the government/surveillance market consists of key segments that include state and local law enforcement agencies , federal agencies and military system integrators . customers within the government/surveillance market include recognizable state police forces , sheriff 's departments , fire departments , first responders , the department of justice and the department of homeland security . the key solutions imt provides to this market are mission-critical wireless video solutions for applications , including manned and unmanned aerial and ground systems , mobile and handheld receive systems and transmitters for concealed video surveillance . imt 's products in this market are sold under the brand name imt . 17 vislink the company originally announced the acquisition of vislink on october 20 , 2016 in a $ 16 million binding asset purchase agreement . on february 2 , 2017 , the company completed the acquisition of the net assets that constituted the business of vislink , pursuant to an asset purchase agreement by and among the company , vislink plc , an england and wales registered limited company , vislink international limited , an england and wales registered limited liability company , and vislink inc. , a delaware corporation , dated december 16 , 2016 , as amended on january 13 , 2017. vislink specializes in the wireless capture , delivery and management of secure , high-quality , live video from the field to the point of usage . vislink designs and manufactures products encompassing microwave radio components , satellite communication , cellular and wireless camera systems , and associated amplifier items . vislink serves two core markets : ( i ) broadcast and media and ( ii ) law enforcement , public safety and surveillance . in the broadcast and media market , vislink provides broadcast communication links for the collection of live news and sports and entertainment events . customers in this market include national broadcasters , multi-channel broadcasters , network owners and station groups , sports and live broadcasters and hosted service providers . in the law enforcement , public safety and surveillance market , vislink provides secure video communications and mission-critical solutions for law enforcement , defense and homeland security applications . its law enforcement , public safety and surveillance customers include metropolitan , regional and national law enforcement agencies , as well as domestic and international defense agencies and organizations . in 2017 , we merged vislink 's product offerings and operations with those of imt into vislink technologies . we have completed the co-branding of imt and vislink , while still preserving the vislink brand and its legacy brands , including gigawave , link , advent and mrc , in markets where strong brand identification still exists . imt has assumed the vislink product warranties and support for all the vislink and imt product offerings . vislink 's business in the americas has become part of imt , while its business in the rest of the world is operated by vislink 's u.k. operation . 18 results of operations the following table sets forth the items contained in the consolidated statements of operations of the financial statements included herewith for the fiscal years ended december 31 , 2018 , and 2017. vislink technologies , inc. ( f/k/a xg technology , inc. ) and subsidiaries consolidated statements of operations and comprehensive loss ( in thousands ) replace_table_token_1_th revenue revenues for the year ended december 31 , 2018 were $ 38.3 million compared to $ 47.8 million for the year ended december 31 , 2017 , representing a decrease of $ 9.5 million or 20 % . the decrease can be attributed to one-time sales being recorded in the second quarter of 2017 which included a $ 2.4 million government sale in south america to upgrade their systems from analog to digital . the company experienced a decline in revenue for the north american , europe , asia and rest of world markets in the amount of approximately $ 3.8 million for the year ended december 31 , 2018. part of the decrease in sales was the result of the cost reduction programs implemented in the second through fourth quarters of 2018 which led to specific actions to also rationalize our best revenue opportunities and eliminate low value sales . efforts were also focused on relieving supply chain shortages in order to be able to deliver backorders to customers on a timely basis . 19 cost of revenue and operating expenses cost of components and personnel cost of components and personnel for the year ended december 31 , 2018 were $ 19.2 million compared to $ 28.2 million for the year ended december 31 , 2017 , representing a decrease of $ 9.0 million or 32 % . the decrease is primarily due to a decline in revenue resulting in less cost of components . however , we did have increased margins on revenue for the year ended december 31 , 2018 as the inclusion of the amortization of “ inventory step-up ” generated by the fair value assessed by third-party appraisals associated with the acquisition of imt and vislink was included in cost of components for the year ended december 31 , 2017 and fully amortized by the end of fiscal year 2018. the assigned fair value associated with our business acquisitions have been amortized and included in cost of components and personnel in the amounts $ -0- for the year ended december 31 , 2018 , compared to $ 3.5 million for the year ended december 31 , 2017. inventory valuation adjustments inventory valuation adjustments consist primarily of items that are written off due to obsolescence or written down to their net realizable value . story_separator_special_tag on december 3 , 2018 , the company entered into an agreement with the majority investors to modify the first amended may debentures by issuing the second amended and restated debentures ( the “ second amended may debentures ” ; and together with the original may debentures and the first amended may debentures , the “ may debentures ” ) to the majority investors . the may warrants are exercisable to purchase up to an aggregate of 3,000,000 shares of common stock commencing on the date of issuance at an exercise price of $ 1.00 per share ( the “ exercise price ” ) . the may warrants are exercisable immediately and will expire on the fifth ( 5 th ) anniversary of their date of issuance . the exercise price is subject to adjustment upon stock splits , reverse stock splits , and similar capital changes . a.g.p./alliance global partners served as the placement agent for the company ( “ agp ” or the “ placement agent ” ) . the placement agent received warrants to purchase 200,000 shares of common stock ( the “ placement agent warrants ” ) . the placement agent warrants are exercisable commencing on the date of issuance at an exercise price of $ 1.00 per share ( the “ placement agent exercise price ” ) . the placement agent warrants are exercisable immediately and will expire on the fifth ( 5 th ) anniversary of their date of issuance . the placement agent exercise price is subject to adjustment upon stock splits , reverse stock splits , and similar capital changes description of the second amended may debentures the second amended may debentures contain a five percent ( 5 % ) original issue discount to the principal amounts contained therein . prior to the may debentures maturity date ( as defined below ) , the second amended may debentures bear interest at 10 % per annum , with 12 months interest guaranteed . interest shall be paid quarterly in cash on january 1 , april 1 , july 1 , and october 1 beginning on the first such date after the issuance of the second amended may debentures , on each conversion date ( as defined in the second amended may debentures ) , on each redemption date ( as set forth in the second amended may debentures ) , and on the may debentures maturity date ( as defined below ) . the second amended may debentures rank senior to the company 's existing and future indebtedness and are secured to the extent and as provided in the may security agreement and the may subsidiary guarantee . 24 the second amended may debentures are convertible at any time after their date of issuance at the option of the majority investors into shares of common stock at $ 0.45 per share ( the “ may conversion price ” ) . the second amended may debentures mature on september 30 , 2019 ( the “ may debentures maturity date ” ) . commencing on december 1 , 2018 , and continuing for each fiscal month thereafter through the may debentures maturity date , the company will make payments of principal and interest as monthly redemptions ( as defined in the second amended may debentures ) to the majority investors in order to fully amortize the second amended may debentures . the may conversion price is subject to adjustment for events of default ( as defined in the second amended may debentures ) and upon stock splits , reverse stock splits , and similar capital changes . at any time after issuance of the second amended may debentures , and subject to the certain equity conditions ( as defined in the second amended may debentures ) the company may redeem any portion of the principal amount of the second amended may debentures , any accrued and unpaid , and any other amounts due under the second amended may debentures . if the company exercises its right to prepay the second amended may debentures , the company will pay to the majority investors an amount in cash equal to the sum of the then outstanding principal amount of the second amended may debentures and guaranteed interest as follows : ( i ) from the initial issuance date of the second amended may debentures to the day prior to the 181-day anniversary of the issuance of the second amended may debentures , a 110 % premium ; and ( ii ) from the 181-day anniversary of the issuance of the second amended may debentures to the may debentures maturity date , a 115 % premium . the majority investors may continue to convert the second amended may debentures until the optional redemption payment ( as defined in the second amended may debentures ) is paid . at any time after issuance of the second amended may debentures , in the event that the company consummates a subsequent financing ( as defined in the second amended may debentures ) , the company must make a mandatory redemption in full of the second amended may debentures , in cash , to the majority investors at the same premiums described with respect to the optional redemption ( as defined in the second amended may debentures ) . until the 60-day anniversary of the issuance of the second amended may debentures , the company may not consummate a subsequent financing ( as defined in the second amended may debentures ) . so long as the second amended may debentures are outstanding , the company is prohibited from entering into any variable rate transactions ( as defined in the second amended may debentures ) . the conversion of the second amended may debentures are subject to beneficial ownership limitations such that a majority investor may not convert a second amended may debenture to the extent that such conversion would result in the majority investor being the beneficial owner in excess of 4.99

cash flows the following table sets forth the major components of our consolidated statements of cash flows data for the periods presented ( in thousands ) . replace_table_token_3_th operating activities net cash used in operating activities for the year ended december 31 , 2018 totaled $ 6.4 million as compared to $ 4.5 million for the year ended december 31 , 2017 , an increase of $ 1.9 million or 42.22 % . the increase of $ 1.9 million is attributable to an increase in net loss of $ 4.5 million ; a decrease of $ 6.4 million in accounts payable ; an increase of $ 3.1 million in the change in fair value of derivative liabilities ; a decrease of $ 1.8 million in due to related parties ; a decrease of $ 1.5 million of accrued expense and interest expense ; a decrease of $ 1.2 million of inventory ; a decrease of $ 1.4 million of depreciation and amortization ; a decrease of $ 1.3 million of inventory valuation adjustments ; a decrease of $ 1.2 million of stock-based compensation payroll and consultants ; a decrease of $ 0.7 million of prepaid expenses and other current assets ; a decrease of $ 0.4 million of guaranteed interest and debt issuance costs ; a decrease of $ 0.3 million of a line of credit commitment fee ; a decrease of $ 0.2 million each for stock issuance commitments and provision for bad debts , respectively ; and an increase of $ 0.1 million for the gain on sale of property and equipment .


 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 flows the following table sets forth the major components of our consolidated statements of cash flows data for the periods presented ( in thousands ) . replace_table_token_3_th operating activities net cash used in operating activities for the year ended december 31 , 2018 totaled $ 6.4 million as compared to $ 4.5 million for the year ended december 31 , 2017 , an increase of $ 1.9 million or 42.22 % . the increase of $ 1.9 million is attributable to an increase in net loss of $ 4.5 million ; a decrease of $ 6.4 million in accounts payable ; an increase of $ 3.1 million in the change in fair value of derivative liabilities ; a decrease of $ 1.8 million in due to related parties ; a decrease of $ 1.5 million of accrued expense and interest expense ; a decrease of $ 1.2 million of inventory ; a decrease of $ 1.4 million of depreciation and amortization ; a decrease of $ 1.3 million of inventory valuation adjustments ; a decrease of $ 1.2 million of stock-based compensation payroll and consultants ; a decrease of $ 0.7 million of prepaid expenses and other current assets ; a decrease of $ 0.4 million of guaranteed interest and debt issuance costs ; a decrease of $ 0.3 million of a line of credit commitment fee ; a decrease of $ 0.2 million each for stock issuance commitments and provision for bad debts , respectively ; and an increase of $ 0.1 million for the gain on sale of property and equipment .
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 Suspicious Activity Report : the government/surveillance market consists of key segments that include state and local law enforcement agencies , federal agencies and military system integrators . customers within the government/surveillance market include recognizable state police forces , sheriff 's departments , fire departments , first responders , the department of justice and the department of homeland security . the key solutions imt provides to this market are mission-critical wireless video solutions for applications , including manned and unmanned aerial and ground systems , mobile and handheld receive systems and transmitters for concealed video surveillance . imt 's products in this market are sold under the brand name imt . 17 vislink the company originally announced the acquisition of vislink on october 20 , 2016 in a $ 16 million binding asset purchase agreement . on february 2 , 2017 , the company completed the acquisition of the net assets that constituted the business of vislink , pursuant to an asset purchase agreement by and among the company , vislink plc , an england and wales registered limited company , vislink international limited , an england and wales registered limited liability company , and vislink inc. , a delaware corporation , dated december 16 , 2016 , as amended on january 13 , 2017. vislink specializes in the wireless capture , delivery and management of secure , high-quality , live video from the field to the point of usage . vislink designs and manufactures products encompassing microwave radio components , satellite communication , cellular and wireless camera systems , and associated amplifier items . vislink serves two core markets : ( i ) broadcast and media and ( ii ) law enforcement , public safety and surveillance . in the broadcast and media market , vislink provides broadcast communication links for the collection of live news and sports and entertainment events . customers in this market include national broadcasters , multi-channel broadcasters , network owners and station groups , sports and live broadcasters and hosted service providers . in the law enforcement , public safety and surveillance market , vislink provides secure video communications and mission-critical solutions for law enforcement , defense and homeland security applications . its law enforcement , public safety and surveillance customers include metropolitan , regional and national law enforcement agencies , as well as domestic and international defense agencies and organizations . in 2017 , we merged vislink 's product offerings and operations with those of imt into vislink technologies . we have completed the co-branding of imt and vislink , while still preserving the vislink brand and its legacy brands , including gigawave , link , advent and mrc , in markets where strong brand identification still exists . imt has assumed the vislink product warranties and support for all the vislink and imt product offerings . vislink 's business in the americas has become part of imt , while its business in the rest of the world is operated by vislink 's u.k. operation . 18 results of operations the following table sets forth the items contained in the consolidated statements of operations of the financial statements included herewith for the fiscal years ended december 31 , 2018 , and 2017. vislink technologies , inc. ( f/k/a xg technology , inc. ) and subsidiaries consolidated statements of operations and comprehensive loss ( in thousands ) replace_table_token_1_th revenue revenues for the year ended december 31 , 2018 were $ 38.3 million compared to $ 47.8 million for the year ended december 31 , 2017 , representing a decrease of $ 9.5 million or 20 % . the decrease can be attributed to one-time sales being recorded in the second quarter of 2017 which included a $ 2.4 million government sale in south america to upgrade their systems from analog to digital . the company experienced a decline in revenue for the north american , europe , asia and rest of world markets in the amount of approximately $ 3.8 million for the year ended december 31 , 2018. part of the decrease in sales was the result of the cost reduction programs implemented in the second through fourth quarters of 2018 which led to specific actions to also rationalize our best revenue opportunities and eliminate low value sales . efforts were also focused on relieving supply chain shortages in order to be able to deliver backorders to customers on a timely basis . 19 cost of revenue and operating expenses cost of components and personnel cost of components and personnel for the year ended december 31 , 2018 were $ 19.2 million compared to $ 28.2 million for the year ended december 31 , 2017 , representing a decrease of $ 9.0 million or 32 % . the decrease is primarily due to a decline in revenue resulting in less cost of components . however , we did have increased margins on revenue for the year ended december 31 , 2018 as the inclusion of the amortization of “ inventory step-up ” generated by the fair value assessed by third-party appraisals associated with the acquisition of imt and vislink was included in cost of components for the year ended december 31 , 2017 and fully amortized by the end of fiscal year 2018. the assigned fair value associated with our business acquisitions have been amortized and included in cost of components and personnel in the amounts $ -0- for the year ended december 31 , 2018 , compared to $ 3.5 million for the year ended december 31 , 2017. inventory valuation adjustments inventory valuation adjustments consist primarily of items that are written off due to obsolescence or written down to their net realizable value . story_separator_special_tag on december 3 , 2018 , the company entered into an agreement with the majority investors to modify the first amended may debentures by issuing the second amended and restated debentures ( the “ second amended may debentures ” ; and together with the original may debentures and the first amended may debentures , the “ may debentures ” ) to the majority investors . the may warrants are exercisable to purchase up to an aggregate of 3,000,000 shares of common stock commencing on the date of issuance at an exercise price of $ 1.00 per share ( the “ exercise price ” ) . the may warrants are exercisable immediately and will expire on the fifth ( 5 th ) anniversary of their date of issuance . the exercise price is subject to adjustment upon stock splits , reverse stock splits , and similar capital changes . a.g.p./alliance global partners served as the placement agent for the company ( “ agp ” or the “ placement agent ” ) . the placement agent received warrants to purchase 200,000 shares of common stock ( the “ placement agent warrants ” ) . the placement agent warrants are exercisable commencing on the date of issuance at an exercise price of $ 1.00 per share ( the “ placement agent exercise price ” ) . the placement agent warrants are exercisable immediately and will expire on the fifth ( 5 th ) anniversary of their date of issuance . the placement agent exercise price is subject to adjustment upon stock splits , reverse stock splits , and similar capital changes description of the second amended may debentures the second amended may debentures contain a five percent ( 5 % ) original issue discount to the principal amounts contained therein . prior to the may debentures maturity date ( as defined below ) , the second amended may debentures bear interest at 10 % per annum , with 12 months interest guaranteed . interest shall be paid quarterly in cash on january 1 , april 1 , july 1 , and october 1 beginning on the first such date after the issuance of the second amended may debentures , on each conversion date ( as defined in the second amended may debentures ) , on each redemption date ( as set forth in the second amended may debentures ) , and on the may debentures maturity date ( as defined below ) . the second amended may debentures rank senior to the company 's existing and future indebtedness and are secured to the extent and as provided in the may security agreement and the may subsidiary guarantee . 24 the second amended may debentures are convertible at any time after their date of issuance at the option of the majority investors into shares of common stock at $ 0.45 per share ( the “ may conversion price ” ) . the second amended may debentures mature on september 30 , 2019 ( the “ may debentures maturity date ” ) . commencing on december 1 , 2018 , and continuing for each fiscal month thereafter through the may debentures maturity date , the company will make payments of principal and interest as monthly redemptions ( as defined in the second amended may debentures ) to the majority investors in order to fully amortize the second amended may debentures . the may conversion price is subject to adjustment for events of default ( as defined in the second amended may debentures ) and upon stock splits , reverse stock splits , and similar capital changes . at any time after issuance of the second amended may debentures , and subject to the certain equity conditions ( as defined in the second amended may debentures ) the company may redeem any portion of the principal amount of the second amended may debentures , any accrued and unpaid , and any other amounts due under the second amended may debentures . if the company exercises its right to prepay the second amended may debentures , the company will pay to the majority investors an amount in cash equal to the sum of the then outstanding principal amount of the second amended may debentures and guaranteed interest as follows : ( i ) from the initial issuance date of the second amended may debentures to the day prior to the 181-day anniversary of the issuance of the second amended may debentures , a 110 % premium ; and ( ii ) from the 181-day anniversary of the issuance of the second amended may debentures to the may debentures maturity date , a 115 % premium . the majority investors may continue to convert the second amended may debentures until the optional redemption payment ( as defined in the second amended may debentures ) is paid . at any time after issuance of the second amended may debentures , in the event that the company consummates a subsequent financing ( as defined in the second amended may debentures ) , the company must make a mandatory redemption in full of the second amended may debentures , in cash , to the majority investors at the same premiums described with respect to the optional redemption ( as defined in the second amended may debentures ) . until the 60-day anniversary of the issuance of the second amended may debentures , the company may not consummate a subsequent financing ( as defined in the second amended may debentures ) . so long as the second amended may debentures are outstanding , the company is prohibited from entering into any variable rate transactions ( as defined in the second amended may debentures ) . the conversion of the second amended may debentures are subject to beneficial ownership limitations such that a majority investor may not convert a second amended may debenture to the extent that such conversion would result in the majority investor being the beneficial owner in excess of 4.99

