the company also expressed that although it believed its facilities were fully compliant at the time , the company did not know how its facilities would fare under the new rules and that the company expected to have a full understanding of the implications within the next two months . teams of inspectors from the government were sent to many provinces to inspect all mining and manufacturing facilities . the local government requested that facilities be closed , so that the facilities can undergo the inspection and analysis in the most efficient manner by inspectors ' team . as a result , our facilities were closed on september 1 , 2017. subsequently , the safety supervision and administration department and the environmental protection departments of the local government conducted inspections of every bromine production enterprise within its jurisdiction , in order to improve security , environmental protections , pollution , and safety . the company had been working closely with the county authorities to develop rectification plans for both its bromine and its chemical businesses . the company and the government had agreed on a rectification plan for schc , the company 's bromine and crude salt businesses which is currently under process . the company worked closely with the county authorities to develop rectification plans for both its bromine and crude salt businesses and agreed on a plan in october 2017. in the fiscal year ended december 31 , 2018 , the company incurred $ 16,243,677 in the rectification and improvements of plant and equipment of the bromine and crude salt factories resulting in a cumulative amount of $ 34,182,329 incurred as of december 31 , 2018. based on the renewed mining certificate , schc is limited to produce up to 24,000 tons of bromine per year , we believe this is sufficient for its production utilization rate .the shouguang city bromine association , on behalf of all the bromine plants in shouguang , has started discussions with the local government agencies . the local governmental agencies confirmed the facts that their initial requirements for the bromine industry did not include the project approval , the planning approval and the land use rights approval and that those three additional approvals were new requirements of the provincial government . the company understood from the local government that it has been coordinating with several government agencies to solve these three outstanding approval issues in a timely manner and that all the affected bromine plants are not allowed to commence production prior to obtaining those approvals . in april 2019 , factory no.1 , factory no.5 and factory no.7 ( factory no . 5 is considered part of factory no.7 and both are managed as one factory since 2010 ) restarted operations upon receipt of verbal notification from local government of yangkou county . on may 7 , 2019 , the company renamed its subdivision factory no . 1 to factory no . 4 ; and factory no . 5 ( which was previously considered part of factory no . 7 ) to factory no . 7 . 21 the company is not certain when the issuance of the approval documents will be effected . the company believes that this is another step by the government to improve the environment . it further believes the goal of the government is not to close all plants , but rather to codify the regulations related to project approval , land use , planning approval and environmental protection assessment approval so that illegal plants are not able to open in the future and so that plants close to population centers do not cause serious environmental damage . in addition , the company believes that the shandong provincial government wants to assure that each of its regional and county governments has applied the notice in a consistent manner . the company believes the issues related to the remaining three bromine and crude salt factories which have passed inspection are almost resolved . the company is actively working with the local government to obtain the documentation for approval of project , planning , land use rights and environmental protection evaluation . on november 24 , 2017 , gulf resources received a letter from the people 's government of yangkou county , shouguang city notifying the company that due to the new standards and regulations relating to safety production and environmental pollution , from certain local governmental departments , such as the municipal environmental protection department , the security supervision department and the fire department , decided to relocate chemical enterprises to a new industrial park called bohai marine fine chemical industry park . chemical companies that are not being asked to move into the park will be permanently closed . although we are in compliance with regulations within the county due to the proximity of our subsidiary , syci 's production plant to a residential area , we have been asked to relocate our chemical production plant to bohai marine fine chemical industry park . however , we must not commence activities until we have relocated the production plant and received inspection approval from related departments . the company has secured from the government the land use rights for its chemical plants located at the bohai park and presented a completed construction design draft and other related documents to the local authorities for approval . on january 6 , 2020 , the company received the environmental protection approval by the government of shouguang city , shandong province for the proposed yuxin chemical factory . the environmental protection approval was the last approval required before commencing construction . with this approval , gulf resources plans to begin construction in may 2020. in january 2017 , the company completed the first brine water and natural gas well field construction in sichuan province and announced the commencement of trial production . story_separator_special_tag other income , net , which represent bank interest income , net of finance lease interest expense was $ 301,325 for the fiscal year 2019 , an decrease of $ 199,365 ( or approximately 40 % ) as compared to the same period in 2018. net income ( loss ) . net loss was $ 25,800,045 for the fiscal year 2019 , compared to net loss of $ 69,963,986 in the same period in 2018. this decrease in the net loss was attributable to resume production and sales of two factories . effective tax rate . our effective income tax ( expense ) benefit rate for the fiscal years 2019 and 2018 were ( 12 % ) and 16 % respectively . this was mainly due to an increase in valuation allowance of $ 8,672,817 in the fiscal year 2019. the effective income tax benefit rate of 16 % for the fiscal year 2018 differs from the prc statutory income tax rate of 25 % mainly due to non-taxable item in connection with the unrealized exchange gain . 27 story_separator_special_tag bold 10pt times new roman , times , serif ; margin : 0pt 0 ; text-align : justify `` > contractual obligations and commitments we have no significant contractual obligations not fully recorded on our consolidated balance sheets or fully disclosed in the notes to our consolidated financial statements . additional information regarding our contractual obligations and commitments at december 31 , 2019 is provided in the notes to our consolidated financial statements . see “ notes to consolidated financial statements , note 19 - capital commitment and operating lease commitments . ” 29 material off-balance sheet arrangements we do not currently have any off-balance sheet arrangements falling within the definition of item 303 ( a ) of regulation s-k. critical accounting policies and estimates our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the united states of america ( u.s. gaap ) , which requires us to make judgments , estimates and assumptions . see “ note 1 – nature of business and summary of significant accounting policies , ” in notes to the consolidated financial statements , which is included in “ item 8. financial statements and supplementary data , ” which describes our significant accounting policies and methods used in the preparation of our consolidated financial statements . the methods , estimates and judgments that we use in applying our accounting policies require us to make difficult and subjective judgments , often as a result of the need to make estimates regarding matters that are inherently uncertain . our most critical estimates include : · allowance for doubtful accounts , which impacts revenue ; · the valuation of inventory , which impacts gross margins ; · impairment of long-lived assets ( including goodwill ) ; · the valuation and recognition of share-based compensation , which impacts operating expenses ; and · the recognition and measurement of deferred income taxes , which impact our provision for taxes . allowance for doubtful accounts we makes estimates of the uncollectibility of accounts receivable , especially analyzing accounts receivable and historical bad debts , customer concentrations , customer credit-worthiness , current economic trends and changes in customer payment terms , when evaluating the adequacy of the allowance for doubtful accounts . credit evaluations are undertaken for all major sale transactions before shipment is authorized . on a quarterly basis , we evaluate aged items in the accounts receivable aging report and provide an allowance in an amount we deem adequate for doubtful accounts . if management were to make different judgments or utilize different estimates , material differences in the amount of our reported operating expenses could result . inventory valuation inventory is stated at the lower of cost or market , with cost determined on a first-in first-out basis . the carrying value of inventory is reduced for estimated obsolescence by the difference between its cost and the estimated market value based upon assumptions about future demand . we evaluate the inventory carrying value for potential excess and obsolete inventory exposures by analyzing historical and anticipated demand . if actual future demand or market conditions are less favorable than those projected by management , additional inventory write-downs may be required in the future , which could have a material adverse effect on our results of operations . depreciation of property , plant and equipment property , plant and equipment are stated at cost less accumulated depreciation and any impairment losses . expenditures for new facilities or equipment , and major expenditures for betterment of existing facilities or equipment are capitalized and depreciated using the straight-line method at rates sufficient to depreciate such costs over the estimated productive lives . all other ordinary repair and maintenance costs are expensed as incurred . mineral rights are recorded at cost less accumulated depreciation and any impairment losses . mineral rights are amortized ratably over the term of the lease , or the equivalent term under the units of production method , whichever is shorter . in some situations , the life of the asset may be extended or shortened if circumstances arise that would lead us to believe that the estimated life of the asset has changed . the life of leasehold improvements may change based on the extension of lease contracts with our landlords . changes in the estimated lives of assets will result in an increase or decrease in the amount of depreciation recognized in future periods . 30 impairment of long lived assets we periodically evaluate whether events or circumstances have occurred that indicate long-lived assets may not be recoverable or that the remaining useful life may warrant revision . when such events or circumstances are present , we assess the recoverability of long-lived assets by determining whether the carrying value will be recovered through the expected undiscounted future cash flows resulting from the use of the asset . in the event the sum of

liquidity and capital resources as of december 31 , 2019 , cash and cash equivalents were $ 100,301,986 as compared to $ 178,998,935 as of december 31 , 2018. the components of this decrease of $ 78,696,949 are reflected below . replace_table_token_10_th for the fiscal years 2019 and 2018 , we met our working capital and capital investment requirements mainly by using cash flows from operations and cash on hand . net cash provided by operating activities during the year ended december 31 , 2019 , cash flow used in operating activities of approximately $ 15 million was mainly due to a net loss of $ 25.8 million , an increase in accounts receivable of $ 5.07 million , reduced by a non-cash adjustment related to a decrease in deferred tax assets of $ 2.7 million and to depreciation and amortization of property , plant and equipment . during the year ended december 31 , 2018 , cash flow from operating activities of approximately $ 17.3 million was more than our net loss of approximately $ 70.0 million mainly due to ( i ) cash used in working capital of approximately $ 30.8 million , which mainly consisted of the decrease in accounts receivable and decrease in inventories , which offset by decrease in retention payable ; and ( ii ) substantial non-cash charges of approximately $ 56.5 million , mainly in the form of depreciation and amortization of property , plant and equipment and loss on demolition of factory , which was offset by increased deferred tax assets .


 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 as of december 31 , 2019 , cash and cash equivalents were $ 100,301,986 as compared to $ 178,998,935 as of december 31 , 2018. the components of this decrease of $ 78,696,949 are reflected below . replace_table_token_10_th for the fiscal years 2019 and 2018 , we met our working capital and capital investment requirements mainly by using cash flows from operations and cash on hand . net cash provided by operating activities during the year ended december 31 , 2019 , cash flow used in operating activities of approximately $ 15 million was mainly due to a net loss of $ 25.8 million , an increase in accounts receivable of $ 5.07 million , reduced by a non-cash adjustment related to a decrease in deferred tax assets of $ 2.7 million and to depreciation and amortization of property , plant and equipment . during the year ended december 31 , 2018 , cash flow from operating activities of approximately $ 17.3 million was more than our net loss of approximately $ 70.0 million mainly due to ( i ) cash used in working capital of approximately $ 30.8 million , which mainly consisted of the decrease in accounts receivable and decrease in inventories , which offset by decrease in retention payable ; and ( ii ) substantial non-cash charges of approximately $ 56.5 million , mainly in the form of depreciation and amortization of property , plant and equipment and loss on demolition of factory , which was offset by increased deferred tax assets .
```    
 Suspicious Activity Report : the company also expressed that although it believed its facilities were fully compliant at the time , the company did not know how its facilities would fare under the new rules and that the company expected to have a full understanding of the implications within the next two months . teams of inspectors from the government were sent to many provinces to inspect all mining and manufacturing facilities . the local government requested that facilities be closed , so that the facilities can undergo the inspection and analysis in the most efficient manner by inspectors ' team . as a result , our facilities were closed on september 1 , 2017. subsequently , the safety supervision and administration department and the environmental protection departments of the local government conducted inspections of every bromine production enterprise within its jurisdiction , in order to improve security , environmental protections , pollution , and safety . the company had been working closely with the county authorities to develop rectification plans for both its bromine and its chemical businesses . the company and the government had agreed on a rectification plan for schc , the company 's bromine and crude salt businesses which is currently under process . the company worked closely with the county authorities to develop rectification plans for both its bromine and crude salt businesses and agreed on a plan in october 2017. in the fiscal year ended december 31 , 2018 , the company incurred $ 16,243,677 in the rectification and improvements of plant and equipment of the bromine and crude salt factories resulting in a cumulative amount of $ 34,182,329 incurred as of december 31 , 2018. based on the renewed mining certificate , schc is limited to produce up to 24,000 tons of bromine per year , we believe this is sufficient for its production utilization rate .the shouguang city bromine association , on behalf of all the bromine plants in shouguang , has started discussions with the local government agencies . the local governmental agencies confirmed the facts that their initial requirements for the bromine industry did not include the project approval , the planning approval and the land use rights approval and that those three additional approvals were new requirements of the provincial government . the company understood from the local government that it has been coordinating with several government agencies to solve these three outstanding approval issues in a timely manner and that all the affected bromine plants are not allowed to commence production prior to obtaining those approvals . in april 2019 , factory no.1 , factory no.5 and factory no.7 ( factory no . 5 is considered part of factory no.7 and both are managed as one factory since 2010 ) restarted operations upon receipt of verbal notification from local government of yangkou county . on may 7 , 2019 , the company renamed its subdivision factory no . 1 to factory no . 4 ; and factory no . 5 ( which was previously considered part of factory no . 7 ) to factory no . 7 . 21 the company is not certain when the issuance of the approval documents will be effected . the company believes that this is another step by the government to improve the environment . it further believes the goal of the government is not to close all plants , but rather to codify the regulations related to project approval , land use , planning approval and environmental protection assessment approval so that illegal plants are not able to open in the future and so that plants close to population centers do not cause serious environmental damage . in addition , the company believes that the shandong provincial government wants to assure that each of its regional and county governments has applied the notice in a consistent manner . the company believes the issues related to the remaining three bromine and crude salt factories which have passed inspection are almost resolved . the company is actively working with the local government to obtain the documentation for approval of project , planning , land use rights and environmental protection evaluation . on november 24 , 2017 , gulf resources received a letter from the people 's government of yangkou county , shouguang city notifying the company that due to the new standards and regulations relating to safety production and environmental pollution , from certain local governmental departments , such as the municipal environmental protection department , the security supervision department and the fire department , decided to relocate chemical enterprises to a new industrial park called bohai marine fine chemical industry park . chemical companies that are not being asked to move into the park will be permanently closed . although we are in compliance with regulations within the county due to the proximity of our subsidiary , syci 's production plant to a residential area , we have been asked to relocate our chemical production plant to bohai marine fine chemical industry park . however , we must not commence activities until we have relocated the production plant and received inspection approval from related departments . the company has secured from the government the land use rights for its chemical plants located at the bohai park and presented a completed construction design draft and other related documents to the local authorities for approval . on january 6 , 2020 , the company received the environmental protection approval by the government of shouguang city , shandong province for the proposed yuxin chemical factory . the environmental protection approval was the last approval required before commencing construction . with this approval , gulf resources plans to begin construction in may 2020. in january 2017 , the company completed the first brine water and natural gas well field construction in sichuan province and announced the commencement of trial production . story_separator_special_tag other income , net , which represent bank interest income , net of finance lease interest expense was $ 301,325 for the fiscal year 2019 , an decrease of $ 199,365 ( or approximately 40 % ) as compared to the same period in 2018. net income ( loss ) . net loss was $ 25,800,045 for the fiscal year 2019 , compared to net loss of $ 69,963,986 in the same period in 2018. this decrease in the net loss was attributable to resume production and sales of two factories . effective tax rate . our effective income tax ( expense ) benefit rate for the fiscal years 2019 and 2018 were ( 12 % ) and 16 % respectively . this was mainly due to an increase in valuation allowance of $ 8,672,817 in the fiscal year 2019. the effective income tax benefit rate of 16 % for the fiscal year 2018 differs from the prc statutory income tax rate of 25 % mainly due to non-taxable item in connection with the unrealized exchange gain . 27 story_separator_special_tag bold 10pt times new roman , times , serif ; margin : 0pt 0 ; text-align : justify `` > contractual obligations and commitments we have no significant contractual obligations not fully recorded on our consolidated balance sheets or fully disclosed in the notes to our consolidated financial statements . additional information regarding our contractual obligations and commitments at december 31 , 2019 is provided in the notes to our consolidated financial statements . see “ notes to consolidated financial statements , note 19 - capital commitment and operating lease commitments . ” 29 material off-balance sheet arrangements we do not currently have any off-balance sheet arrangements falling within the definition of item 303 ( a ) of regulation s-k. critical accounting policies and estimates our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the united states of america ( u.s. gaap ) , which requires us to make judgments , estimates and assumptions . see “ note 1 – nature of business and summary of significant accounting policies , ” in notes to the consolidated financial statements , which is included in “ item 8. financial statements and supplementary data , ” which describes our significant accounting policies and methods used in the preparation of our consolidated financial statements . the methods , estimates and judgments that we use in applying our accounting policies require us to make difficult and subjective judgments , often as a result of the need to make estimates regarding matters that are inherently uncertain . our most critical estimates include : · allowance for doubtful accounts , which impacts revenue ; · the valuation of inventory , which impacts gross margins ; · impairment of long-lived assets ( including goodwill ) ; · the valuation and recognition of share-based compensation , which impacts operating expenses ; and · the recognition and measurement of deferred income taxes , which impact our provision for taxes . allowance for doubtful accounts we makes estimates of the uncollectibility of accounts receivable , especially analyzing accounts receivable and historical bad debts , customer concentrations , customer credit-worthiness , current economic trends and changes in customer payment terms , when evaluating the adequacy of the allowance for doubtful accounts . credit evaluations are undertaken for all major sale transactions before shipment is authorized . on a quarterly basis , we evaluate aged items in the accounts receivable aging report and provide an allowance in an amount we deem adequate for doubtful accounts . if management were to make different judgments or utilize different estimates , material differences in the amount of our reported operating expenses could result . inventory valuation inventory is stated at the lower of cost or market , with cost determined on a first-in first-out basis . the carrying value of inventory is reduced for estimated obsolescence by the difference between its cost and the estimated market value based upon assumptions about future demand . we evaluate the inventory carrying value for potential excess and obsolete inventory exposures by analyzing historical and anticipated demand . if actual future demand or market conditions are less favorable than those projected by management , additional inventory write-downs may be required in the future , which could have a material adverse effect on our results of operations . depreciation of property , plant and equipment property , plant and equipment are stated at cost less accumulated depreciation and any impairment losses . expenditures for new facilities or equipment , and major expenditures for betterment of existing facilities or equipment are capitalized and depreciated using the straight-line method at rates sufficient to depreciate such costs over the estimated productive lives . all other ordinary repair and maintenance costs are expensed as incurred . mineral rights are recorded at cost less accumulated depreciation and any impairment losses . mineral rights are amortized ratably over the term of the lease , or the equivalent term under the units of production method , whichever is shorter . in some situations , the life of the asset may be extended or shortened if circumstances arise that would lead us to believe that the estimated life of the asset has changed . the life of leasehold improvements may change based on the extension of lease contracts with our landlords . changes in the estimated lives of assets will result in an increase or decrease in the amount of depreciation recognized in future periods . 30 impairment of long lived assets we periodically evaluate whether events or circumstances have occurred that indicate long-lived assets may not be recoverable or that the remaining useful life may warrant revision . when such events or circumstances are present , we assess the recoverability of long-lived assets by determining whether the carrying value will be recovered through the expected undiscounted future cash flows resulting from the use of the asset . in the event the sum of

