cautionary note regarding forward-looking statements this report and other documents that we file with the securities and exchange commission contain forward-looking statements that are based on current expectations , estimates , forecasts and projections about our future performance , our business , our beliefs and our management 's assumptions . statements that are not historical facts are forward-looking statements . words such as “ expect , ” “ outlook , ” “ forecast , ” “ would , ” “ could , ” “ should , ” “ project , ” “ intend , ” “ plan , ” “ continue , ” “ sustain ” , “ on track ” , “ believe , ” “ seek , ” “ estimate , ” “ anticipate , ” “ may , ” “ assume , ” and variations of such words and similar expressions are often used to identify such forward-looking statements , which are made pursuant to the safe harbor provisions of the private securities litigation reform act of 1995. these forward- looking statements are not guarantees of future performance and involve risks , assumptions and uncertainties , including , but not limited to , those described in our reports that we file or furnish with the securities and exchange commission . should one or more of these risks or uncertainties materialize , or should underlying assumptions prove incorrect , actual results may vary materially from those indicated or anticipated by such forward-looking statements . accordingly , you are cautioned not to place undue reliance on these forward-looking statements , which speak only as of the date they are made . except to the extent required by law , we undertake no obligation to update publicly any forward-looking statements after the date they are made , whether as a result of new information , future events , changes in assumptions or otherwise . business of the company we were incorporated in the state of nevada on february 23 , 2010 under the name verve ventures , inc. on december 7 , 2011 , we changed our name to american strategic minerals corporation and were engaged in exploration and potential development of uranium and vanadium minerals business . in june 2012 , we discontinued our minerals business and began to invest in real estate properties in southern california . in october 2012 , we discontinued our real estate business when our former ceo joined the firm and we commenced our ip licensing operations , at which time the company 's name was changed to marathon patent group , inc. on november 1 , 2017 , we entered into a merger agreement with global bit ventures , inc. ( “ gbv ” ) , which is focused on mining digital assets . we have since purchased our cryptocurrency mining machines and established a data center in canada to mine digital assets . following the merger , we intended to add gbv 's existing technical capabilities and digital asset miners and expand our activities in the mining of new digital assets , while at the same time harvesting the value of our remaining ip assets . on june 28 , 2018 , the board has determined that it is in the best interests of the company and its shareholders to allow the amended merger agreement to expire on its current termination date of june 28 , 2018 without further negotiation or extension . the board approved to issue 3,000,000 shares of our common stock to gbv as a termination fee for canceling the proposed merger between the two companies . the fair value of the common stocks was $ 2,850,000. recent developments patent purchase on january 11 , 2018 , the company entered into a patent rights purchase and assignment agreement ( the “ agreement ” ) , with xpresspa group , inc. , a delaware corporation ( the “ seller ” ) and crypto currency patent holdings company llc , a delaware limited liability company and wholly owned subsidiary of the company ( “ ccphc ” ) . pursuant to the agreement , the seller agreed to irrevocably assign , sell , grant , transfer and convey , and ccphc agreed to accept and acquire , the exclusive right , title and interest in and to certain patents owned by the seller ( “ assigned ip ” ) , subject to the terms and conditions set forth in the agreement . as consideration for the assigned ip , the seller shall receive ( i ) payment in the amount of $ 250,000 from ccphc and ( ii ) 250,000 shares of common stock of the company , par value $ 0.0001 per share ( the “ consideration shares ” ) , with piggyback registration rights . the consideration shares were issued by the company to the seller , subject to the terms and conditions of a lock-up agreement . the fair value of the 250,000 shares was $ 960,000 and was based upon the closing price of the company 's common stock . 30 as a condition to the agreement , the seller agreed to enter into a lock-up agreement with the company , which lock-up agreement is included as an exhibit to the agreement ( the “ lock-up agreement ” ) . pursuant to the lock-up agreement , the seller shall not directly or indirectly offer , sell , pledge or transfer , or otherwise dispose of , the consideration shares for a period of 180 days commencing on january 11 , 2018 and ending on july 11 , 2018 ; provided , however , upon the effective date of the registration for resale of the consideration shares , and on each day thereafter , one twentieth ( 1/20 ) of the consideration shares shall bereleased from the restrictions contained in the lock-up agreement and may be freely sold , transferred , traded or otherwise disposed of . story_separator_special_tag fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date , essentially an exit price , based on the highest and best use of the asset or liability . the levels of the fair value hierarchy are : level 1 : observable inputs such as quoted market prices in active markets for identical assets or liabilities level 2 : observable market-based inputs or unobservable inputs that are corroborated by market data level 3 : unobservable inputs for which there is little or no market data , which require the use of the reporting entity 's own assumptions . the carrying amounts reported in the consolidated balance sheet for cash , accounts receivable , accounts payable , and accrued expenses , approximate their estimated fair market value based on the short-term maturity of these instruments . the carrying value of notes payable and other long-term liabilities approximate fair value as the related interest rates approximate rates currently available to the company . financial assets and liabilities are classified in their entirety within the fair value hierarchy based on the lowest level of input that is significant to their fair value measurement . the company measures the fair value of its marketable securities by taking into consideration valuations obtained from third-party pricing sources . the pricing services utilize industry standard valuation models , including both income and market-based approaches , for which all significant inputs are observable , either directly or indirectly , to estimate fair value . these inputs included reported trades of and broker-dealer quotes on the same or similar securities , issuer credit spreads , benchmark securities and other observable inputs . stock-based compensation the company expenses stock-based compensation to employees over the requisite service period based on the estimated grant-date fair value of the awards and forfeiture rates . for stock-based compensation awards to non-employees , the company remeasures the fair value of the non-employee awards at each reporting period prior to vesting and finally at the vesting date of the award . changes in the estimated fair value of these non-employee awards are recognized as compensation expense in the period of change . the company estimates the fair value of stock options grants using the black-scholes option pricing model and the assumptions used in calculating the fair value of stock-based awards represent management 's best estimates and involve inherent uncertainties and the application of management 's judgment . recent issued accounting standards see note 2 to our consolidated financial statements . results of operations for the years ended december 31 , 2018 and december 31 , 2017 we generated revenues of $ 1.6 million during the year ended december 31 , 2018 as compared to $ 0.5 million during the year ended december 31 , 2017. for the year ended december 31 , 2018 , this represented an increase of $ 1.0 million or 201 % . revenue for the year ended december 31 , 2018 were derived primarily from cryptocurrency mining . direct cost of revenues during the year ended december 31 , 2018 and 2017 amounted to approximately $ 3.4 million and $ 3.5 million , respectively . for the year ended december 31 , 2018 , this represented a decrease of $ 0.1 million or 3 % . direct costs of revenue include depreciation and amortization expenses of the cryptocurrency mining machines and patents , contingent payments to patent enforcement legal costs , patent enforcement advisors and inventors as well as various non-contingent costs associated with enforcing the company 's patent rights and otherwise in developing and entering into settlement and licensing agreements that generate the company 's revenue . we incurred other operating expenses of $ 10.3 million for the year ended december 31 , 2018 and $ 11.2 million for the year ended december 31 , 2017. for the year ended december 31 , 2018 , this represented a decrease of $ 945,315 or 8 % . these expenses primarily consisted of compensation to our officers , directors and employees , professional fees , impairment of the patent and long-lived assets and consulting incurred in connection with the day-to-day operation of our business . 34 the operating expenses consisted of the following : replace_table_token_2_th non-cash other operating expenses for the year ended december 31 , 2018 include non-cash other operating expenses totaling $ 39,053. non-cash operating expenses consisted of the following : replace_table_token_3_th ( 1 ) compensation expense and related taxes : compensation expense includes cash compensation and related payroll taxes and benefits , and non-cash equity compensation expenses . for the year ended december 31 , 2018 and 2017 , compensation expense and related payroll taxes were $ 2.0 million and $ 4.4 million , a decrease of $ 2.4 million or 55 % over the comparable periods in 2017. during the year ended december 31 , 2018 , we recognized non-cash employee and board equity-based compensation of $ 39,053 and $ 2.1 million for year ended december 31 , 2017 , respectively . ( 2 ) consulting fees : for the year ended december 31 , 2018 and 2017 , we incurred consulting fees of $ 0.6 million and $ 0.5 million , respectively , an increase of $ 0.1 million or 19 % over the comparable periods in 2017. consulting fees include both cash and non-cash related consulting fees primarily for investor relations and public relations services as well as other consulting services . during the year ended december 31 , 2017 , we recognized non-cash equity-based consulting credit of $ 91,228 . ( 3 ) professional fees : for the year ended december 31 , 2018 and 2017 , professional fees were $ 1.2 million and $ 2.8 million , respectively , a decrease of $ 1.6 million or 57 % over the comparable periods in 2017. professional fees primarily reflect the costs of professional outside accounting fees

liquidity and capital resources the company 's consolidated financial statements have been prepared assuming that it will continue as a going concern , which contemplates continuity of operations , realization of assets , and liquidation of liabilities in the normal course of business . as reflected in the consolidated financial statements , the company had and accumulated deficit of approximately $ 102.1 million at december 31 , 2018 , a net loss of approximately $ 12.8 million and approximately $ 8.2 million net cash used in operating activities for the year ended december 31 , 2018. these factors raise substantial doubt about the company 's ability to continue as a going concern . liquidity is the ability of a company to generate funds to support its current and future operations , satisfy its obligations , and otherwise operate on an ongoing basis . at december 31 , 2018 , the company 's cash and cash equivalents balances totaled $ 2.6 million compared to $ 14.9 million at december 31 , 2017. net working capital decreased by $ 6.6 million , to $ 0.7 million at december 31 , 2018 from $ 7.4 million at december 31 , 2017. cash used in operating activities was $ 8.2 million during the year ended december 31 , 2018 and cash used in operating activities of $ 10.8 million during the year ended december 31 , 2017. cash used in investing activities was $ 4.2 million during the year ended december 31 , 2018 and cash provided by investing activities of $


 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 the company 's consolidated financial statements have been prepared assuming that it will continue as a going concern , which contemplates continuity of operations , realization of assets , and liquidation of liabilities in the normal course of business . as reflected in the consolidated financial statements , the company had and accumulated deficit of approximately $ 102.1 million at december 31 , 2018 , a net loss of approximately $ 12.8 million and approximately $ 8.2 million net cash used in operating activities for the year ended december 31 , 2018. these factors raise substantial doubt about the company 's ability to continue as a going concern . liquidity is the ability of a company to generate funds to support its current and future operations , satisfy its obligations , and otherwise operate on an ongoing basis . at december 31 , 2018 , the company 's cash and cash equivalents balances totaled $ 2.6 million compared to $ 14.9 million at december 31 , 2017. net working capital decreased by $ 6.6 million , to $ 0.7 million at december 31 , 2018 from $ 7.4 million at december 31 , 2017. cash used in operating activities was $ 8.2 million during the year ended december 31 , 2018 and cash used in operating activities of $ 10.8 million during the year ended december 31 , 2017. cash used in investing activities was $ 4.2 million during the year ended december 31 , 2018 and cash provided by investing activities of $
```    
 Suspicious Activity Report : cautionary note regarding forward-looking statements this report and other documents that we file with the securities and exchange commission contain forward-looking statements that are based on current expectations , estimates , forecasts and projections about our future performance , our business , our beliefs and our management 's assumptions . statements that are not historical facts are forward-looking statements . words such as “ expect , ” “ outlook , ” “ forecast , ” “ would , ” “ could , ” “ should , ” “ project , ” “ intend , ” “ plan , ” “ continue , ” “ sustain ” , “ on track ” , “ believe , ” “ seek , ” “ estimate , ” “ anticipate , ” “ may , ” “ assume , ” and variations of such words and similar expressions are often used to identify such forward-looking statements , which are made pursuant to the safe harbor provisions of the private securities litigation reform act of 1995. these forward- looking statements are not guarantees of future performance and involve risks , assumptions and uncertainties , including , but not limited to , those described in our reports that we file or furnish with the securities and exchange commission . should one or more of these risks or uncertainties materialize , or should underlying assumptions prove incorrect , actual results may vary materially from those indicated or anticipated by such forward-looking statements . accordingly , you are cautioned not to place undue reliance on these forward-looking statements , which speak only as of the date they are made . except to the extent required by law , we undertake no obligation to update publicly any forward-looking statements after the date they are made , whether as a result of new information , future events , changes in assumptions or otherwise . business of the company we were incorporated in the state of nevada on february 23 , 2010 under the name verve ventures , inc. on december 7 , 2011 , we changed our name to american strategic minerals corporation and were engaged in exploration and potential development of uranium and vanadium minerals business . in june 2012 , we discontinued our minerals business and began to invest in real estate properties in southern california . in october 2012 , we discontinued our real estate business when our former ceo joined the firm and we commenced our ip licensing operations , at which time the company 's name was changed to marathon patent group , inc. on november 1 , 2017 , we entered into a merger agreement with global bit ventures , inc. ( “ gbv ” ) , which is focused on mining digital assets . we have since purchased our cryptocurrency mining machines and established a data center in canada to mine digital assets . following the merger , we intended to add gbv 's existing technical capabilities and digital asset miners and expand our activities in the mining of new digital assets , while at the same time harvesting the value of our remaining ip assets . on june 28 , 2018 , the board has determined that it is in the best interests of the company and its shareholders to allow the amended merger agreement to expire on its current termination date of june 28 , 2018 without further negotiation or extension . the board approved to issue 3,000,000 shares of our common stock to gbv as a termination fee for canceling the proposed merger between the two companies . the fair value of the common stocks was $ 2,850,000. recent developments patent purchase on january 11 , 2018 , the company entered into a patent rights purchase and assignment agreement ( the “ agreement ” ) , with xpresspa group , inc. , a delaware corporation ( the “ seller ” ) and crypto currency patent holdings company llc , a delaware limited liability company and wholly owned subsidiary of the company ( “ ccphc ” ) . pursuant to the agreement , the seller agreed to irrevocably assign , sell , grant , transfer and convey , and ccphc agreed to accept and acquire , the exclusive right , title and interest in and to certain patents owned by the seller ( “ assigned ip ” ) , subject to the terms and conditions set forth in the agreement . as consideration for the assigned ip , the seller shall receive ( i ) payment in the amount of $ 250,000 from ccphc and ( ii ) 250,000 shares of common stock of the company , par value $ 0.0001 per share ( the “ consideration shares ” ) , with piggyback registration rights . the consideration shares were issued by the company to the seller , subject to the terms and conditions of a lock-up agreement . the fair value of the 250,000 shares was $ 960,000 and was based upon the closing price of the company 's common stock . 30 as a condition to the agreement , the seller agreed to enter into a lock-up agreement with the company , which lock-up agreement is included as an exhibit to the agreement ( the “ lock-up agreement ” ) . pursuant to the lock-up agreement , the seller shall not directly or indirectly offer , sell , pledge or transfer , or otherwise dispose of , the consideration shares for a period of 180 days commencing on january 11 , 2018 and ending on july 11 , 2018 ; provided , however , upon the effective date of the registration for resale of the consideration shares , and on each day thereafter , one twentieth ( 1/20 ) of the consideration shares shall bereleased from the restrictions contained in the lock-up agreement and may be freely sold , transferred , traded or otherwise disposed of . story_separator_special_tag fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date , essentially an exit price , based on the highest and best use of the asset or liability . the levels of the fair value hierarchy are : level 1 : observable inputs such as quoted market prices in active markets for identical assets or liabilities level 2 : observable market-based inputs or unobservable inputs that are corroborated by market data level 3 : unobservable inputs for which there is little or no market data , which require the use of the reporting entity 's own assumptions . the carrying amounts reported in the consolidated balance sheet for cash , accounts receivable , accounts payable , and accrued expenses , approximate their estimated fair market value based on the short-term maturity of these instruments . the carrying value of notes payable and other long-term liabilities approximate fair value as the related interest rates approximate rates currently available to the company . financial assets and liabilities are classified in their entirety within the fair value hierarchy based on the lowest level of input that is significant to their fair value measurement . the company measures the fair value of its marketable securities by taking into consideration valuations obtained from third-party pricing sources . the pricing services utilize industry standard valuation models , including both income and market-based approaches , for which all significant inputs are observable , either directly or indirectly , to estimate fair value . these inputs included reported trades of and broker-dealer quotes on the same or similar securities , issuer credit spreads , benchmark securities and other observable inputs . stock-based compensation the company expenses stock-based compensation to employees over the requisite service period based on the estimated grant-date fair value of the awards and forfeiture rates . for stock-based compensation awards to non-employees , the company remeasures the fair value of the non-employee awards at each reporting period prior to vesting and finally at the vesting date of the award . changes in the estimated fair value of these non-employee awards are recognized as compensation expense in the period of change . the company estimates the fair value of stock options grants using the black-scholes option pricing model and the assumptions used in calculating the fair value of stock-based awards represent management 's best estimates and involve inherent uncertainties and the application of management 's judgment . recent issued accounting standards see note 2 to our consolidated financial statements . results of operations for the years ended december 31 , 2018 and december 31 , 2017 we generated revenues of $ 1.6 million during the year ended december 31 , 2018 as compared to $ 0.5 million during the year ended december 31 , 2017. for the year ended december 31 , 2018 , this represented an increase of $ 1.0 million or 201 % . revenue for the year ended december 31 , 2018 were derived primarily from cryptocurrency mining . direct cost of revenues during the year ended december 31 , 2018 and 2017 amounted to approximately $ 3.4 million and $ 3.5 million , respectively . for the year ended december 31 , 2018 , this represented a decrease of $ 0.1 million or 3 % . direct costs of revenue include depreciation and amortization expenses of the cryptocurrency mining machines and patents , contingent payments to patent enforcement legal costs , patent enforcement advisors and inventors as well as various non-contingent costs associated with enforcing the company 's patent rights and otherwise in developing and entering into settlement and licensing agreements that generate the company 's revenue . we incurred other operating expenses of $ 10.3 million for the year ended december 31 , 2018 and $ 11.2 million for the year ended december 31 , 2017. for the year ended december 31 , 2018 , this represented a decrease of $ 945,315 or 8 % . these expenses primarily consisted of compensation to our officers , directors and employees , professional fees , impairment of the patent and long-lived assets and consulting incurred in connection with the day-to-day operation of our business . 34 the operating expenses consisted of the following : replace_table_token_2_th non-cash other operating expenses for the year ended december 31 , 2018 include non-cash other operating expenses totaling $ 39,053. non-cash operating expenses consisted of the following : replace_table_token_3_th ( 1 ) compensation expense and related taxes : compensation expense includes cash compensation and related payroll taxes and benefits , and non-cash equity compensation expenses . for the year ended december 31 , 2018 and 2017 , compensation expense and related payroll taxes were $ 2.0 million and $ 4.4 million , a decrease of $ 2.4 million or 55 % over the comparable periods in 2017. during the year ended december 31 , 2018 , we recognized non-cash employee and board equity-based compensation of $ 39,053 and $ 2.1 million for year ended december 31 , 2017 , respectively . ( 2 ) consulting fees : for the year ended december 31 , 2018 and 2017 , we incurred consulting fees of $ 0.6 million and $ 0.5 million , respectively , an increase of $ 0.1 million or 19 % over the comparable periods in 2017. consulting fees include both cash and non-cash related consulting fees primarily for investor relations and public relations services as well as other consulting services . during the year ended december 31 , 2017 , we recognized non-cash equity-based consulting credit of $ 91,228 . ( 3 ) professional fees : for the year ended december 31 , 2018 and 2017 , professional fees were $ 1.2 million and $ 2.8 million , respectively , a decrease of $ 1.6 million or 57 % over the comparable periods in 2017. professional fees primarily reflect the costs of professional outside accounting fees

