important factors currently known to management could cause actual results to differ materially from those in forward-looking statements . we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions , the occurrence of unanticipated events or changes in the future operating results over time . we believe that our assumptions are based upon reasonable data derived from and known about our business and operations . no assurances are made that actual results of operations or the results of our future activities will not differ materially from our assumptions . factors that could cause differences include , but are not limited to , expected market demand for our products , fluctuations in pricing for materials , and competition . business overview we were formed in august 2015 to expand upon the successful implementation of a hydrogen energy system used to completely power a residence or commercial property with clean energy so that it can run independent of the utility grid and also provide energy to the utility grid for monetary credits . this system uses renewable energy as its source for hydrogen production . it functions as a self-sustaining clean energy system using hydrogen and fuel cell technology . its production of electricity is truly eco-friendly , as it is not produced by the use of fossil fuels . it is a revolutionary green-energy concept that is safe , renewable , self-sustaining and cost effective . there are great benefits to hydrogen energy . the use of hydrogen as an energy source produces no carbon dioxide or other greenhouse gases . unlike fossil fuels , the only emission from hydrogen is chemically pure water . hydrogen can be extracted from water using renewable energy from the sun and unlike batteries , hydrogen can be stored indefinitely . there is no drilling , fracking or mining required to produce hydrogen . we believe it is safe and the most abundant and cleanest energy source on the planet . in addition to offering this self-sustaining clean energy system using hydrogen and fuel cell technology , we offer a number of renewable energy services , such as audits of energy consumption , review of energy/tax credits available , feasibility studies , solar/battery system installation , zoning/permitting analysis , site design/preparation and restoration , system startup , testing , commissioning , maintenance and interconnection applications . we have succeeded in developing and installing hydrogen energy systems that are combined with renewable solar energy to produce clean electricity . we call the hydrogen energy system the hc-1 . the hc-1 system functions as a self-sustaining renewable energy system . it can be configured as an off grid solution for all your electricity needs or it can be connected to the grid to generate energy credits . it is a system comprised of solar , batteries , a hydrogen generator , a fuel cell and a hydrogen storage tank . when there is sunlight , the solar produce renewable energy that charges a bank of batteries . after the batteries are fully charged , the excess electricity is then combined with water through a hydrogen generator that extracts the hydrogen from the water in a gasified state , which is safely transferred to a tank and stored for later use . if the tank is full , excess electricity is sent from the batteries to the utility grid , which results in energy credits for the system owner . the electricity for the end user is always provided by the charged batteries . if there is no solar power to charge the batteries , the system keeps the batteries fully charged by using the hydrogen gas stored in the tank , which processed through a fuel cell , creates the electricity to charge the batteries . as the system is able to produce its own hydrogen gas , which keeps the tank full , it provides a continuous supply of clean energy and sustainability that is independent from the grid . each hc-1 system is custom designed to accommodate the electrical loads for an end user . the system is completely scalable . if a customer wishes to connect the system to the electrical grid in order to generate renewable energy credits , we obtain interconnection agreements from the local electric utility company . if the customer obtains authorization for interconnection to the utility grid , once the hc-1 system is operational , the hc-1 system owner can eliminate their electric bill and , if in a permissible state , can begin generating energy credits . in certain states , an end user receives one energy credit for each 1,000 kilowatt hours ( kwh ) produced through renewal energy . the customer sells these credits to a broker , who in turn sells the credits to a utility company so that the utility company can demonstrate their compliance with the regulatory obligations to reduce greenhouse gas emissions . the price per credit can vary depending on supply and demand . many other states that may not offer an energy credit program , do offer other cash incentives for renewable energy systems . 18 on january 31 , 2017 , we acquired the pride group ( qld ) pty ltd , an australian company ( “ pride ” ) . founded in 1997 , pride is a provider of security systems integration for a variety of customers in the government and commercial sector and has launched a new clean energy division to focus on the high growth renewable energy market in asia-pacific . on february 1 , 2018 , we acquired pvbj inc. ( “ pvbj ” ) . story_separator_special_tag in the event that we terminate the credit agreement , we will pay thermo an early termination fee equal to 4 % of the pro rata portion , which pro rata portion is determined by multiplying $ 350,000 by the number of months prior to the second anniversary of the effective date of the credit agreement and then dividing that by 24. the obligations of pvbj under the credit agreement may be accelerated upon the occurrence of an event of default under the credit agreement , which includes customary events of default including , without limitation , payment defaults , defaults in the performance of affirmative and negative covenants , the inaccuracy of representations or warranties , cross-defaults , bankruptcy and insolvency related defaults , defaults relating to judgments , an erisa reportable event occurs , a change of control and a change in our financial condition that could have a material adverse effect on us . as of march 25 , 2019 , we had outstanding borrowings of $ 149,248 under the credit agreement , and the interest rate was 9.5 % . equity purchase agreement on march 12 , 2019 , we entered into an equity purchase agreement ( the “ purchase agreement ” ) and a registration rights agreement ( the “ registration rights agreement ” ) with an accredited investor ( the “ investor ” ) , pursuant to which the investor has agreed to purchase from us up to $ 450,000 in shares ( the “ shares ” ) of our common stock , subject to certain limitations and conditions set forth in the purchase agreement . under the purchase agreement , the investor has the right , at any time , to purchase shares by delivering us a purchase notice , specifying the number of shares to be purchased . the purchase price for the shares under the purchase agreement will be 60 % of the lowest closing price of our common stock in the five consecutive trading days preceding the investor 's receipt of the shares subject to such equity purchase . in addition , the investor has an obligation , to the extent it has not already made voluntary purchases , to purchase up to ( i ) $ 200,000 in shares within 16 trading days ( as defined in the purchase agreement ) after the effective date of the registration statement ( as defined below ) and ( ii ) $ 450,000 in shares within 70 trading days after the effective date of the registration statement . we have the right to reject any purchase notice from the investor by delivering written notice of such rejection within one trading day after receipt . if we reject any purchase notice , the investor has no further obligations to purchase shares under the purchase agreement . we may terminate the purchase agreement at any time by written notice to the investor in the event of a material breach of the purchase agreement by the investor . in addition , the purchase agreement will automatically terminate on the earliest of : ( i ) the date that the investor has purchased $ 450,000 of shares ; ( ii ) 70 trading days after the effective date of the registration statement ; or ( iii ) the date the registration statement is no longer effective . the obligation of the investor to purchase the shares is subject to several conditions , including , among other thing , ( i ) that we have an effective registration statement with the sec registering the shares for resale , and ( ii ) that the purchase of the shares shall not cause the investor to own more than 9.99 % of the outstanding shares of common stock . in connection with the purchase agreement , we agreed to pay $ 15,000 of fees to the investor , of which $ 10,000 was paid on execution of the purchase agreement , and the remaining $ 5,000 will be paid on the first sale of shares . pursuant to the registration rights agreement , we are required to register the shares on a registration statement ( the “ registration statement ” ) to be filed with the sec within 15 calendar days after we file this annual report . additionally , on march 12 , 2019 , we agreed to donate 35,000 shares of common stock to the manager of the investor . 2019 convertible debenture financing on february 8 , 2019 , we entered into a securities purchase agreement ( the “ 2019 purchase agreement ” ) with two of our directors , pursuant to which we sold an aggregate principal amount of $ 150,000 in 10 % convertible debentures ( the “ 2019 debentures ” ) , convertible into shares of our common stock at a conversion price of $ 0.50 per share . the 2019 debentures , together with any accrued and unpaid interest , become due and payable on february 8 , 2021 ( the “ 2021 maturity date ” ) . interest on the 2019 debentures accrues at the rate of 10 % per annum , payable monthly in cash , beginning on march 1 , 2019 and on the 2021 maturity date . the 2019 debentures are convertible into common stock at a conversion price of $ 0.50 per share at the discretion of the holder , with special provisions applying to any holder whose conversion would result in the holder beneficially owning more than 4.99 % of our common stock . 22 2018 convertible debenture financing on january 2 , 2018 , we entered into a securities purchase agreement ( the “ 2018 purchase agreement ” ) with two of our directors , pursuant to which we sold an aggregate principal amount of $ 400,000 in 12 % convertible debentures ( the “ 2018 debentures ” ) , convertible into shares of our common stock at a conversion price of $ 0.75 per

liquidity and capital resources as of december 31 , 2018 , we had working capital of $ 18,098 , comprised of $ 1,087,381 of accounts receivables , $ 359,134 of cash , $ 45,478 of costs in excess of billings and $ 16,282 of prepaid expenses . this was offset by $ 891,354 of accounts payables and accrued expenses , $ 195,331 of billings in excess of cost , $ 190,736 of earn out payable , $ 65,265 of current capital leases payable $ 59,857 of sales and withholding tax payable , $ 38,991 of current equipment notes payable and $ 48,643 of income tax payable , which made up current liabilities at december 31 , 2018. for the year ended december 31 , 2018 , we used $ 364,646 of cash in operating activities , which represented our net loss of $ 554,010 , $ 194,105 of depreciation and amortization , $ 114,656 of billings in excess of cost , $ 68,293 of stock-based compensation , $ 28,261 of changes in accounts payable , $ 5,743 change in deferred tax asset , $ 15,418 on change in fair value contingent consideration $ 2,018 of prepaid expenses , $ 1,067 of costs in excess of billings , and $ 616 of bad debt expense , offset by $ 219,501 of changes in accounts receivables , and $ 17,276 of gain on the sale of 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 , 2018 , we had working capital of $ 18,098 , comprised of $ 1,087,381 of accounts receivables , $ 359,134 of cash , $ 45,478 of costs in excess of billings and $ 16,282 of prepaid expenses . this was offset by $ 891,354 of accounts payables and accrued expenses , $ 195,331 of billings in excess of cost , $ 190,736 of earn out payable , $ 65,265 of current capital leases payable $ 59,857 of sales and withholding tax payable , $ 38,991 of current equipment notes payable and $ 48,643 of income tax payable , which made up current liabilities at december 31 , 2018. for the year ended december 31 , 2018 , we used $ 364,646 of cash in operating activities , which represented our net loss of $ 554,010 , $ 194,105 of depreciation and amortization , $ 114,656 of billings in excess of cost , $ 68,293 of stock-based compensation , $ 28,261 of changes in accounts payable , $ 5,743 change in deferred tax asset , $ 15,418 on change in fair value contingent consideration $ 2,018 of prepaid expenses , $ 1,067 of costs in excess of billings , and $ 616 of bad debt expense , offset by $ 219,501 of changes in accounts receivables , and $ 17,276 of gain on the sale of assets .
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 Suspicious Activity Report : important factors currently known to management could cause actual results to differ materially from those in forward-looking statements . we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions , the occurrence of unanticipated events or changes in the future operating results over time . we believe that our assumptions are based upon reasonable data derived from and known about our business and operations . no assurances are made that actual results of operations or the results of our future activities will not differ materially from our assumptions . factors that could cause differences include , but are not limited to , expected market demand for our products , fluctuations in pricing for materials , and competition . business overview we were formed in august 2015 to expand upon the successful implementation of a hydrogen energy system used to completely power a residence or commercial property with clean energy so that it can run independent of the utility grid and also provide energy to the utility grid for monetary credits . this system uses renewable energy as its source for hydrogen production . it functions as a self-sustaining clean energy system using hydrogen and fuel cell technology . its production of electricity is truly eco-friendly , as it is not produced by the use of fossil fuels . it is a revolutionary green-energy concept that is safe , renewable , self-sustaining and cost effective . there are great benefits to hydrogen energy . the use of hydrogen as an energy source produces no carbon dioxide or other greenhouse gases . unlike fossil fuels , the only emission from hydrogen is chemically pure water . hydrogen can be extracted from water using renewable energy from the sun and unlike batteries , hydrogen can be stored indefinitely . there is no drilling , fracking or mining required to produce hydrogen . we believe it is safe and the most abundant and cleanest energy source on the planet . in addition to offering this self-sustaining clean energy system using hydrogen and fuel cell technology , we offer a number of renewable energy services , such as audits of energy consumption , review of energy/tax credits available , feasibility studies , solar/battery system installation , zoning/permitting analysis , site design/preparation and restoration , system startup , testing , commissioning , maintenance and interconnection applications . we have succeeded in developing and installing hydrogen energy systems that are combined with renewable solar energy to produce clean electricity . we call the hydrogen energy system the hc-1 . the hc-1 system functions as a self-sustaining renewable energy system . it can be configured as an off grid solution for all your electricity needs or it can be connected to the grid to generate energy credits . it is a system comprised of solar , batteries , a hydrogen generator , a fuel cell and a hydrogen storage tank . when there is sunlight , the solar produce renewable energy that charges a bank of batteries . after the batteries are fully charged , the excess electricity is then combined with water through a hydrogen generator that extracts the hydrogen from the water in a gasified state , which is safely transferred to a tank and stored for later use . if the tank is full , excess electricity is sent from the batteries to the utility grid , which results in energy credits for the system owner . the electricity for the end user is always provided by the charged batteries . if there is no solar power to charge the batteries , the system keeps the batteries fully charged by using the hydrogen gas stored in the tank , which processed through a fuel cell , creates the electricity to charge the batteries . as the system is able to produce its own hydrogen gas , which keeps the tank full , it provides a continuous supply of clean energy and sustainability that is independent from the grid . each hc-1 system is custom designed to accommodate the electrical loads for an end user . the system is completely scalable . if a customer wishes to connect the system to the electrical grid in order to generate renewable energy credits , we obtain interconnection agreements from the local electric utility company . if the customer obtains authorization for interconnection to the utility grid , once the hc-1 system is operational , the hc-1 system owner can eliminate their electric bill and , if in a permissible state , can begin generating energy credits . in certain states , an end user receives one energy credit for each 1,000 kilowatt hours ( kwh ) produced through renewal energy . the customer sells these credits to a broker , who in turn sells the credits to a utility company so that the utility company can demonstrate their compliance with the regulatory obligations to reduce greenhouse gas emissions . the price per credit can vary depending on supply and demand . many other states that may not offer an energy credit program , do offer other cash incentives for renewable energy systems . 18 on january 31 , 2017 , we acquired the pride group ( qld ) pty ltd , an australian company ( “ pride ” ) . founded in 1997 , pride is a provider of security systems integration for a variety of customers in the government and commercial sector and has launched a new clean energy division to focus on the high growth renewable energy market in asia-pacific . on february 1 , 2018 , we acquired pvbj inc. ( “ pvbj ” ) . story_separator_special_tag in the event that we terminate the credit agreement , we will pay thermo an early termination fee equal to 4 % of the pro rata portion , which pro rata portion is determined by multiplying $ 350,000 by the number of months prior to the second anniversary of the effective date of the credit agreement and then dividing that by 24. the obligations of pvbj under the credit agreement may be accelerated upon the occurrence of an event of default under the credit agreement , which includes customary events of default including , without limitation , payment defaults , defaults in the performance of affirmative and negative covenants , the inaccuracy of representations or warranties , cross-defaults , bankruptcy and insolvency related defaults , defaults relating to judgments , an erisa reportable event occurs , a change of control and a change in our financial condition that could have a material adverse effect on us . as of march 25 , 2019 , we had outstanding borrowings of $ 149,248 under the credit agreement , and the interest rate was 9.5 % . equity purchase agreement on march 12 , 2019 , we entered into an equity purchase agreement ( the “ purchase agreement ” ) and a registration rights agreement ( the “ registration rights agreement ” ) with an accredited investor ( the “ investor ” ) , pursuant to which the investor has agreed to purchase from us up to $ 450,000 in shares ( the “ shares ” ) of our common stock , subject to certain limitations and conditions set forth in the purchase agreement . under the purchase agreement , the investor has the right , at any time , to purchase shares by delivering us a purchase notice , specifying the number of shares to be purchased . the purchase price for the shares under the purchase agreement will be 60 % of the lowest closing price of our common stock in the five consecutive trading days preceding the investor 's receipt of the shares subject to such equity purchase . in addition , the investor has an obligation , to the extent it has not already made voluntary purchases , to purchase up to ( i ) $ 200,000 in shares within 16 trading days ( as defined in the purchase agreement ) after the effective date of the registration statement ( as defined below ) and ( ii ) $ 450,000 in shares within 70 trading days after the effective date of the registration statement . we have the right to reject any purchase notice from the investor by delivering written notice of such rejection within one trading day after receipt . if we reject any purchase notice , the investor has no further obligations to purchase shares under the purchase agreement . we may terminate the purchase agreement at any time by written notice to the investor in the event of a material breach of the purchase agreement by the investor . in addition , the purchase agreement will automatically terminate on the earliest of : ( i ) the date that the investor has purchased $ 450,000 of shares ; ( ii ) 70 trading days after the effective date of the registration statement ; or ( iii ) the date the registration statement is no longer effective . the obligation of the investor to purchase the shares is subject to several conditions , including , among other thing , ( i ) that we have an effective registration statement with the sec registering the shares for resale , and ( ii ) that the purchase of the shares shall not cause the investor to own more than 9.99 % of the outstanding shares of common stock . in connection with the purchase agreement , we agreed to pay $ 15,000 of fees to the investor , of which $ 10,000 was paid on execution of the purchase agreement , and the remaining $ 5,000 will be paid on the first sale of shares . pursuant to the registration rights agreement , we are required to register the shares on a registration statement ( the “ registration statement ” ) to be filed with the sec within 15 calendar days after we file this annual report . additionally , on march 12 , 2019 , we agreed to donate 35,000 shares of common stock to the manager of the investor . 2019 convertible debenture financing on february 8 , 2019 , we entered into a securities purchase agreement ( the “ 2019 purchase agreement ” ) with two of our directors , pursuant to which we sold an aggregate principal amount of $ 150,000 in 10 % convertible debentures ( the “ 2019 debentures ” ) , convertible into shares of our common stock at a conversion price of $ 0.50 per share . the 2019 debentures , together with any accrued and unpaid interest , become due and payable on february 8 , 2021 ( the “ 2021 maturity date ” ) . interest on the 2019 debentures accrues at the rate of 10 % per annum , payable monthly in cash , beginning on march 1 , 2019 and on the 2021 maturity date . the 2019 debentures are convertible into common stock at a conversion price of $ 0.50 per share at the discretion of the holder , with special provisions applying to any holder whose conversion would result in the holder beneficially owning more than 4.99 % of our common stock . 22 2018 convertible debenture financing on january 2 , 2018 , we entered into a securities purchase agreement ( the “ 2018 purchase agreement ” ) with two of our directors , pursuant to which we sold an aggregate principal amount of $ 400,000 in 12 % convertible debentures ( the “ 2018 debentures ” ) , convertible into shares of our common stock at a conversion price of $ 0.75 per

