt-issuance costs , change in warrant liability , stock-based compensation

liquidity and capital resources we produced net income for the year ended december 31 , 2019 but incurred a net loss for the year ended december 31 , 2018 and have negative cash flows from operating activities as of december 31 , 2019. as of december 31 , 2019 , we had cash and cash equivalents of $ 2,534 and a working capital deficit of $ 2,449. on november 6 , 2019 , slipstream extended the maturity date of our term loan and revolver loan to june 30 , 2021 through the sixth amendment to the loan and security agreement , aligning the maturity date of our term loan and revolver loan with the secured disbursed escrow promissory note . on december 30 , 2019 , we entered into the secured convertible special loan promissory note ( “ special loan ” ) as part of the seventh amendment of the loan and security agreement with slipstream , under which we obtained $ 2,000 , with interest thereon at 8 % per annum payable 6 % in cash and 2 % via the issuance of paid-in-kind ( “ slpik ” ) interest , provided however that upon occurrence of an event of default the interest rate shall automatically be increased by 6 % per annum payable in cash.


 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 we produced net income for the year ended december 31 , 2019 but incurred a net loss for the year ended december 31 , 2018 and have negative cash flows from operating activities as of december 31 , 2019. as of december 31 , 2019 , we had cash and cash equivalents of $ 2,534 and a working capital deficit of $ 2,449. on november 6 , 2019 , slipstream extended the maturity date of our term loan and revolver loan to june 30 , 2021 through the sixth amendment to the loan and security agreement , aligning the maturity date of our term loan and revolver loan with the secured disbursed escrow promissory note . on december 30 , 2019 , we entered into the secured convertible special loan promissory note ( “ special loan ” ) as part of the seventh amendment of the loan and security agreement with slipstream , under which we obtained $ 2,000 , with interest thereon at 8 % per annum payable 6 % in cash and 2 % via the issuance of paid-in-kind ( “ slpik ” ) interest , provided however that upon occurrence of an event of default the interest rate shall automatically be increased by 6 % per annum payable in cash.
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 Suspicious Activity Report : our technology and solutions include : digital merchandising systems and omni-channel customer engagement systems ; content creation , production and scheduling programs and systems ; a comprehensive series of recurring maintenance , support , and field service offerings ; interactive digital shopping assistants , advisors and kiosks ; and , other interactive marketing technologies such as mobile , social media , point-of-sale transactions , beaconing and web-based media that enable our customers to transform how they engage with consumers . our main operations are conducted directly through creative realities , inc. and our wholly owned subsidiaries allure global solutions , inc. , a georgia corporation , creative realities canada , inc. , a canadian corporation , and conexus world global , llc , a kentucky limited liability company . our other wholly owned subsidiary creative realities , llc , a delaware limited liability company , has been effectively dormant since october 2015 , the date of the merger with conexus world global , llc . we generate revenue in our business by : ● consulting with our customers to determine the technologies and solutions required to achieve their specific goals , strategies and objectives ; ● designing our customers ' digital marketing experiences , content and interfaces ; ● engineering the systems architecture delivering the digital marketing experiences we design – both software and hardware – and integrating those systems into a customized , reliable and effective digital marketing experience ; ● managing the efficient , timely and cost-effective deployment of our digital marketing technology solutions for our customers ; ● delivering and updating the content of our digital marketing technology solutions using a suite of advanced media , content and network management software products ; and ● maintaining our customers ' digital marketing technology solutions by : providing content production and related services ; creating additional software-based features and functionality ; hosting the solutions ; monitoring solution service levels ; and responding to and or managing remote or onsite field service maintenance , troubleshooting and support calls . these activities generate revenue through : bundled-solution sales ; consulting services , experience design , content development and production , software development , engineering , implementation , and field services ; software license fees ; and maintenance and support services related to our software , managed systems and solutions . our sources of revenue we generate revenue through digital marketing solution sales , which include system hardware , professional and implementation services , software design and development , software licensing , deployment , and maintenance and support services . 21 we currently market and sell our technology and solutions primarily through our sales and business development personnel , but we also utilize agents , strategic partners , and lead generators who provide us with access to additional sales , business development and licensing opportunities . our expenses our expenses are primarily comprised of three categories : sales and marketing , research and development , and general and administrative . sales and marketing expenses include salaries and benefits for our sales , business development solution management and marketing personnel , and commissions paid on sales . this category also includes amounts spent on marketing networking events , promotional materials , hardware and software to prospective new customers , including those expenses incurred in trade shows and product demonstrations , and other related expenses . our research and development expenses represent the salaries and benefits of those individuals who develop and maintain our proprietary software platforms and other software applications we design and sell to our customers . our general and administrative expenses consist of corporate overhead , including administrative salaries , real property lease payments , salaries and benefits for our corporate officers and other expenses such as legal and accounting fees . critical accounting policies and estimates our management is responsible for our financial statements and has evaluated the accounting policies to be used in their preparation . our management believes these policies are reasonable and appropriate . the company 's significant accounting policies are described in note 2 summary of significant accounting policies of the company 's consolidated financial statements included within part ii , item 8 of this report . the following discussion identifies those accounting policies that we believe are critical in the preparation of our financial statements , the judgments and uncertainties affecting the application of those policies and the possibility that materially different amounts will be reported under different conditions or using different assumptions . the preparation of financial statements in conformity with gaap requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . our actual results could differ from those estimates . revenue recognition on january 1 , 2018 , we adopted financial accounting standards board ( “ fasb ” ) accounting standards codification ( “ asc ” ) 606 , revenue from contracts with customers ( “ asc 606 ” ) using the modified retrospective method for all contracts not completed as of the date of adoption . results for reporting periods beginning on or after january 1 , 2018 are presented under asc 606 , while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior period . under this method , we concluded that the cumulative effect of applying this guidance was not material to the financial statements and no adjustment to the opening balance of accumulated deficit was required on the adoption date . story_separator_special_tag interest expense see note 9 loans payable to the consolidated financial statements for a discussion of the company 's debt and related interest expense obligations . change in fair value of warrant liability all of the company 's outstanding warrants classified as liabilities expired during the three months ended september 30 , 2019. see note 6 fair value measurement to the consolidated financial statements for a discussion of the company 's non-cash change in warrant liability . gain on settlement of obligations during the year ended december 31 , 2019 , the company settled and or wrote off obligations of $ 3,178 for $ 1,132 cash payment and recognized a gain of $ 2,046 . $ 1,619 of this gain related to settlement of legacy sales commissions due to a third-party vendor which were settled with a cash payment of $ 1,100 during the three-months ended december 31 , 2019. the remaining settlements related to legacy accounts payable deemed to no longer be legal obligations to vendors . in 2018 , the company settled and or wrote off obligations of $ 313 for $ 58 cash payment and recognized a gain of $ 255. this obligation included $ 30 of accrued wage labor liabilities no longer anticipated to be pursued against the company . 26 debt conversion expense the company recorded debt conversion expense of $ 5,055 in connection with issuance of incentive shares issued upon conversion of the convertible promissory notes into common stock on november 19 , 2018 in conjunction with the public offering . see note 9 loans payable to the consolidated financial statements . there was no such corresponding activity and expense in 2019. dividends on preferred stock the company issued common stock dividends on series a convertible preferred stock of $ 345 during the year-ended december 31 , 2018. there was no outstanding preferred stock in 2019 and no such dividends were issued during the year-ended december 31 , 2019. preferred stock conversion expense the company recorded preferred stock conversion expense of $ 3,932 , which is reflected as a loss to common shareholders , in connection with issuance of incentive shares issued upon conversion of the series a preferred stock into common stock on november 19 , 2018 in conjunction with the public offering . see note 13 convertible preferred stock to the consolidated financial statements . there was no such corresponding activity and expense in 2019. summary unaudited quarterly financial information the following represents unaudited financial information derived from the company 's annual and quarterly financial statements : replace_table_token_2_th replace_table_token_3_th supplemental operating results on a non-gaap basis the following non-gaap data , which adjusts for the categories of expenses described below , is a non-gaap financial measure . our management believes that this non-gaap financial measure is useful information for investors , shareholders and other stakeholders of our company in gauging our results of operations on an ongoing basis . we believe that ebitda is a performance measure and not a liquidity measure , and therefore a reconciliation between net loss/income and ebitda and adjusted ebitda has been provided . ebitda should not be considered as an alternative to net loss/income as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of cash flows , in each case as determined in accordance with gaap , or as a measure of liquidity . in addition , ebitda does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows . we do not intend the presentation of these non-gaap measures to be considered in isolation or as a substitute for results prepared in accordance with gaap . these non-gaap measures should be read only in conjunction with our consolidated financial statements prepared in accordance with gaap . 27 replace_table_token_4_th story_separator_special_tag 10pt `` > on november 9 , 2018 , slipstream extended the maturity date of our term loan and revolving loan to august 16 , 2020. in conjunction with the extension of the maturity date of our term loan , we agreed that the cash portion of the interest rate would increase from 8.0 % per annum to 10.0 % per annum effective july 1 , 2019 . 28 management believes that , based on ( i ) the extension of the maturity date on our term loan and revolving loans , and ( ii ) our operational forecast through 2021 , we can continue as a going concern through at least march 31 , 2021. however , given our net losses , cash used in operating activities and working capital deficit , we obtained a continued support letter from slipstream through march 31 , 2021. we can provide no assurance that our ongoing operational efforts will be successful which could have a material adverse effect on our results of operations and cash flows . see note 9 loans payable to the consolidated financial statements for an additional discussion of the company 's debt obligations . operating activities we do not currently generate positive cash flow . our operational costs have been greater than sales generated to date . as of december 31 , 2019 , we had an accumulated deficit of $ 35,643. the cash flows used in operating activities was ( $ 970 ) and ( $ 1,564 ) for the years ended december 31 , 2019 and 2018 , respectively . the majority of the cash consumed by operations for both periods was attributed to our net losses . for the years ended december 31 , 2019 and 2018 , our net loss attributable to common shareholders was $ ( 1,008 ) and ( $ 15,191 ) when adjusted for gain on settlements of obligations , respectively . included in our net losses were non-cash charges consisting of depreciation , amortization of debt discount related to convertible preferred stock / issued for debt-issuance costs , change in warrant liability , stock-based compensation

