while the company believes that it is managing this asset prudently during these times , including by terminating non-essential vendor services and reducing other expenses where feasible , the continuance of the company 's ongoing operations are at substantial risk absent immediate fiscal policy relief coming from the federal or california state government . even in the event of a gradual loosening of travel restrictions , the company 's operations may have been negatively impacted to such a significant degree , the company may be unable to recover financially or operationally to continue operations . in addition to the effect the covid-19 pandemic is having on the operations of the company 's hotel , it is also expected to have a negative impact on the value of the company 's other real estate-related assets . while that negative impact may only be short-lived , due to the company 's severe liquidity issues , the company may be unable to sustain operations for a sufficient period of time to realize the resulting increase in the value of those assets . we have held certain reo assets for several years with the expectation that we would realize more significant appreciation in the values of those assets over time . while there has been an overall stabilization of values and increased values for certain of our reo assets , the increase in value has been less than anticipated . moreover , due to our lack of available cash flow , our investment opportunities have been limited . we continue to examine all material aspects of our business for areas of improvement and recovery on our assets including recoveries against guarantors . going concern considerations prior to the outbreak of the covid-19 virus in the united states , the board of directors of the company independently determined that it would be in the best interests of the shareholders of the company to consider , evaluate and possibly take action with respect to a re-capitalization of the company . accordingly , the board appointed a special committee consisting exclusively of independent members of the board of directors to formulate , establish , oversee and direct a process for the identification , evaluation and negotiation of any proposed recapitalization or alternative transaction . the special committee has retained outside advisors to 39 assist the members of the special committee in carrying out these responsibilities . it is possible that the special committee will recommend that the company enter into a recapitalization or other transaction or set of transactions that , among other things , would : ( i ) constitute an event of default or termination event , and cause the automatic and immediate acceleration of all debt outstanding under or in respect of instruments and agreements relating to direct financial obligations of the company , including the mortgage loan on the company 's lone operating asset , the macarthur place hotel and spa ; ( ii ) permit holders of the company 's preferred shares to exercise their rights to require the company to redeem a portion or all of their preferred shares ; ( iii ) constitute a breach under various agreements to which the company is a party and which are materially important to the operations of the company ; and ( iv ) accelerate payments made to the company 's ceo under his employment agreement . this evaluation process is on-going and no recommendations or determinations have been reached by the special committee and there can be no assurance that the special committee will recommend any such recapitalization or other transaction . historically , we have used proceeds from the issuance of preferred equity and or debt , proceeds from the sale of our reo assets , and the liquidation of mortgages and related investments to satisfy our working capital requirements . during the fourth quarter of 2019 , in order to meet impending liquidity requirements , we sold one of our mezzanine loan investments with a principal balance of $ 12.3 million at a discount incurring a loss of $ 2.6 million . as described above , we sold our broadway tower commercial office building in january 2020 , netting $ 8.0 million in cash to the company after payment of related debt . we also are in discussions with the holders of our series b preferred stock regarding a restructuring or modification of those securities and our obligations . there can be no assurance that these efforts will be successful or that we will sell our remaining reo assets in a timely manner or in obtaining additional or replacement financing , if needed , to sufficiently fund our future operations , redeem our series b-1 and b-2 preferred stock if so required , repay existing debt , or to implement our investment strategy . in the event that a redemption demand is made by the holders of our series b-1 and b-2 preferred stock and we are unsuccessful in negotiating a deferral or restructuring of the terms of those shares , we will be required to fund the redemption of $ 39.6 million . in the absence of proceeds from asset sales , equity issuances or borrowings to fund the redemption price , the required redemption would likely render the company insolvent . moreover , our failure to generate sustainable earning assets and to successfully liquidate a significant portion of our reo assets will have a material adverse effect on our business , results of operations and financial position . story_separator_special_tag the year-over-year increase in net expenses was primarily due to ( i ) decreased recoveries from our guarantor collection 45 efforts and , ( ii ) decreased gains from the sale of reo assets , offset by ( x ) an increase in operating property expenses attributable to the broadway tower operations , ( y ) provisions for credit losses on a certain note receivable which was sold at a discount during 2019 and ( z ) real estate impairment expenses resulting from write downs to fair value on broadway tower which was sold subsequent to year end . the segment recorded an expense for prior credit losses of $ 1.5 million ( net of recoveries of $ 1.2 million ) for the year ended december 31 , 2019 as compared to $ 2.0 million in recoveries recognized for the year ended december 31 , 2018 . after revenues , less interest , depreciation and amortization expenses , and ( recoveries of ) provision for credit losses , the mortgage and reo – legacy portfolio and other operations segment contributed a net loss of $ 3.6 million and net income of $ 4.9 million for the years ended december 31 , 2019 and 2018 , respectively . we do not expect our lending activities and related income to increase unless we are able to obtain additional liquidity which is uncertain . corporate and other replace_table_token_7_th other than occasional , non-recurring miscellaneous revenue , the corporate and other segment did not generate revenues for the company for the year ended december 31 , 2019 and 2018. the 4.0 % increase in total other revenues in 2019 from 2018 was due to hospitality asset management fees earned for a hotel property in new york state owned by a related party of juniper capital . for the years ended december 31 , 2019 and 2018 , the corporate and other segment contributed $ 10.4 million and $ 11.2 million , respectively , to total consolidated expenses . the decrease in expenses for this segment is primarily attributable to a decrease in ( i ) interest paid on the exchange offering notes that matured and were repaid in april 2019 ( ii ) decrease in general and administrative expenses , resulting from a reduction in staff who were hired by jia , travel and related expenses , and a portion of the company 's monthly corporate office rent expenses assumed by jia , offset by the asset management fees paid to jia . 46 real estate owned , lending activities , loan and borrower attributes operating properties , real estate held for sale and other real estate owned as of december 31 , 2019 , we held total reo assets of $ 104.0 million , of which $ 45.2 million were held as operating properties , $ 33.3 million were classified as other real estate owned , and $ 25.5 million were classified as held for sale . at december 31 , 2018 , we held total reo assets of $ 75.0 million , of which $ 33.9 million were held as operating properties , $ 33.7 million were classified as other real estate owned , and $ 7.4 million were classified as held for sale . at december 31 , 2019 , all our reo assets were located in california , texas , arizona , minnesota , new mexico , and missouri . during the year ended december 31 , 2019 , we acquired the broadway tower and its related liabilities which were recorded at estimated fair value in accordance with gaap . the acquired assets consist of the office building , land , furniture and fixtures , operating and reserve cash , and tenant receivables totaling approximately $ 24.1 million . liabilities assumed consist of trade accounts payable , accrued liabilities , and accrued interest and principal on the first mortgage loan totaling approximately $ 16.3 million . subsequent to year end , this property was sold ( see note 18 ) . macarthur place underwent a major renovation during 2018 and 2019. as of december 31 , 2019 , macarthur place had a $ 45.2 million carrying value classified in operating properties plus a $ 15 million balance in goodwill and other intangible assets . the company achieved substantial completion of the renovation project near the end of third quarter 2019. the company is re-evaluating a potential renovation of the spa and seeking entitlements for a potential expansion of the available number of rooms at macarthur place . after the renovation is fully completed , we believe that macarthur place will be one of the premier boutique hotels in the city of sonoma and one of the top destinations in the region . renovation project costs were funded using construction proceeds from the macarthur loan , offering proceeds from the hotel fund , and company funds . renovation costs incurred totaled $ 28.0 million through december 31 , 2019. during the year ended december 31 , 2019 , we sold certain reo assets for $ 0.8 million ( net of transaction costs and other non-cash adjustments ) resulting in a total net gain on sale of $ 0.2 million , during the year ended december 31 , 2018 , we sold reo for $ 8.7 million ( net of transaction costs and other non-cash adjustments ) , resulting in a total net gain of $ 3.9 million . during the year ended december 31 , 2019 , we reclassified certain assets between reo held for sale and other reo and reclassified broadway tower from operating properties to reo held for sale . other reo includes those assets which are generally available for sale but , for a variety of reasons , are not being actively marketed for sale as of the reporting date , or those which are not expected to be disposed of within 12 months . other than these reclassifications , there were no material changes with respect to

cash used in operating activities was $ 21.8 million and $ 14.7 million for the years ended december 31 , 2019 and 2018 , respectively . cash from operating activities includes the cash generated from hospitality income , management fees , mortgage interest and investment and other income , offset by amounts paid for operating expenses for operating properties , real estate owned , professional fees , general and administrative costs , funding of other receivables , interest on borrowings and litigation settlement payments and related costs . the increase in cash used in operating activities from 2018 to 2019 is primarily attributed to the pay down of accounts payable , accrued interest and funding of other asset purchases . cash provided by ( used in ) investing activities . net cash provided by ( used in ) investing activities was $ 0.4 million and $ ( 11.0 ) million for the years ended december 31 , 2019 and 2018 , respectively . the increase in cash provided by investing activities is primarily attributed to proceeds and payoffs from mortgage investments . proceeds received from the sale of reo assets and mortgage loans totaled $ 10.5 million and $ 8.7 million for the years ended december 31 , 2019 and 2018 , respectively . collections of mortgage loan principal totaled $ 7.6 million and $ 0.0 during years ended december 31 , 2019 and 2018 , respectively . mortgage loan funding totaled $ 4.6 million during the year ended december 31 , 2019 , compared to $ 3.0 million during the year ended december 31 , 2018 . capital investments in operating properties totaled $ 12.2 million and $ 16.7 million during the years ended december 31 , 2019 and 2018 , respectively . cash provided by financing activities . net cash provided by financing activities was $ 6.2 million and $ 39.4 million for the years ended december 31 , 2019 and 2018 , respectively . during the year ended december 31 , 2019 , we repaid notes in the aggregate amount of $ 11.2 million and none during 2018 .


 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.
     ```cash used in operating activities was $ 21.8 million and $ 14.7 million for the years ended december 31 , 2019 and 2018 , respectively . cash from operating activities includes the cash generated from hospitality income , management fees , mortgage interest and investment and other income , offset by amounts paid for operating expenses for operating properties , real estate owned , professional fees , general and administrative costs , funding of other receivables , interest on borrowings and litigation settlement payments and related costs . the increase in cash used in operating activities from 2018 to 2019 is primarily attributed to the pay down of accounts payable , accrued interest and funding of other asset purchases . cash provided by ( used in ) investing activities . net cash provided by ( used in ) investing activities was $ 0.4 million and $ ( 11.0 ) million for the years ended december 31 , 2019 and 2018 , respectively . the increase in cash provided by investing activities is primarily attributed to proceeds and payoffs from mortgage investments . proceeds received from the sale of reo assets and mortgage loans totaled $ 10.5 million and $ 8.7 million for the years ended december 31 , 2019 and 2018 , respectively . collections of mortgage loan principal totaled $ 7.6 million and $ 0.0 during years ended december 31 , 2019 and 2018 , respectively . mortgage loan funding totaled $ 4.6 million during the year ended december 31 , 2019 , compared to $ 3.0 million during the year ended december 31 , 2018 . capital investments in operating properties totaled $ 12.2 million and $ 16.7 million during the years ended december 31 , 2019 and 2018 , respectively . cash provided by financing activities . net cash provided by financing activities was $ 6.2 million and $ 39.4 million for the years ended december 31 , 2019 and 2018 , respectively . during the year ended december 31 , 2019 , we repaid notes in the aggregate amount of $ 11.2 million and none during 2018 .
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 Suspicious Activity Report : while the company believes that it is managing this asset prudently during these times , including by terminating non-essential vendor services and reducing other expenses where feasible , the continuance of the company 's ongoing operations are at substantial risk absent immediate fiscal policy relief coming from the federal or california state government . even in the event of a gradual loosening of travel restrictions , the company 's operations may have been negatively impacted to such a significant degree , the company may be unable to recover financially or operationally to continue operations . in addition to the effect the covid-19 pandemic is having on the operations of the company 's hotel , it is also expected to have a negative impact on the value of the company 's other real estate-related assets . while that negative impact may only be short-lived , due to the company 's severe liquidity issues , the company may be unable to sustain operations for a sufficient period of time to realize the resulting increase in the value of those assets . we have held certain reo assets for several years with the expectation that we would realize more significant appreciation in the values of those assets over time . while there has been an overall stabilization of values and increased values for certain of our reo assets , the increase in value has been less than anticipated . moreover , due to our lack of available cash flow , our investment opportunities have been limited . we continue to examine all material aspects of our business for areas of improvement and recovery on our assets including recoveries against guarantors . going concern considerations prior to the outbreak of the covid-19 virus in the united states , the board of directors of the company independently determined that it would be in the best interests of the shareholders of the company to consider , evaluate and possibly take action with respect to a re-capitalization of the company . accordingly , the board appointed a special committee consisting exclusively of independent members of the board of directors to formulate , establish , oversee and direct a process for the identification , evaluation and negotiation of any proposed recapitalization or alternative transaction . the special committee has retained outside advisors to 39 assist the members of the special committee in carrying out these responsibilities . it is possible that the special committee will recommend that the company enter into a recapitalization or other transaction or set of transactions that , among other things , would : ( i ) constitute an event of default or termination event , and cause the automatic and immediate acceleration of all debt outstanding under or in respect of instruments and agreements relating to direct financial obligations of the company , including the mortgage loan on the company 's lone operating asset , the macarthur place hotel and spa ; ( ii ) permit holders of the company 's preferred shares to exercise their rights to require the company to redeem a portion or all of their preferred shares ; ( iii ) constitute a breach under various agreements to which the company is a party and which are materially important to the operations of the company ; and ( iv ) accelerate payments made to the company 's ceo under his employment agreement . this evaluation process is on-going and no recommendations or determinations have been reached by the special committee and there can be no assurance that the special committee will recommend any such recapitalization or other transaction . historically , we have used proceeds from the issuance of preferred equity and or debt , proceeds from the sale of our reo assets , and the liquidation of mortgages and related investments to satisfy our working capital requirements . during the fourth quarter of 2019 , in order to meet impending liquidity requirements , we sold one of our mezzanine loan investments with a principal balance of $ 12.3 million at a discount incurring a loss of $ 2.6 million . as described above , we sold our broadway tower commercial office building in january 2020 , netting $ 8.0 million in cash to the company after payment of related debt . we also are in discussions with the holders of our series b preferred stock regarding a restructuring or modification of those securities and our obligations . there can be no assurance that these efforts will be successful or that we will sell our remaining reo assets in a timely manner or in obtaining additional or replacement financing , if needed , to sufficiently fund our future operations , redeem our series b-1 and b-2 preferred stock if so required , repay existing debt , or to implement our investment strategy . in the event that a redemption demand is made by the holders of our series b-1 and b-2 preferred stock and we are unsuccessful in negotiating a deferral or restructuring of the terms of those shares , we will be required to fund the redemption of $ 39.6 million . in the absence of proceeds from asset sales , equity issuances or borrowings to fund the redemption price , the required redemption would likely render the company insolvent . moreover , our failure to generate sustainable earning assets and to successfully liquidate a significant portion of our reo assets will have a material adverse effect on our business , results of operations and financial position . story_separator_special_tag the year-over-year increase in net expenses was primarily due to ( i ) decreased recoveries from our guarantor collection 45 efforts and , ( ii ) decreased gains from the sale of reo assets , offset by ( x ) an increase in operating property expenses attributable to the broadway tower operations , ( y ) provisions for credit losses on a certain note receivable which was sold at a discount during 2019 and ( z ) real estate impairment expenses resulting from write downs to fair value on broadway tower which was sold subsequent to year end . the segment recorded an expense for prior credit losses of $ 1.5 million ( net of recoveries of $ 1.2 million ) for the year ended december 31 , 2019 as compared to $ 2.0 million in recoveries recognized for the year ended december 31 , 2018 . after revenues , less interest , depreciation and amortization expenses , and ( recoveries of ) provision for credit losses , the mortgage and reo – legacy portfolio and other operations segment contributed a net loss of $ 3.6 million and net income of $ 4.9 million for the years ended december 31 , 2019 and 2018 , respectively . we do not expect our lending activities and related income to increase unless we are able to obtain additional liquidity which is uncertain . corporate and other replace_table_token_7_th other than occasional , non-recurring miscellaneous revenue , the corporate and other segment did not generate revenues for the company for the year ended december 31 , 2019 and 2018. the 4.0 % increase in total other revenues in 2019 from 2018 was due to hospitality asset management fees earned for a hotel property in new york state owned by a related party of juniper capital . for the years ended december 31 , 2019 and 2018 , the corporate and other segment contributed $ 10.4 million and $ 11.2 million , respectively , to total consolidated expenses . the decrease in expenses for this segment is primarily attributable to a decrease in ( i ) interest paid on the exchange offering notes that matured and were repaid in april 2019 ( ii ) decrease in general and administrative expenses , resulting from a reduction in staff who were hired by jia , travel and related expenses , and a portion of the company 's monthly corporate office rent expenses assumed by jia , offset by the asset management fees paid to jia . 46 real estate owned , lending activities , loan and borrower attributes operating properties , real estate held for sale and other real estate owned as of december 31 , 2019 , we held total reo assets of $ 104.0 million , of which $ 45.2 million were held as operating properties , $ 33.3 million were classified as other real estate owned , and $ 25.5 million were classified as held for sale . at december 31 , 2018 , we held total reo assets of $ 75.0 million , of which $ 33.9 million were held as operating properties , $ 33.7 million were classified as other real estate owned , and $ 7.4 million were classified as held for sale . at december 31 , 2019 , all our reo assets were located in california , texas , arizona , minnesota , new mexico , and missouri . during the year ended december 31 , 2019 , we acquired the broadway tower and its related liabilities which were recorded at estimated fair value in accordance with gaap . the acquired assets consist of the office building , land , furniture and fixtures , operating and reserve cash , and tenant receivables totaling approximately $ 24.1 million . liabilities assumed consist of trade accounts payable , accrued liabilities , and accrued interest and principal on the first mortgage loan totaling approximately $ 16.3 million . subsequent to year end , this property was sold ( see note 18 ) . macarthur place underwent a major renovation during 2018 and 2019. as of december 31 , 2019 , macarthur place had a $ 45.2 million carrying value classified in operating properties plus a $ 15 million balance in goodwill and other intangible assets . the company achieved substantial completion of the renovation project near the end of third quarter 2019. the company is re-evaluating a potential renovation of the spa and seeking entitlements for a potential expansion of the available number of rooms at macarthur place . after the renovation is fully completed , we believe that macarthur place will be one of the premier boutique hotels in the city of sonoma and one of the top destinations in the region . renovation project costs were funded using construction proceeds from the macarthur loan , offering proceeds from the hotel fund , and company funds . renovation costs incurred totaled $ 28.0 million through december 31 , 2019. during the year ended december 31 , 2019 , we sold certain reo assets for $ 0.8 million ( net of transaction costs and other non-cash adjustments ) resulting in a total net gain on sale of $ 0.2 million , during the year ended december 31 , 2018 , we sold reo for $ 8.7 million ( net of transaction costs and other non-cash adjustments ) , resulting in a total net gain of $ 3.9 million . during the year ended december 31 , 2019 , we reclassified certain assets between reo held for sale and other reo and reclassified broadway tower from operating properties to reo held for sale . other reo includes those assets which are generally available for sale but , for a variety of reasons , are not being actively marketed for sale as of the reporting date , or those which are not expected to be disposed of within 12 months . other than these reclassifications , there were no material changes with respect to

