ARSynopsis/T5_Full_FineTune_V0.1_80K
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in april 2020 , the company received distributions of the cares act prf of approximately $ 17 million targeted to offset lost revenue and expenditures incurred in connection with the covid-19 pandemic . the prf payments are subject to certain restrictions and are subject to recoupment if not used for designated purposes . as a condition to receiving distributions , providers must agree to certain terms and conditions , including , among other things , that the funds are being used for lost revenues and unreimbursed covid-19 related expenses as defined by the u.s. department of health and human services ( hhs ) . all recipients of prf payments are required to comply with the reporting requirements described in the terms and conditions and as determined by hhs . the company recognizes grant payments as income when there is reasonable assurance that it has complied with the conditions associated with the grant . grant income recognized by the company is presented in grant income in the accompanying consolidated statements of operations . during the year ended december 31 , 2020 , the company recognized grant income of $ 14.3 million related to the prf payments received . the company has deferred $ 2.7 million of the prf payments , which is included in other current liabilities in the accompanying consolidated balance sheets at december 31 , 2020. as previously noted , hhs guidance related to prf grant funds is still evolving and subject to change . during september and october 2020 , hhs issued updated reporting requirements significantly changing the previous guidance regarding utilization of the funds granted from the prf under the cares act , and in january 2021 hhs issued further guidance updating the reporting requirements relating to prf grant funds . as a result of the updated guidance from hhs , the company could be required to reverse the recognition of the grant income recorded and return a portion of the funds recognized , which could be material to the company . the company is continuing to monitor the reporting requirements as they evolve . hhs has indicated that the cares act prf funds are subject to ongoing reporting and changes to the terms and conditions . to the extent that reporting requirements and terms and conditions are modified in the future , it may affect the company 's ability to comply and may require the return of funds . furthermore , hhs has indicated that it will be closely monitoring and , along with the office of inspector general ( united states ) ( oig ) , auditing providers to ensure that recipients comply with the terms and conditions of relief programs and to prevent fraud and abuse . all providers will be subject to civil and criminal penalties for any deliberate omissions , misrepresentations or falsifications of any information given to hhs . medicare accelerated payment program . in certain circumstances , when a healthcare provider is experiencing financial difficulty due to delays in receiving payment for the medicare services it provided , it may be eligible for an 79 adapthealth corp. and subsidiaries notes to consolidated financial statements december 31 , 2020 and 2019 accelerated or advance payment pursuant to the medicare accelerated payment program . the cares act revised the medicare accelerated payment program in an attempt to disburse payments to healthcare providers more quickly . in april 2020 , the company received recoupable advance payments of approximately $ 46 million made available by cms under the cares act . the recoupment of such amount by cms will begin in april 2021 and will be applied to services provided and revenue recognized during the period in which the recoupment occurs . the total of the recoupable advance payments is included in other current liabilities in the accompanying consolidated balance sheets as of december 31 , 2020. deferral of employment tax payments . as permitted under the cares act , the company has elected to defer certain portions of employer-paid fica taxes otherwise payable from march 27 , 2020 to january 1 , 2021 , which will be paid in two equal installments on december 31 , 2021 and december 31 , 2022. during the year ended december 31 , 2020 , the company deferred a total of $ 8.6 million pursuant to this provision , of which $ 4.3 million is included in other current liabilities and $ 4.3 million is included in other long-term liabilities in the accompanying consolidated balance sheets as of december 31 , 2020. the full extent of the impact of the covid-19 pandemic on the company 's business , results of operations , and financial condition is highly uncertain and will depend on future developments and numerous evolving factors that it may not be able to accurately predict , and could be material to the company 's consolidated financial statements in future reporting periods . ( g ) fair value accounting financial accounting standards board ( fasb ) accounting standards codification ( asc ) topic 820 , fair value measurements and disclosures ( asc 820 ) , creates a single definition of fair value , establishes a framework for measuring fair value in u.s. gaap and expands disclosures about fair value measurements . asc 820 emphasizes that fair value is a market-based measurement , not an entity specific measurement , and states that a fair value measurement is to estimate the price at which an orderly transaction to sell an asset or to transfer the liability would take place between market participants at the measurement date under current market conditions . assets and liabilities adjusted to fair value in the balance sheet are categorized based upon the level of judgment associated with the inputs used to measure their fair value . story_separator_special_tag other income , net for the year ended december 31 , 2019 consisted of $ 0.2 million of net reductions in the fair value of contingent consideration liabilities related to acquisitions and $ 0.1 million of equity income related to an equity method investment . income tax ( benefit ) expense . income tax benefit for the year ended december 31 , 2020 was $ 12.0 million compared to income tax expense of $ 0.7 million for the year ended december 31 , 2019. the change in income tax benefit/expense was primarily related to decreased pre-tax income associated with the tax paying entities . ebitda , adjusted ebitda and adjusted ebitda less patient equipment capex adapthealth uses ebitda , adjusted ebitda and adjusted ebitda less patient equipment capex , which are financial measures that are not prepared in accordance with generally accepted accounting principles in the united states , or u.s. gaap , to analyze its financial results and believes that they are useful to investors , as a supplement to u.s. gaap measures . in addition , adapthealth 's ability to incur additional indebtedness and make investments under its existing credit agreement is governed , in part , by its ability to satisfy tests based on a variation of adjusted ebitda less patient equipment capex . adapthealth defines ebitda as net income ( loss ) attributable to adapthealth corp. , plus net income ( loss ) attributable to noncontrolling interests , interest expense ( income ) , income tax expense ( benefit ) , and depreciation and amortization . adapthealth defines adjusted ebitda as ebitda ( as defined above ) , plus loss on extinguishment of debt , equity‑based compensation expense , transaction costs , severance , change in fair value of contingent consideration common shares liability , and non-recurring items of expense ( income ) . adapthealth defines adjusted ebitda less patient equipment capex as adjusted ebitda ( as defined above ) less patient equipment acquired during the period without regard to whether the equipment was purchased or financed through lease transactions . 54 adapthealth believes adjusted ebitda less patient equipment capex is useful to investors in evaluating adapthealth 's financial performance . adapthealth 's business requires significant investment in equipment purchases to maintain its patient equipment inventory . some equipment title transfers to patients ' ownership after a prescribed number of fixed monthly payments . equipment that does not transfer wears out or oftentimes is not recovered after a patient 's use of the equipment terminates . adapthealth uses this metric as the profitability measure in its incentive compensation plans that have a profitability component and to evaluate acquisition opportunities , where it is most often used for purposes of contingent consideration arrangements . in addition , adapthealth 's debt agreements contain covenants that use a variation of adjusted ebitda less patient equipment capex for purposes of determining debt covenant compliance . for purposes of this metric , patient equipment capital expenditure is measured as the value of the patient equipment received during the accounting period without regard to whether the equipment is purchased or financed through lease transactions . ebitda , adjusted ebitda and adjusted ebitda less patient equipment capex should not be considered as measures of financial performance under u.s. gaap , and the items excluded from ebitda , adjusted ebitda and adjusted ebitda less patient equipment capex are significant components in understanding and assessing financial performance . accordingly , these key business metrics have limitations as an analytical tool . they should not be considered as an alternative to net income or any other performance measures derived in accordance with u.s. gaap or as an alternative to cash flows from operating activities as a measure of adapthealth 's liquidity . the following unaudited table presents the reconciliation of net income ( loss ) attributable to adapthealth , to ebitda , adjusted ebitda and adjusted ebitda less patient equipment capex for the years ended december 31 , 2020 and 2019 : replace_table_token_7_th ( a ) represents write offs of deferred financing costs related to refinancing of debt . ( b ) represents equity-based compensation expense for awards granted to employees and non-employee directors . the higher expense in 2020 is due to a full year of expense for awards granted in late 2019 , and overall increased equity-compensation grant activity in 2020. the 2019 period includes expense resulting from accelerated vesting and modification of certain awards in that period . ( c ) represents transaction costs related to acquisitions . the 2019 period also includes costs associated with the 2019 recapitalization and the business combination . 55 ( d ) represents severance costs related to acquisition integration and internal adapthealth restructuring and workforce reduction activities . ( e ) represents a non-cash charge for the change in the estimated fair value of contingent consideration common shares issuable as part of the business combination . refer to note 11 , stockholders ' equity – contingent consideration common shares , included in the accompanying notes to the consolidated financial statements for the year ended december 31 , 2020 for additional discussion of such non-cash charge . ( f ) the 2020 period includes $ 4.2 million of net reductions in the fair value of contingent consideration liabilities related to acquisitions , a $ 0.6 million gain in connection with the sale of a cost method investment , offset by a $ 1.5 million expense associated with the pcs transition services agreement and $ 0.8 million of other non-recurring expenses . ( g ) represents the value of patient equipment obtained during the respective period without regard to whether the equipment is purchased or financed through lease transactions . liquidity and capital resources adapthealth 's principal sources of liquidity are its operating cash flows , borrowings under its credit agreements and other debt arrangements , and proceeds from equity issuances . adapthealth has used these funds to meet its capital requirements , which primarily consist
| net cash provided by financing activities for the year ended december 31 , 2019 was primarily related to the 2019 recapitalization and the business combination , and consisted of $ 360.5 million of borrowings from long-term debt and lines of credit , $ 20.0 million of proceeds from the sale of members ' interests , net proceeds of $ 148.9 million from the transactions completed in connection with the business combination , and proceeds of $ 100.0 million from a preferred debt issuance , offset by total repayments of $ 274.9 million on long-term debt and capital lease obligations , payments of $ 9.0 million for financing costs , payments of $ 0.8 million for equity issuance costs , payment of $ 3.7 million for the redemption of members ' interests , payment of $ 13.0 million for earnout liabilities in connection with the verus acquisition and the hmei acquisition , distributions to members of $ 250.0 million , distributions to noncontrolling interests of $ 1.3 million , and net payments of $ 0.6 million relating to tax withholdings associated with equity-based compensation activity . critical accounting policies and significant estimates the discussion and analysis of the company 's financial condition and results of operations is based upon the company 's consolidated financial statements , which have been prepared in accordance with u.s. gaap . the preparation of the company 's consolidated financial statements requires its management to make estimates and judgments that affect the reported amounts of assets , liabilities , revenue and expenses and related disclosures of contingent assets and liabilities . the company 's management bases its estimates , assumptions and judgments on historical experience and various other factors that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . different assumptions and judgments would change the estimates used in the preparation of the company 's consolidated financial statements which , in turn , could change the results from those reported . in addition , actual results may differ from these estimates and such differences could be material to the company 's financial position and results of operations . critical accounting policies and significant estimates are those that the company 's management considers the most important to the portrayal of the company 's financial condition and results of operations because they require management 's most difficult , subjective or complex judgments , often as a result of the
| Liquidity | 13,070 |
( dollars in thousands ) replace_table_token_12_th cash used in investing activities increased from $ 30,767,000 in 2010 to $ 51,367,000 in 2011 , a net increase of $ 20,600,000. this increase was primarily attributable to a net increase in the purchases of marketable securities and an increase in capital expenditures . in 2011 , we purchased a net $ 47,124,000 of marketable securities . such purchases totaled $ 3,139,000 in 2010. such purchases were made to increase the expected returns on our cash holdings . the increase in capital expenditures is largely the result of us undertaking certain capital projects on behalf of certain customers , a large portion of which was reimbursed by such customers and through federal and local government grants . these reimbursements are summarized in the table above . these increases in cash used in investing activities were partially offset by a reduction in our restricted cash balances of $ 21,086,000 in 2011. this reduction resulted from our short sale position in u.s. treasuries being closed in 2011. when this happened , the cash which was previously held in a restricted margin account was returned to us . financing activities cash used in financing activities increased from $ 374,000 in 2011 to $ 63,283,000 in 2012. this increase was primarily due to an increase in dividends paid in 2012 compared to 2011 and a decrease in proceeds from the issuance of stock in 2012 compared to 2011. in 2011 we paid $ 16,254,000 in dividends on our common stock . dividend payments in 2012 included a special dividend payment of $ 1.20 per common share and totaled $ 66,538,000. additionally , in 2011 we generated $ 15,872,000 in net proceeds from the issuance of common shares as part of our at-the-market offering . in 2012 , such net proceeds totaled $ 1,074,000. cash provided by ( used in ) financing activities decreased from $ 38,473,000 in 2010 to $ ( 374,000 ) in 2011. this decrease was primarily attributable to reduced proceeds from the issuance of our common stock in 2011 compared to 2010 , which was partially offset by a reduction in dividend payments in 2011. in 2010 , $ 70,736,000 in net proceeds were received from the issuance of our common stock . such proceeds were primarily the result of the exercise of warrants to purchase our common shares . all such warrants that were not exercised expired in 2010. as a result , no warrants were exercised in 2011. we did , however , generate $ 15,872,000 in 2011 in net proceeds from the issuance of common shares as part of our at-the-market offering under which we issued 1,313,985 shares of our common stock and as a result of the exercise of stock options . cash dividends decreased from $ 31,053,000 in 2010 to $ 16,254,000 in 2011 , partially offsetting the 2011 reduction in proceeds from the issuance of shares of our common stock . capital expenditure commitments we had no material capital projects as of december 31 , 2012 . 34 historically , we finance capital requirements for our business with cash flows from operations and have not had the need to incur bank indebtedness to finance any of our operations during the periods discussed herein . credit facility we entered into a $ 50 million credit agreement with a commercial bank in march 2007. the loan is a revolving facility the proceeds of which may be used for our working capital , capital expenditures , and general corporate purposes . the facility terminates on june 30 , 2013. advances are made pursuant to a borrowing base . advances are secured by a perfected first priority security interest in our accounts receivable and inventory . the interest rate floats at certain margins over libor or base rate based upon the leverage ratio from time to time . there is an unused commitment fee . the ratio of total funded debt to ebitda may not be less than 3:1. we had no borrowings under this credit facility at december 31 , 2012 , 2011 , or 2010. we intend to fund future capital requirements for our businesses from cash flow generated by us as well as from existing cash , cash investments , and , if the need should arise , borrowings under our credit facility . we do not believe there will be a need to issue any securities to fund such capital requirements . department of energy grant we entered into a contract with a customer to design , construct , and operate a commercial-scale plant to produce intermediate anode powder as a component of high-performance graphite anode materials for lithium-ion batteries . in connection with this contract , we applied for a financial assistance award under the electric drive vehicle battery and component manufacturing initiative administered by the department of energy national energy technology laboratory on behalf of the office of energy efficiency and renewable energy . an award was granted to us in the amount of $ 12,600,000 , which we accepted on july 27 , 2010. the funds were to be used to modify existing idle assets and to acquire and construct new assets to be used for the production of specialized materials for lithium-ion batteries for electric cars and other applications . we receive grant monies on a cost share basis as we incur construction-related expenditures . the amounts received under this arrangement are recorded as deferred revenue and are amortized into earnings over the anticipated life of the customer relationship . such amortization began once construction was completed and the plant was placed into service . this occurred in the third quarter of 2011. through december 31 , 2011 , we collected 97 % of this award . the grant was closed in 2012 and no additional amounts were received in 2012. dividends in 2012 , we declared a special cash dividend aggregating $ 1.20 per share on our common stock , with a record date and payment date previously discussed . story_separator_special_tag the special cash dividend amounted to $ 49,978,000. we also paid regular cash dividends aggregating $ 0.40 per share on our common stock , with record dates and payment dates as set forth above . the regular cash dividends amounted to $ 16,560,000 , for total dividends paid by us in 2012 of $ 66,538,000. in 2011 , we declared a special cash dividend aggregating $ 0.10 per share on our common stock , with a record date and payment date as previously discussed . the special cash dividend amounted to $ 3,998,000. we also declared regular cash dividends aggregating $ 0.30 per share on our common stock , with record dates and payment dates as set forth above . the regular cash dividends amounted to $ 12,256,000 , for total dividends paid by us in 2011 of $ 16,254,000. in 2010 , we declared special cash dividends aggregating $ 0.80 per share on our common stock , with record dates and payment dates as previously discussed . the special cash dividends amounted to $ 31,053,000. capital management as a result of our initial equity offering , our subsequent positive operating results , the exercise of warrants , and the issuance of shares in our at-the-market offering , we accumulated excess working capital . some of this excess working capital was paid out in 2010 , 2011 , and 2012 as a special cash dividend and in 2011 and 2012 as regular cash dividends . regular cash dividends will also be paid in 2013 as previously discussed . we intend to retain the remaining cash to fund infrastructure and capacity expansion at our batesville plant . third parties have not placed significant restrictions on our working capital management decisions . 35 a significant portion of these funds were held in cash or cash equivalents at multiple financial institutions . in 2012 and 2011 , we also had investments in certain preferred stock , trust preferred securities , and other equity instruments . we classify these investments as current assets in the accompanying consolidated balance sheets and designate them as being “ available-for-sale ” . accordingly , they are recorded at fair value , with the unrealized gains and losses , net of taxes , reported as a component of stockholders ' equity . the fair value of these preferred stock , trust preferred securities , and other equity instruments , including accrued dividends and interest , totaled $ 86,618,000 and $ 56,294,000 at december 31 , 2012 and 2011 , respectively . we also maintained a position in auction rate securities at december 31 , 2012. we have selectively made investments in certain auction rate securities that we believed offered sufficient yield along with sufficient liquidity . to date , all the auction rate securities in which we have invested have maintained a mechanism for liquidity , meaning that the respective auctions have not failed , the issuers have called the instruments , or a secondary market exists for liquidation of the securities . we have classified these instruments as current assets in the accompanying consolidated balance sheet and carried them at their estimated fair market value . the fair value of these instruments approximated their par value and , including accrued interest , totaled $ 1,150,000 at december 31 , 2012. auction rate securities are typically long term bonds issued by an entity for which there is a series of auctions over the life of the bond that serve to reset the interest rate on the bonds to a market rate . these auctions also serve as a mechanism to provide liquidity to the bond holders ; as long as there are sufficient purchasers of the auction rate securities , the then owners of the auction rate securities are able to liquidate their investment through a sale to the new purchasers . in the event of an auction failure , a situation when there are more sellers than buyers of a particular issue , the current owners of an auction rate security issue may not be able to liquidate their investment . as a result of an auction failure , a holder may be forced to hold the particular security either until maturity or until a willing buyer is found . even if a willing buyer is found , however , there is no guarantee that this willing buyer will purchase the security for its carrying value , which would result in a loss being realized on the sale . lastly , we maintain depository accounts such as checking accounts , money market accounts , and other similar accounts at selected financial institutions . story_separator_special_tag in excess of 35 million gallons of biodiesel per year . debottlenecking has increased the annual capacity to in excess of 45 million gallons per year . projects are currently in progress to further debottleneck and optimize the plant to run at higher rates . there currently is uncertainty as to whether we will produce biodiesel in the future . this uncertainty results from : ( i ) changes in feedstock prices relative to biodiesel prices ; and ( ii ) the permanency of government mandates and tax credits . see “ risk factors ” above . while biodiesel is the principal component of the biofuels segment , we also generate revenue from the sale of petrodiesel both in blends with our biodiesel and , from time to time , with no biodiesel added . petrodiesel and biodiesel blends are available to customers at our leased storage facility in north little rock , arkansas and at our batesville plant . in addition , we deliver blended product to a small group of customers within our region . we also sell refined petroleum products from time-to-time on common carrier pipelines in part to maintain our status as a shipper on the pipeline . the majority of our expenses are cost of goods sold .
| we continue to work collaboratively with our customer to assess their future demand , which may continue to decline . the financial impact of any such decline is not known at this time . 36 we ( and our predecessor at our batesville plant ) have been the primary manufacturer of a proprietary herbicide and certain intermediates for a customer ( and its predecessors ) since approximately 1993. however , in recent years , these products have faced generic competition , from other suppliers to our customer , from others who compete with our customer for the sale of herbicides , and from other agricultural chemicals present in the market place . in response to its perceptions of this competition , in 2011 the customer initiated discussions with us to reduce volume and alter other terms of the contracts . sales of these products , as will be discussed below , declined . being of the opinion that the current contracts do not adequately provide a framework to support our mutual efforts , we exercised our rights to terminate these contracts , effective september 1 , 2013 for the proprietary herbicide and october 1 , 2013 for the intermediates . we anticipate that we will continue to do business with our customer after those dates provided we can reach mutually acceptable terms . in 2008 , we entered into a contract with a new customer for the toll manufacture of an industrial intermediate utilized in the antimicrobial industry . we invested approximately $ 10 million in capital expenditures to modify and expand our plant to produce this industrial intermediate . the customer reimbursed these expenditures , which reimbursements have been classified as deferred revenue on our balance sheet and will be earned into income over the expected life of the product . the contract stipulates a price curve based on volumes sold and has an inflationary pricing provision whereby we pass along most inflationary changes in production costs to the customer . pricing for the other custom manufacturing products is negotiated directly with the
| ROO | 554 |
our business genius brands international , inc. is a global content and brand management company dedicated to providing entertaining and enriching “ content and products with a purpose ” for toddlers to tweens . led by industry veterans andrew heyward ( chief executive officer ) and amy moynihan heyward ( president ) , the company produces original content and licenses the rights to that content to a variety of partners . our licensees include ( i ) companies to which the audio-visual rights are licensed for exhibition in various formats such as pay television , free or broadcast television , video-on-demand ( “ vod ” ) , subscription on demand ( “ svod ” ) , dvds/cds and more and ( ii ) companies that develop and distribute products based on our content within different product categories such as toys , electronics , publishing , home goods , stationary , gifts , and more . 14 the company owns a portfolio of original children 's entertainment that is targeted at toddlers to teens including the award-winning baby genius , warren buffett 's secret millionaires club , thomas edison 's secret lab and stan lee 's mighty 7 , the first project from stan lee comics , llc , a joint venture with legendary stan lee 's pow ! entertainment . in addition to the company 's wholly-owned brands , it also acts as licensing agent for certain brands , leveraging its existing licensing infrastructure to expand these brands into new product categories , new retailers , and new territories . these include the best-selling children 's book series , llama llama ; psycho bunny , a luxury apparel line ; from frank , a humor greeting card and product line ; celessence technologies , the world 's leading microencapsulation company . strategic initiatives during 2014 and 2015 , the company began a series of strategic initiatives to restructure certain areas of business in an effort to operate more profitably in the long run . this included product sales , content distribution , production , and product development : 1 ) during the second quarter of 2014 , the company began phasing out the direct production and sale of physical products including dvds and cds and shifted to a licensing model whereby these functions were outsourced to industry experts and category leaders in their respective industries . on july 14 , 2014 , the company employed stone newman in the newly created position of president – global consumer products to manage all consumer products , licensing and merchandising sales for the company 's brands . 2 ) prior to the third quarter of 2014 , the company utilized an agency to license its content to international television broadcasters , home video , and digital distribution outlets . to exert greater control over the distribution of its expanding portfolio of content , during the second quarter of 2014 , the company formed a new global distribution division and appointed andrew berman to the newly created position of senior vice president - international sales to oversee the division and the appointment of regional agents to represent the company locally in key regions . 3 ) during the third and fourth quarter of 2014 , the company partnered with various pre-production , production , and animation companies to provide services to the company for the production of thomas edison 's secret lab in exchange for a certain percentage of the series ' forthcoming adjusted net revenues and the ability to distribute the series in certain languages in certain territories . this model helps to better manage the company 's cash flows while enabling it to exploit territories that would otherwise be challenging to manage and monetize . the company intends to replicate the model for future productions . 4 ) the infrastructure the company has put in place enables it to efficiently exploit a growing portfolio of brands . the company is actively developing a number of new brands , like space pop , to add to its growing portfolio and consistently looks for existing brands to acquire oract aslicensing agent , as with the best-selling line of books , llama llama which the company recently signed . thecompanyremains focused on brands that lend themselves to interactive exploitation in multiple areas and are consistentwith thecompany 's primary point of differentiation : providing multi-media “ content and products with apurpose ” that entertain and enrich kids . 5 ) consistent with the company 's strategy of securing widespread distribution for its content in a variety of formats and building awareness and engagement for its brands that in turn drives its consumer products business , the company has expanded its successful relationship with comcast beyond the already popular baby genius on-demand offering . the company has announced it launched a new kid genius channel in the fourth quarter of2015 , offering 24-hours of video on-demand content that will be consistent with the company 's `` content and products with a purpose '' mission . the new video on-demand channel will include the company 's own content , in addition to other content the company will curate , to offer a robust line-up for kids . the company 's senior vice president-international sales , andrew berman , will oversee the channel . recent events d istribution agreement with sony pictures home entertainment inc. on february 18 , 2016 , we entered into a distribution agreement with sony pictures home entertainment inc. ( “ sony ” ) , pursuant to which the company agreed to grant sony certain rights for the marketing and distribution of the company 's animated feature-length motion pictures and animated television series in the united states and in canada , and potentially additional countries . story_separator_special_tag in consideration for such rights , and subject to certain conditions , sony has paid the company an advance in the amount of $ 2.0 million , against future royalties . private placement on october 29 , 2015 , we conducted a private placement with certain accredited investors pursuant to which we sold an aggregate of 4,330,000 shares of its common stock , par value $ 0.001 per and warrants to purchase up to an aggregate of 4,330,000 shares of common stock for a purchase price of $ 1.00 per share and gross proceeds to us of $ 4,330,000 ( the “ 2015 private placement ” ) . the closing of the 2015 private placement was subject to certain customary closing conditions and closed on november 3 , 2015. stock offering costs were $ 502,218 . 15 the warrants are exercisable into shares of common stock for a period of five ( 5 ) years from issuance at an initial exercise price of $ 1.10 per share , subject to adjustment in the event of stock splits , dividends and recapitalizations . the company is prohibited from effecting an exercise of the warrants to the extent that as a result of such exercise , the holder would beneficially own more than 4.99 % ( subject to increase up to 9.99 % upon 61 days ' notice ) in the aggregate of the issued and outstanding shares of common stock , calculated immediately after giving effect to the issuance of shares of common stock upon exercise of the warrant . pursuant to the terms of the purchase agreements , beginning on the closing date of the 2015 private placement and ending sixty ( 60 ) days after the effective date ( as defined in the purchase agreements ) , the company shall not issue any securities , subject to certain exceptions . additionally , until the later of ( i ) such time as the investors in the 2015 private placement , in the aggregate , hold less than 50 % of the common stock originally purchased by them in the private placement and the average daily trading volume of the common stock for a period of ten ( 10 ) consecutive trading days is greater than $ 75,000 and ( ii ) the one year anniversary of the closing of the 2015 private placement , the company has agreed to not sell any securities , subject to certain exceptions , at an effective per share price of common stock less than the purchase price of the common stock sold in the 2015 private placement then in effect . the company has agreed to file a “ resale ” registration statement with the securities and exchange commission ( the “ sec ” ) covering all shares of common stock and shares of common stock underlying the warrants issued or issuable in the 2015 private placement within 45 days of the closing of the 2015 private placement and to maintain the effectiveness of the registration statement until all securities have been sold or are otherwise able to be sold pursuant to rule 144. the company has agreed to use its reasonable best efforts to have the registration statement declared effective within 90 days of the closing of the 2015 private placement ( or 120 days after such closing if the registration statement is subject to review by the sec . the company is obligated to pay to investors a fee of 1 % per month in cash for every thirty day period up to a maximum of six ( 6 % ) percent , ( i ) that the registration statement has not been filed after the required filing date , ( ii ) following the required effectiveness date that the registration statement has not been declared effective ; and ( iii ) as otherwise set forth in the registration rights agreement . chardan capital markets llc acted as sole placement agent in the 2015 private placement in consideration for which chardan received a cash fee of $ 300,000 and a five-year warrant to purchase up to 425,000 shares of common stock ( the “ placement agent warrant ” ) at an initial exercise price of $ 1.20 per share . the terms of the placement agent warrant are identical to the warrants issued in the 2015 private placement except with respect to the exercise price thereof . story_separator_special_tag justify '' > liquidity comparison of cash flows for the twelve months ended december 31 , 2015 and 2014 cash totaled $ 5,187,620 and $ 4,301,099 at december 31 , 2015 and 2014 , respectively . the change in cash is as follows : replace_table_token_5_th during the twelve months ended december 31 , 2015 , our primary source of cash was financing activity , specifically the collection of the second payment related to a long-term , exclusive supply chain services agreement and the receipt of funds related to the issuance of common stock . during the comparable period in 2014 , our primary source of cash was financing activity including the collection of the first payment related to a long-term , exclusive supply chain services contract and the receipt of funds related to the issuance of preferred stock . during both periods , these funds were primarily used to fund operations as well as investments in fixed assets , intangible assets , and capitalized product development . operating activities cash used in operating activities in the twelve months ended december 31 , 2015 was $ 3,396,581 as compared to cash used of $ 2,481,988 during the prior period , representing an increase in cash used in operating activities of $ 914,593 based on the operating results discussed above as well as increases in film and television costs related to the development and production of episodes of thomas edison 's secret lab and the development of space pop ( working title ) .
| during the twelve months ended december 31 , 2015 , television & home entertainment revenue increased $ 283,006 compared to the twelve months ended december 31 , 2014 , representing expanded distribution of our content given the strategic restructuring of the company in 2014 in addition to the commencement of deliveries of thomas edison 's secret lab . product sales represent physical products including dvds and cds in which the company holds intellectual property rights such as trademarks and copyrights to the characters and which are manufactured and sold by the company either directly at wholesale to retail stores or online retailers . during the twelve months ended december 31 , 2015 , product sales decreased by $ 482,100 compared to the twelve months ended december 31 , 2014 due to the change in business strategy whereby the company has transitioned from the direct production and sale of physical products to a licensing model in which these functions were outsourced to industry experts and category leaders . cost of sales and operating costs . replace_table_token_3_th cost of sales decreased $ 427,133 during the twelve months ended december , 2015 compared to the same period of 2014. the decrease was a result of the decrease in product sales discussed above as well as the elimination of the overhead associated with handling sales directly , replaced by a new model whereby these costs will be borne by our licensees . general and administrative expenses consist primarily of salaries , employee benefits , as well as other expenses associated with finance , legal , facilities , marketing , rent , and other professional services . general and administrative costs for the twelve months ended december , 2015 increased $ 235,699 compared to the same period in 2014. the aggregate increase for the category results primarily from increases in salaries and related expense of $ 411,512 related to the addition of several critical hires in sales functions and digital initiatives offset by decreases in professional fees of $ 273,295 and bad debt expense of $ 56,550. marketing and sales expenses increased $ 81,801 for the twelve months ended december 31 , 2015 compared to the twelve months
| ROO | 13,517 |
and infrastructure , including from failure or malicious attacks ; the fact that the prices at which shares of our class a common stock are sold in one or more of our controlled equity offerings or in other offerings or other transactions may vary significantly , and purchasers of shares in such offerings or transactions , as well as existing stockholders , may suffer significant dilution if the price they paid for their shares is higher than the price paid by other purchasers in such offerings or transactions ; our ability to meet expectations with respect to payments of dividends and distributions and repurchases of shares of our class a common stock and purchases of limited partnership interests of bgc holdings , l.p. , which we refer to as bgc holdings , or other equity interests in our subsidiaries , including from cantor , our executive officers , other employees , partners , and others , and the net proceeds to be realized by us from offerings of our shares of class a common stock ; and the effect on the market for and trading price of our class a common stock of various offerings and other transactions , including our controlled equity and other offerings of our class a common stock and convertible or exchangeable debt securities , our repurchases of shares of our class a common stock and purchases of bgc holdings limited partnership interests or other equity interests in our subsidiaries , our payment of dividends on our class a common stock and distributions on bgc holdings limited partnership interests , convertible arbitrage , hedging , and other transactions engaged in by holders of our 4.50 % convertible notes and counterparties to our capped call transactions , and resales of shares of our class a common stock acquired from us or cantor , including pursuant to our employee benefit plans , conversion of our convertible notes , conversion or exchange of our convertible or exchangeable debt securities , and distributions from cantor pursuant to cantor 's 81 distribution rights obligations and other distributions to cantor partners including deferred distribution rights shares . this discussion summarizes the significant factors affecting our results of operations and financial condition during the years ended december 31 , 2012 and 2011. this discussion is provided to increase the understanding of , and should be read in conjunction with , our consolidated financial statements and the notes thereto included elsewhere in this report . overview and business environment we are a leading global brokerage company primarily servicing the wholesale financial and real estate markets through our two segments , financial services and real estate services . our financial services segment specializes in the brokering of a broad range of products , including fixed income securities , interest rate swaps , foreign exchange , equities , equity derivatives , credit derivatives , commodities , futures and structured products . our financial services segment also provides a full range of services , including trade execution , broker-dealer services , clearing , processing , information , and other back-office services to a broad range of financial and non-financial institutions . our integrated platform is designed to provide flexibility to customers with regard to price discovery , execution and processing of transactions , and enables them to use voice , hybrid , or in many markets , fully electronic brokerage services in connection with transactions executed either otc or through an exchange . through our espeed , bgc trader and bgc market data brands , we offer financial technology solutions , market data , and analytics related to select financial instruments and markets . we entered into the commercial real estate business in october 2011 with the acquisition of all of the outstanding shares of newmark & company real estate , inc. , a leading u.s. commercial real estate brokerage and advisory firm primarily serving corporate and institutional clients . newmark was founded in 1929 in new york city . in 2000 , newmark embarked upon a national expansion and in 2006 entered into an agreement with london-based knight frank to operate jointly in the americas as newmark knight frank. in the second quarter of 2012 , we completed the acquisition of substantially all of the assets of grubb & ellis company and its direct and indirect subsidiaries , which we refer to as grubb & ellis. grubb & ellis was formed in 1958 and built a full-service national commercial real estate platform of property management , facilities management and brokerage services . we have largely completed the integration of grubb & ellis with newmark knight frank to form the resulting business , newmark grubb knight frank ( or ngkf ) . ngkf is a full-service commercial real estate platform that comprises our real estate services segment , offering commercial real estate tenants , owners , investors and developers a wide range of services , including leasing ; capital markets services including investment sales , debt placement , appraisal , and valuation services ; as well as consulting , project and development management , leasing and corporate advisory services and property and corporate facilities management services . in connection with our acquisition of substantially all of the assets of grubb & ellis , we began , with the second quarter of 2012 , reporting two reportable segments , financial services and real estate services , as reflected in our quarterly report on form 10-q for such quarter filed on august 8 , 2012. prior to the second quarter of 2012 , we had only one reportable segment . on august 8 , 2012 , we filed a current report on form 8-k to update our financial statements and certain other information contained in our annual report on form 10-k for the year ended december 31 , 2011 and our quarterly report on form 10-q for the quarter ended march 31 , 2012 to reflect such change in our reportable segments . story_separator_special_tag these two segments continue to be reported in this annual report on form 10-k. our customers include many of the world 's largest banks , broker-dealers , investment banks , trading firms , hedge funds , governments , corporations , property owners , real estate developers and investment firms . we have offices in dozens of major markets , including new york and london , as well as in atlanta , beijing , boston , chicago , copenhagen , dallas , dubai , hong kong , houston , istanbul , johannesburg , los angeles , mexico city , miami , moscow , nyon , paris , rio de janeiro , são paulo , seoul , singapore , sydney , tokyo , toronto , washington , d.c. and zurich . 82 we remain confident in our future growth prospects as we continue to increase the scale and depth of our real estate platform and continue to seek market driven opportunities to expand our business in numerous financial asset classes . financial services : the financial intermediary sector has been a competitive area that has had strong revenue growth over the past decade due to several factors . one factor is the increasing use of derivatives to manage risk or to take advantage of the anticipated direction of a market by allowing users to protect gains and or guard against losses in the price of underlying assets without having to buy or sell the underlying assets . derivatives are often used to mitigate the risks associated with interest rates , equity ownership , changes in the value of foreign currency , credit defaults by corporate and sovereign debtors and changes in the prices of commodity products . over the past decade , demand from financial institutions , financial services intermediaries and large corporations has increased volumes in the wholesale derivatives market , thereby increasing the business opportunity for financial intermediaries . another key factor in the growth of the financial intermediary sector over the past decade has been the increase in the number of new products . as market participants and their customers strive to mitigate risk , new types of equity and fixed income securities , futures , options and other financial instruments have been developed . these new securities and derivatives are not immediately ready for more liquid and standardized electronic markets , and generally increase the need for trading and require broker-assisted execution . the past twelve months have been challenging as lower activity and volatility have contributed to declines in market volumes across the asset classes in our financial services segment . growth drivers as a wholesale intermediary , our business is driven by several key drivers in addition to those listed above . these include : overall industry volumes in the markets in which we broker , the size and productivity of our front-office headcount ( including salespeople , brokers and other front-office professionals ) , regulatory issues and the percentage of our revenues related to fully electronic brokerage . below is a brief analysis of the market and industry volumes for some of our financial services products including our overall hybrid and fully electronic trading activities . overall market volumes and volatility volume is driven by a number of items , including the level of issuance for financial instruments , the price volatility of financial instruments , overall macro-economic conditions , the creation and adoption of new products , the regulatory environment , and the introduction and adoption of new trading technologies . in general , increased price volatility increases the demand for hedging instruments , including many of the cash and derivative products which we broker . for example , hedge funds are increasingly making use of derivatives to protect positions and preserve the capital of their more cautious institutional clients , which now account for almost two-thirds of assets managed by the industry , according to a report from j.p. morgan . during the year ended december 31 , 2012 , industry volumes generally declined year-over-year for many of the otc and listed products we broker in rates , credit , foreign exchange and equities . this was due in large part to volatility being lower than the 10-year average in these asset classes during the year . for example , a broader measure of volatility across rates , credit , foreign exchange ( fx ) , equities , and other markets is bank of america merrill lynch 's global financial stress index ( gfsi ) . it averaged approximately 0.67 over the last five years , and had been as high as 3.01 during the height of the global financial crises in the second half of 2008 , but averaged only 0.23 during the fourth quarter of 2012. market stress measures such as the gfsi are generally good proxies for overall volatility and volumes across our four asset class categories . below is a discussion of the volume and growth drivers of our various financial services brokerage product categories . 83 rates volumes and volatility our rates business is particularly influenced by the level of sovereign debt issuance globally , and over the past year this issuance has generally continued to grow , although quantitative easing has muted the public issuance of many sovereign issues . for example , according to the securities industry and financial markets association ( sifma ) , issuance by the u.s. treasury of interest-bearing debt increased by approximately 42 % for the fourth quarter of 2012 versus the same period last year , and was up by approximately 10 % for all of 2012. rates volumes are also influenced by market volatility , and such volatility has been dampened for the past year due to continued quantitative easing undertaken by the u.s. federal reserve and other major central banks . quantitative easing entails the central banks buying government securities or other securities in the open marketparticularly longer-dated instrumentsin an effort to promote increased lending and liquidity and bring down long-term interest rates .
| the decrease in rates revenues of $ 46.0 million was primarily driven by lower volumes as activity remained muted due to quantitative easing undertaken by major central banks . credit brokerage revenues decreased $ 30.4 million . global credit market volume has declined as banks adjust to new capital requirements for credit transactions under basel iii and due to uncertainty surrounding the rules for clearing credit derivatives in the u.s. foreign exchange revenues decreased by $ 10.3 million . global fx volumes were lower in 2012 , largely as certain major central banks intervened to keep their currencies from appreciating and low interest rates in most major economies minimized the utilization of carry-trade strategies . revenues from equities and other asset classes decreased by $ 58.4 million . global equity markets continued to be difficult in 2012 as equity derivative volumes were down between 9 % and 41 % according to the occ , eurex , deutsche bourse , and the cme . real estate management services real estate management services revenues were $ 122.7 million for the year ended december 31 , 2012. the revenues associated with property and facilities management fees are earned as a consequence of the acquisitions of newmark knight frank and grubb & ellis in the fourth quarter of 2011 and the second quarter of 2012 , respectively . fees from related parties fees from related parties decreased by $ 9.1 million , or 14.6 % , for the year ended december 31 , 2012 as compared to the year ended december 31 , 2011. the decrease was primarily due to lower revenues related to elx and a reduced level of support fees for services provided to cantor . 96 market data market data revenues decreased by $ 0.5 million , or 2.6 % , for the year ended december 31 , 2012 as compared to the year ended december 31 , 2011. software solutions software solutions revenues increased by $ 0.8 million , or 8.4 % , for the year ended december 31 , 2012 as compared to the year ended december
| ROO | 13,924 |
although the forward-looking statements in this report reflect the good faith judgment of our management , such statements can only be based on facts and factors currently known by them . consequently , and because forward-looking statements are inherently subject to risks and uncertainties , the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements . you are urged to carefully review and consider the various disclosures made by us in this report as we attempt to advise interested parties of the risks and factors that may affect our business , financial condition , and results of operations and prospects . overview code chain new continent limited ( formerly known as tmsr holding company limited and jm global holding company , the “ company ” or “ ccnc ” ) , through its subsidiaries and controlled entities , focuses its business in two segments : ( 1 ) coal wholesales and sales of coke , steels , construction materials , mechanical equipment and steel scrap ; and ( 2 ) the research , development and application of internet of things ( iot ) and electronic tokens . the company 's coal and coke wholesale business is carried out by jiangsu rong hai electric power fuel co. , ltd. ( “ rong hai ” ) , an entity contractually controlled by the company . the company 's iot business is carried out wuge network games co. , ltd. ( “ wuge ” ) , an entity contractually controlled by the company . on june 30 , 2020 , the company entered into a share purchase agreement with jiazhen li , former ceo of the company ( the “ buyer ” ) , long liao and chunyong zheng , who are former shareholders of wuhan host , to sell all the equity interest the company held in china sunlong . shengrong wfoe and wuhan host are indirect subsidiaries of china sunlong . as a result , as of june 30 , 2020 , operations of shengrong wfoe and wuhan host have been designated as discontinued operations . 44 key factors that affect operating results our operating subsidiaries are incorporated , and our operations and assets are primarily located , in china . accordingly , our results of operations , financial condition and prospects are affected by china 's economic and regulation conditions in the following factors : ( a ) an economic downturn in china or any regional market in china ; ( b ) economic policies and initiatives undertaken by the chinese government ; ( c ) changes in the chinese or regional business or regulatory environment affecting our customers ; and ( e ) changes in the chinese government policy on industrial solid waste . unfavorable changes could affect demand for services that we provide and could materially and adversely affect the results of operations . although the company has generally benefited from china 's economic growth and the policies to encourage the improvement of reducing of solid waste discharge , the company is also affected by the complexity , uncertainties and changes in the chinese economic conditions and regulations governing the mining industry . our fuel materials , mainly coal , operations are largely affected by the following aspects . first , the prc 's macroeconomic growth is not as fast as expected ; the slowdown of economic growth will affect the demand of the market , and the reduction of coal consumption by enterprises will affect the sales of coal and directly affect our earnings . second , the coal market price fluctuation will also affect our sales revenue ; because jiangsu rong hai has long-term and stable customers , the price fluctuations will affect the cost of purchasing coal and thus affect our revenue . third , the risk of price fluctuation in the shipping industry . the fluctuation of shipping price will also directly affect the fluctuation of coal market price , thus affecting our income . fourth , we have long-term and stable customers and continues to rely on a small number of customers from 2009 to 2019. losing our major customers will have a significant impact on our results of operations . in addition , the payment situation of these customers will be affected by abnormal market changes , which will have a negative impact on our business recovery accounts and cash flow . as a result of the novel coronavirus ( covid-19 ) outbreak , we have seen a slowdown in revenue growth in first quarter 2020 as our businesses have been negatively impacted by the covid-19 . these impacts of covid-19 on our business , financial condition , and results of operations include , but are not limited to , the following : ● we temporally closed our offices and production facilities to adhere to the policy beginning in february 2020 , as required by relevant prc regulatory authorities . our offices are slowly reopening pursuant to local guidelines . ● our customers could potentially be negatively impacted by the outbreak , which may reduce the demand of our products . as a result , our revenue and income may be negatively impacted in 2020 . ● the situation may worsen if the covid-19 outbreak continues . we will continue to closely monitor our collections throughout 2020. because of the significant uncertainties surrounding the covid-19 outbreak , the extent of the continued business disruption and the related financial impact can not be reasonably estimated at this time . 45 results of operations year ended december 31 , 2020 as compared to the year ended december 31 , 2019 replace_table_token_2_th revenues the company 's revenue consists of fuel materials revenue and others revenue . story_separator_special_tag agent arrangements , where the entity simply arranges but does not control the goods or services being transferred to the customer , will result in the recognition of the net amount the entity is entitled to retain in the exchange . revenue from equipment and systems , revenue from coating and fuel materials , and revenue from trading and others are recognized at the date of goods delivered and title passed to customers , when a formal arrangement exists , the price is fixed or determinable , the company has no other significant obligations and collectability is reasonably assured . such revenues are recognized at a point in time after all performance obligations are satisfied under the new five-step model . in addition , training service revenues are recognized when the services are rendered and the company has no other obligations , and collectability is reasonably assured . these revenues are recognized at a point in time . prior to january 1 , 2018 , the company allowed its customers to retain 5 % to 10 % of the contract price as retainage during the warranty period of 12 months to guarantee product quality . retainage is considered as a payment term included as a part of the contract price , and was recognized as revenue upon the shipment of products . due to nature of the retainage , the company 's policy is to record revenue the full value of the contract without vat , including any retainage , since the company has experienced insignificant warranty claims historically . due to the infrequent and insignificant amount of warranty claims , the ability to collect retainage was reasonably assured and was recognized at the time of shipment . on january 1 , 2018 , upon the adoption of asu 2014-09 ( asc 606 ) , revenues from product warranty are recognized over the warranty period over 12 months . payments received before all of the relevant criteria for revenue recognition are recorded as customer deposits . gross versus net revenue reporting starting from july 2016 , in the normal course of the company 's trading of industrial waste materials business , the company directly purchases the processed industrial waste materials from the company 's suppliers under the company 's specifications and drop ships the materials directly to the company 's customers . the company would inspect the materials at its customers ' site , during which inspection it temporarily assumes legal title to the materials , and after which inspection legal title is transferred to its customers . in these situations , the company generally collects the sales proceed directly from the company 's customers and pay for the inventory purchases to the company 's suppliers separately . the determination of whether revenues should be reported on a gross or net basis is based on the company 's assessment of whether it is the principal or an agent in the transaction . in determining whether the company is the principal or an agent , the company follows the new accounting guidance for principal-agent considerations . since the company is the primary obligor and is responsible for ( i ) fulfilling the processed industrial waste materials delivery , ( ii ) controlling the inventory by temporarily assume legal title to the materials after inspecting the products from our vendors before passing the materials to our customers , and ( iii ) bearing the back-end risk of inventory loss with respect to any product return from the company 's customers , the company has concluded that it is the principal in these arrangements , and therefore report revenues and cost of revenues on a gross basis . 50 recently issue accounting pronouncements in february 2018 , the fasb issued asu 2018-02 , income statement - reporting comprehensive income ( topic 220 ) : reclassification of certain tax effects from accumulated other comprehensive income . the amendments in this update affect any entity that is required to apply the provisions of topic 220 , income statement – reporting comprehensive income , and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by gaap . the amendments in this update are effective for all entities for fiscal years beginning after december 15 , 2018 , and interim periods within those fiscal years . early adoption of the amendments in this update is permitted , including adoption in any interim period , ( 1 ) for public business entities for reporting periods for which financial statements have not yet been issued and ( 2 ) for all other entities for reporting periods for which financial statements have not yet been made available for issuance . the amendments in this update should be applied either in the period of adoption or retrospectively to each period ( or periods ) in which the effect of the change in the u.s. federal corporate income tax rate in the tax cuts and jobs act is recognized . we do not believe the adoption of this asu would have a material effect on our consolidated financial statements . we do not believe other recently issued but not yet effective accounting standards , if currently adopted , would have a material effect on our consolidated balance sheets , statements of income and comprehensive income and statements of cash flows . story_separator_special_tag needs . liquidity risk is controlled by the application of financial position analysis and monitoring procedures . when necessary , the company will turn to other financial institutions and the owners to obtain short-term funding to meet the liquidity shortage . inflation risk the company is also exposed to inflation risk inflationary factors , such as increases in raw material and overhead costs , could impair our operating results . although we do not believe that inflation has had a material impact on our financial position or results of operations to date , a high rate of inflation in
| liquidity and capital resources the company has funded working capital and other capital requirements primarily by equity contributions , loans from shareholders , cash flow from operations , short term bank loans , loans from third parties and cash received from jm global holding company through the reverse capitalization . cash is required to repay debts and pay salaries , office expenses , income taxes and other operating expenses . as of december 31 , 2020 , our net working capital deficit was approximately $ 8.8 million , over 15 % of the company 's current liabilities was from other payables – related parties due to major shareholders . removing these liabilities , the company had net working capital of $ 9.3 million and is expected to continuing generate cash flow from operations in the twelve months period . we believe that current levels of cash and cash flows from operations will be sufficient to meet its anticipated cash needs for at least the next twelve months from the date the consolidated financial statements to be issued . however , it may need additional cash resources in the future if it experiences changed business conditions or other developments , and may also need additional cash resources in the future if it wishes to pursue opportunities for investment , acquisition , strategic cooperation or other similar actions . if it is determined that the cash requirements exceed the company 's amounts of cash and cash equivalents on hand , the company may seek to issue debt or equity securities or obtain additional credit facility .
| Liquidity | 2,547 |
505 , equity , whereby the fair value of such options is determined using the black-scholes option pricing model at the earlier of the date at which the non-employee 's performance is complete or a performance commitment is reached . ( o ) earnings per common share eps is calculated pursuant to the two-class method as defined in asc topic no . 260 , earnings per share ( “ asc 260 ” ) , which specifies that all outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends or dividend equivalents are considered participating securities and should be included in the computation of eps pursuant to the two-class method . basic eps is calculated by dividing net distributed and undistributed earnings allocated to common shareholders , excluding participating securities , by the weighted-average number of common shares outstanding . the company 's participating securities consist of its unvested share-based payment awards that contain rights to nonforfeitable dividends or dividend equivalents . diluted eps includes the determinants of basic eps and , in addition , reflects the impact of other potentially dilutive shares outstanding during the period . the dilutive effect of participating securities is calculated under the more dilutive of either the treasury method or the two-class method . ( p ) research , development and engineering research , development and engineering costs are expensed as incurred . costs for software development incurred subsequent to establishing technological feasibility , in the form of a working model , are capitalized and amortized over their estimated useful lives . to date , software development costs incurred after technological feasibility has been established have not been material . ( q ) segment reporting fasb asc topic no . 280 , segment reporting ( “ asc 280 ” ) , establishes standards for the way that public business enterprises report information about operating segments in annual consolidated financial statements and requires that those enterprises report selected information about operating segments in interim financial reports . asc 280 also establishes standards for related disclosures about products and services , geographic areas and major customers . the company operates in one reportable segment : cloud services for business . ( r ) advertising costs advertising costs are expensed as incurred . advertising costs for the year ended december 31 , 2011 , 2010 and 2009 was $ 45.4 million , $ 36.3 million and $ 28.3 million , respectively . ( s ) sales taxes the company may collect sales taxes from certain customers which are remitted to governmental authorities as required and are excluded from revenues . - 40 - ( t ) recent accounting pronouncements in may 2011 , the fasb issued asu no . 2011-04 , fair value measurement ( topic 820 ) : amendments to achieve common fair value measurement and disclosure requirements in u.s. gaap and ifrss . this guidance was issued to achieve common fair value measurement and disclosure requirements between gaap and international financial reporting standards . this new guidance amends current fair value measurement and disclosure guidance to include increased transparency around valuation inputs and investment categorization . this asu is effective for interim and annual periods beginning after december 15 , 2011. the adoption of this new guidance is not expected to have a significant impact on the company 's fair value measurements , financial condition , results of operations or cash flows . in june 2011 , the fasb issued asu no . 2011-05 , comprehensive income ( topic 220 ) : presentation of comprehensive income . this guidance is effective for interim and annual periods beginning december 15 , 2011 and will require companies to present the components of net income and other comprehensive income either as one continuous statement or as two consecutive statements . it eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders ' equity . the standard does not change the items which must be reported in other comprehensive income , how such items are measured or when they must be reclassified to net income . in addition , in december 2011 , the fasb issued an amendment which defers the requirement to present components of reclassifications of other comprehensive income on the face of the income statement . because this guidance impacts presentation only , it will have no effect on the company 's consolidated financial statements . in september 2011 , the fasb issued asu no . 2011-08 , intangibles – goodwill and other ( topic 350 ) , which simplifies how entities test goodwill for impairment and permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test . this asu is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after december 15 , 2011 ( early adoption is permitted ) . the company decided to early adopt this guidance which did not have a significant impact on the company 's consolidated financial position or results of operations . reclassifications certain prior year reported amounts have been reclassified to conform to the 2011 presentation . 3. business acquisitions in july 2011 , the company purchased for cash data haven limited , an ireland-based provider of online data backup services for businesses , and certain assets of the virtual pbx business of buzz networks limited , a uk-based provider of voice services . in october 2011 , the company purchased for cash c infinity , an ireland-based provider of online data backup and hosting services for businesses ( see note 18 – subsequent events for information on the three acquisitions closed thus far in 2012 ) . the financial impact to j2 global for these transactions is immaterial as of the date of the acquisition . story_separator_special_tag during the fourth quarter of 2009 , we determined based upon our current and future business needs that the rights to certain external administrative software would not provide any future benefit . accordingly , we recorded a disposal in the amount of $ 2.4 million to the consolidated statement of operations representing the capitalized cost as of december 31 , 2009. total disposals of long-lived assets for the year ended december 31 , 2011 , 2010 and 2009 were approximately $ 0.3 million , $ 0.2 million and $ 2.5 million , respectively . share-based compensation the following table represents the share-based compensation expense included in cost of revenues and operating expenses in the accompanying consolidated statements of operations for the years ended december 31 , 2011 , 2010 and 2009 ( in thousands ) : replace_table_token_14_th - 27 - non-operating income and expenses interest and other income . our interest and other income is generated primarily from interest earned on cash , cash equivalents and short- and long-term investments , gain on sale of investments and gains from foreign currency transactions . interest and other income amounted to $ 1.3 million , $ 6.8 million and $ 3.1 million for the years ended december 31 , 2011 , 2010 and 2009 , respectively . the decrease in interest and other income from 2010 to 2011 was primarily due to the gain on the sale of investments in the amount of approximately $ 4.4 million recognized in 2010 and reduced interest income in 2011 due to lower cash and investment balances following an acquisition in the fourth quarter 2010. the increase in interest and other income from 2009 to 2010 was primarily due to gain on the sale of investments in the amount of approximately $ 4.4 million in 2010. interest and other expense . our interest and other expense amounted to $ 0.1 million , $ 0.1 million and $ 0.4 million for the years ended december 31 , 2011 , 2010 and 2009 , respectively . interest and other expense were primarily related to interest expense . other-than-temporary impairment losses . an other-than-temporary impairment occurred in connection with our securities for the year ended december 31 , 2009. during the second quarter of 2009 , we recorded an impairment of $ 9.2 million within the consolidated statement of operations . during the fourth quarter of 2009 , we determined that one auction rate security was other-than-temporarily impaired and recorded an impairment loss of $ 0.2 million to the consolidated statement of operations . no other-than-temporary impairments were recorded for fiscal years 2011 and 2010. income taxes . our effective income tax rate is based on pre-tax income , statutory tax rates , tax regulations ( including those related to transfer pricing ) and different tax rates in the various jurisdictions in which we operate . the tax bases of our assets and liabilities reflect our best estimate of the tax benefits and costs we expect to realize . when necessary , we establish valuation allowances to reduce our deferred tax assets to an amount that will more likely than not be realized . as of december 31 , 2011 , we had utilizable federal and state ( california ) net operating loss carryforwards ( “ nols ” ) of $ 6.7 million and $ 6.7 million , respectively , after considering substantial restrictions on the utilization of these nols due to “ ownership changes ” , as defined in the internal revenue code of 1986 , as amended . we currently estimate that all of the above-mentioned federal and state nols will be available for use before their expiration . these nols expire through the year 2028 for the federal and 2017 for the state . in addition , as of december 31 , 2011 and 2010 , we had available unrecognized state research and development tax credits of $ 0.2 million and $ 0.8 million , which last indefinitely . in 2008 , the governor of california signed into law legislation that suspended the use of nols for tax years beginning on or after january 1 , 2008 and 2009. in 2010 , the suspension was extended an additional two years through the end of 2011. as a result , the company will not be permitted to utilize its california nols generated in prior years to offset taxable income in 2008 through 2011 for purposes of determining the applicable california income tax due . current law reinstates use of nols in tax years beginning on or after january 1 , 2012 absent extension of the suspension . income tax expense amounted to $ 22.4 million , $ 27.6 million and $ 31.0 million for the years ended december 31 , 2011 , 2010 and 2009 , respectively . our effective tax rates for 2011 , 2010 and 2009 were 16 % , 25 % and 32 % , respectively . the decrease in our effective income tax rate from 2010 to 2011 was primarily attributable to the following : 1. a reversal during the first quarter 2011 of approximately $ 14.1 million and the third quarter 2011 of approximately $ 1.1 million of uncertain income tax positions as a result of expiring statutes of limitations , offset by return to provision adjustments in the third quarter of 2011 ; 2. an increase during 2011 in foreign tax credits and our ability to offset such credits against subpart f income ; 3. an increase during 2011 in the portion of our income being taxed in foreign jurisdictions and subject to lower tax rates than in the u.s. ; 4. a decrease during 2011 in state income taxes , net of the federal income tax benefits , partially offset by : 5. a 2010 book but not tax gain on the sale of an impaired auction rate security , resulting in a significant portion of the valuation allowance being reversed ; 6. an increase during 2011 in return to
| the increase in our net cash provided by operating activities in 2011 compared to 2010 was primarily attributable to cash received from our subscribers and the tax benefit from the exercise of stock options during the year . certain tax payments are prepaid during the year and included within prepaid expenses and other current assets on the consolidated balance sheet . our prepaid tax payments were $ 11.0 million and $ 7.5 million at december 31 , 2011 and 2010 , respectively . more than two-thirds of our subscribers pay us via credit cards and therefore our receivables from subscribers generally settle quickly . our cash and cash equivalents and short-term investments were $ 177.9 million , $ 78.8 million and $ 228.8 million at december 31 , 2011 , 2010 and 2009 , respectively . net cash used in investing activities was $ ( 76.2 ) million , $ ( 231.1 ) million and $ ( 61.4 ) million for the years ended december 31 , 2011 , 2010 and 2009 , respectively . net cash used in investing activities in 2011 was primarily attributable to the purchase of available-for-sale investments . net cash used in investing activities in 2010 was primarily attributable to cash acquisition of businesses and purchase of available-for-sale investments . net cash used in investing activities in 2009 was primarily attributable to purchase of available-for-sale investments , certificates of deposit and cash acquisition of businesses . net cash provided by financing activities was $ 0.3 million , $ 2.7 million and $ 5.4 million for the years ended 2011 , 2010 and 2009 , respectively . net cash provided by financing activities in 2011 was primarily attributable from the exercise of stock options and excess tax benefit from share-based compensation , partially offset by dividends paid . net cash provided by financing activities in 2010 was primarily attributable from the exercise of stock options and excess tax benefit from share-based compensation , partially offset by the repurchase of our common stock . net cash provided by financing activities in 2009 was primarily attributable to proceeds from the exercise of stock options and excess tax benefit from share-based compensation . stock repurchase program in may 2010 , our board of directors approved a program authorizing the repurchase of up to ten million shares of our common stock through the end of april 30 , 2012 ( the “ 2010 program ” ) . during the year ended december 31 , 2011 , we did not repurchase any shares under the 2010 program . effective february 15 , 2012 , our board of directors terminated and replaced
| Liquidity | 6,301 |
share-based compensation the company measures all share-based compensation awards at fair value on the date they are granted to employees and directors , and recognizes compensation cost , net of forfeitures , over the requisite service period for awards with only a service condition , and over a graded vesting period for awards with service and performance or market conditions . the fair value of share-based compensation awards with market conditions is measured using a lattice model and in accordance with accounting standards codification ( `` asc `` ) 718 , is not adjusted based on actual achievement of the performance goals . the black-scholes option pricing model is used to measure the fair value of options . the following sections address the assumptions used related to the black-scholes option pricing model . expected life the expected term of stock options represents the period the stock options are expected to remain outstanding and is based on the simplified method , which is the weighted average vesting term plus the original contractual term divided by two . the company uses the simplified method due to a lack of sufficient historical share option exercise experience upon which to estimate an expected term . expected volatility expected volatility measures the amount that a stock price has fluctuated or is expected to fluctuate during a period and is estimated based on a weighted average of the company 's historical stock price . dividend yield the company has never declared or paid any cash dividends and does not plan to pay cash dividends in the foreseeable future . therefore , a zero expected dividend yield was used in the valuation model . risk-free interest rate the risk-free interest rate is based on united states treasury zero-coupon issues with remaining terms similar to the expected term on the options . forfeitures the company estimates forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates . the company uses historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest . if the company 's actual forfeiture rate is materially different from its estimate , the stock-based compensation expense could be different from what the company has recorded in the current period . historically , estimated forfeitures have been in line with actual forfeitures . income taxes the company follows the liability method of accounting for income taxes . under this method , deferred income tax assets and liabilities are determined based upon temporary differences between the carrying amounts and tax bases of the company 's assets and liabilities at the balance sheet date , and are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse . the effect on deferred tax assets and liabilities of a change in the tax rates is recognized in income in the period in which the change occurs . the company records a valuation reserve in each reporting period when management believes that it is more likely than not that any deferred tax asset created will not be realized . accounting guidance for income taxes requires that the company recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit . if a tax position meets the `` more likely than not `` recognition criteria , accounting guidance requires the tax position be measured at the largest amount of benefit greater than 50 % likely of being realized upon ultimate settlement . earnings per share 64 forum energy technologies , inc. and subsidiaries notes to consolidated financial statements ( continued ) basic earnings per share for all periods presented equals net income divided by the weighted average number of the shares of the company 's common stock outstanding during the period . diluted earnings per share is computed by dividing net income by the weighted average number of shares of the company 's common stock outstanding during the period as adjusted for the dilutive effect of the company 's stock options , restricted share plans and warrants . the exercise price of each option is based on the company 's stock price at the date of grant . the diluted earnings per share calculation excludes approximately 0.3 million stock options and warrants , 1.0 million stock options and warrants and 0.4 million stock options and warrants for the years ended december 31 , 2013 , 2012 and 2011 , respectively , because they were anti-dilutive as the option exercise price was greater than the average market price of the common stock . the following is a reconciliation of the number of shares used for the basic and diluted earnings per share computations ( shares in thousands ) : replace_table_token_19_th non-u.s. local currency translation the company operates globally and its primary functional currency is the u.s. dollar ( $ ) . the majority of the company 's non-u.s. operations have designated the local currency as their functional currency . financial statements of these non-u.s. operations are translated into u.s. dollars using the current rate method whereby assets and liabilities are translated at the balance sheet rate and income and expenses are translated into u.s. dollars at the average exchange rates in effect during the period . the resultant translation adjustments are reported as a component of accumulated other comprehensive income within stockholders ' equity . noncontrolling interest noncontrolling interests are classified as equity in the consolidated balance sheets . net earnings include the net earnings for both controlling and noncontrolling interests , with disclosure of both amounts on the consolidated statements of earnings . fair value the carrying amounts for financial instruments classified as current assets and current liabilities approximate fair value , due to the short maturity of such instruments . story_separator_special_tag the flow equipment product line due to the deterioration in this market which reduced demand for our products significantly starting in the second quarter 2012. the pressure pumping service providers , our customers , experienced excess capacity of new capital equipment and supplies during the year and these companies began to destock inventory they purchased during prior periods . offsetting the lower margins in the flow equipment product line were modest price increases on certain valve products . also positively impacting our operating margins were lower selling , general and administrative costs as a percent of revenue , which was attributable to tighter controls . corporate — selling , general and administrative expenses for corporate increased slightly by $ 0.4 million , or 1.9 % , for the year ended december 31 , 2012 compared to the year ended december 31 , 2011. corporate costs included , among other items , payroll related costs for general management and management of finance and administration , legal , and human resources ; professional fees for legal , accounting and related services ; and marketing costs . 43 other items several items are not included in segment operating income , but are included in total operating income . these items include : contingent consideration , impairment of intangible assets , transaction expenses and gains/losses from the sale of assets . the contingent consideration we incurred was related to two acquisitions in 2011 in the flow equipment product line in which part of the purchase price was payable in cash and or shares of our common stock based on the earnings of the acquired entities . the change in the amount of the accrual is recorded as part of operating income . lower projected earnings of the acquired entities resulted in an increase to operating income of $ 4.6 million for the year ended december 31 , 2012 due to lower contingent consideration , whereas higher projected earnings of the acquired entities resulted in a decrease to operating income of $ 12.1 million for the year ended december 31 , 2011. during the second quarter 2012 , an impairment loss of $ 1.2 million was recorded on certain intangible assets as a result of a lack of orders for a specific service line within the production & infrastructure segment . transaction expenses relate to legal and other advisory costs incurred in acquiring businesses and are not considered to be part of segment operating income . these costs were $ 1.8 million and $ 3.6 million for the years ended december 31 , 2012 and 2011 , respectively . interest expense we incurred $ 16.4 million of interest expense during the year ended december 31 , 2012 , a decrease of $ 3.2 million from the year ended december 31 , 2011. the decrease in interest expense was attributable to a lower debt level as we repaid a portion of our debt from the net proceeds of the ipo and concurrent private placement during the second quarter 2012 , partially offset by an increase in debt levels incurred to finance the four acquisitions in the fourth quarter 2012. taxes tax expense includes current income taxes expected to be due based on taxable income to be reported during the periods in the various jurisdictions in which we conduct business , and deferred income taxes based on changes in the tax effect of temporary differences between the bases of assets and liabilities for financial reporting and tax purposes at the beginning and end of the respective periods . the effective tax rate , calculated by dividing total tax expense by income before income taxes , was 32.0 % and 33.5 % for the years ended december 31 , 2012 and 2011 , respectively . the effective tax rate for the year ended december 31 , 2012 is lower than the comparable period in 2011 primarily due to a reduction in the tax provision from the finalization of certain prior year tax returns . liquidity and capital resources sources and uses of liquidity our internal sources of liquidity are cash on hand and cash flows from operations , while our primary external sources have included our credit facility described below , trade credit , the issuance of our senior notes described below and sales of our common stock . our primary uses of capital have been for acquisitions , ongoing maintenance and growth capital expenditures , inventories and sales on credit to our customers . we continually monitor potential capital sources , including equity and debt financing , to meet our investment and target liquidity requirements . our future success and growth will be highly dependent on our ability to continue to access outside sources of capital . at december 31 , 2013 , we had cash and cash equivalents of $ 39.6 million and total debt of $ 513.1 million . during the year ended december 31 , 2013 , we used the net proceeds from the issuance of $ 400.0 million of 6.25 % senior notes to repay a portion of the outstanding borrowings under our credit facility . see “ —senior notes due 2021 . ” we believe that cash on hand , cash generated from operations and amounts available under the credit facility will be sufficient to fund operations , working capital needs , capital expenditure requirements and financing obligations for the foreseeable future . our total 2014 capital expenditure budget is approximately $ 60.0 million , which consists of , among other items , investments in constructing or expanding certain manufacturing facilities , purchasing machinery and equipment , expanding our rental fleet of subsea equipment , and general maintenance capital expenditures of approximately $ 25.0 million . this budget does not include expenditures for potential business acquisitions . the amount of capital expenditures incurred in 2013 was $ 60.3 million . these expenditures were funded from borrowings under our credit facility , the issuance of our senior notes and internally generated funds .
| cash flows provided by ( used in ) financing activities net cash provided by financing activities was $ 77.1 million for the year ended december 31 , 2013 and consisted primarily of net proceeds from our issuance of the senior notes and other borrowings under the revolving portion of our credit facility , net of long-term debt repayment , contingent consideration payment and deferred financing costs . the net proceeds from the senior notes issuance were used to repay amounts outstanding under our credit facility . net cash provided by financing activities was $ 65.8 million for the year ended december 31 , 2012 , and consisted primarily of net proceeds from our ipo and concurrent private placement which were used to pay down a portion of the outstanding borrowings under the revolving portion of the credit facility , and payment of contingent consideration with respect to acquisitions . net cash provided by financing activities was $ 510.1 million for the year ended december 31 , 2011 , primarily from net draws on the credit facility of $ 458.4 million and proceeds from stock issuances of $ 57.0 million . senior notes due 2021 in october 2013 , we issued $ 300.0 million of 6.25 % senior unsecured notes due 2021 at par , and in november 2013 we issued an additional $ 100.0 million aggregate principal amount of the notes at 103.25 % of par , plus accrued interest from october 2 , 2013 ( the `` senior notes '' ) . the senior notes bear interest at a rate of 6.25 % per annum , payable on april 1 and october 1 of each year , and mature on october 1 , 2021. net proceeds from the issuances of approximately $ 394.0 million , after deducting initial purchasers ' discounts and offering expenses and excluding accrued interest paid by the purchasers , were used for the repayment of the then-outstanding term loan balance and a portion of the revolving credit facility balance . the terms of the senior notes are governed by the indenture , dated october 2 , 2013 ( the “ indenture ” ) , by and among us , the guarantors named therein and wells fargo bank , national association , as trustee ( the “ trustee ” ) . the senior notes are senior unsecured obligations , are guaranteed on a senior unsecured basis by our subsidiaries that guarantee the credit facility and rank junior to , among other indebtedness , the credit facility to the extent of the value of the collateral securing the credit facility . the senior notes contain customary covenants
| Liquidity | 15,636 |
professional services engagements typically result from sales of new licenses ; revenue is recognized over the term of the engagement . our expectation is that professional services revenue will trend flat-to-down over time due to our strategy to expand margins by migrating more services engagements to our partners and delivering products that require less consulting and training services , and in the near-term will trend down due to the effects of the covid-19 pandemic . professional services revenue declined in fy'20 due to challenges with project scoping and implementation activities and performance due to social distancing measures and facility closures implemented to address the covid-19 pandemic . additionally , there was an increase in the estimated costs to complete a large fixed price professional services contract , which led to a corresponding decrease in the estimated percent complete and a related reversal of revenue . revenue by product group replace_table_token_3_th replace_table_token_4_th core product software revenue growth in fy'20 compared to fy'19 was driven by subscription revenue growth of 68 % ( 69 % constant currency ) , offset by expected declines in perpetual license and perpetual support revenue due to the end of sales of perpetual licenses at the end of q1'19 and conversions of support contracts to subscriptions . total revenue growth was lower than software revenue growth due to a decline in professional services revenue . in fy'20 , professional services revenue declined 26 % ( actual and constant currency ) compared to the year-ago period due in part to the impact of the covid-19 pandemic and the impact of the professional services contract described above . arr increased 14 % ( 11 % constant currency ) for fy'20 compared to fy'19 , reflecting solid arr growth for both plm and cad . 20 growth p roduct s oftware revenue growth in fy'20 was driven by subscription revenue growth of 49 % ( 50 % constant currency ) compared to the year-ago period , offset by an expected decline in perpetual license revenue due to the end of sales of perpetual licenses at the end of q1'19 . the revenue growth rate has been impacted by a decrease in the proportion of license revenue recognized upfront as we have released additional cloud functionality ( for which revenue is recognized ratably ) into our iot products . growth product arr increased 34 % ( 32 % constant currency ) for fy'20 compared to fy'19 , including growth from sales of our products through our strategic alliance with rockwell automation and reflecting strong growth in all three product lines . fsg product software revenue declined in fy'20 compared to fy'19 , primarily driven by a 13 % ( actual and constant currency ) decrease in perpetual support revenue due to conversions of support contracts to subscriptions . this decline was partially offset by a 12 % ( 13 % constant currency ) increase in subscription revenue in fy'20 compared to the year-ago period . the total revenue decrease in fy'20 was higher than the decline in software revenue due to a decrease in professional services revenue , which declined 21 % ( 20 % constant currency ) in fy'20 compared to fy'19 due in part to the impact of the covid-19 pandemic on our ability to execute professional services projects . fsg product arr decreased 2 % ( 4 % constant currency ) for fy'20 compared to fy'19 , largely due to the impact of covid-19 on fsg markets , primarily due to the non-renewal of a government contract which did not receive renewed funding . software revenue by geographic region a significant portion of our software revenue is generated outside the u.s. in both fy'19 and fy'20 , approximately 45 % of software revenue was generated in the americas , 35 % in europe , and 20 % in asia pacific . replace_table_token_5_th americas software revenue growth in fy'20 was driven by growth in subscription revenue of 44 % ( actual and constant currency ) as compared to fy'19 , partially offset by a decline of 16 % ( 15 % constant currency ) in perpetual support revenue , resulting in recurring revenue growth of 24 % ( 25 % constant currency ) . europe software revenue growth in fy'20 was driven by growth in subscription revenue of 67 % ( 69 % constant currency ) as compared to fy'19 , partially offset by a decline in perpetual support revenue , resulting in recurring revenue growth of 28 % ( 30 % constant currency ) . asia pacific software revenue growth in fy'20 was driven by growth in subscription revenue of 70 % ( actual and constant currency ) as compared to fy'19 , partially offset by declines of 86 % ( actual and constant currency ) and 20 % ( actual and constant currency ) in perpetual license and support revenue , respectively . recurring revenue growth was 26 % ( actual and constant currency ) . 21 gross margin replace_table_token_6_th ( 1 ) non-gaap financial measures are reconciled to gaap results under non-gaap financial measures below . license gross margin increased in fy'20 compared to fy'19 due to revenue increasing significantly as a result of asc 606 and the discontinuation of the cancellation clause , while cost of license expenses increased only slightly . license revenue growth was driven by an 88 % ( 89 % constant currency ) increase in subscription license revenue year over year , partially offset by a 54 % ( 53 % constant currency ) decrease in perpetual license revenue . support and cloud services gross margin decreased in fy'20 compared to fy'19 due to a decrease in perpetual support revenue and increases in costs associated with our cloud services business due to increased demand for those services , royalty expenses , and outside service costs . this was partially offset by increases in subscription support and cloud services revenue . story_separator_special_tag these rule makers and or regulators may promulgate interpretations , guidance or regulations that may result in changes to our accounting policies , which could have a material impact on our financial position and results of operations . 28 revenue recognition effective october 1 , 2018 , we record revenues in accordance with the guidance provided by asc 606 , revenue from contracts with customers . for a full description of our revenue accounting policy , please refer to note 2. summary of significant accounting policies , included in the notes to consolidated financial statements in this annual report . our sources of revenue include : ( 1 ) subscription , ( 2 ) perpetual license , ( 3 ) support for perpetual licenses and ( 4 ) professional services . subscriptions include term-based on-premises licenses , software-as-a-service ( saas ) , and hosting services . revenue is derived from the licensing of computer software products and from related support and or professional services contracts . judgments and estimates determination of performance obligations . our subscriptions are frequently sold as a bundle of products and services , typically pairing on-premises term software licenses with support and or cloud services over the same term . on-premises software is typically determined to be a distinct performance obligation , and is thus recognized separately from the support and or cloud components . on-premises software revenue is generally recognized at the point in time that the software is made available to the customer , while the support and cloud revenue components are recognized over the term of the contract . in cases where subscriptions include cloud functionality and on-premises software , an assessment has been performed to determine whether the cloud services are distinct from the on-premises software . in the substantial majority of instances , cloud services provide incremental functionality to customers and have been considered distinct and recognized separately from the on-premises software . this assessment could have a significant impact on the timing of revenue recognition and may change as our product offerings evolve . allocation of transaction price . we estimate the standalone selling price of each identified performance obligation and use that estimate to allocate the transaction price among said performance obligations . the estimated standalone selling price is determined using all information reasonably available to us , including market conditions and other observable inputs . significant judgment is used in determining the standalone selling prices of the on-premises license , support , and cloud components of our subscription products . these estimates are subject to change as our product offerings change and could have a significant impact due to the difference in the timing of revenue recognition for on-premises licenses and support and or cloud . right to exchange . our multi-year , non-cancellable on-premises subscription contracts provide customers with an annual right to exchange software within the original subscription with other software . we account for this right as a refund liability . for most contracts , we use the expected value method to determine the refund liability associated with this right across a portfolio of contracts . where contracts are outside of the standard portfolio of contracts due to contract size , longer contract duration , or other unique contractual terms , we use the most likely amount method to determine the refund liability for each individual contract . in both circumstances , the transaction price is constrained based on our estimates , which impacts the amount of revenue recognized . changes in these estimates could significantly impact revenue for any given period . accounting for income taxes as part of the process of preparing our consolidated financial statements , we are required to calculate our income tax expense based on taxable income by jurisdiction . there are many transactions and calculations about which the ultimate tax outcome is uncertain ; as a result , our calculations involve estimates by management . some of these uncertainties arise as a consequence of revenue-sharing , cost-reimbursement and transfer pricing arrangements among related entities and the differing tax treatment of revenue and cost items across various jurisdictions . if we were compelled to revise or to account differently for our arrangements , that revision could affect our recorded tax liabilities . the income tax accounting process also involves estimating our actual current tax liability , together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are included within our 29 consolidated balance sheets . we must then assess the likelihood that our deferred tax assets will be recovered from future taxable income and , to the extent we believe that it is more likely than not that all or a portion of our deferred tax assets will not be realized , we must establish a valuation allowance as a charge to income tax expense . as of september 30 , 2020 , we have a valuation allowance of $ 171.3 million against net deferred tax assets in the u.s. and a valuation allowance of $ 34.1 million against net deferred tax assets in certain foreign jurisdictions . we have concluded , based on the weight of available evidence , that a full valuation allowance continues to be required against our u.s. net deferred tax assets as they are not more likely than not to be realized in the future . we will continue to reassess our valuation allowance requirements each financial reporting period . the valuation allowance recorded against net deferred tax assets of certain foreign jurisdictions is established primarily for our capital loss carryforwards , the majority of which do not expire . however , there are limitations imposed on the utilization of such capital losses that could further restrict the recognition of any tax benefits . prior to the passage of the u.s. tax act , the company asserted that substantially all of the undistributed earnings of its foreign
| liquidity and capital resources replace_table_token_14_th cash , cash equivalents and restricted cash we invest our cash with highly rated financial institutions and in diversified domestic and international money market mutual funds . cash and cash equivalents include highly liquid investments with original maturities of three months or less . in addition , we hold investments in marketable securities totaling approximately $ 59 million with an average maturity of 12 months . at september 30 , 2020 , cash and cash equivalents totaled $ 275 million , compared to $ 270 million at september 30 , 2019. a significant portion of our cash is generated and held outside the u.s. as of september 30 , 2020 , we had cash and cash equivalents of $ 39 million in the u.s. , $ 108 million in europe , $ 99 million in asia pacific ( including india ) and $ 29 million in other non-u.s. countries . all our marketable securities are held in the u.s. we have substantial cash requirements in the u.s. , but we believe that the combination of our existing u.s. cash and cash equivalents , marketable securities , our ability to repatriate cash to the u.s. more cost effectively with the recent u.s. tax law changes , future u.s. operating cash flows and cash available under our credit facility will be sufficient to meet our ongoing u.s. operating expenses and known capital requirements . 31 cash provided by operating activities cash provided by operating activities was $ 234 million in fy'20 compared to $ 285 million in fy'19 .
| Liquidity | 8,443 |
for the years ended december 31 , 2014 , 2013 and 2012 , the holdco administrative services expense totaled $ 1.7 million , $ 1.4 million and $ 1.3 million , respectively . non-compete agreement . on july 19 , 2006 , in connection with our initial public offering , we entered into a non-compete agreement with nustar energy ( the non-compete agreement ) . under the non-compete agreement , we will have a right of first refusal with respect to the potential acquisition of general partner and other equity interests in publicly traded partnerships under common ownership with the general partner interest . nustar energy has a right of first refusal with respect to the potential acquisition of assets that relate to the transportation , storage or terminalling of crude oil , feedstocks or refined petroleum products ( including petrochemicals ) in the united states and internationally . with respect to any other business opportunities , neither we nor nustar energy are prohibited from engaging in any business , even if we and nustar energy would have a conflict of interest with respect to such other business opportunity . the non-compete agreement remains in effect for so long as we or any of our affiliates own 20 % or more of nustar gp , llc or riverwalk logistics , l.p. axeon as a result of the 2014 asphalt sale , we ceased reporting transactions between us and axeon as related party transactions in our consolidated financial statements on february 26 , 2014. axeon services agreement . nustar gp , llc and axeon were a party to a services agreement , which provided that nustar gp , llc furnish certain administrative and other operating services necessary to conduct the business of axeon for an annual fee totaling $ 10.0 million , subject to adjustment ( the axeon services agreement ) . the axeon services agreement terminated on june 30 , 2014 . the aggregate amount charged under the axeon services agreement was $ 3.1 million , $ 7.9 million and $ 2.6 million for the years ended december 31 , 2014 , 2013 and 2012 , respectively . axeon employee services agreement . in addition , nustar gp , llc entered into an employee services agreement with axeon , effective september 28 , 2012 ( the axeon employee services agreement ) . the axeon employee services agreement provided that certain of nustar gp , llc employees would provide employee-services to axeon . in exchange , axeon would reimburse us for the compensation expense of those employees at the same rates that were in effect at the effective date of the axeon employee services agreement . the axeon employee services agreement terminated on december 31 , 2012 , and effective january 1 , 2013 , those employees became employees of axeon . 6. distributions from nustar energy nustar energy 's partnership agreement , as amended , determines the amount and priority of cash distributions that nustar energy 's common unitholders and general partner may receive . we , as nustar energy 's general partner , are entitled to incentive distributions if the amount nustar energy distributes with respect to any quarter exceeds $ 0.60 per unit , with the maximum percentage of 23 % of the amount of any quarterly distribution in excess of $ 0.66 per unit . we also receive a 2 % distribution with respect to our general partner interest . 50 nustar gp holdings , llc notes to consolidated financial statements – ( continued ) the following table reflects the allocation of nustar energy 's cash distributions earned for the periods indicated among its general and limited partners : replace_table_token_24_th the following table summarizes information related to nustar energy 's quarterly cash distributions : replace_table_token_25_th ( a ) the distribution was announced on january 30 , 2015 . 7. accrued compensation expense and long-term liabilities accrued compensation expense and long-term liabilities consisted of the following : replace_table_token_26_th 51 nustar gp holdings , llc notes to consolidated financial statements – ( continued ) 8. fair value measurements we segregate the inputs used in measuring fair value into three levels : level 1 , defined as observable inputs such as quoted prices for identical assets or liabilities in active markets ; level 2 , defined as inputs other than quoted prices in active markets that are either directly or indirectly observable , such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets that are not active ; and level 3 , defined as unobservable inputs in which little or no market data exists . the following liabilities are measured at fair value on a recurring basis : replace_table_token_27_th replace_table_token_28_th fair value of financial instruments we recognize cash equivalents , receivables , payables and short-term debt in our consolidated balance sheets at their carrying amount . the fair values of these financial instruments approximate their carrying amounts . the fair value of our short-term debt would fall in level 2 of the fair value hierarchy . 9. statements of cash flows changes in current assets and current liabilities were as follows : replace_table_token_29_th 52 nustar gp holdings , llc notes to consolidated financial statements – ( continued ) cash flows related to interest and income tax were as follows : replace_table_token_30_th non-cash investing and financing activities for the years ended december 31 , 2014 , 2013 and 2012 mainly consisted of : adjustments to our investment in nustar energy and accumulated other comprehensive ( loss ) income through recognition of our proportionate share of nustar energy 's accumulated other comprehensive loss ; and pension funding adjustments recognized in accumulated other comprehensive ( loss ) income . story_separator_special_tag as of december 31 , 2014 , we had the following long-term incentive plans : the fourth amended and restated 2000 long-term incentive plan , under which nustar gp , llc may award up to 3,250,000 nustar energy ( ns ) common units ; the 2006 long-term incentive plan , under which nustar gp holdings may award up to 2,000,000 nustar gp holdings ( nsh ) units . please refer to notes 14 and 15 of the notes to consolidated financial statements in item 8 . “ financial statements and supplementary data ” for a more detailed discussion of employee benefit plans and unit-based compensation . nustar energy reimburses nustar gp , llc for expenses incurred related to employee benefit plans at cost , and for long-term incentive plan compensation expenses resulting from ns and nsh awards to employees and directors of nustar gp , llc . expenses resulting from nustar gp holdings awards to our non-employee directors are included in “ general and administrative expenses ” on our consolidated statements of comprehensive income ( loss ) . our current liabilities related to the long-term incentive plans and employee benefits are included in “ accrued compensation expense ” and our noncurrent liabilities for employee benefits are included in “ long-term liabilities ” on our consolidated balance sheets . services agreements with axeon nustar gp , llc and axeon were a party to a service agreement , which provided that nustar gp , llc furnish certain administrative and other operating services necessary to conduct the business of axeon for an annual fee totaling $ 10.0 million , subject to adjustment ( the axeon services agreement ) . the axeon services agreement terminated on june 30 , 2014. in addition , nustar gp , llc entered into an employee services agreement with axeon , effective september 28 , 2012 ( the axeon employee services agreement ) . the axeon employee services agreement provided that certain of nustar gp , llc employees would provide employee-services to axeon . in exchange , axeon would reimburse us for the compensation expense of those employees at the same rates that were in effect at the effective date of the axeon employee services agreement . the axeon employee services agreement terminated on december 31 , 2012 , and effective january 1 , 2013 , those employees became employees of axeon . 35 the following table summarizes information pertaining to related party transactions : replace_table_token_13_th critical accounting policies the preparation of financial statements in accordance with u.s. generally accepted accounting principles requires management to select accounting policies and to make estimates and assumptions related thereto that affect the amounts reported in the consolidated financial statements and accompanying notes . actual results could differ from those estimates . the accounting policies below are considered critical due to judgments made by management and the sensitivity of these estimates to deviations of actual results from management 's assumptions . the critical accounting policies should be read in conjunction with note 2 of the notes to the consolidated financial statements in item 8 . “ financial statements and supplementary data , ” which summarizes our significant accounting policies . investment in nustar energy we evaluate our investment in nustar energy for impairment if and when there is evidence that we may not be able to recover the carrying amount of our investment or that nustar energy is unable to sustain an earnings capacity that justifies the carrying amount . a loss in the value of our investment that is other than a temporary decline is recognized currently in earnings based on the difference between the estimated current fair value of the investment and our carrying amount . in order to determine fair value , our management must make certain estimates and assumptions regarding nustar energy 's operations , including , among other things , an assessment of market conditions , projected cash flows , interest rates and growth rates that could significantly impact the fair value of our investment . due to the significant subjectivity of the assumptions used to determine fair value , changes in market conditions and or changes in assumptions could result in significant impairment charges in the future , thus affecting our earnings . we believe that the carrying amount of our investment in nustar energy as of december 31 , 2014 is recoverable . unit-based compensation we account for awards of ns unit options , performance awards and restricted units to employees and directors of nustar gp , llc at fair value , whereby a liability for the award is initially recorded and subsequent changes in the fair value are included in the determination of net income . the fair value of ns unit options is determined using the black-scholes model at each reporting date . the fair value of ns restricted units and performance awards equals the market price of ns common units at each reporting date . however , ns performance awards are earned only upon nustar energy 's achievement of an objective performance measure . we record compensation expense each reporting period such that the cumulative compensation expense equals the portion of the award 's current fair value that has vested . we record compensation expense related to ns unit options until such options are exercised , and we record compensation expense for ns restricted units and performance awards until the date of vesting . we account for awards of nsh restricted units and unit options granted to employees of nustar gp , llc and our directors based on the fair value of the awards at the grant date . the fair value of nsh unit options is determined using the black-scholes model at the grant date , and the fair value of the nsh restricted units equals the market price of nsh common units at the grant date . compensation expense for nsh restricted units and unit options is recognized ratably over the vesting period based on the initial fair value determination .
| year ended december 31 , 2014 compared to year ended december 31 , 2013 financial highlights ( thousands of dollars , except unit and per unit data ) replace_table_token_5_th the following table summarizes nustar energy 's statement of income ( loss ) data : replace_table_token_6_th 28 nustar energy 's segment operating income increased $ 371.0 million for the year ended december 31 , 2014 , compared to the year ended december 31 , 2013 , mainly due to an operating loss of $ 127.5 million in nustar energy 's storage segment in 2013 , which included a goodwill impairment charge of $ 304.5 million . nustar energy 's segment operating income in the pipeline segment increased $ 36.9 million for the year ended december 31 , 2014 compared to the prior year , mainly due to increased throughputs on pipelines that serve eagle ford shale production in south texas . nustar energy 's fuels marketing segment operating income increased by $ 24.9 million for the year ended december 31 , 2014 , compared to the prior year , mainly due to improved product margins and lower operating expense in their bunker fuel operations . additionally , nustar energy recorded equity in earnings of joint ventures of $ 4.8 million for the year ended december 31 , 2014 , compared to a loss in equity of joint ventures of $ 40.0 million for the year ended december 31 , 2013 , primarily due to losses from nustar energy 's investment in axeon in 2013. nustar energy 's loss from discontinued operations decreased $ 95.4 million for the year ended december 31 , 2014 , compared to the prior year , mainly due to an asset impairment charge of $ 102.5 million in 2013 associated with certain storage assets . therefore , nustar energy reported net income of $ 210.4 million for the year ended december 31 , 2014 , compared to a loss of $ 284.7 million for the year ended december 31 , 2013 . equity in earnings ( loss ) of nustar energy the following table summarizes our equity in earnings ( loss ) of nustar energy : replace_table_token_7_th for the year ended december 31 , 2014 , nustar energy reported net income per unit applicable to limited partners of $ 2.10 , compared to a net loss of $ 4.00 per unit for the year ended december 31 , 2013 .
| Liquidity | 14,838 |
as of january 27 , 2017 , our bit solution and bit technology is one of 53 of the epa 's “ registered antimicrobial products effective against clostridium difficile spores ” , as published on the epa 's k list . during 2017 , we continued to build brand awareness through marketing and advertising initiatives , as well as the overall performance of our product . we also increased efforts in our research and development of various testing and studies with a concentration in the hospital-healthcare market . we currently have placed significant resources into a study that focuses on quicker hospital room terminal cleans . in february 2017 , we established a scientific advisory board comprised currently of two experts in biosafety and infection prevention . the scientific advisory board will assist management in developing strategies , scientific research and development and monitoring technological and regulatory trends . 17 we have recently been featured in many publications including some that are listed below . one of the articles was a peer review paper that provided the review of tomi 's efficacy data and the first for showing efficacy by combining equipment and solution in the treatment for control of multidrug resistant organisms ( mdro 's ) . – in april 2017 , we were featured in a article published in the international journal of food microbiology by the usda and public health dept . of harvard university which stated cold plasma activated hydrogen peroxide aerosol ( steramist product ) rendered samples of escherichia coli 0157 : h7 , salmonella typhimurium , and listeria innocua inactive , while also maintaining the quality of the produce tested . – in july 2017 , one of our custom built in systems that was designed and installed into a vivarium facility at the dana farber cancer institute was featured in a publication , alnmag ( animal laboratory magazine ) . – in january of 2018 , we were included in the article “ review of necessary practices for epa submission of a hospital disinfectant using good laboratory practice ( glp ) disinfectant study summaries of tomi 's steramist bit disinfection system ” in the journal of the association for biosafety and biosecurity ( absa ) international 2017 , vol . 22 ( 4 ) 172-180 – in february of 2018 , we were featured in an article that discusses how a hospital in delaware is managing to control the spread of the flu virus . delaware online , part of the usa today network , shared news of record high flu cases in the state and how st. francis healthcare , located in wilmington , de , is managing to address the need to control this highly infectious and aggressive flu strain through the use of our steramist bit technology . in march and may 2017 , we raised through a private placement transaction gross proceeds of $ 6,000,000. we issued senior callable convertible promissory notes ( “ the notes ” ) in two tranches of $ 5,300,000 and $ 700,000 , respectively , which originally were scheduled to mature on august 31 , 2018 and november 8 , 2018 , respectively , unless earlier redeemed , repurchased or converted . in february and march 2018 , we and the holders of the notes extended the maturity date of the $ 5,300,000 principal amount of notes to april 1 , 2019 and the $ 700,000 principal amount of notes to june 8 , 2019. the notes are convertible at any time by the holder into common stock at a conversion price of $ 0.54 per share . we may redeem the notes at any time prior to maturity at a price equal to 100 % of the outstanding principal amount of the notes to be redeemed , plus accrued and unpaid interest as of the redemption date . interest on the notes is payable semi-annually in cash on february 28 and august 31 of each year at a rate of 4 percent per annum . in addition , we issued three-year warrants to purchase up to an aggregate of 999,998 shares of common stock at an exercise price of $ 0.69 per share . currently , we are using the proceeds from the private placement for research and development , international product registration , expansion of our internal sales force , marketing , public relations , expansions of our epa label and for working capital and general corporate purposes . in 2016 , we filed a lawsuit against astro pak corporation ( “ astro pak ” ) and its wholly-owned subsidiary , sixlog corporation ( “ sixlog ” ) , in california federal court for infringing our united states patent nos . 6,969,487 and 7,008,592 and violating our intellectual property rights by , among other things , indicating that our technology and patents were proprietary to sixlog and marketing our patented equipment with sixlog labels . in july 2017 , we settled the above-mentioned litigation , pursuant to which astro pak and sixlog acknowledged that we are the sole owner of ionized hydrogen peroxide decontamination and sterilization technology , patents , and products , which we market under the brands binary ionization technology® ( bit ) and steramist . astro pak and sixlog agreed to cease their prior conduct and pay us a cash settlement . astro pak also agreed to assign its ihp mark to us , complementing our existing trademark and trade name protection . finally , astro pak and sixlog agreed to remove from their website ( s ) or take steps to remove any assertions or suggestions that they own or developed ionized hydrogen peroxide technology or patents , or that they provide any ionized hydrogen peroxide products or services . in august 2017 , we announced the hiring of a new sales director to assist in the development of our business in the life science markets and added 26 additional sales representatives to our life sciences division . story_separator_special_tag in january 2017 , the fasb issued asu no . 2017-04 , simplifying the test for goodwill impairment , to simplify the test for goodwill impairment by removing step 2. an entity will , therefore , perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount , recognizing an impairment charge for the amount by which the carrying amount exceeds the fair value , not to exceed the total amount of goodwill allocated to the reporting unit . an entity still has the option to perform a qualitative assessment to determine if the quantitative impairment test is necessary . the asu is effective for interim and annual periods beginning after december 15 , 2019 , with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after january 1 , 2017. adoption of the asu is prospective . we have not yet selected an adoption date , and the asu will have a currently undetermined impact on the consolidated financial statements . in may 2017 , the fasb issued asu no . 2017-09 , scope of modification accounting , to provide guidance on which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting . the asu is effective for interim and annual periods beginning after december 15 , 2017 , with early adoption permitted . adoption of the asu is prospective . we will adopt the asu on january 1 , 2018 , which will have no impact on the consolidated financial statements upon adoption . financial operations overview our financial position as of december 31 , 2017 and 2016 , respectively , was as follows : replace_table_token_2_th 22 during the year ended december 31 , 2017 , our debt and liquidity positions were affected by the following : ● gross proceeds from the issuance of the notes of $ 6,000,000 ; and ● net cash used in operations of approximately $ 2,432,000. results of operations for the year ended december 31 , 2017 compared to the year ended december 31 , 2016 replace_table_token_3_th ( 1 ) includes approximately $ 649,000 and $ 615,000 in non-cash equity compensation expense for the years ended december 31 , 2017 and 2016 , respectively . sales during the years ended december 31 , 2017 and 2016 , we had net revenue of approximately $ 4,994,000 and $ 6,343,000 , respectively , representing a decrease in revenue of approximately 1,349,000 or 21 % . the decrease in revenue during the year ended december 31 , 2017 is attributable primarily to the fact that a distributor placed a large order in the first quarter of 2016 , with no such corresponding transaction during the same period in 2017. net revenue product and service revenue replace_table_token_4_th revenue by geographic region replace_table_token_5_th cost of sales during the years ended december 31 , 2017 and 2016 , our cost of sales were approximately $ 1,928,000 and $ 2,611,000 , respectively , representing a decrease of approximately $ 683,000 or 26 % . the primary reason for the decrease in cost of sales is lower sales during the year ended december 31 , 2017 as compared to the prior year . our gross profit margins as a percentage of sales for the year ended december 31 , 2017 increased as compared to the prior period as a result of the customer and product mix in sales . 23 professional fees professional fees for the year ended december 31 , 2017 were approximately $ 877,000 , as compared to $ 517,000 for the prior year , representing an increase of approximately $ 360,000 , or 70 % . the increase is attributable to increased efforts to protect and strengthen our intellectual property and the lawsuit with astro pak , which we settled in july 2017. professional fees are comprised primarily of legal , accounting and financial consulting fees . depreciation and amortization depreciation and amortization was approximately $ 607,000 and $ 586,000 for the years ended december 31 , 2017 and 2016 , respectively , representing an increase of $ 21,000 , or 4 % . the increase in depreciation expense is attributable to additional fixed assets acquired in 2017 and 2016. selling expenses selling expenses for the year ended december 31 , 2017 were approximately $ 1,256,000 , as compared to $ 1,513,000 for the year ended december 31 , 2016 , representing a decrease of approximately $ 257,000 or 17 % . the decrease in selling expenses is attributable to lower sales volume for the year ended december 31 , 2017 and a reduced number of employees as compared to the prior year . selling expenses represent selling salaries and wages , trade show fees , commissions and marketing expenses . research and development research and development expenses for the year ended december 31 , 2017 were approximately $ 454,000 , as compared to $ 184,000 for the year ended december 31 , 2016 , representing an increase of approximately $ 270,000 , or 147 % . the primary reason for the increase was attributable to current and ongoing studies and testing in connection with our product related to quicker hospital terminal cleans . research and development expenses mainly include costs incurred in generating and supporting research on improving , extending and applying our patents in the field of mechanical cleaning and decontamination . consulting fees consulting fees for the year ended december 31 , 2017 were approximately $ 211,000 , as compared to $ 307,000 for the year ended december 31 , 2016 , representing a decrease of approximately $ 96,000 , or 31 % . the decrease in consulting fees is primarily due to significant charge incurred during the year ended december 31 , 2016 with no such charge in 2017. equity compensation expen se equity compensation expense for the year ended december 31 , 2017 was approximately $ 649,000 , as compared to $
| liquidity and capital resources as of december 31 , 2017 , we had cash and cash equivalents of approximately $ 4,550,000 and working capital of $ 9,073,000. our principal capital requirements are to fund operations , invest in research and development and capital equipment , and the continued costs of public company filing requirements . we have historically funded our operations through debt and equity financings . in september 2016 , our common stock was uplisted to the otcqx best market . we intend to apply to further uplist our common stock to a national securities exchange in the future . due to the applicable qualitative and quantitative standards required to successfully list on a national securities exchange , we may need to raise additional capital in order to meet such benchmarks . if we fail to satisfy the applicable listing standards of a national securities exchange , we may be unable to successfully list our common stock on such an exchange . in march and may 2017 , we raised gross proceeds of $ 6,000,000 through a private placement of the notes . we issued the notes in two tranches of $ 5,300,000 and $ 700,000 , respectively , which originally were scheduled to mature on august 31 , 2018 and november 8 , 2018 , respectively , unless earlier redeemed , repurchased or converted .
| Liquidity | 14,341 |
the increase was partially offset by naturally declining production in the fayetteville shale and to a much lesser extent , declining production from the anadarko basin granite wash and the marginal/uneconomic property sales in northwestern oklahoma and kearny county , kansas . ( 38 ) production by quarter for 2018 and 2017 was as follows ( mcfe ) : replace_table_token_14_th lease bonus and rentals lease bonuses and rentals decreased $ 3,568,300 in 2018 . the decrease was mainly due to the company leasing less valuable acreage in 2018 versus 2017. in 2018 , the company leased 1,754 net mineral acres in oklahoma ( mainly in major , ellis , and roger mills counties ) , 415 net mineral acres in texas ( mainly in dawson county ) and 135 net mineral acres in new mexico ( mainly in lea and eddy counties ) . in 2017 , the company leased 2,067 net mineral acres in oklahoma ( mainly in dewey , canadian , mcclain and grady counties ) , 272 net mineral acres in texas ( mainly in andrews and dawson counties ) and 125 net mineral acres in new mexico ( mainly in lea and eddy counties ) . gains ( losses ) on derivative contracts the fair value of derivative contracts was a net liability of $ 3,414,016 as of september 30 , 2018 , and a net asset of $ 516,159 as of september 30 , 2017. we had a net loss on derivative contracts of $ 4,932,068 in 2018 as compared to a net gain of $ 1,249,840 in 2017. the change is principally due to the oil collars and fixed price swaps being less beneficial in 2018 , as nymex oil futures experienced increases in price in relation to the collars and the fixed prices of the swaps . net cash paid related to derivative contracts settled during 2018 was $ 1,001,893 compared to net cash received of $ 305,410 in 2017. as of september 30 , 2018 , the company 's natural gas and oil costless collar contracts and fixed price swaps have expiration dates of december 2018 through june 2020. the company utilizes derivative contracts for the purpose of protecting its return on investments . lease operating expenses ( loe ) loe increased $ 777,309 or 6 % in 2018. loe costs per mcfe of production decreased from $ 1.14 in 2017 to $ 1.10 in 2018. loe related to field operating costs increased $ 225,954 or 3 % in 2018 , compared to 2017. field operating costs were $ 0.55 per mcfe in 2018 , compared to $ 0.58 per mcfe in 2017. this decrease in rate was principally the result of significant new low-cost production coming on line in late 2017 and the company selling some high operating cost wells in late 2017 and early 2018. the increase in loe related to field operating costs was coupled with an increase in handling fees ( primarily gathering , transportation and marketing costs ) of $ 551,355 in 2018 , primarily due to increased production in 2018. on a per mcfe basis , these handling fees were $ 0.55 in 2018 as compared to $ 0.56 in 2017. natural gas sales bear the large majority of the ( 39 ) handling fees . handling fees are charged either as a percent of sales or based on production volumes . production taxes production taxes increased $ 540,651 or 35 % in 2018 , as compared to 2017. the increase in amount was primarily the result of increased oil , ngl and natural gas sales of $ 8,449,423 during 2018. production taxes as a percentage of oil , ngl and natural gas sales increased from 3.9 % in 2017 to 4.3 % in 2018. the increase in tax rate was mainly due to a change in the oklahoma production tax laws that took effect july 1 , 2018. the discounted tax rate was increased from 2.2 % to 5.2 % for the first three years of production on horizontally drilled wells . there was no change in the ultimate rate of 7.2 % after the discounted period expires . the low overall production tax rate in both years was due to a large proportion of the company 's oil and natural gas revenues coming from horizontally drilled wells , which are eligible for reduced oklahoma and arkansas production tax rates in the first few years of production . depreciation , depletion and amortization ( dd & a ) dd & a decreased $ 2,508 in 2018. dd & a per mcfe was $ 1.50 in 2018 , compared to $ 1.66 in 2017. dd & a decreased $ 1,941,354 as the result of a $ 0.16 decrease in the dd & a rate per mcfe . this was mostly offset by an increase of $ 1,938,846 due to oil , ngl and natural gas production volumes increasing 11 % collectively in 2018 , compared to 2017. the rate decrease was principally due to higher oil and ngl prices utilized in the reserve calculations during 2018 , as compared to 2017 , lengthening the economic life of wells thus resulting in higher projected remaining reserves on a significant number of wells . the company had new high-volume wells with low finding costs begin producing in the later part 2017 and early 2018 , which also contributed to the rate decrease . provision for impairment provision for impairment decreased $ 662,990 in 2018 , as compared to 2017. no impairment was recorded during 2018. during 2017 , impairment of $ 46,279 was recorded on five fields , primarily in oklahoma and texas . story_separator_special_tag in addition , the company is required to maintain certain financial ratios , a current ratio ( as defined by the bank agreement – current assets includes availability under outstanding credit facility ) of no less than 1.0 to 1.0 and a funded debt to ebitda ( trailing 12 months as defined by bank agreement – traditional ebitda with the unrealized gain or loss on derivative contracts also removed from earnings ) of no more than 4.0 to 1.0. at september 30 , 2018 , the company was in compliance with the covenants of the loan agreement and had $ 29,000,000 of availability under its outstanding credit facility . ( 48 ) the table below summarizes the company 's contractual obligations and commitments as of september 30 , 2018 : replace_table_token_18_th the company 's building lease is accounted for as an operating lease and therefore the leased asset and associated liabilities of future rent payments are not included on the company 's balance sheets . at september 30 , 2018 , the company 's derivative contracts were in a net liability position of $ 3,414,016. the ultimate settlement amounts of the derivative contracts are unknown because they are subject to continuing market risk . please read item 7a – “ quantitative and qualitative disclosures about market risk ” and note 1 to the financial statements included in item 8 – “ financial statements and supplementary data ” for additional information regarding the derivative contracts . as of september 30 , 2018 , the company 's estimate for asset retirement obligations was $ 2,809,378. asset retirement obligations represent the company 's share of the future expenditures to plug and abandon the wells in which the company owns a working interest at the end of their economic lives . these amounts were not included in the schedule above due to the uncertainty of timing of the obligations . please read note 1 to the financial statements included in item 8 – “ financial statements and supplementary data ” for additional information regarding the company 's asset retirement obligations . critical accounting policies preparation of financial statements in conformity with accounting principles generally accepted in the united states requires management to make estimates , judgments and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses , and the disclosure of contingent assets and liabilities . however , the accounting principles used by the company generally do not change the company 's reported cash flows or liquidity . existing rules must be interpreted and judgments made on how the specifics of a given rule apply to the company . the more significant reporting areas impacted by management 's judgments and estimates include : crude oil , ngl and natural gas reserve estimation ; derivative contracts ; impairment of assets ; oil , ngl and natural gas sales revenue accruals and provision for income taxes . management 's judgments and estimates in these areas are based on information available from both internal and external sources , including engineers , geologists , consultants and historical experience in similar matters . actual results could differ from the estimates as additional information becomes known . the oil , ngl and natural gas sales revenue accrual is particularly subject to estimate inaccuracies due to the company 's status as a non-operator on all of its properties . as such , production and price information obtained from well operators is ( 49 ) substantially delayed . this causes the estimation of recent production and prices used in the oil , ngl and natural gas r evenue accrual to be subject to future change . oil , ngl and natural gas reserves management considers the estimation of the company 's crude oil , ngl and natural gas reserves to be the most significant of its judgments and estimates . these estimates affect the unaudited standardized measure disclosures included in note 11 to the financial statements in item 8 – “ financial statements and supplementary data , ” as well as dd & a and impairment calculations . changes in crude oil , ngl and natural gas reserve estimates affect the company 's calculation of dd & a , asset retirement obligations and assessment of the need for asset impairments . the company 's independent consulting petroleum engineer , with assistance from company staff , prepares estimates of crude oil , ngl and natural gas reserves on an annual basis , with a semi-annual update . these estimates are based on available geologic and seismic data , reservoir pressure data , core analysis reports , well logs , analogous reservoir performance history , production data and other available sources of engineering , geological and geophysical information . between periods in which reserves would normally be calculated , the company updates the reserve calculations utilizing prices which are updated through the current period . in accordance with the sec rules , the reserve estimates were based on average individual product prices during the 12-month period prior to september 30 determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period , unless prices were defined by contractual arrangements , excluding escalations based upon future conditions . based on the company 's 2018 dd & a , a 10 % change in the dd & a rate per mcfe would result in a corresponding $ 1,839,504 annual change in dd & a expense . crude oil , ngl and natural gas prices are volatile and largely affected by worldwide production and consumption and are outside the control of management . however , projected future crude oil , ngl and natural gas pricing assumptions are used by management to prepare estimates of crude oil , ngl and natural gas reserves and future net cash flows used in asset impairment assessments and in formulating management 's overall operating decisions . successful efforts method of accounting the company has elected to utilize the successful efforts method of
| liquidity and capital resources at september 30 , 2018 , the company had positive working capital of $ 2,509,050 , as compared to positive working capital of $ 6,451,356 at september 30 , 2017. liquidity cash and cash equivalents were $ 532,502 as of september 30 , 2018 , compared to $ 557,791 at september 30 , 2017 , a decrease of $ 25,289. cash flows for the 12 months ended september 30 are summarized as follows : replace_table_token_16_th ( 44 ) operating activities : net cash provided by operating activities increased $ 6,185,702 during 2018 , as compared to 2017 , mainly the result of the following : receipts of oil , ngl and natural gas sales ( net of production taxes and gathering , transportation and marketing costs ) and other increased $ 10,734,247. decreased lease bonus receipts of $ 3,630,065. decreased income tax payments of $ 952,854. decreased net receipts on derivative contracts of $ 1,307,303. increased payments for interest expense of $ 517,583. investing activities : net cash used in investing activities decreased $ 3,278,745 during 2018 , as compared to 2017 , due to : lower drilling and completion activity during 2018 decreased capital expenditures by $ 14,217,762. higher acquisition activity increased expenditures by $ 11,327,371. higher proceeds from sale of assets of $ 361,437. financing activities : net cash used by financing activities increased $ 9,576,314 during 2018 , as compared to 2017 , the result of the following : net borrowings decreased $ 1,222,000 during 2018. net borrowings increased $ 7,722,000 during 2017. capital resources capital expenditures to drill and complete wells decreased $ 14,217,762 ( 55 % ) in 2018 , as compared to 2017. the company received 98 well proposals in fiscal 2018
| Liquidity | 5,821 |
in addition , we have continued to develop and promote cash management services including sweep accounts and remote deposit capture in order to increase the level of commercial deposit accounts . we believe that the development and promotion of these products has made us more competitive in attracting commercial deposits during recent periods . the following table sets forth the balances of our deposit accounts at the dates indicated . replace_table_token_11_th 40 the following table indicates the amount of jumbo certificates of deposit by time remaining until maturity as of september 30 , 2019. jumbo certificates of deposit require minimum deposits of $ 100,000 . ( in thousands ) amount three months or less $ 9,818 over three through six months 6,383 over six through twelve months 16,439 over twelve months 30,113 total $ 62,753 borrowings . we use borrowings from the fhlb consisting of advances and borrowings under a line of credit arrangement to supplement our supply of funds for loans and investments . we also utilize retail repurchase agreements as a source of borrowings . the following table sets forth certain information regarding the bank 's use of fhlb borrowings . replace_table_token_12_th the outstanding balance of borrowings from the fhlb increased $ 132.5 million , from $ 90.0 million at september 30 , 2018 to $ 222.5 million at september 30 , 2019. fhlb borrowings are primarily used to fund loan demand and to purchase available for sale securities . the following table sets forth certain information regarding the bank 's use of borrowings under retail repurchase agreements . replace_table_token_13_th on september 20 , 2018 , the company entered into a subordinated note purchase agreement in the principal amount of $ 20 million . the subordinated note initially bears a fixed interest rate of 6.02 % per year through september 30 , 2023 , and thereafter a floating rate , reset quarterly , equal to the three-month libor rate plus 310 basis points . all interest is payable quarterly and the subordinated note is scheduled to mature on september 30 , 2028. the subordinated note is an unsecured subordinated obligation of the company and may be repaid in whole or in part , without penalty , on or after september 30 , 2023. the subordinated note is intended to qualify as tier 2 capital for the company under regulatory guidelines . the subordinated note had a carrying value of $ 19.7 million , net of unamortized debt issuance costs of 271,000 , at september 30 , 2019 on the balance sheet of the consolidated financial statements . the bank has entered into federal funds purchased line of credit facilities with two other financial institutions that established lines of credit not to exceed the lesser of $ 20 million or 25 % of the bank 's equity capital , excluding reserves , and $ 15 million , respectively . at september 30 , 2019 , the bank had $ 4.0 million outstanding in federal funds purchased under one of the lines of credit . stockholders ' equity . stockholders ' equity increased $ 22.3 million , from $ 98.8 million at september 30 , 2018 to $ 121.1 million at september 30 , 2019. the increase is due to retained net income of $ 14.7 million during the year ended september 30 , 2019 and a $ 6.9 million increase in accumulated other comprehensive income due to an increase in the market value of available-for-sale securities . 41 results of operations for the years ended september 30 , 2019 , 2018 and 2017 story_separator_special_tag text-align : justify ; text-indent : 0.5in '' > 43 average balances and yields . the following tables present information regarding average balances of assets and liabilities , the total dollar amounts of interest income and dividends from average interest-earning assets , the total dollar amounts of interest expense on average interest-bearing liabilities , and the resulting annualized average yields and costs . the yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities , respectively , for the periods presented . nonaccrual loans are included in average balances only . loan fees are included in interest income on loans and are not material . tax exempt income on loans and investment securities for the 2019 , 2018 and 2017 periods has been adjusted to a tax equivalent basis using a federal marginal tax rate of 21.0 % , 24.5 % and 34.0 % , respectively . replace_table_token_14_th 44 rate/volume analysis . the following table sets forth the effects of changing rates and volumes on our net interest income . the rate column shows the effects attributable to changes in rate ( changes in rate multiplied by prior volume ) . the volume column shows the effects attributable to changes in volume ( changes in volume multiplied by prior rate ) . the net column represents the sum of the prior columns . changes attributable to changes in both rate and volume have been allocated proportionally based on the absolute dollar amounts of change in each . replace_table_token_15_th provision for loan losses . the provision for loan losses increased $ 110,000 , or 8.1 % , from $ 1.4 million for the year ended september 30 , 2018 to $ 1.5 million for the year ended september 30 , 2019 due primarily to an increase in total loans of $ 106.7 million . net charge-offs in 2019 were $ 746,000 compared to $ 122,000 for 2018 and nonperforming loans increased $ 907,000 to $ 5.2 million at september 30 , 2019. in 2018 , the provision for loan losses increased $ 52,000 , or 4.0 % , from $ 1.3 million for the year ended september 30 , 2017 to $ 1.4 million for the year ended september 30 , 2018 due primarily to an increase in total loans of $ 84.5 million ( excluding loans acquired in the fnbo merger ) . story_separator_special_tag in addition , we have continued to develop and promote cash management services including sweep accounts and remote deposit capture in order to increase the level of commercial deposit accounts . we believe that the development and promotion of these products has made us more competitive in attracting commercial deposits during recent periods . the following table sets forth the balances of our deposit accounts at the dates indicated . replace_table_token_11_th 40 the following table indicates the amount of jumbo certificates of deposit by time remaining until maturity as of september 30 , 2019. jumbo certificates of deposit require minimum deposits of $ 100,000 . ( in thousands ) amount three months or less $ 9,818 over three through six months 6,383 over six through twelve months 16,439 over twelve months 30,113 total $ 62,753 borrowings . we use borrowings from the fhlb consisting of advances and borrowings under a line of credit arrangement to supplement our supply of funds for loans and investments . we also utilize retail repurchase agreements as a source of borrowings . the following table sets forth certain information regarding the bank 's use of fhlb borrowings . replace_table_token_12_th the outstanding balance of borrowings from the fhlb increased $ 132.5 million , from $ 90.0 million at september 30 , 2018 to $ 222.5 million at september 30 , 2019. fhlb borrowings are primarily used to fund loan demand and to purchase available for sale securities . the following table sets forth certain information regarding the bank 's use of borrowings under retail repurchase agreements . replace_table_token_13_th on september 20 , 2018 , the company entered into a subordinated note purchase agreement in the principal amount of $ 20 million . the subordinated note initially bears a fixed interest rate of 6.02 % per year through september 30 , 2023 , and thereafter a floating rate , reset quarterly , equal to the three-month libor rate plus 310 basis points . all interest is payable quarterly and the subordinated note is scheduled to mature on september 30 , 2028. the subordinated note is an unsecured subordinated obligation of the company and may be repaid in whole or in part , without penalty , on or after september 30 , 2023. the subordinated note is intended to qualify as tier 2 capital for the company under regulatory guidelines . the subordinated note had a carrying value of $ 19.7 million , net of unamortized debt issuance costs of 271,000 , at september 30 , 2019 on the balance sheet of the consolidated financial statements . the bank has entered into federal funds purchased line of credit facilities with two other financial institutions that established lines of credit not to exceed the lesser of $ 20 million or 25 % of the bank 's equity capital , excluding reserves , and $ 15 million , respectively . at september 30 , 2019 , the bank had $ 4.0 million outstanding in federal funds purchased under one of the lines of credit . stockholders ' equity . stockholders ' equity increased $ 22.3 million , from $ 98.8 million at september 30 , 2018 to $ 121.1 million at september 30 , 2019. the increase is due to retained net income of $ 14.7 million during the year ended september 30 , 2019 and a $ 6.9 million increase in accumulated other comprehensive income due to an increase in the market value of available-for-sale securities . 41 results of operations for the years ended september 30 , 2019 , 2018 and 2017 story_separator_special_tag text-align : justify ; text-indent : 0.5in '' > 43 average balances and yields . the following tables present information regarding average balances of assets and liabilities , the total dollar amounts of interest income and dividends from average interest-earning assets , the total dollar amounts of interest expense on average interest-bearing liabilities , and the resulting annualized average yields and costs . the yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities , respectively , for the periods presented . nonaccrual loans are included in average balances only . loan fees are included in interest income on loans and are not material . tax exempt income on loans and investment securities for the 2019 , 2018 and 2017 periods has been adjusted to a tax equivalent basis using a federal marginal tax rate of 21.0 % , 24.5 % and 34.0 % , respectively . replace_table_token_14_th 44 rate/volume analysis . the following table sets forth the effects of changing rates and volumes on our net interest income . the rate column shows the effects attributable to changes in rate ( changes in rate multiplied by prior volume ) . the volume column shows the effects attributable to changes in volume ( changes in volume multiplied by prior rate ) . the net column represents the sum of the prior columns . changes attributable to changes in both rate and volume have been allocated proportionally based on the absolute dollar amounts of change in each . replace_table_token_15_th provision for loan losses . the provision for loan losses increased $ 110,000 , or 8.1 % , from $ 1.4 million for the year ended september 30 , 2018 to $ 1.5 million for the year ended september 30 , 2019 due primarily to an increase in total loans of $ 106.7 million . net charge-offs in 2019 were $ 746,000 compared to $ 122,000 for 2018 and nonperforming loans increased $ 907,000 to $ 5.2 million at september 30 , 2019. in 2018 , the provision for loan losses increased $ 52,000 , or 4.0 % , from $ 1.3 million for the year ended september 30 , 2017 to $ 1.4 million for the year ended september 30 , 2018 due primarily to an increase in total loans of $ 84.5 million ( excluding loans acquired in the fnbo merger ) .
| overview . the company reported net income of $ 16.2 million ( $ 6.82 per common share diluted ) for the year ended september 30 , 2019 , compared to net income of $ 10.9 million ( $ 4.60 per common share diluted ) for the year ended september 30 , 2018. the increase in net income was due to increases in net interest income of $ 4.3 million and noninterest income of $ 30.6 million , partially offset by an increase in noninterest expense of $ 29.4 million . net income was $ 10.9 million ( $ 4.60 per common share diluted ) for the year ended september 30 , 2018 compared to net income of $ 9.3 million ( $ 3.97 per common share diluted ) for the year ended september 30 , 2017. the increase in net income for 2018 compared to 2017 was due to increases in net interest income and noninterest income of $ 6.4 million and $ 4.7 million , respectively , partially offset by an increase in noninterest expense of $ 8.1 million . net interest income . for the year ended september 30 , 2019 , net interest income increased $ 4.3 million or 11.9 % , as compared to 2018 , primarily as the result of an increase in the average balance of interest earning assets .
| ROO | 8,209 |
the income from operations decreased in 2014 from 2013 primarily due to lower sales , the impairment charge and the 2013 income recorded from the settlement of the lawsuit against a third party . in both 2014 and 2013 , the company decreased the interest it had accrued related to its tax reporting of the unauthorized transactions by $ 73,725 and $ 145,488 , respectively . the company reversed accrued interest related to the tax returns as they were filed and based upon the expiration of the statute of limitations for certain returns . these impacts are described further in note 13 of the notes to the consolidated financial statements . the effective income tax rate in 2014 was 44.2 % which is comprised of the u.s. federal statutory rate of 34 % , the effect of state income taxes , the decrease in unrecognized tax benefits and the recognition of some federal income tax credits during the year . it is anticipated that the effective income tax rate will be approximately 37 % in 2015 . liquidity and capital resources cash flows the following table summarizes our cash flows from operating , investing and financing activities for each of the past two fiscal years : replace_table_token_5_th operating activities during 2014 , cash provided by operations stayed approximately the same as the prior year with favorable changes to operating assets and liabilities offsetting the decrease in net income . accounts receivable decreased by $ 9,024,275 as of june 30 , 2014 compared to june 30 , 2013. the proceeds of $ 8,500,000 from the lawsuit settlement , received in july 2013 , were in accounts receivable at june 30 , 2013. in addition , there was a decrease in accounts receivable from customers caused by lower sales late in fiscal year 2014 compared to the same period in fiscal year 2013. the contingent legal fees , related to the lawsuit settlement , were $ 2,120,000 and were recorded in accrued liabilities as of june 30 , 2013 . 12 investing activities cash used in investing activities was lower for 2014 as the company decreased spending on tooling and equipment compared to 2013. in 2015 , the company has budgeted $ 600,000 for tooling and leasehold improvements . the company expects to generate sufficient funds through operations to fund these expenditures . financing activities net cash used in financing activities were similar in 2014 because the company paid the same amount in dividends as it did in 2013 . at the board of directors meeting in may 2014 , the company determined that based on the financial results , the company would not declare a quarterly dividend for the quarter ending june 30 , 2014 . the company will determine whether to declare and the amount of any future dividends based upon its assessment of the company 's financial condition and liquidity , improvement in sales as a whole and in particular in the export markets , an increased generation of cash from operations , and the company 's earnings . dividends declared to stockholders decreased in 2014 but dividends paid stayed the same at $ 1,771,849 or $ 0.18 per share in 2014 . as of june 30 , 2014 , the company had no outstanding borrowings on its bank line of credit facility . on july 31 , 2014 , the company had no outstanding borrowings on its bank line of credit facility and availability of approximately $ 5,000,000 under the credit agreement as amended on july 23 , 2014. there were no purchases of common stock in 2014 or 2013 under the stock repurchase program . no stock options were exercised in 2014 or 2013 . story_separator_special_tag compensation , income taxes and other contingencies . we base our estimates on historical experience and assumptions that we believe to be reasonable under the circumstances . actual results may differ from these estimates . revenue recognition the company recognizes revenue when all of the following criteria are met : persuasive evidence of an arrangement exists ; shipment and delivery has occurred ; the seller 's price to the buyer is fixed and determinable ; and collectibility is reasonably assured . when these criteria are generally satisfied , the company recognizes revenue . the company also offers certain customers the right to return products that do not meet the standards agreed with the customer . the company continuously monitors such product returns and can not guarantee that they will continue to experience the same return rates that they have experienced in the past . any significant increase in product quality failure rates and the resulting credit returns could have a material adverse impact on the company 's operating results for the period or periods in which such returns materialize . the company provides for certain sales incentives . the company records a provision for estimated incentives based upon the incentives offered to customers on product related sales in the same period as the related revenues are recorded . the provision is recorded as a reduction of sales . the company also records a provision for estimated sales returns and allowances on product related sales in the same period as the related revenues are recorded . these estimates are based on historical sales returns , analysis of credit memo data and other known factors . if the historical data the company uses to calculate these estimates does not properly reflect future returns , adjustments may be required in future periods . accounts receivable the company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customer 's current credit worthiness , as determined by the review of the customer 's current credit information . story_separator_special_tag disclosure controls and procedures ( as defined in rules 13a-15 ( e ) and 15d-15 ( e ) ) of the securities exchange act of 1934 , as amended ( the “ exchange act ” ) are designed to ensure that ( 1 ) information required to be disclosed in reports filed or submitted under the exchange act is recorded , processed , summarized and reported within the time periods specified in sec rules and forms ; and ( 2 ) that such information is accumulated and communicated to management , including the principal executive officer and principal financial officer , to allow timely decisions regarding required disclosures . there are inherent limitations to the effectiveness of any system of disclosure controls and procedures , including the possibility of human error and the circumvention or overriding of controls and procedures . accordingly , even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives . the company 's management , including the company 's chief executive officer and chief financial officer , evaluated the effectiveness of the design and operation of the company 's disclosure controls and procedures as of june 30 , 2014 . the company 's management has concluded that the company 's disclosure controls and procedures as of june 30 , 2014 were effective . management 's annual report on internal controls over financial reporting . the company 's management , including its chief executive officer and chief financial officer , is responsible for establishing and maintaining adequate internal control over financial reporting ( as defined in exchange act rules 13a-15 ( f ) and 15d-15 ( f ) ) and designing such internal controls to provide reasonable assurances regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the united states of america . there are inherent limitations to the effectiveness of any system of internal control over financial reporting , including the possibility of human error or the circumvention or overriding of controls and procedures . accordingly , even effective internal control over financial reporting can only provide reasonable assurance of achieving its control objectives . management conducted its evaluation of the effectiveness of its internal control over financial reporting based on the framework in the “ 1992 internal control-integrated framework ” and the 2006 `` internal control over financial reporting - guidance for smaller public companies , `` both issued by the committee of sponsoring organizations of the treadway commission ( “ coso ” ) . in connection with this evaluation , there were no changes in the company 's internal control over financial reporting ( as such term is defined in rule 13a-15 ( e ) and 15d-15 ( e ) of the exchange act ) during the quarter ended june 30 , 2014 that have materially affected , or are reasonably likely to materially affect , the company 's internal control over financial reporting . based on this evaluation , management has concluded that the company 's internal control over financial reporting as of june 30 , 2014 was effective . the company plans to adopt `` the 2013 coso framework & sox compliance , `` also issued by coso , on or before the required conversion date in december 2014 . 16 part iii item 10. directors , executive officers and corporate governance . this information is incorporated by reference to the sections entitled `` information as to the nominees , `` `` executive officers , `` `` section 16 ( a ) beneficial reporting compliance , `` `` code of ethics `` and `` board committees - audit committee `` from koss corporation 's proxy statement for its 2014 annual meeting of stockholders filed with the commission under regulation 14a within 120 days of the end of the fiscal year covered by this form 10-k. the company adopted a code of ethics , which is a `` code of ethics `` as defined by applicable rules of the sec , which is applicable to its directors , officers and employees . the code of ethics is publicly available on the company 's website at www.koss.com/en/about/history . if the company makes any substantive amendments to the code of ethics or grants any waiver , including any implicit waiver , from a provision of the code to its principal executive officer , principal financial officer , principal accounting officer or controller or persons performing similar functions , the company will disclose the nature of the amendment or waiver on that website or in a report on form 8-k. item 11. executive compensation . this information is incorporated by reference to the sections entitled `` summary compensation table , `` `` outstanding equity awards at fiscal year end , `` `` director compensation , `` and `` board committees - compensation committee `` from koss corporation 's proxy statement for its 2014 annual meeting of stockholders filed with the commission under regulation 14a within 120 days of the end of the fiscal year covered by this form 10-k. item 12. security ownership of certain beneficial owners and management and related stockholder matters . this information is incorporated by reference to the sections entitled `` beneficial ownership of company securities `` and `` equity compensation plan information `` from koss corporation 's proxy statement for its 2014 annual meeting of stockholders filed with the commission under regulation 14a within 120 days of the end of the fiscal year covered by this form 10-k. item 13. certain relationships and related transactions , and director independence . this information is incorporated by reference to the sections entitled `` independence of the board , `` `` board committees `` and `` related party transactions `` from koss corporation 's proxy statement for its 2014 annual meeting of stockholders filed with the commission under regulation 14a within 120 days of the end of the fiscal year covered by this form
| as of june 30 , 2014 , the board of directors has authorized the repurchase by the company of up to $ 2,139,753 in company common stock at the discretion of the chief executive officer of the company . future stock purchases under this program are dependent on management 's assessment of value versus market price . 13 off-balance sheet arrangements the company has no off-balance sheet arrangements other than the lease for the facility in milwaukee , wisconsin . the company leases the facility from koss holdings , llc , which is wholly-owned by the company 's chairman . on may 15 , 2012 , the lease was renewed for a period of five years , ending june 30 , 2018 , and is being accounted for as an operating lease . the lease extension maintained the rent at a fixed rate of $ 380,000 per year . the company is responsible for all property maintenance , insurance , taxes and other normal expenses related to ownership . the facility is in good repair and , in the opinion of management , is suitable and adequate for the company 's business purposes . critical accounting policies our discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . we continually evaluate our estimates and judgments , including those related to doubtful accounts , product returns , excess inventories , warranties , impairment of long-lived assets , deferred
| Liquidity | 15,153 |
as of december 31 , 2020 , we had six properties under active redevelopment and others in various stages of feasibility planning for potential recapture from our net lease portfolio , including four properties for which we have signed new leases and which will be transferred to redevelopment when the appropriate entitlements , permits and approvals have been secured . asset impairment we perform an impairment analysis for the carrying amounts of our properties in accordance with gaap when indicators of impairment exist . we reduced the carrying amounts to fair value , and recorded impairment charges aggregating $ 4.3 million and $ 4.0 million for the years ended december 31 , 2020 and 2019 , respectively , where the carrying amounts of the properties exceed the estimated undiscounted cash flows expected to be received during the assumed holding period which includes the estimated sales value expected to be received at disposition . the impairment charges were attributable to the effect of adding asset retirement costs to certain properties due to changes in estimates associated with our environmental liabilities , which increased the carrying values of these properties in excess of their fair values , reductions in estimated undiscounted cash flows expected to be received during the assumed holding period for certain of our properties , and reductions in estimated sales prices from third-party offers based on signed 31 contracts , letters of intent or indicative bids for certain of our properties . the evaluation and estimates of anticipated cash flows used to conduct our impairment analysis are highly subjective and actual results could vary significantly from our estimates . for a discussion of the risks associated with asset impairments , see “ item 1a . risk factors – our assets may be subject to impairment charges . ” supplemental non-gaap measures we manage our business to enhance the value of our real estate portfolio and , as a reit , place particular emphasis on minimizing risk , to the extent feasible , and generating cash sufficient to make required distributions to stockholders of at least 90 % of our ordinary taxable income each year . in addition to measurements defined by gaap , we also focus on funds from operations ( “ ffo ” ) and adjusted funds from operations ( “ affo ” ) to measure our performance . ffo and affo are generally considered by analysts and investors to be appropriate supplemental non-gaap measures of the performance of reits . ffo and affo are not in accordance with , or a substitute for , measures prepared in accordance with gaap . in addition , ffo and affo are not based on any comprehensive set of accounting rules or principles . neither ffo nor affo represent cash generated from operating activities calculated in accordance with gaap and therefore these measures should not be considered an alternative for gaap net earnings or as a measure of liquidity . these measures should only be used to evaluate our performance in conjunction with corresponding gaap measures . ffo is defined by the national association of real estate investment trusts ( “ nareit ” ) as gaap net earnings before depreciation and amortization of real estate assets , gains or losses on dispositions of real estate , impairment charges and the cumulative effect of accounting changes . our definition of affo is defined as ffo less ( i ) certain revenue recognition adjustments ( defined below ) , ( ii ) changes in environmental estimates , ( iii ) accretion expense , ( iv ) environmental litigation accruals , ( v ) insurance reimbursements , ( vi ) legal settlements and judgments , ( vii ) acquisition costs expensed and ( viii ) other unusual items that are not reflective of our core operating performance . other reits may use definitions of ffo and or affo that are different from ours and , accordingly , may not be comparable . we believe that ffo and affo are helpful to analysts and investors in measuring our performance because both ffo and affo exclude various items included in gaap net earnings that do not relate to , or are not indicative of , our core operating performance . specifically , ffo excludes items such as depreciation and amortization of real estate assets , gains or losses on dispositions of real estate , and impairment charges . however , gaap net earnings and ffo typically include certain other items that the we exclude from affo , including the impact of revenue recognition adjustments comprised of deferred rental revenue ( straight-line rental revenue ) , the net amortization of above-market and below-market leases , adjustments recorded for the recognition of rental income from direct financing leases and the amortization of deferred lease incentives ( collectively , “ revenue recognition adjustments ” ) that do not impact our recurring cash flow and which are not indicative of our core operating performance . deferred rental revenue results primarily from fixed rental increases scheduled under certain leases with our tenants . in accordance with gaap , the aggregate minimum rent due over the current term of these leases is recognized on a straight-line basis rather than when payment is contractually due . the present value of the difference between the fair market rent and the contractual rent for in-place leases at the time properties are acquired is amortized into revenues from rental properties over the remaining lives of the in-place leases . income from direct financing leases is recognized over the lease terms using the effective interest method , which produces a constant periodic rate of return on the net investments in the leased properties . the amortization of deferred lease incentives represents our funding commitment in certain leases , which deferred expense is recognized on a straight-line basis as a reduction of rental revenue . story_separator_special_tag on december 14 , 2020 , we used a portion of the net proceeds from the series i notes , series j notes and series k notes ( each as described below ) to repay $ 75.0 million of borrowings outstanding under our restated credit agreement . senior unsecured notes on december 4 , 2020 , we entered into a fifth amended and restated note purchase and guarantee agreement ( the “ fifth amended and restated prudential agreement ” ) with prudential and certain of its affiliates amending and restating our existing fourth amended and restated note purchase agreement . pursuant to the fifth amended and restated prudential agreement , we agreed that our ( a ) 6.0 % series a guaranteed senior notes due february 25 , 2021 , in the original aggregate principal amount of $ 100.0 million ( the “ series a notes ” ) , ( b ) 5.35 % series b guaranteed senior notes due june 2 , 2023 , in the original aggregate principal amount of $ 75.0 million ( the “ series b notes ” ) , ( c ) 4.75 % series c guaranteed senior notes due february 25 , 2025 , in the aggregate principal amount of $ 50.0 million ( the “ series c notes ” ) and ( d ) 5.47 % series d guaranteed senior notes due june 21 , 2028 , in the aggregate principal amount of $ 50.0 million ( the “ series d notes ” ) and ( e ) 3.52 % series f guaranteed senior notes due september 12 , 2029 , in the aggregate principal amount of $ 50.0 million ( the “ series f notes ” ) that were outstanding under the existing fourth restated prudential note purchase agreement would continue to remain outstanding under the fifth amended and restated prudential agreement and we authorized and issued our 3.43 % series i guaranteed senior notes due november 25 , 2030 , in the aggregate principal amount of $ 100.0 million ( the “ series i notes ” and , together with the series a notes , series b notes , series c notes , series d notes and series f notes , the “ notes ” ) to prudential . on december 4 , 2020 , we completed the early redemption of our 6.0 % series a notes due february 25 , 2021 , in the original aggregate principal amount of $ 100.0 million . as a result of the early redemption , we recognized a $ 1.2 million loss on extinguishment of debt on our consolidated statement of operations for the year ended december 31 , 2020. the fifth amended and restated prudential agreement does not provide for scheduled reductions in the principal balance of the series i notes , or any of our previously issued series b notes , series c notes , series d notes , or series f notes prior to their respective maturities . on june 21 , 2018 , we entered into a note purchase and guarantee agreement ( the “ metlife note purchase agreement ” ) with metlife and certain of its affiliates . pursuant to the metlife note purchase agreement , we authorized and issued our 5.47 % series e guaranteed senior notes due june 21 , 2028 , in the aggregate principal amount of $ 50.0 million ( the “ series e notes ” ) . the metlife note purchase agreement does not provide for scheduled reductions in the principal balance of the series e notes prior to their maturity . on december 4 , 2020 , we entered into a first amendment to note purchase and guarantee agreement ( the “ first amended and restated aig agreement ” ) with american general life insurance company amending and restating our existing note purchase and guarantee agreement . pursuant to the first amended and restated aig agreement , we agreed that our 3.52 % series g guaranteed senior notes due september 12 , 2029 , in the aggregate principal amount of $ 50.0 million ( the “ series g notes ” ) that were outstanding under the existing note purchase and guarantee agreement would continue to remain outstanding under the first amended and restated aig agreement and we authorized and issued our $ 50.0 million of 3.43 % series j guaranteed senior notes due november 25 , 2030 ( the “ series j notes ” ) to aig . the first amended and restated aig agreement does not provide for scheduled reductions in the principal balance of the series j notes or any of our previously issued series g notes prior to their respective maturities . on december 4 , 2020 , we entered into a first amended and restated note purchase and guarantee agreement ( the “ first amended and restated massmutual agreement ” ) amending and restating our existing note purchase and guarantee agreement . pursuant to the first amended and restated massmutual agreement , we agreed that our 3.52 % series h guaranteed senior notes due september 12 , 2029 , in the aggregate principal amount of $ 25.0 million ( the “ series h notes ” ) that were outstanding under the existing note purchase and guarantee agreement would continue to remain outstanding under the first amended and restated massmutual agreement and we authorized and issued our $ 25.0 million of 3.43 % series k guaranteed senior notes due november 25 , 2030 ( the “ series k notes ” ) to massmutual . the first amended and restated massmutual agreement does not provide for scheduled reductions in the principal balance of the series k or any of our previously issued series h notes prior to their respective maturities . we used the net proceeds from the issuance of the series i notes , series j notes and series k notes to prepay in full our series a notes due february 25 , 2021 , and repay $ 75.0 million
| because we generally lease our properties on a triple-net basis , we have not historically incurred significant capital expenditures other than those related to investments in real estate and our redevelopment activities . net cash flow used in investing activities increased by $ 44.8 million for the year ended december 31 , 2020 , to a use of $ 127.4 million , as compared to a use of $ 82.6 million for the year ended december 31 , 2019. the increase in net cash flow from investing activities for the year ended december 31 , 2020 , was primarily due to an increase of $ 62.8 million of property acquisitions a $ 2.4 million increase in issuance of notes receivable and a $ 1.9 million increase in deposits for property acquisitions , partially offset by an increase of $ 18.6 million in collections of notes and mortgages receivable and an increase of $ 3.8 million in proceeds from dispositions of real estate . financing activities net cash flow provided by financing activities increased by $ 97.3 million for the year ended december 31 , 2020 , to $ 78.0 million , as compared to a use of $ 19.3 million for the year ended december 31 , 2019. the increase in net cash flow from financing activities for the year ended december 31 , 2020 , was primarily due to an increase in net borrowings of $ 54.0 million and an increase in net proceeds from issuances of common stock of $ 49.0 million , partially offset by an increase in dividends paid of $ 5.7 million . credit agreement on june 2 , 2015 , we entered into a $ 225.0 million senior unsecured credit agreement ( the “ credit agreement ” ) with a group of banks led by bank of america , n.a .
| Liquidity | 5,637 |
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This dataset is designed for text summarization tasks, specifically focusing on financial and liquidity data. It combines structured text from different segments of financial reports, allowing for both automatic and human evaluation in text summarization tasks.
Dataset Details
This dataset was built using the dataset presented in the research paper "Long Text and Multi-Table Summarization: Dataset and Method". The dataset consists of financial documents with detailed reports and their corresponding summaries, which aim to condense lengthy documents into shorter, coherent summaries.
Paper Reference: Long Text and Multi-Table Summarization: Dataset and Method
Dataset Description
Dataset Structure
The dataset is divided into:
- Train: The primary dataset for model training.
- Validation: Used for validation during training.
- Test: Used for final evaluation of the summarization models.
Each entry consists of:
- text: The full input document, which is around 2500 words in length.
- summary: A condensed version of the document, around 350 words long.
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Models trained or fine-tuned on ARSynopsis/Combined_ROO_Liquidity_Dataset