with our mobile solution , employees can punch in and out from remote locations , as geo-positioning verifies the physical coordinates . biometric time clocks , including facial recognition , reduce time theft and help combat `` buddy punching . `` automated system notifications , real-time dashboards , and flexible configuration options all work to streamline operations . finally , employees , supervisors and executives have real-time access to data and business intelligence to optimize labor costing , improve labor scheduling , and control labor costs . hr services - our recurring hr services allows clients to focus on running their businesses because we take responsibility for all of the traditional payroll and hr functions . we provide three core levels of hr services , ranging from a cloud-based online compliance library , to an on-demand call center for all hr questions , and to a fully outsourced hr function . we also support discreet functions like payroll administration and the benefit enrollment process . data integration - our solutions also enable data integration with related third-party systems , such as 401 ( k ) , benefits , and insurance provider systems . 30 in addition to state-of-the-art platforms that are hosted in amazon aws and regular upgrades and releases , we provide clients with easy access to our skilled support team . our services and support representatives are knowledgeable not just in the asure solution , but also about best practices and change management strategies in the payroll and hcm industry . many of asure 's staff have professional certifications in payroll ( certified payroll professionals , cpps ) and human resources ( professional in human resources , phr , and senior professional in human resource , sphr , certifications ) . from installation to training and post-live support , our professional services team delivers a proficient client experience on a national scale . we sell our solutions through both direct and partner models . prospective clients learn about asure in a variety of ways , including advertising , web site searches , sales calls , public relations , referral channels , direct marketing , and social media . when prospective clients show an interest in asure , they are connected with a sales representative , who works to close the sale , via asure 's web site , phone , or a face-to-face meeting by discussing solutions that meet their needs . we track our marketing and sales activities to provide immediate insights into activities , leads and pipeline opportunities . our account management teams also work with clients to promote and sell additional solutions that are relevant for each client . we supplement our direct sales efforts with partner programs . by working with partners , we gain access to opportunities in various geographic and industry niches . asure has two distinct levels of partners : reseller partners and referral partners . reseller partners . reseller partners pay us recurring license fees to white label our solutions and then they focus on providing value-add services to their clients ( our indirect clients ) . there are generally two types of reseller partners : regional payroll providers and smb trusted advisors ( cpa , regional banks , and benefit brokers ) . regional payroll providers typically focus on a specific geographic area or industry . they have proven to be attractive alternatives for smbs ' payroll and hcm needs versus the one-size-fits-all national payroll companies that do not necessarily understand the local needs of many businesses . since trusted advisors are relied on by entrepreneurs and executives at smbs to advise on payroll and hr decisions , white labeling our solutions allows them to provide additional solutions directly to their clients . this deepens their client relationships and grows their revenue . asure 's reseller partners are also the primary source of asure 's acquisitions . since they already white label asure 's solutions , technology integration risk is lessened . by acquiring reseller partners , we gain a presence in specific geographic ( typically less densely populated u.s. metropolitan cities ) and industry niches . these acquisitions help asure gain scale by assuming all of the reseller partner 's revenue instead of just a recurring licensing fees ( which is typically a small percentage of their total revenue ) . reseller partners can continue to license our solutions with the opportunity to expand their available solutions , or they can come under the asure umbrella . referral partners . referral partners are typically the aforementioned trusted advisors ( e.g . , regional banks , cpas , and benefit brokers ) that provide us with smb leads but do not resell our solutions . since smbs rely on their trusted advisors to guide them in selecting payroll and hcm solutions , we have found this to be a fruitful source of leads . referral partners provide qualified leads that convert to clients at a higher rate than non-referral leads . we have been successful in nurturing some referral partners to become reseller partners over time as the referral relationships develop and they become more comfortable in the hcm space . we generate revenues from ( i ) fixed amounts charged per billing period plus a fee per employee or transaction processed and ( ii ) fixed amounts charged per billing period . we do not require clients to enter into long-term contractual commitments with us . our billing period varies by client based on when each client pays its employees , which may be weekly , bi-weekly , semi-monthly or monthly . we serve a diverse client base in terms of industry and geography . story_separator_special_tag we believe we have the appropriate development team to design and enhance our solution suite and integrated platform . amortization of intangible assets amortization expenses in 2020 were $ 9,547 , a decrease of $ ( 2,218 ) , or ( 18.9 ) % , as compared to $ 11,765 in 2019. amortization expenses as a percentage of revenues were 14.6 % and 16.1 % for 2020 and 2019 , respectively . in 2019 , we accelerated the amortization after a reassessment of the useful lives of certain trade names in relation to our rebranding efforts , resulting in an increase in amortization expense . impairment of goodwill there was no goodwill impairment recognized in 2020. during fiscal 2019 , we determined that the estimated fair value of our hcm reporting unit was less than its carrying value . therefore , we compared the carrying value of the reporting unit to its fair value in order to determine if an impairment exists . in addition to performing the income based approach discussed above we compared the market value of our common stock to our hcm reporting unit 's carrying value noting its carrying value exceeded market value . a non-cash , before-tax impairment charge of $ 35,060 was recognized to reduce the carrying amount of the goodwill to its estimated fair value as of december 31 , 2019. interest expense and other , net interest expense and other , net was $ ( 2,221 ) for the year ended 2020 as compared to $ ( 16,005 ) in the year ended 2019. interest expense and other , net is primarily comprised of interest expense on notes payable . interest expense and other for the year ended 2019 is composed primarily of interest expense on notes payable . income taxes at december 31 , 2020 , we had federal net operating loss carryforwards of approximately $ 48,435 , and research and development ( r & d ) credit carryforwards of approximately $ 3,579. the net operating loss and r & d credit carryforwards will expire in varying amounts from 2021 through 2040 , if not utilized . income tax expense attributable to continuing operations increased from $ ( 24,111 ) in 2019 to $ 337 in 2020 , a $ ( 24,448 ) , or ( 101.4 ) % , decrease . these figures represent an effective tax rate of ( 2.1 ) % and 36.3 % in 2020 and 2019 , respectively . in 2020 , we recorded income tax expense from continuing operations primarily due to deferred taxes on the amortization of goodwill for tax purposes . as a result of our various acquisitions in prior years , utilization of the net operating losses and credit carryforwards may be subject to a substantial annual limitation due to the “ change in ownership ” provisions of section 382 of the internal revenue code of 1986. the annual limitation may result in the expiration of net operating losses before utilization . due to the uncertainty surrounding the timing of realizing the benefits of our favorable tax attributes in future tax returns , we have placed a valuation allowance against our net deferred tax asset , exclusive of goodwill and jurisdictions in which we 35 have net deferred tax liabilities . during 2020 , we increased the valuation allowance by approximately $ 1,688 due primarily to operations . liquidity and capital resources ( amounts in thousands ) replace_table_token_3_th working capital . we had working capital of $ 8,208 at december 31 , 2020 , a decrease of $ 9,646 from $ 17,854 at december 31 , 2019. we attribute the increase in our working capital primarily to an increase in cash and cash equivalents due to the divestiture of our workspace management business . working capital at december 31 , 2020 includes $ 5,838 of short term deferred revenue , an increase in short term deferred revenue of $ 338 compared to december 31 , 2019. deferred revenue is an obligation to perform future services . we expect that deferred revenue will convert to future revenue as we perform our services , but this does not represent future payments . deferred revenue can vary based on seasonality , expiration of initial multi-year contracts and deals that are billed after implementation rather than in advance of service delivery . operating activities . net cash used in operating activities was $ 1,707 in 2020. the $ 1,707 of cash provided by operating activities during 2020 was primarily driven by our net loss of $ 16,311 and increases in deferred revenue of $ 128 , and decreases in accrued expenses and other long-term obligations of $ 4,596. this was offset by non-cash adjustments of $ 20,908 , decreases in accounts receivable of $ 1,118 and increases in inventory of $ 11 , and decreases in accounts payable of $ 448 and $ 911 of prepaid expenses and other assets . net cash used in operating activities was $ ( 4,117 ) in 2019. the $ ( 4,117 ) of cash used in operating activities during 2019 , including discontinued operations , was primarily driven by our net income of $ 30,001 and increases in deferred revenue of $ 5,662 , and accrued expenses and other long-term obligations of $ 5,649. this was offset by non-cash adjustments of $ ( 35,215 ) , increases in accounts receivable of $ 1,446 and inventory of $ 1,581 , and a decrease in accounts payable of $ 3,174. investing activities . net cash used in investing activities during 2020 was $ ( 201,134 ) , primarily due to the net change in funds held for clients and our acquisitions of three payroll processing and payroll tax businesses during the year . cash provided by investing activities during 2019 was $ 85,632. the cash provided by investing activities in 2019 is primarily driven by the proceeds from the sale of discontinued operations . financing activities . net cash provided by

sources of liquidity . as of december 31 , 2020 , asure 's principal sources of liquidity consisted of approximately $ 28,577 of cash and cash equivalents , future cash generated from operations of our business over the next twelve months , and $ 4,500 available for borrowing under our wells fargo revolver . based on current internal projections , we believe that we have and or will generate sufficient cash for our operational needs for at least the next twelve months from issuance of this annual report on form 10-k. we continue to be focused on growing our existing software operations and seeking accretive and complimentary strategic acquisitions as part of our growth strategy . we believe the available sources of liquidity described above will be sufficient to fund such growth activities but may raise additional capital or incur additional indebtedness to supplement those sources as we execute on our growth plan . underwriting agreement in december 2020 , we completed an underwritten public offering 2,990,000 shares of our common stock at a public offering price of $ 7.25. we realized gross proceeds of approximately $ 21,700 before deducting underwriting discounts and estimated offering expenses . 36 credit agreement due to the effects of covid-19 on our business , we were not in compliance with our minimum ebitda financial covenant as of march 31 , 2020. this covenant was set in december 31 , 2019 , before the covid-19 pandemic and its possible effects on our business were known to our senior lender or us . on july 10 , 2020 , our senior lender issued a reservation of rights letter related to our failure to comply with the minimum ebitda financial covenant , along with other technical defaults . following this default , we negotiated and entered a waiver and amendment to our credit agreement and our amended and restated guaranty and security agreement ( the “ amendment ” ) on august 10 , 2020. the amendment reduced our facility from $ 30,000 to $ 15,000 , consisting of $ 10,000 in term loans and a $ 5,000 revolver .


 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.
     ```sources of liquidity . as of december 31 , 2020 , asure 's principal sources of liquidity consisted of approximately $ 28,577 of cash and cash equivalents , future cash generated from operations of our business over the next twelve months , and $ 4,500 available for borrowing under our wells fargo revolver . based on current internal projections , we believe that we have and or will generate sufficient cash for our operational needs for at least the next twelve months from issuance of this annual report on form 10-k. we continue to be focused on growing our existing software operations and seeking accretive and complimentary strategic acquisitions as part of our growth strategy . we believe the available sources of liquidity described above will be sufficient to fund such growth activities but may raise additional capital or incur additional indebtedness to supplement those sources as we execute on our growth plan . underwriting agreement in december 2020 , we completed an underwritten public offering 2,990,000 shares of our common stock at a public offering price of $ 7.25. we realized gross proceeds of approximately $ 21,700 before deducting underwriting discounts and estimated offering expenses . 36 credit agreement due to the effects of covid-19 on our business , we were not in compliance with our minimum ebitda financial covenant as of march 31 , 2020. this covenant was set in december 31 , 2019 , before the covid-19 pandemic and its possible effects on our business were known to our senior lender or us . on july 10 , 2020 , our senior lender issued a reservation of rights letter related to our failure to comply with the minimum ebitda financial covenant , along with other technical defaults . following this default , we negotiated and entered a waiver and amendment to our credit agreement and our amended and restated guaranty and security agreement ( the “ amendment ” ) on august 10 , 2020. the amendment reduced our facility from $ 30,000 to $ 15,000 , consisting of $ 10,000 in term loans and a $ 5,000 revolver .
```    
 Suspicious Activity Report : with our mobile solution , employees can punch in and out from remote locations , as geo-positioning verifies the physical coordinates . biometric time clocks , including facial recognition , reduce time theft and help combat `` buddy punching . `` automated system notifications , real-time dashboards , and flexible configuration options all work to streamline operations . finally , employees , supervisors and executives have real-time access to data and business intelligence to optimize labor costing , improve labor scheduling , and control labor costs . hr services - our recurring hr services allows clients to focus on running their businesses because we take responsibility for all of the traditional payroll and hr functions . we provide three core levels of hr services , ranging from a cloud-based online compliance library , to an on-demand call center for all hr questions , and to a fully outsourced hr function . we also support discreet functions like payroll administration and the benefit enrollment process . data integration - our solutions also enable data integration with related third-party systems , such as 401 ( k ) , benefits , and insurance provider systems . 30 in addition to state-of-the-art platforms that are hosted in amazon aws and regular upgrades and releases , we provide clients with easy access to our skilled support team . our services and support representatives are knowledgeable not just in the asure solution , but also about best practices and change management strategies in the payroll and hcm industry . many of asure 's staff have professional certifications in payroll ( certified payroll professionals , cpps ) and human resources ( professional in human resources , phr , and senior professional in human resource , sphr , certifications ) . from installation to training and post-live support , our professional services team delivers a proficient client experience on a national scale . we sell our solutions through both direct and partner models . prospective clients learn about asure in a variety of ways , including advertising , web site searches , sales calls , public relations , referral channels , direct marketing , and social media . when prospective clients show an interest in asure , they are connected with a sales representative , who works to close the sale , via asure 's web site , phone , or a face-to-face meeting by discussing solutions that meet their needs . we track our marketing and sales activities to provide immediate insights into activities , leads and pipeline opportunities . our account management teams also work with clients to promote and sell additional solutions that are relevant for each client . we supplement our direct sales efforts with partner programs . by working with partners , we gain access to opportunities in various geographic and industry niches . asure has two distinct levels of partners : reseller partners and referral partners . reseller partners . reseller partners pay us recurring license fees to white label our solutions and then they focus on providing value-add services to their clients ( our indirect clients ) . there are generally two types of reseller partners : regional payroll providers and smb trusted advisors ( cpa , regional banks , and benefit brokers ) . regional payroll providers typically focus on a specific geographic area or industry . they have proven to be attractive alternatives for smbs ' payroll and hcm needs versus the one-size-fits-all national payroll companies that do not necessarily understand the local needs of many businesses . since trusted advisors are relied on by entrepreneurs and executives at smbs to advise on payroll and hr decisions , white labeling our solutions allows them to provide additional solutions directly to their clients . this deepens their client relationships and grows their revenue . asure 's reseller partners are also the primary source of asure 's acquisitions . since they already white label asure 's solutions , technology integration risk is lessened . by acquiring reseller partners , we gain a presence in specific geographic ( typically less densely populated u.s. metropolitan cities ) and industry niches . these acquisitions help asure gain scale by assuming all of the reseller partner 's revenue instead of just a recurring licensing fees ( which is typically a small percentage of their total revenue ) . reseller partners can continue to license our solutions with the opportunity to expand their available solutions , or they can come under the asure umbrella . referral partners . referral partners are typically the aforementioned trusted advisors ( e.g . , regional banks , cpas , and benefit brokers ) that provide us with smb leads but do not resell our solutions . since smbs rely on their trusted advisors to guide them in selecting payroll and hcm solutions , we have found this to be a fruitful source of leads . referral partners provide qualified leads that convert to clients at a higher rate than non-referral leads . we have been successful in nurturing some referral partners to become reseller partners over time as the referral relationships develop and they become more comfortable in the hcm space . we generate revenues from ( i ) fixed amounts charged per billing period plus a fee per employee or transaction processed and ( ii ) fixed amounts charged per billing period . we do not require clients to enter into long-term contractual commitments with us . our billing period varies by client based on when each client pays its employees , which may be weekly , bi-weekly , semi-monthly or monthly . we serve a diverse client base in terms of industry and geography . story_separator_special_tag we believe we have the appropriate development team to design and enhance our solution suite and integrated platform . amortization of intangible assets amortization expenses in 2020 were $ 9,547 , a decrease of $ ( 2,218 ) , or ( 18.9 ) % , as compared to $ 11,765 in 2019. amortization expenses as a percentage of revenues were 14.6 % and 16.1 % for 2020 and 2019 , respectively . in 2019 , we accelerated the amortization after a reassessment of the useful lives of certain trade names in relation to our rebranding efforts , resulting in an increase in amortization expense . impairment of goodwill there was no goodwill impairment recognized in 2020. during fiscal 2019 , we determined that the estimated fair value of our hcm reporting unit was less than its carrying value . therefore , we compared the carrying value of the reporting unit to its fair value in order to determine if an impairment exists . in addition to performing the income based approach discussed above we compared the market value of our common stock to our hcm reporting unit 's carrying value noting its carrying value exceeded market value . a non-cash , before-tax impairment charge of $ 35,060 was recognized to reduce the carrying amount of the goodwill to its estimated fair value as of december 31 , 2019. interest expense and other , net interest expense and other , net was $ ( 2,221 ) for the year ended 2020 as compared to $ ( 16,005 ) in the year ended 2019. interest expense and other , net is primarily comprised of interest expense on notes payable . interest expense and other for the year ended 2019 is composed primarily of interest expense on notes payable . income taxes at december 31 , 2020 , we had federal net operating loss carryforwards of approximately $ 48,435 , and research and development ( r & d ) credit carryforwards of approximately $ 3,579. the net operating loss and r & d credit carryforwards will expire in varying amounts from 2021 through 2040 , if not utilized . income tax expense attributable to continuing operations increased from $ ( 24,111 ) in 2019 to $ 337 in 2020 , a $ ( 24,448 ) , or ( 101.4 ) % , decrease . these figures represent an effective tax rate of ( 2.1 ) % and 36.3 % in 2020 and 2019 , respectively . in 2020 , we recorded income tax expense from continuing operations primarily due to deferred taxes on the amortization of goodwill for tax purposes . as a result of our various acquisitions in prior years , utilization of the net operating losses and credit carryforwards may be subject to a substantial annual limitation due to the “ change in ownership ” provisions of section 382 of the internal revenue code of 1986. the annual limitation may result in the expiration of net operating losses before utilization . due to the uncertainty surrounding the timing of realizing the benefits of our favorable tax attributes in future tax returns , we have placed a valuation allowance against our net deferred tax asset , exclusive of goodwill and jurisdictions in which we 35 have net deferred tax liabilities . during 2020 , we increased the valuation allowance by approximately $ 1,688 due primarily to operations . liquidity and capital resources ( amounts in thousands ) replace_table_token_3_th working capital . we had working capital of $ 8,208 at december 31 , 2020 , a decrease of $ 9,646 from $ 17,854 at december 31 , 2019. we attribute the increase in our working capital primarily to an increase in cash and cash equivalents due to the divestiture of our workspace management business . working capital at december 31 , 2020 includes $ 5,838 of short term deferred revenue , an increase in short term deferred revenue of $ 338 compared to december 31 , 2019. deferred revenue is an obligation to perform future services . we expect that deferred revenue will convert to future revenue as we perform our services , but this does not represent future payments . deferred revenue can vary based on seasonality , expiration of initial multi-year contracts and deals that are billed after implementation rather than in advance of service delivery . operating activities . net cash used in operating activities was $ 1,707 in 2020. the $ 1,707 of cash provided by operating activities during 2020 was primarily driven by our net loss of $ 16,311 and increases in deferred revenue of $ 128 , and decreases in accrued expenses and other long-term obligations of $ 4,596. this was offset by non-cash adjustments of $ 20,908 , decreases in accounts receivable of $ 1,118 and increases in inventory of $ 11 , and decreases in accounts payable of $ 448 and $ 911 of prepaid expenses and other assets . net cash used in operating activities was $ ( 4,117 ) in 2019. the $ ( 4,117 ) of cash used in operating activities during 2019 , including discontinued operations , was primarily driven by our net income of $ 30,001 and increases in deferred revenue of $ 5,662 , and accrued expenses and other long-term obligations of $ 5,649. this was offset by non-cash adjustments of $ ( 35,215 ) , increases in accounts receivable of $ 1,446 and inventory of $ 1,581 , and a decrease in accounts payable of $ 3,174. investing activities . net cash used in investing activities during 2020 was $ ( 201,134 ) , primarily due to the net change in funds held for clients and our acquisitions of three payroll processing and payroll tax businesses during the year . cash provided by investing activities during 2019 was $ 85,632. the cash provided by investing activities in 2019 is primarily driven by the proceeds from the sale of discontinued operations . financing activities . net cash provided by

