if any such event occurs , we would be forced to consider alternative financing options . on april 18 , 2018 , we announced that our board of directors had initiated a review of strategic alternatives , which could include strategic mergers , reverse mergers , the issuance or buyback of public shares , or the purchase or sale of specific assets , in addition to other potential actions aimed at increasing shareholder value . the company engaged b. riley fbr , inc. as its exclusive financial advisor during this process . the company does not intend to disclose or comment on developments related to its review unless and until the board has approved a specific transaction or otherwise determined that further disclosure is appropriate . there can be no assurance that the board 's strategic review will result in any transaction , or any assurance as to its outcome or timing . story_separator_special_tag clients to spend any remaining funds budgeted for services and capital expenditures during the year . our clients ' annual budget process is normally completed in the first quarter , which can slow the award of new work at the beginning of the year . principally due to these factors , our first and fourth quarters are typically less robust than our second and third quarters . critical accounting policies please see item 8 , note 2 – accounting policies and new accounting pronouncements for additional information regarding our critical accounting policies . 21 item 8. financial statements and supplementary data the audited financial information below is attached hereto and made part hereof : index page report of independent registered public accounting firm 23 consolidated balance sheets 24 consolidated statements of operations 25 consolidated statements of stockholders ' equity 26 consolidated statements of cash flows 27 notes to consolidated financial statements 28 22 report of independent registered public accounting firm to the shareholders and the board of directors of englobal corporation opinion on the financial statements we have audited the accompanying consolidated balance sheets of englobal corporation and subsidiaries ( the “ company ” ) as of december 28 , 2019 and december 29 , 2018 , and the related consolidated statements of operations , stockholders ' equity and cash flows for the years then ended , and the related notes ( collectively referred to as the “ consolidated financial statements ” ) . in our opinion , the consolidated financial statements present fairly , in all material respects , the consolidated financial position of the company as of december 28 , 2019 and december 29 , 2018 , and the consolidated results of its operations and its cash flows for the years then ended , in conformity with accounting principles generally accepted in the united states of america . change in accounting principle as discussed in note 2 to the consolidated financial statements , the company changed its method of accounting for leases in 2019 due to the adoption of accounting standards codification topic no . 842. basis for opinion these consolidated financial statements are the responsibility of the company 's management . our responsibility is to express an opinion on the company 's consolidated financial statements based on our audits . we are a public accounting firm registered with the public company accounting oversight board ( united states ) ( “ pcaob ” ) and are required to be independent with respect to the company in accordance with the u.s. federal securities laws and the applicable rules and regulations of the securities and exchange commission and the pcaob . we conducted our audits in accordance with the standards of the pcaob . those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement , whether due to error or fraud . the company is not required to have , nor were we engaged to perform , an audit of its internal control over financial reporting . as part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the company 's internal control over financial reporting . accordingly , we express no such opinion . our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements , whether due to error or fraud , and performing procedures to respond to those risks . such procedures included examining , on a test basis , evidence regarding the amounts and disclosures in the consolidated financial statements . our audits also included evaluating the accounting principles used and significant estimates made by management , as well as evaluating the overall presentation of the consolidated financial statements . we believe that our audits provide a reasonable basis for our opinion . moss adams llp houston , texas march 26 , 2020 we have served as the company 's auditor since 2017 . 23 englobal corporation and subsidiaries consolidated balance sheets ( amounts in thousands , except share amounts ) replace_table_token_4_th see accompanying notes to consolidated financial statements . 24 englobal corporation and subsidiaries consolidated statements of operations ( amounts in thousands , except per share amounts ) replace_table_token_5_th see accompanying notes to consolidated financial statements . 25 englobal corporation and subsidiaries consolidated statements of stockholders ' equity ( amounts in thousands ) replace_table_token_6_th see accompanying notes to consolidated financial statements . 26 englobal corporation and subsidiaries consolidated statements of cash flows ( amounts in thousands ) replace_table_token_7_th see accompanying notes to consolidated financial statements . story_separator_special_tag the selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or service to be provided , which measures the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation . we generally use the cost-to-cost method on the labor portion of a project for revenue recognition to measure progress of our contracts because it best depicts the transfer of control to the customer which occurs as we consume the materials on the contracts . therefore , revenues and estimated profits are recorded proportionally as labor costs are incurred . under the typical payment terms of our fixed-price contracts , the customer pays us progress payments . these progress payments are based on quantifiable measures of performance or on the achievement of specified events or milestones . the customer may retain a small portion of the contract price until completion of the contract . revenue recognized in excess of billings is recorded as a contract asset on the balance sheet . amounts billed and due from our customers are classified as receivables on the balance sheet . the portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer should we fail to adequately complete some or all of our obligations under the contract . for some contracts we may receive advance payments from the customer . we record a liability for these advance payments in contract liabilities on the balance sheet . the advance payment typically is not considered a significant financing component because it is used to meet working capital demand that can be higher in the early stages of a contract and to protect us from the other party failing to adequately complete some or all of its obligations under the contract . to determine proper revenue recognition for contracts , we evaluate whether two or more contracts should be combined and accounted for as one single performance obligation or whether a single contract should be accounted for as more than one performance obligation . this evaluation requires significant judgment and the decision to combine a group of contracts or separate a single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period . for most of our contracts , we provide a significant service of integrating a complex set of tasks and components into a single project . hence , the entire contract is accounted for as one performance obligation . less commonly , we may provide distinct goods or services within a contract in which case we separate the contract into more than one performance obligation . if a contract is separated into more than one performance obligation , we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling price of the promised goods or services underlying each performance obligation and use the expected cost plus margin approach to estimate the standalone selling price of each performance obligation . due to the nature of the work required to be performed on many of our performance obligations , the estimation of total revenue and cost at completion is complex , subject to variables and requires significant judgment . we estimate variable consideration at the most likely amount to which we expect to be entitled . we include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved . our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information ( historical , current and forecasted ) that is reasonably available to us . 30 contracts are often modified to account for changes in contract specifications and requirements . we consider contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations . most of our contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract . the effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates , is recognized as an adjustment to revenue ( either as an increase or a reduction of revenue ) on a cumulative catch-up basis . we have a standard , monthly process in which management reviews the progress and execution of our performance obligations . as part of this process , management reviews information including , but not limited to , any outstanding key contract matters , progress towards completion and the related program schedule , identified risks and opportunities and the related changes in estimates of revenues and costs . the risks and opportunities include management 's judgment about the ability and cost to achieve the schedule , technical requirements , and other contractual requirements . management must make assumptions and estimates regarding labor productivity and availability , the complexity of the work to be performed , the availability of materials , the length of time to complete the performance obligation , execution by our subcontractors , the availability and timing of funding from our customer and overhead cost rates , among other variables . based on this analysis , any adjustments to revenue , operating costs and the related impact to operating income are recognized as necessary in the period they become known . these adjustments may result from positive performance and may result in an increase in operating income during the performance of individual performance obligations if we determine we will be successful

cash flows from operating activities operating activities provided approximately $ 2.7 million in net cash during the year ended december 28 , 2019 , compared with net cash used of $ 3.4 million during the comparable period in 2018. the primary driver of the cash provided by operations for the year ended december 28 , 2019 was an increase of $ 4.2 million from contract assets net of contract liabilities and $ 1.2 million in cash provided by other working capital items , offset by our net loss of $ 1.5 million and an increase in trade receivables of $ 1.2 million . for the year ended december 29 , 2018 , cash used by operations was primarily related to our net loss of $ 5.7 million less non-cash expenses of goodwill impairment , depreciation , amortization and stock compensation resulting in a net $ 3.0 million use of cash . cash flows from investing activities investing activities used cash of $ 0.3 million during the year ended december 28 , 2019 and used cash of $ 0.1 million during the year ended december 29 , 2018 primarily related to the purchase of equipment used to outfit our fabrication facility . for the year ended december 28 , 2019 , investing activities were primarily expenditures for property and equipment of $ 0.3 million . for the year ended december 29 , 2018 , cash used for investing activities was primarily related to expenditures for property and equipment of $ 0.1 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 flows from operating activities operating activities provided approximately $ 2.7 million in net cash during the year ended december 28 , 2019 , compared with net cash used of $ 3.4 million during the comparable period in 2018. the primary driver of the cash provided by operations for the year ended december 28 , 2019 was an increase of $ 4.2 million from contract assets net of contract liabilities and $ 1.2 million in cash provided by other working capital items , offset by our net loss of $ 1.5 million and an increase in trade receivables of $ 1.2 million . for the year ended december 29 , 2018 , cash used by operations was primarily related to our net loss of $ 5.7 million less non-cash expenses of goodwill impairment , depreciation , amortization and stock compensation resulting in a net $ 3.0 million use of cash . cash flows from investing activities investing activities used cash of $ 0.3 million during the year ended december 28 , 2019 and used cash of $ 0.1 million during the year ended december 29 , 2018 primarily related to the purchase of equipment used to outfit our fabrication facility . for the year ended december 28 , 2019 , investing activities were primarily expenditures for property and equipment of $ 0.3 million . for the year ended december 29 , 2018 , cash used for investing activities was primarily related to expenditures for property and equipment of $ 0.1 million .
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 Suspicious Activity Report : if any such event occurs , we would be forced to consider alternative financing options . on april 18 , 2018 , we announced that our board of directors had initiated a review of strategic alternatives , which could include strategic mergers , reverse mergers , the issuance or buyback of public shares , or the purchase or sale of specific assets , in addition to other potential actions aimed at increasing shareholder value . the company engaged b. riley fbr , inc. as its exclusive financial advisor during this process . the company does not intend to disclose or comment on developments related to its review unless and until the board has approved a specific transaction or otherwise determined that further disclosure is appropriate . there can be no assurance that the board 's strategic review will result in any transaction , or any assurance as to its outcome or timing . story_separator_special_tag clients to spend any remaining funds budgeted for services and capital expenditures during the year . our clients ' annual budget process is normally completed in the first quarter , which can slow the award of new work at the beginning of the year . principally due to these factors , our first and fourth quarters are typically less robust than our second and third quarters . critical accounting policies please see item 8 , note 2 – accounting policies and new accounting pronouncements for additional information regarding our critical accounting policies . 21 item 8. financial statements and supplementary data the audited financial information below is attached hereto and made part hereof : index page report of independent registered public accounting firm 23 consolidated balance sheets 24 consolidated statements of operations 25 consolidated statements of stockholders ' equity 26 consolidated statements of cash flows 27 notes to consolidated financial statements 28 22 report of independent registered public accounting firm to the shareholders and the board of directors of englobal corporation opinion on the financial statements we have audited the accompanying consolidated balance sheets of englobal corporation and subsidiaries ( the “ company ” ) as of december 28 , 2019 and december 29 , 2018 , and the related consolidated statements of operations , stockholders ' equity and cash flows for the years then ended , and the related notes ( collectively referred to as the “ consolidated financial statements ” ) . in our opinion , the consolidated financial statements present fairly , in all material respects , the consolidated financial position of the company as of december 28 , 2019 and december 29 , 2018 , and the consolidated results of its operations and its cash flows for the years then ended , in conformity with accounting principles generally accepted in the united states of america . change in accounting principle as discussed in note 2 to the consolidated financial statements , the company changed its method of accounting for leases in 2019 due to the adoption of accounting standards codification topic no . 842. basis for opinion these consolidated financial statements are the responsibility of the company 's management . our responsibility is to express an opinion on the company 's consolidated financial statements based on our audits . we are a public accounting firm registered with the public company accounting oversight board ( united states ) ( “ pcaob ” ) and are required to be independent with respect to the company in accordance with the u.s. federal securities laws and the applicable rules and regulations of the securities and exchange commission and the pcaob . we conducted our audits in accordance with the standards of the pcaob . those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement , whether due to error or fraud . the company is not required to have , nor were we engaged to perform , an audit of its internal control over financial reporting . as part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the company 's internal control over financial reporting . accordingly , we express no such opinion . our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements , whether due to error or fraud , and performing procedures to respond to those risks . such procedures included examining , on a test basis , evidence regarding the amounts and disclosures in the consolidated financial statements . our audits also included evaluating the accounting principles used and significant estimates made by management , as well as evaluating the overall presentation of the consolidated financial statements . we believe that our audits provide a reasonable basis for our opinion . moss adams llp houston , texas march 26 , 2020 we have served as the company 's auditor since 2017 . 23 englobal corporation and subsidiaries consolidated balance sheets ( amounts in thousands , except share amounts ) replace_table_token_4_th see accompanying notes to consolidated financial statements . 24 englobal corporation and subsidiaries consolidated statements of operations ( amounts in thousands , except per share amounts ) replace_table_token_5_th see accompanying notes to consolidated financial statements . 25 englobal corporation and subsidiaries consolidated statements of stockholders ' equity ( amounts in thousands ) replace_table_token_6_th see accompanying notes to consolidated financial statements . 26 englobal corporation and subsidiaries consolidated statements of cash flows ( amounts in thousands ) replace_table_token_7_th see accompanying notes to consolidated financial statements . story_separator_special_tag the selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or service to be provided , which measures the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation . we generally use the cost-to-cost method on the labor portion of a project for revenue recognition to measure progress of our contracts because it best depicts the transfer of control to the customer which occurs as we consume the materials on the contracts . therefore , revenues and estimated profits are recorded proportionally as labor costs are incurred . under the typical payment terms of our fixed-price contracts , the customer pays us progress payments . these progress payments are based on quantifiable measures of performance or on the achievement of specified events or milestones . the customer may retain a small portion of the contract price until completion of the contract . revenue recognized in excess of billings is recorded as a contract asset on the balance sheet . amounts billed and due from our customers are classified as receivables on the balance sheet . the portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer should we fail to adequately complete some or all of our obligations under the contract . for some contracts we may receive advance payments from the customer . we record a liability for these advance payments in contract liabilities on the balance sheet . the advance payment typically is not considered a significant financing component because it is used to meet working capital demand that can be higher in the early stages of a contract and to protect us from the other party failing to adequately complete some or all of its obligations under the contract . to determine proper revenue recognition for contracts , we evaluate whether two or more contracts should be combined and accounted for as one single performance obligation or whether a single contract should be accounted for as more than one performance obligation . this evaluation requires significant judgment and the decision to combine a group of contracts or separate a single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period . for most of our contracts , we provide a significant service of integrating a complex set of tasks and components into a single project . hence , the entire contract is accounted for as one performance obligation . less commonly , we may provide distinct goods or services within a contract in which case we separate the contract into more than one performance obligation . if a contract is separated into more than one performance obligation , we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling price of the promised goods or services underlying each performance obligation and use the expected cost plus margin approach to estimate the standalone selling price of each performance obligation . due to the nature of the work required to be performed on many of our performance obligations , the estimation of total revenue and cost at completion is complex , subject to variables and requires significant judgment . we estimate variable consideration at the most likely amount to which we expect to be entitled . we include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved . our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information ( historical , current and forecasted ) that is reasonably available to us . 30 contracts are often modified to account for changes in contract specifications and requirements . we consider contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations . most of our contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract . the effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates , is recognized as an adjustment to revenue ( either as an increase or a reduction of revenue ) on a cumulative catch-up basis . we have a standard , monthly process in which management reviews the progress and execution of our performance obligations . as part of this process , management reviews information including , but not limited to , any outstanding key contract matters , progress towards completion and the related program schedule , identified risks and opportunities and the related changes in estimates of revenues and costs . the risks and opportunities include management 's judgment about the ability and cost to achieve the schedule , technical requirements , and other contractual requirements . management must make assumptions and estimates regarding labor productivity and availability , the complexity of the work to be performed , the availability of materials , the length of time to complete the performance obligation , execution by our subcontractors , the availability and timing of funding from our customer and overhead cost rates , among other variables . based on this analysis , any adjustments to revenue , operating costs and the related impact to operating income are recognized as necessary in the period they become known . these adjustments may result from positive performance and may result in an increase in operating income during the performance of individual performance obligations if we determine we will be successful

