Trucept Inc. (OTCBB: TREP), a professional employer organization, announced revenue fell 18.5% for the full year 2016 to $6.7 million because of the loss of a client, although net income rose. The company also announced it reduced its total liabilities by $6 million during the year.

In its annual report, Trucept reported it had a working capital deficit of $28.4 million and an accumulated deficit of $27.8 million.

The firm reported it owed $26.1 million in delinquent payroll taxes, including penalties as of Dec. 31. “These amounts are due to the US Treasury and represent collection of employment taxes from its PEO employees,” according to the company’s annual report. “The US Treasury and Internal Revenue Service will have a priority interest in all assets of the company.”

Net income for 2016 rose to $3.8 million from $603,051 in the previous year.

The annual report lists the company’s principal place of office as Irvine, Calif.