income taxes in accordance with the authoritative guidance on accounting for income taxes , we recognize income taxes using an asset and liability approach . this approach requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our consolidated financial statements or tax returns . the measurement of current and deferred taxes is based on provisions of the enacted tax law and the effects of future changes in tax laws or rates are not anticipated . the authoritative guidance provides for recognition of deferred tax assets if the realization of such deferred tax assets is more likely than not to occur based on an evaluation of all available evidence , both positive and negative , and the relative weight of the evidence . with the exception of the gains resulting from the completed sale of the photovoltaics business in december 2014 , we have determined that at this time it is more likely than not that deferred tax assets attributable to all other items will not be realized , primarily due to uncertainties related to our ability to utilize our net operating loss carryforwards before they expire . accordingly , we have established a valuation allowance for such deferred tax assets which we do not expect to realize . if there is a change in our ability to realize our deferred tax assets for which a valuation allowance has been established , then our tax valuation allowance may decrease in the period in which we determine that realization is more likely than not . likewise , if we determine that it is not more likely than not that deferred tax assets will be realized , then a valuation allowance may be established for such deferred tax assets and our tax provision may increase in the period in which we make the determination . see note 12 - income and other taxes in the notes to the consolidated financial statements for additional information related to our income taxes . revenue recognition revenue is recognized upon shipment , provided persuasive evidence of a contract exists , the price is fixed , the product meets our customer 's specifications , title and ownership have transferred to the customer , and there is reasonable assurance of collection of the sales proceeds . the majority of our products have shipping terms that are free on board or free carrier alongside ( “ fca ” ) shipping point , which means that we fulfill our delivery obligation when the goods are handed over to the freight carrier at our shipping dock . this means the customer typically bears all costs and risks of loss or damage to the goods from that point . we account for shipping and related transportation costs by recording the charges that are invoiced to customers as revenue , with the corresponding cost recorded as cost of revenue . in those instances where inventory is maintained at a consigned location , revenue is recognized only when our customer pulls product for use and after title and ownership has transferred to the customer . any warranty cost and remaining obligations that are inconsequential or perfunctory are accrued when the corresponding revenue is recognized . distributors . we use a number of distributors around the world and recognize revenue upon shipment of product to these distributors . title and risk of loss pass to the distributors upon shipment , and our distributors are contractually obligated to pay us on standard commercial terms , just like our other direct customers . we do not sell to our distributors on consignment and , except in the event of product discontinuance , do not give distributors a right of return . 46 contract manufacturers . prior to certain customers accepting product that is manufactured at one of our contract manufacturers , these customers require that they first qualify the product and manufacturing processes at our contract manufacturer . the customers ' qualification process determines whether the product manufactured at our contract manufacturer achieves their quality , performance , and reliability standards . after a customer completes the initial qualification process , we receive approval to ship qualified product to that customer . as part of the manufacturing process at our contract manufacturers , the finished product is tested prior to shipment to the customer using the same criteria that our customer uses to test product it receives . revenue is recognized upon shipment of customer-qualified product , provided persuasive evidence of a contract exists , the price is fixed , the product meets our customer 's specifications , title and ownership have transferred to the customer , and there is reasonable assurance of collection of the sales proceeds . * * * the above listing is not intended to be a comprehensive list of all of our accounting policies . in many cases , u.s. gaap specifically dictates the accounting treatment of a particular transaction . there are also areas in which management 's judgment in selecting any available alternative would not produce a materially different result . for a complete discussion of our accounting policies , recently adopted accounting pronouncements , and other required u.s. gaap disclosures , we refer you to the accompanying notes to our consolidated financial statements in this annual report . results of operations the following table sets forth our consolidated statements of operations data expressed as a percentage of revenue : replace_table_token_4_th 47 comparison of financial results for the fiscal years ended september 30 , 2018 and 2017 replace_table_token_5_th revenue for the fiscal year ended september 30 , 2018 , revenue decreased 30.3 % compared to the prior year driven by lower sales volume of our catv components and rfog products primarily to u.s. customers partially offset by increases in revenue from our chip devices and navigation systems product lines . story_separator_special_tag during the fiscal year ended september 30 , 2016 , we recognized a gain associated with the release of the $ 3.4 million deferred gain and reversal of other liabilities of $ 0.4 million that had been recorded as of september 30 , 2015 , resulting in a credit of $ 3.8 million to recognition of previously deferred gain on sale of assets within discontinued operations of the digital products business as the result of the favorable ruling from the sei arbitration . see note 13 - commitments and contingencies in the notes to the consolidated financial statements for additional information . order backlog emcore 's product sales are made pursuant to purchase orders , often with short lead times . these orders are subject to revision or cancellation and often are made without deposits . products typically ship within the same quarter in which a purchase order is received ; therefore , our order backlog at any particular date is not necessarily indicative of actual revenue or the level of orders for any succeeding period and may not be comparable to prior periods . liquidity and capital resources other than the fiscal years ended september 30 , 2018 and 2017 , in recent years we have historically consumed cash from operations and , in most periods , we have incurred operating losses from continuing operations . we have managed our liquidity position through the sale of assets and cost reduction initiatives , as well as , from time to time in prior periods , borrowings from our credit facility ( defined below ) and capital markets transactions . as of september 30 , 2018 , cash and cash equivalents totaled $ 63.1 million and net working capital totaled approximately $ 88.8 million . net working capital , calculated as current assets minus current liabilities , is a financial metric we use which represents available operating liquidity . with respect to measures related to liquidity : 54 credit facility : on november 11 , 2010 , we entered into a credit and security agreement ( “ credit facility ” ) with wells fargo bank , n.a . ( “ wells fargo ” ) . the credit facility , as amended by its seventh amendment on november 10 , 2015 , currently provides us with a revolving credit of up to $ 15.0 million . on november 7 , 2018 we entered into a tenth amendment of the credit facility which extended the maturity date of the facility to november 2021 that can be used for working capital requirements , letters of credit , and other general corporate purposes subject to a limitation of the company having liquidity of at least $ 25,000,000 million after such use . the credit facility is secured by the company 's assets and is subject to a borrowing base formula based on the company 's eligible accounts receivable , inventory , and machinery and equipment accounts . see note 11 - credit facilities in the notes to the consolidated financial statements for additional disclosures . as of november 29 , 2018 , there was no outstanding balance under this credit facility , $ 0.5 million reserved for one outstanding stand-by letter of credit and $ 11.1 million available for borrowing . we believe that our existing balances of cash and cash equivalents , cash flows from operations and amounts expected to be available under our credit facility will provide us with sufficient financial resources to meet our cash requirements for operations , working capital , and capital expenditures for at least the next twelve months . at the discretion of our board of directors and subject to restrictions in our credit facility , we may use our existing balances of cash and cash equivalents to provide liquidity to our shareholders through one or more additional special dividends or the repurchase of additional shares of our outstanding common stock , make investments in our other businesses , pursue other strategic opportunities or a combination thereof . for example , under our credit facility , we are restricted from paying dividends that result in the liquidity of the company being less than $ 25.0 million after paying the dividend if any amounts are outstanding under our credit facility . in addition , should we require more capital than what is generated by our operations , for example to fund significant discretionary activities , such as business acquisitions , we could elect to raise capital in the u.s. through debt or equity issuances . these alternatives could result in higher effective tax rates , increased interest expense , and or dilution of our earnings . we have borrowed funds in the past and continue to believe we have the ability to do so at reasonable interest rates . story_separator_special_tag style= `` line-height:120 % ; text-align : left ; padding-left:48px ; font-size:10pt ; `` > accounts payable : the fluctuation of our accounts payable balances is primarily driven by changes in inventory purchases as well as changes related to the timing of actual payments to vendors . accrued expenses : our largest accrued expense typically relates to compensation . historically , fluctuations of our accrued expense accounts have primarily related to changes in the timing of actual compensation payments , receipt or application of advanced payments , adjustments to our warranty accrual , and accruals related to professional fees . net cash used in investing activities replace_table_token_9_th fiscal 2018 : for the fiscal year ended september 30 , 2018 , our investing activities used $ 6.5 million of cash for capital related expenditures of $ 6.6 million primarily related to investment in our wafer fabrication facility . fiscal 2017 : for the fiscal year ended september 30 , 2017 , our investing activities used $ 9.1 million of cash primarily for capital related expenditures of $ 9.6 million , partially offset by the receipt of proceeds from the disposal of equipment of $ 0.5 million . fiscal 2016 :

cash flow the consolidated statements of cash flows for the fiscal years ended september 30 , 2018 , 2017 and 2016 reflects cash flows from both the continuing and discontinued operations of the company . net cash provided by ( used in ) operating activities replace_table_token_8_th fiscal 2018 : for the fiscal year ended september 30 , 2018 , our operating activities provided cash of $ 1.5 million primarily due to changes in our operating assets and liabilities ( or working capital components , which includes non-current inventory ) of $ 8.2 million , depreciation and amortization expense of $ 5.6 million , stock-based compensation expense of $ 3.6 million , provision for doubtful accounts of $ 0.6 million , warranty provision of $ 0.4 million and loss on disposal of equipment of $ 34,000 partially offset by our net loss of $ 17.5 million . the change in our operating assets and liabilities was primarily the result of a decrease in accounts receivable of $ 2.4 million and inventory of $ 5.1 million and an increase in accounts payable of $ 0.5 million and other liabilities of $ 4.2 million , partially offset by an increase in other assets of $ 3.9 million .


 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 flow the consolidated statements of cash flows for the fiscal years ended september 30 , 2018 , 2017 and 2016 reflects cash flows from both the continuing and discontinued operations of the company . net cash provided by ( used in ) operating activities replace_table_token_8_th fiscal 2018 : for the fiscal year ended september 30 , 2018 , our operating activities provided cash of $ 1.5 million primarily due to changes in our operating assets and liabilities ( or working capital components , which includes non-current inventory ) of $ 8.2 million , depreciation and amortization expense of $ 5.6 million , stock-based compensation expense of $ 3.6 million , provision for doubtful accounts of $ 0.6 million , warranty provision of $ 0.4 million and loss on disposal of equipment of $ 34,000 partially offset by our net loss of $ 17.5 million . the change in our operating assets and liabilities was primarily the result of a decrease in accounts receivable of $ 2.4 million and inventory of $ 5.1 million and an increase in accounts payable of $ 0.5 million and other liabilities of $ 4.2 million , partially offset by an increase in other assets of $ 3.9 million .
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 Suspicious Activity Report : income taxes in accordance with the authoritative guidance on accounting for income taxes , we recognize income taxes using an asset and liability approach . this approach requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our consolidated financial statements or tax returns . the measurement of current and deferred taxes is based on provisions of the enacted tax law and the effects of future changes in tax laws or rates are not anticipated . the authoritative guidance provides for recognition of deferred tax assets if the realization of such deferred tax assets is more likely than not to occur based on an evaluation of all available evidence , both positive and negative , and the relative weight of the evidence . with the exception of the gains resulting from the completed sale of the photovoltaics business in december 2014 , we have determined that at this time it is more likely than not that deferred tax assets attributable to all other items will not be realized , primarily due to uncertainties related to our ability to utilize our net operating loss carryforwards before they expire . accordingly , we have established a valuation allowance for such deferred tax assets which we do not expect to realize . if there is a change in our ability to realize our deferred tax assets for which a valuation allowance has been established , then our tax valuation allowance may decrease in the period in which we determine that realization is more likely than not . likewise , if we determine that it is not more likely than not that deferred tax assets will be realized , then a valuation allowance may be established for such deferred tax assets and our tax provision may increase in the period in which we make the determination . see note 12 - income and other taxes in the notes to the consolidated financial statements for additional information related to our income taxes . revenue recognition revenue is recognized upon shipment , provided persuasive evidence of a contract exists , the price is fixed , the product meets our customer 's specifications , title and ownership have transferred to the customer , and there is reasonable assurance of collection of the sales proceeds . the majority of our products have shipping terms that are free on board or free carrier alongside ( “ fca ” ) shipping point , which means that we fulfill our delivery obligation when the goods are handed over to the freight carrier at our shipping dock . this means the customer typically bears all costs and risks of loss or damage to the goods from that point . we account for shipping and related transportation costs by recording the charges that are invoiced to customers as revenue , with the corresponding cost recorded as cost of revenue . in those instances where inventory is maintained at a consigned location , revenue is recognized only when our customer pulls product for use and after title and ownership has transferred to the customer . any warranty cost and remaining obligations that are inconsequential or perfunctory are accrued when the corresponding revenue is recognized . distributors . we use a number of distributors around the world and recognize revenue upon shipment of product to these distributors . title and risk of loss pass to the distributors upon shipment , and our distributors are contractually obligated to pay us on standard commercial terms , just like our other direct customers . we do not sell to our distributors on consignment and , except in the event of product discontinuance , do not give distributors a right of return . 46 contract manufacturers . prior to certain customers accepting product that is manufactured at one of our contract manufacturers , these customers require that they first qualify the product and manufacturing processes at our contract manufacturer . the customers ' qualification process determines whether the product manufactured at our contract manufacturer achieves their quality , performance , and reliability standards . after a customer completes the initial qualification process , we receive approval to ship qualified product to that customer . as part of the manufacturing process at our contract manufacturers , the finished product is tested prior to shipment to the customer using the same criteria that our customer uses to test product it receives . revenue is recognized upon shipment of customer-qualified product , provided persuasive evidence of a contract exists , the price is fixed , the product meets our customer 's specifications , title and ownership have transferred to the customer , and there is reasonable assurance of collection of the sales proceeds . * * * the above listing is not intended to be a comprehensive list of all of our accounting policies . in many cases , u.s. gaap specifically dictates the accounting treatment of a particular transaction . there are also areas in which management 's judgment in selecting any available alternative would not produce a materially different result . for a complete discussion of our accounting policies , recently adopted accounting pronouncements , and other required u.s. gaap disclosures , we refer you to the accompanying notes to our consolidated financial statements in this annual report . results of operations the following table sets forth our consolidated statements of operations data expressed as a percentage of revenue : replace_table_token_4_th 47 comparison of financial results for the fiscal years ended september 30 , 2018 and 2017 replace_table_token_5_th revenue for the fiscal year ended september 30 , 2018 , revenue decreased 30.3 % compared to the prior year driven by lower sales volume of our catv components and rfog products primarily to u.s. customers partially offset by increases in revenue from our chip devices and navigation systems product lines . story_separator_special_tag during the fiscal year ended september 30 , 2016 , we recognized a gain associated with the release of the $ 3.4 million deferred gain and reversal of other liabilities of $ 0.4 million that had been recorded as of september 30 , 2015 , resulting in a credit of $ 3.8 million to recognition of previously deferred gain on sale of assets within discontinued operations of the digital products business as the result of the favorable ruling from the sei arbitration . see note 13 - commitments and contingencies in the notes to the consolidated financial statements for additional information . order backlog emcore 's product sales are made pursuant to purchase orders , often with short lead times . these orders are subject to revision or cancellation and often are made without deposits . products typically ship within the same quarter in which a purchase order is received ; therefore , our order backlog at any particular date is not necessarily indicative of actual revenue or the level of orders for any succeeding period and may not be comparable to prior periods . liquidity and capital resources other than the fiscal years ended september 30 , 2018 and 2017 , in recent years we have historically consumed cash from operations and , in most periods , we have incurred operating losses from continuing operations . we have managed our liquidity position through the sale of assets and cost reduction initiatives , as well as , from time to time in prior periods , borrowings from our credit facility ( defined below ) and capital markets transactions . as of september 30 , 2018 , cash and cash equivalents totaled $ 63.1 million and net working capital totaled approximately $ 88.8 million . net working capital , calculated as current assets minus current liabilities , is a financial metric we use which represents available operating liquidity . with respect to measures related to liquidity : 54 credit facility : on november 11 , 2010 , we entered into a credit and security agreement ( “ credit facility ” ) with wells fargo bank , n.a . ( “ wells fargo ” ) . the credit facility , as amended by its seventh amendment on november 10 , 2015 , currently provides us with a revolving credit of up to $ 15.0 million . on november 7 , 2018 we entered into a tenth amendment of the credit facility which extended the maturity date of the facility to november 2021 that can be used for working capital requirements , letters of credit , and other general corporate purposes subject to a limitation of the company having liquidity of at least $ 25,000,000 million after such use . the credit facility is secured by the company 's assets and is subject to a borrowing base formula based on the company 's eligible accounts receivable , inventory , and machinery and equipment accounts . see note 11 - credit facilities in the notes to the consolidated financial statements for additional disclosures . as of november 29 , 2018 , there was no outstanding balance under this credit facility , $ 0.5 million reserved for one outstanding stand-by letter of credit and $ 11.1 million available for borrowing . we believe that our existing balances of cash and cash equivalents , cash flows from operations and amounts expected to be available under our credit facility will provide us with sufficient financial resources to meet our cash requirements for operations , working capital , and capital expenditures for at least the next twelve months . at the discretion of our board of directors and subject to restrictions in our credit facility , we may use our existing balances of cash and cash equivalents to provide liquidity to our shareholders through one or more additional special dividends or the repurchase of additional shares of our outstanding common stock , make investments in our other businesses , pursue other strategic opportunities or a combination thereof . for example , under our credit facility , we are restricted from paying dividends that result in the liquidity of the company being less than $ 25.0 million after paying the dividend if any amounts are outstanding under our credit facility . in addition , should we require more capital than what is generated by our operations , for example to fund significant discretionary activities , such as business acquisitions , we could elect to raise capital in the u.s. through debt or equity issuances . these alternatives could result in higher effective tax rates , increased interest expense , and or dilution of our earnings . we have borrowed funds in the past and continue to believe we have the ability to do so at reasonable interest rates . story_separator_special_tag style= `` line-height:120 % ; text-align : left ; padding-left:48px ; font-size:10pt ; `` > accounts payable : the fluctuation of our accounts payable balances is primarily driven by changes in inventory purchases as well as changes related to the timing of actual payments to vendors . accrued expenses : our largest accrued expense typically relates to compensation . historically , fluctuations of our accrued expense accounts have primarily related to changes in the timing of actual compensation payments , receipt or application of advanced payments , adjustments to our warranty accrual , and accruals related to professional fees . net cash used in investing activities replace_table_token_9_th fiscal 2018 : for the fiscal year ended september 30 , 2018 , our investing activities used $ 6.5 million of cash for capital related expenditures of $ 6.6 million primarily related to investment in our wafer fabrication facility . fiscal 2017 : for the fiscal year ended september 30 , 2017 , our investing activities used $ 9.1 million of cash primarily for capital related expenditures of $ 9.6 million , partially offset by the receipt of proceeds from the disposal of equipment of $ 0.5 million . fiscal 2016 :

