the outlook for the energy industry is uncertain at best given the sustained reduction in crude oil and natural gas prices . pricing for our services continues to be very competitive in this environment . going into 2017 , we have an ongoing , extremely focused marketing effort and are observing an adequate amount of proposal activity , which we believe will translate into maintaining our backlog . in particular , we are focused on higher margins and lower risks associated with significant projects located inside of the united states . results of operations our revenue from operations is comprised of epcm services revenue and the sale of integrated engineered automation systems and other automation engineering services . we recognize service revenue as soon as the services are performed . the majority of our engineering services have historically been provided through time-and-material contracts whereas a majority of our integrated engineered automation system revenues are earned on fixed-price contracts . in the course of providing our services , we routinely provide materials and equipment and may provide construction or construction management services on a subcontractor basis . generally , these materials , equipment and subcontractor costs are passed through to our clients and reimbursed , along with handling fees , which in total are at margins lower than those of our services business . in accordance with industry practice and generally accepted accounting principles , all such costs and fees are included in revenue . the use of subcontractor services can change significantly from project to project ; therefore , changes in revenue and gross profit , sg & a expense and operating income as a percent of revenue may not be indicative of our core business trends . 21 segment operating sg & a expense includes management , business development and staff compensation , office costs such as rents and utilities , depreciation , amortization , travel , bad debt and other expenses generally unrelated to specific client contracts , but directly related to the support of a segment 's operations . corporate sg & a expenses includes investor relations , governance , finance , accounting , health , safety , environmental , human resources , legal and information technology which are unrelated to specific projects but which are incurred to support corporate activities . comparison of the years ended december 31 , 2016 and december 26 , 2015 the following table set forth below , for the years ended december 31 , 2016 and december 26 , 2015 , provides financial data that is derived from our consolidated statements of operations ( amounts in thousands , except per share data ) . replace_table_token_8_th 22 revenue – overall , our revenue for the year ended december 31 , 2016 , as compared to the year ended december 26 , 2015 decreased $ 20.4 million , or 25.6 % , to $ 59.2 million from $ 79.6 million . revenue from the automation segment decreased $ 4.4 million , or 14.4 % , to $ 26.0 million for the year ended december 31 , 2016 , as compared to $ 30.3 million for the comparable period in 2015 and revenues from the epcm segment decreased $ 16.0 million , or 32.5 % , to $ 33.3 million for the year ended december 31 , 2016 as compared to $ 49.3 million for the comparable period in 2015. our 2016 revenue for both the epcm and automation segments have been negatively impacted by the sustained reduction in oil and gas prices and the resulting drop in our clients ' activities in the upstream , midstream and downstream sectors of the energy industry . as a result of the sustained reduction in oil and gas prices and the resulting drop in our clients ' activities , we have taken steps to mitigate and reverse the declining revenue trends . in the latter half of 2015 , we hired three seasoned business development professionals and another in the first quarter of 2016. while it will require time for these efforts to generate revenue , our proposal activity has increased and our backlog has remained steady even though the time from proposal to award has increased . while the cost of these initiatives is immediately reflected in increased sg & a expense , we expect to recognize the benefits of these efforts over time subject to the overall level of spending in the energy sectors in which we provide services . gross profit – gross profit for the year ended december 31 , 2016 was $ 10.1 million , a decrease of $ 6.2 million , or 37.8 % , from $ 16.3 million for the comparable prior year period . gross profit margin was 17.1 % for the year ended december 31 , 2016 , a decrease from the 20.4 % gross profit margin for the year ended december 26 , 2015. gross profit in the automation segment decreased $ 3.2 million , or 34.4 % , to $ 6.1 million for a gross profit margin of 23.5 % for the year ended december 31 , 2016 as compared to $ 9.3 million with a gross profit margin of 30.7 % for the year ended december 26 , 2015. gross profit in our epcm segment decreased $ 3.0 million , or 42.4 % to $ 4.0 million for a gross profit margin of 12.1 % for the year ended december 31 , 2016 as compared to $ 7.0 million for a gross profit margin of 14.1 % for the year ended december 26 , 2015. the declines in both the epcm and automation segment 's 2016 gross profit margins are primarily due to lower manpower utilization , which increased our variable labor operating costs , resulting from the decline in our clients ' activities and corresponding reduction in the number of new projects . story_separator_special_tag the company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes . as of december 31 , 2016 and december 26 , 2015 , we do not have any significant uncertain tax positions . changes in accounting policies in november 2015 , the fasb issued accounting standards update ( “ asu ” ) no . 2015-17 , balance sheet classification of deferred taxes ( topic 740 ) : which requires deferred tax liabilities and assets to be classified as noncurrent in the balance sheet . the standard will be effective for financial statements issued for annual periods beginning after december 15 , 2016 , and interim periods within those annual periods . early adoption is permitted for financial statements that have not been previously issued . the asu may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented . we adopted this asu on a prospective basis in the fourth quarter of fiscal 2015. the change in accounting principle does not have an impact on the company 's results of operations , cash flows or stockholders ' equity . in august 2015 , the fasb issued asu no . 2015-15 , interest-imputation of interest ( topic 835-30 ) : presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements . this amendment allows for the deferral and presentation of debt issuance costs as an asset to be ratably amortized over the term of the line-of-credit arrangement , regardless of whether there are any outstanding borrowings on the line-of-credit arrangement . we have historically accounted for our debt issuance costs related to revolving credit agreements in accordance with this amendment and therefore this pronouncement did not have an impact on the company 's financial statements or related disclosures . in april 2015 , the fasb issued asu no . 2015-03 , interest - imputation of interest ( subtopic 835-30 ) : simplifying the presentation of debt issuance costs . this amendment requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability , consistent with the treatment of debt discounts . this pronouncement is effective for interim and annual financial statements issued for fiscal years beginning after december 15 , 2015. we adopted this pronouncement in the first quarter of fiscal 2016 and because the company did not have any debt outstanding at fiscal year-end 2015 or any period during 2016 , this pronouncement did not have an impact on the company 's financial statements or related disclosures . 27 new accounting pronouncements not yet adopted in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers ( topic 606 ) : the asu will supersede most of the existing revenue recognition requirements in u.s. gaap and will require entities to recognize revenue at an amount that reflects the consideration to which we expect to be entitled in exchange for transferring goods or services to a customer . the new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity 's nature , amount , timing , and uncertainty of revenue and cash flows arising from contracts with customers . in may 2016 , the fasb issued asu no . 2016-12 to clarify certain narrow aspects of topic 606 such as assessing the collectability criterion , presentation of sales taxes and other similar taxes collected from customers , non-cash consideration , contract modifications at transition , completed contracts at transition , and other technical corrections . this new accounting standard , as updated , is effective for interim and annual reporting periods beginning after december 15 , 2017. we are currently evaluating the provisions of this pronouncement and are assessing its potential impact on our financial position , results of operations , cash flows and related disclosures . however we are currently unable to reasonably estimate the impact this pronouncement will have on our financial statements and related disclosures . in february 2016 , the fasb issued asu no . 2016-02 , leases ( topic 842 ) , that will amend the accounting standards for leases . this new standard retains a distinction between finance leases and operating leases but the primary change is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases on the lessee 's balance sheet and certain aspects of lease accounting have been simplified . this new standard requires additional qualitative and quantitative disclosures along with specific quantitative disclosures required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount , timing , and uncertainty of cash flows arising from leases . this pronouncement is effective for interim and annual reporting periods beginning after december 15 , 2018 , with early application permitted . we are currently evaluating the provisions of this pronouncement and are assessing its potential impact on our financial position , results of operations , cash flows and related disclosures . however we are currently unable to reasonably estimate the impact this pronouncement will have on our financial statements and related disclosures . in march 2016 , the fasb issued asu no . 2016-09 , compensation – stock compensation ( topic 718 ) : improvements to employee share-based payment accounting , to changes several aspects of accounting for share-based payment transactions , including a requirement to recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement , classification of awards as either equity or liabilities , and classification on the statement of cash flows . this pronouncement is effective for interim and annual reporting periods beginning after december 31 , 2016 , with early adoption permitted . varying transition methods ( modified retrospective , retrospective or prospective ) are applied to different provisions of the standard

liquidity and capital resources overview we define liquidity as our ability to pay liabilities as they become due , fund business operations and meet monetary contractual obligations . our primary sources of liquidity are internally generated funds as we currently can not borrow under our loan agreement with regions bank due to an existing event of default resulting from our failure to comply with the fixed charge coverage ratio financial covenant . we had cash of $ 15.7 million and $ 7.8 million at december 31 , 2016 and december 26 , 2015 , respectively . our working capital as of december 31 , 2016 was $ 22.2 million as compared to $ 25.6 million as of december 26 , 2015. we believe our current cash on hand , internally generated funds and our other working capital is sufficient to fund our current operations . cash and the availability of cash could be materially restricted if ( 1 ) outstanding invoices billed are not collected or are not collected in a timely manner , ( 2 ) circumstances prevent the timely internal processing of invoices , ( 3 ) we lose one or more of our major customers , or ( 4 ) we are unable to win new projects that we can perform on a profitable basis .


 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 overview we define liquidity as our ability to pay liabilities as they become due , fund business operations and meet monetary contractual obligations . our primary sources of liquidity are internally generated funds as we currently can not borrow under our loan agreement with regions bank due to an existing event of default resulting from our failure to comply with the fixed charge coverage ratio financial covenant . we had cash of $ 15.7 million and $ 7.8 million at december 31 , 2016 and december 26 , 2015 , respectively . our working capital as of december 31 , 2016 was $ 22.2 million as compared to $ 25.6 million as of december 26 , 2015. we believe our current cash on hand , internally generated funds and our other working capital is sufficient to fund our current operations . cash and the availability of cash could be materially restricted if ( 1 ) outstanding invoices billed are not collected or are not collected in a timely manner , ( 2 ) circumstances prevent the timely internal processing of invoices , ( 3 ) we lose one or more of our major customers , or ( 4 ) we are unable to win new projects that we can perform on a profitable basis .
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 Suspicious Activity Report : the outlook for the energy industry is uncertain at best given the sustained reduction in crude oil and natural gas prices . pricing for our services continues to be very competitive in this environment . going into 2017 , we have an ongoing , extremely focused marketing effort and are observing an adequate amount of proposal activity , which we believe will translate into maintaining our backlog . in particular , we are focused on higher margins and lower risks associated with significant projects located inside of the united states . results of operations our revenue from operations is comprised of epcm services revenue and the sale of integrated engineered automation systems and other automation engineering services . we recognize service revenue as soon as the services are performed . the majority of our engineering services have historically been provided through time-and-material contracts whereas a majority of our integrated engineered automation system revenues are earned on fixed-price contracts . in the course of providing our services , we routinely provide materials and equipment and may provide construction or construction management services on a subcontractor basis . generally , these materials , equipment and subcontractor costs are passed through to our clients and reimbursed , along with handling fees , which in total are at margins lower than those of our services business . in accordance with industry practice and generally accepted accounting principles , all such costs and fees are included in revenue . the use of subcontractor services can change significantly from project to project ; therefore , changes in revenue and gross profit , sg & a expense and operating income as a percent of revenue may not be indicative of our core business trends . 21 segment operating sg & a expense includes management , business development and staff compensation , office costs such as rents and utilities , depreciation , amortization , travel , bad debt and other expenses generally unrelated to specific client contracts , but directly related to the support of a segment 's operations . corporate sg & a expenses includes investor relations , governance , finance , accounting , health , safety , environmental , human resources , legal and information technology which are unrelated to specific projects but which are incurred to support corporate activities . comparison of the years ended december 31 , 2016 and december 26 , 2015 the following table set forth below , for the years ended december 31 , 2016 and december 26 , 2015 , provides financial data that is derived from our consolidated statements of operations ( amounts in thousands , except per share data ) . replace_table_token_8_th 22 revenue – overall , our revenue for the year ended december 31 , 2016 , as compared to the year ended december 26 , 2015 decreased $ 20.4 million , or 25.6 % , to $ 59.2 million from $ 79.6 million . revenue from the automation segment decreased $ 4.4 million , or 14.4 % , to $ 26.0 million for the year ended december 31 , 2016 , as compared to $ 30.3 million for the comparable period in 2015 and revenues from the epcm segment decreased $ 16.0 million , or 32.5 % , to $ 33.3 million for the year ended december 31 , 2016 as compared to $ 49.3 million for the comparable period in 2015. our 2016 revenue for both the epcm and automation segments have been negatively impacted by the sustained reduction in oil and gas prices and the resulting drop in our clients ' activities in the upstream , midstream and downstream sectors of the energy industry . as a result of the sustained reduction in oil and gas prices and the resulting drop in our clients ' activities , we have taken steps to mitigate and reverse the declining revenue trends . in the latter half of 2015 , we hired three seasoned business development professionals and another in the first quarter of 2016. while it will require time for these efforts to generate revenue , our proposal activity has increased and our backlog has remained steady even though the time from proposal to award has increased . while the cost of these initiatives is immediately reflected in increased sg & a expense , we expect to recognize the benefits of these efforts over time subject to the overall level of spending in the energy sectors in which we provide services . gross profit – gross profit for the year ended december 31 , 2016 was $ 10.1 million , a decrease of $ 6.2 million , or 37.8 % , from $ 16.3 million for the comparable prior year period . gross profit margin was 17.1 % for the year ended december 31 , 2016 , a decrease from the 20.4 % gross profit margin for the year ended december 26 , 2015. gross profit in the automation segment decreased $ 3.2 million , or 34.4 % , to $ 6.1 million for a gross profit margin of 23.5 % for the year ended december 31 , 2016 as compared to $ 9.3 million with a gross profit margin of 30.7 % for the year ended december 26 , 2015. gross profit in our epcm segment decreased $ 3.0 million , or 42.4 % to $ 4.0 million for a gross profit margin of 12.1 % for the year ended december 31 , 2016 as compared to $ 7.0 million for a gross profit margin of 14.1 % for the year ended december 26 , 2015. the declines in both the epcm and automation segment 's 2016 gross profit margins are primarily due to lower manpower utilization , which increased our variable labor operating costs , resulting from the decline in our clients ' activities and corresponding reduction in the number of new projects . story_separator_special_tag the company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes . as of december 31 , 2016 and december 26 , 2015 , we do not have any significant uncertain tax positions . changes in accounting policies in november 2015 , the fasb issued accounting standards update ( “ asu ” ) no . 2015-17 , balance sheet classification of deferred taxes ( topic 740 ) : which requires deferred tax liabilities and assets to be classified as noncurrent in the balance sheet . the standard will be effective for financial statements issued for annual periods beginning after december 15 , 2016 , and interim periods within those annual periods . early adoption is permitted for financial statements that have not been previously issued . the asu may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented . we adopted this asu on a prospective basis in the fourth quarter of fiscal 2015. the change in accounting principle does not have an impact on the company 's results of operations , cash flows or stockholders ' equity . in august 2015 , the fasb issued asu no . 2015-15 , interest-imputation of interest ( topic 835-30 ) : presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements . this amendment allows for the deferral and presentation of debt issuance costs as an asset to be ratably amortized over the term of the line-of-credit arrangement , regardless of whether there are any outstanding borrowings on the line-of-credit arrangement . we have historically accounted for our debt issuance costs related to revolving credit agreements in accordance with this amendment and therefore this pronouncement did not have an impact on the company 's financial statements or related disclosures . in april 2015 , the fasb issued asu no . 2015-03 , interest - imputation of interest ( subtopic 835-30 ) : simplifying the presentation of debt issuance costs . this amendment requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability , consistent with the treatment of debt discounts . this pronouncement is effective for interim and annual financial statements issued for fiscal years beginning after december 15 , 2015. we adopted this pronouncement in the first quarter of fiscal 2016 and because the company did not have any debt outstanding at fiscal year-end 2015 or any period during 2016 , this pronouncement did not have an impact on the company 's financial statements or related disclosures . 27 new accounting pronouncements not yet adopted in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers ( topic 606 ) : the asu will supersede most of the existing revenue recognition requirements in u.s. gaap and will require entities to recognize revenue at an amount that reflects the consideration to which we expect to be entitled in exchange for transferring goods or services to a customer . the new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity 's nature , amount , timing , and uncertainty of revenue and cash flows arising from contracts with customers . in may 2016 , the fasb issued asu no . 2016-12 to clarify certain narrow aspects of topic 606 such as assessing the collectability criterion , presentation of sales taxes and other similar taxes collected from customers , non-cash consideration , contract modifications at transition , completed contracts at transition , and other technical corrections . this new accounting standard , as updated , is effective for interim and annual reporting periods beginning after december 15 , 2017. we are currently evaluating the provisions of this pronouncement and are assessing its potential impact on our financial position , results of operations , cash flows and related disclosures . however we are currently unable to reasonably estimate the impact this pronouncement will have on our financial statements and related disclosures . in february 2016 , the fasb issued asu no . 2016-02 , leases ( topic 842 ) , that will amend the accounting standards for leases . this new standard retains a distinction between finance leases and operating leases but the primary change is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases on the lessee 's balance sheet and certain aspects of lease accounting have been simplified . this new standard requires additional qualitative and quantitative disclosures along with specific quantitative disclosures required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount , timing , and uncertainty of cash flows arising from leases . this pronouncement is effective for interim and annual reporting periods beginning after december 15 , 2018 , with early application permitted . we are currently evaluating the provisions of this pronouncement and are assessing its potential impact on our financial position , results of operations , cash flows and related disclosures . however we are currently unable to reasonably estimate the impact this pronouncement will have on our financial statements and related disclosures . in march 2016 , the fasb issued asu no . 2016-09 , compensation – stock compensation ( topic 718 ) : improvements to employee share-based payment accounting , to changes several aspects of accounting for share-based payment transactions , including a requirement to recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement , classification of awards as either equity or liabilities , and classification on the statement of cash flows . this pronouncement is effective for interim and annual reporting periods beginning after december 31 , 2016 , with early adoption permitted . varying transition methods ( modified retrospective , retrospective or prospective ) are applied to different provisions of the standard

