in particular , statements herein regarding economic outlook , industry prospects and trends ; industry partnerships ; future results of operations or financial position ; future spending ; breakeven revenue point ; expected market growth ; market acceptance of our newly introduced or upgraded products or services ; the sufficiency of our cash to fund future operations and capital requirements ; development , introduction and shipment of new products or services ; changing foreign operations ; and any other guidance on future periods are forward-looking statements . forward-looking statements reflect management 's current expectations and are inherently uncertain . although we believe that the expectations reflected in these forward-looking statements are reasonable , we can not guarantee future results , levels of activity , performance , achievements , or other future events . moreover , neither data i/o nor anyone else assumes responsibility for the accuracy and completeness of these forward-looking statements . we are under no duty to update any of these forward-looking statements after the date of this annual report . the reader should not place undue reliance on these forward-looking statements . the following discussions and the section entitled “ risk factors – cautionary factors that may affect future results ” describes some , but not all , of the factors that could cause these differences . overview we sustained our first loss in 6 years due to a downturn in orders , combined with increased investments in our security deployment business . our strong cash position and balance sheet combined with our long-term view of the market gives us the financial flexibility to make these security business decisions . at data i/o , we are investing for the long term to retain and extend our leadership position . on the product side , we continue to invest with a long-term focus towards expanding our markets and creating unique value for our customers . this is true for both our traditional core business as well as the emerging security deployment business . the automotive electronics market is cyclical and we experienced the downturn in capital spending related to it and the electronics industry . we continued our focus on automotive electronics and managing the core programming business for growth and profitability , while developing and enhancing products , particularly in security deployment , to drive future revenue and earnings growth as we invest resources in the security deployment market . our challenge continues to be operating in a cyclical and rapidly evolving industry environment . our efforts are to balance industry changes , industry partnerships , new technologies , business geography shifts , exchange rate volatility , trade issues and tariffs , coronavirus impacts , increasing costs and strategic investments in our business with the level of demand and mix of business we expect . we continue to manage our costs carefully and execute strategies for cost reduction . we are focusing our research and development efforts in our strategic growth markets , namely automotive electronics and iot new programming technologies , secure supply chain solutions , automated programming systems and their enhancements for the manufacturing environment and software . we are developing technology and products to securely provision new categories of semiconductors , including secure elements , authentication chips , and secure microcontrollers . we plan to deliver new programming technology and automated handling systems for managed and secure programming in the manufacturing environment . we continue to focus on extending the capabilities and support for our product lines and supporting the latest semiconductor devices , including various configurations of nand flash , e-mmc , ufs and microcontrollers on our newer products . our customer focus has been on global and strategic high-volume manufacturers in key market segments like automotive electronics , iot , industrial controls and consumer electronics as well as programming centers . although the long-term prospects for our strategic growth markets should be good , these markets and our business have been , and are likely to continue to be , adversely impacted , at least temporarily , by the the global pandemic of coronavirus . see also the detailed discussion of the impacts of the coronavirus on our business and markets in item 1a , risk factors . annual projections on spending , growth , mix , and profitability are likely to be revised substantially as new information is obtained . 21 critical accounting policy judgments and estimates the preparation of financial statements in accordance with accounting principles generally accepted in the united states of america requires that we make estimates and judgments , which affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosures of contingent assets and liabilities . on an on-going basis , we evaluate our estimates , including those related to revenue recognition , sales returns , bad debts , inventories , intangible assets , income taxes , warranty obligations , restructuring charges , contingencies such as litigation and contract terms that have multiple elements and other complexities typical in the capital equipment industry . we base our estimates on historical experience and other assumptions that we believe are reasonable under the circumstances . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies affect the more significant judgments and estimates used in the preparation of our financial statements : revenue recognition : effective january 1 , 2018 , the company adopted asu 2014-09 , revenue ( “ topic 606 ” ) : revenue from contracts with customers , using the modified retrospective method . topic 606 provides a single , principles-based five-step model to be applied to all contracts with customers . story_separator_special_tag we believe it is essential to invest in r & d to significantly enhance our existing products and to create new products as markets develop and technologies change . in 2020 , we are planning to expand our hiring and research and development related to our sentrix and the security deployment market . in addition to product development , a significant part of r & d spending is on creating software and support for new devices introduced by the semiconductor companies . we are currently focusing our research development efforts on strategic growth markets , including automotive electronics and iot . we are developing technology and the sentrix product line to securely program new categories of semiconductors , including secure elements , authentication chips , and secure microcontrollers . we delivered new enhanced programming technology and automated handling systems for managed and secure programming in the manufacturing environment and extending the capabilities and support for our programmer architecture . our r & d spending fluctuates based on the number , type , and the development stage of our product initiatives and projects . selling , general and administrative replace_table_token_8_th selling , general and administrative ( “ sg & a ” ) expenses decreased $ 880,000 for the year ended december 31 , 2019 compared to 2018. the decrease was primarily related to reduced sales commissions on lower sales volume and lower incentive compensation . lower stock-based compensation and cost control measures contributed to the reduction . interest replace_table_token_9_th interest income was higher for the year ended december 31 , 2019 compared to 2018 , primarily due to higher invested cash balances . income taxes replace_table_token_10_th income tax ( expense ) decreased by $ 260,000 for the year ended december 31 , 2019 compared to 2018. the decrease was primarily a result of the 2019 operating loss and the valuation allowance required as we were not able to recognize the benefit of the loss . in 2019 , we did recognize a tax benefit of $ 42,000 related to previously sequestered refundable “ alternative minimum tax credits ” in carryforward . income tax ( expense ) in 2019 and 2018 is primarily the result of foreign subsidiary income tax and minimal us state income tax . the effective tax rate for 2019 of ( 2.7 % ) and 2018 of 15.3 % differed from the statutory tax rates in our tax reporting jurisdictions primarily due to the effect of valuation allowances as well as foreign tax incentives and credits . we have a valuation allowance of $ 7.5 million and $ 7.0 million as of december 31 , 2019 and 2018 , respectively . our deferred tax assets and valuation allowance have been reduced by approximately $ 348,000 and $ 308,000 associated with the requirements of accounting for uncertain tax positions as of december 31 , 2019 and 2018 , respectively . given the uncertainty created by our loss history particularly in the u.s. which is where most of our net deferred tax assets are located , and the ongoing uncertain economic outlook for our industry as well as capital and geographic spending , we currently expect to continue to limit the recognition of net deferred tax assets and maintain the tax valuation allowances . 25 inflation and changes in foreign currency exchange rates sales and expenses incurred by foreign subsidiaries are denominated in the subsidiary 's local currency and translated into u.s. dollar amounts at average rates of exchange during the year . we recognized foreign currency transaction gains of $ 5,000 and $ 103,000 in 2019 and 2018 , respectively . the transaction gains or losses resulted primarily from translation adjustments to foreign inter-company accounts and u.s. dollar accounts held by foreign subsidiaries and sales by our german subsidiary to certain customers , which were invoiced in u.s. dollars . because approximately 92 % of our sales are to international markets , volatile exchange rates may also impact our competitiveness and margins . financial condition : story_separator_special_tag font-size : 13px `` > off-balance sheet arrangements except as noted in the accompanying consolidated financial statements in note 7 , “ operating lease commitments ” and note 8 , “ other commitments ” , we had no off-balance sheet arrangements . share repurchase programs on october 31 , 2018 , our board of directors approved a share repurchase program with provisions to buy back up to $ 2.0 million of our stock during the period from november 1 , 2018 through october 31 , 2019. the program was established with a 10b5-1 plan under the exchange act to provide flexibility to make purchases throughout the period . the $ 2.0 million buyback program was completed during the third quarter of 2019. the following is a summary of the stock repurchase program from november 1 , 2018 through september 30 , 2019 : 26 replace_table_token_11_th non-generally accepted accounting principles ( gaap ) financial measures earnings before interest , taxes , depreciation , and amortization ( “ ebitda ” ) and adjusted ebitda excluding equity compensation ( a non-cash item ) are set forth below . non-gaap financial measures should not be considered a substitute for , or superior to , measures of financial performance prepared in accordance with gaap . we believe that these non-gaap financial measures provide meaningful supplemental information regarding our results and facilitate the comparison of results . a reconciliation of net income to ebitda and adjusted ebitda follows : replace_table_token_12_th new accounting pronouncements we adopted the new lease accounting standard , asc 842 , on january 1 , 2019 using the modified retrospective transition method , and recorded a balance sheet adjustment on the date of adoption . in 2018 , we accounted for leases under asc 840. in adopting asc 842 , we utilized certain practical expedients available under the standard . these practical expedients include waiving reassessment of conclusions reached under the previous lease standard as to whether contracts contain leases , not recording right-of-use assets

liquidity and capital resources 2019 change 2018 ( in thousands ) working capital $ 18,497 $ ( 2,568 ) $ 21,065 at december 31 , 2019 , our principal sources of liquidity consisted of existing cash and cash equivalents which decreased $ 4.4 million primarily due to share repurchase program and the net loss for the year as well as the impact of lower stock-based compensation and depreciation ( non-cash expenses ) . these drove our working capital to decrease by $ 2.6 million for the year ended december 31 , 2019 to $ 18.5 million . our current ratio was 4.4 and 4.1 for december 31 , 2019 and 2018 , respectively . although we have no significant external capital expenditure plans currently , we expect that we will continue to make capital expenditures to support our business . we plan to increase our investment in internally developed equipment used for services , rentals , sales demonstration and test equipment as we develop and release new products . capital expenditures are expected to be funded by existing and internally generated funds or lease financing . as a result of our significant product development ,customer support , selling and marketing efforts , we have required substantial working capital to fund our operations .


 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 2019 change 2018 ( in thousands ) working capital $ 18,497 $ ( 2,568 ) $ 21,065 at december 31 , 2019 , our principal sources of liquidity consisted of existing cash and cash equivalents which decreased $ 4.4 million primarily due to share repurchase program and the net loss for the year as well as the impact of lower stock-based compensation and depreciation ( non-cash expenses ) . these drove our working capital to decrease by $ 2.6 million for the year ended december 31 , 2019 to $ 18.5 million . our current ratio was 4.4 and 4.1 for december 31 , 2019 and 2018 , respectively . although we have no significant external capital expenditure plans currently , we expect that we will continue to make capital expenditures to support our business . we plan to increase our investment in internally developed equipment used for services , rentals , sales demonstration and test equipment as we develop and release new products . capital expenditures are expected to be funded by existing and internally generated funds or lease financing . as a result of our significant product development ,customer support , selling and marketing efforts , we have required substantial working capital to fund our operations .
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 Suspicious Activity Report : in particular , statements herein regarding economic outlook , industry prospects and trends ; industry partnerships ; future results of operations or financial position ; future spending ; breakeven revenue point ; expected market growth ; market acceptance of our newly introduced or upgraded products or services ; the sufficiency of our cash to fund future operations and capital requirements ; development , introduction and shipment of new products or services ; changing foreign operations ; and any other guidance on future periods are forward-looking statements . forward-looking statements reflect management 's current expectations and are inherently uncertain . although we believe that the expectations reflected in these forward-looking statements are reasonable , we can not guarantee future results , levels of activity , performance , achievements , or other future events . moreover , neither data i/o nor anyone else assumes responsibility for the accuracy and completeness of these forward-looking statements . we are under no duty to update any of these forward-looking statements after the date of this annual report . the reader should not place undue reliance on these forward-looking statements . the following discussions and the section entitled “ risk factors – cautionary factors that may affect future results ” describes some , but not all , of the factors that could cause these differences . overview we sustained our first loss in 6 years due to a downturn in orders , combined with increased investments in our security deployment business . our strong cash position and balance sheet combined with our long-term view of the market gives us the financial flexibility to make these security business decisions . at data i/o , we are investing for the long term to retain and extend our leadership position . on the product side , we continue to invest with a long-term focus towards expanding our markets and creating unique value for our customers . this is true for both our traditional core business as well as the emerging security deployment business . the automotive electronics market is cyclical and we experienced the downturn in capital spending related to it and the electronics industry . we continued our focus on automotive electronics and managing the core programming business for growth and profitability , while developing and enhancing products , particularly in security deployment , to drive future revenue and earnings growth as we invest resources in the security deployment market . our challenge continues to be operating in a cyclical and rapidly evolving industry environment . our efforts are to balance industry changes , industry partnerships , new technologies , business geography shifts , exchange rate volatility , trade issues and tariffs , coronavirus impacts , increasing costs and strategic investments in our business with the level of demand and mix of business we expect . we continue to manage our costs carefully and execute strategies for cost reduction . we are focusing our research and development efforts in our strategic growth markets , namely automotive electronics and iot new programming technologies , secure supply chain solutions , automated programming systems and their enhancements for the manufacturing environment and software . we are developing technology and products to securely provision new categories of semiconductors , including secure elements , authentication chips , and secure microcontrollers . we plan to deliver new programming technology and automated handling systems for managed and secure programming in the manufacturing environment . we continue to focus on extending the capabilities and support for our product lines and supporting the latest semiconductor devices , including various configurations of nand flash , e-mmc , ufs and microcontrollers on our newer products . our customer focus has been on global and strategic high-volume manufacturers in key market segments like automotive electronics , iot , industrial controls and consumer electronics as well as programming centers . although the long-term prospects for our strategic growth markets should be good , these markets and our business have been , and are likely to continue to be , adversely impacted , at least temporarily , by the the global pandemic of coronavirus . see also the detailed discussion of the impacts of the coronavirus on our business and markets in item 1a , risk factors . annual projections on spending , growth , mix , and profitability are likely to be revised substantially as new information is obtained . 21 critical accounting policy judgments and estimates the preparation of financial statements in accordance with accounting principles generally accepted in the united states of america requires that we make estimates and judgments , which affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosures of contingent assets and liabilities . on an on-going basis , we evaluate our estimates , including those related to revenue recognition , sales returns , bad debts , inventories , intangible assets , income taxes , warranty obligations , restructuring charges , contingencies such as litigation and contract terms that have multiple elements and other complexities typical in the capital equipment industry . we base our estimates on historical experience and other assumptions that we believe are reasonable under the circumstances . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies affect the more significant judgments and estimates used in the preparation of our financial statements : revenue recognition : effective january 1 , 2018 , the company adopted asu 2014-09 , revenue ( “ topic 606 ” ) : revenue from contracts with customers , using the modified retrospective method . topic 606 provides a single , principles-based five-step model to be applied to all contracts with customers . story_separator_special_tag we believe it is essential to invest in r & d to significantly enhance our existing products and to create new products as markets develop and technologies change . in 2020 , we are planning to expand our hiring and research and development related to our sentrix and the security deployment market . in addition to product development , a significant part of r & d spending is on creating software and support for new devices introduced by the semiconductor companies . we are currently focusing our research development efforts on strategic growth markets , including automotive electronics and iot . we are developing technology and the sentrix product line to securely program new categories of semiconductors , including secure elements , authentication chips , and secure microcontrollers . we delivered new enhanced programming technology and automated handling systems for managed and secure programming in the manufacturing environment and extending the capabilities and support for our programmer architecture . our r & d spending fluctuates based on the number , type , and the development stage of our product initiatives and projects . selling , general and administrative replace_table_token_8_th selling , general and administrative ( “ sg & a ” ) expenses decreased $ 880,000 for the year ended december 31 , 2019 compared to 2018. the decrease was primarily related to reduced sales commissions on lower sales volume and lower incentive compensation . lower stock-based compensation and cost control measures contributed to the reduction . interest replace_table_token_9_th interest income was higher for the year ended december 31 , 2019 compared to 2018 , primarily due to higher invested cash balances . income taxes replace_table_token_10_th income tax ( expense ) decreased by $ 260,000 for the year ended december 31 , 2019 compared to 2018. the decrease was primarily a result of the 2019 operating loss and the valuation allowance required as we were not able to recognize the benefit of the loss . in 2019 , we did recognize a tax benefit of $ 42,000 related to previously sequestered refundable “ alternative minimum tax credits ” in carryforward . income tax ( expense ) in 2019 and 2018 is primarily the result of foreign subsidiary income tax and minimal us state income tax . the effective tax rate for 2019 of ( 2.7 % ) and 2018 of 15.3 % differed from the statutory tax rates in our tax reporting jurisdictions primarily due to the effect of valuation allowances as well as foreign tax incentives and credits . we have a valuation allowance of $ 7.5 million and $ 7.0 million as of december 31 , 2019 and 2018 , respectively . our deferred tax assets and valuation allowance have been reduced by approximately $ 348,000 and $ 308,000 associated with the requirements of accounting for uncertain tax positions as of december 31 , 2019 and 2018 , respectively . given the uncertainty created by our loss history particularly in the u.s. which is where most of our net deferred tax assets are located , and the ongoing uncertain economic outlook for our industry as well as capital and geographic spending , we currently expect to continue to limit the recognition of net deferred tax assets and maintain the tax valuation allowances . 25 inflation and changes in foreign currency exchange rates sales and expenses incurred by foreign subsidiaries are denominated in the subsidiary 's local currency and translated into u.s. dollar amounts at average rates of exchange during the year . we recognized foreign currency transaction gains of $ 5,000 and $ 103,000 in 2019 and 2018 , respectively . the transaction gains or losses resulted primarily from translation adjustments to foreign inter-company accounts and u.s. dollar accounts held by foreign subsidiaries and sales by our german subsidiary to certain customers , which were invoiced in u.s. dollars . because approximately 92 % of our sales are to international markets , volatile exchange rates may also impact our competitiveness and margins . financial condition : story_separator_special_tag font-size : 13px `` > off-balance sheet arrangements except as noted in the accompanying consolidated financial statements in note 7 , “ operating lease commitments ” and note 8 , “ other commitments ” , we had no off-balance sheet arrangements . share repurchase programs on october 31 , 2018 , our board of directors approved a share repurchase program with provisions to buy back up to $ 2.0 million of our stock during the period from november 1 , 2018 through october 31 , 2019. the program was established with a 10b5-1 plan under the exchange act to provide flexibility to make purchases throughout the period . the $ 2.0 million buyback program was completed during the third quarter of 2019. the following is a summary of the stock repurchase program from november 1 , 2018 through september 30 , 2019 : 26 replace_table_token_11_th non-generally accepted accounting principles ( gaap ) financial measures earnings before interest , taxes , depreciation , and amortization ( “ ebitda ” ) and adjusted ebitda excluding equity compensation ( a non-cash item ) are set forth below . non-gaap financial measures should not be considered a substitute for , or superior to , measures of financial performance prepared in accordance with gaap . we believe that these non-gaap financial measures provide meaningful supplemental information regarding our results and facilitate the comparison of results . a reconciliation of net income to ebitda and adjusted ebitda follows : replace_table_token_12_th new accounting pronouncements we adopted the new lease accounting standard , asc 842 , on january 1 , 2019 using the modified retrospective transition method , and recorded a balance sheet adjustment on the date of adoption . in 2018 , we accounted for leases under asc 840. in adopting asc 842 , we utilized certain practical expedients available under the standard . these practical expedients include waiving reassessment of conclusions reached under the previous lease standard as to whether contracts contain leases , not recording right-of-use assets

