we will need to overcome the developmental challenges to stack these layers and implement the appropriate cell design for our solid-state battery cell . continued improvement in the solid-state separator . we are working to improve the reliability and performance of our solid-state separator , including decreasing the thickness . integration of advanced cathode materials . we benefit from industry cathode chemistry improvements and or cost reduction . our solid-state separator platform is being designed to enable some of the most promising next-generation cathode technologies , including high voltage or high capacity cathode active materials . our team of over 275 scientists , engineers , technicians , and other staff is highly motivated and committed to solving these challenges ahead . however , any delays in the completion of these tasks will require additional cash use and delay market entry . as we grow our team , size of engineering pilot line , and materials consumption , the rate of cash utilization as a function of time will also increase significantly . process development our architecture depends on our proprietary solid-state ceramic separator which we will manufacture ourselves . though our separator 's design is unique , its manufacturing relies on well-established , high-volume production processes currently deployed globally in other industries at large scale . the solid-state separator is being designed to enable our ‘ anode-free ' architecture . as manufactured , the cell has no anode ; the lithium-metal anode is formed during the first charge of the cell ; 100 % of the lithium that forms the anode comes from the cathode material we purchase . eliminating the anode bill of materials and associated manufacturing costs found in conventional lithium-ion cells could result in a meaningful cost of goods sold advantage for us . in addition , our solid-state battery cell is being designed to reduce the time and capital-intensity of the formation process step as compared to conventional lithium-ion manufacturing . we are focused on both the continued expansion of the throughput and capability of our san jose engineering line and qs-0 as well as the planning and execution of our initial pilot facility for our first commercial manufacturing facility . continued expansion of the throughput and capability of our san jose engineering line and qs-0 serves two purposes . first , the engineering line and qs-0 provides a sufficient quantity of solid-state separators and cells for internal development and for customer sampling . and second , our san jose engineering line provides the basis for continued manufacturing process development and helps inform tool selection and specifications for equipment for our pilot facility . delays in the successful buildout of our san jose engineering line may impact both our development and the pilot facility timelines . capturing our forecasted cost advantage at scale as compared to conventional lithium-ion cells will require our team to continue process development to achieve rates of throughput , use of electricity and consumables , yield , and rate of automation demonstrated of mature battery , battery material , and ceramic manufacturing processes . notably , heat treatment of ceramic parts is a process step in ceramic manufacturing critical to both quality and product cost . we believe achieving required process cost advances is possible ; our processes are designed around tools which are already used at scale in the battery or ceramics industries . in addition , we are investigating alternative processing methods that may further increase the capital efficiency of the process . however , delay or failure on these fronts , and in particular with respect to ceramic heat treatment , would result in a higher cost of goods sold , which may limit our ability to profitably sell our batteries . commercialization and market focus as noted above , we will continue developing our battery technology with the goal of enabling commercial production in 2024 ; we have validated the performance capabilities of our solid-state separator and battery technology in single-layer solid-state cells at the commercially required size ( 70x85mm ) and four-layer solid-state battery cells at a smaller size ( 30x30mm ) ; and are now working to develop multi-layer cells at the commercially required size , to continue improving yield and performance and to optimize all components of the cell . we will continue to work to further develop and validate the volume manufacturing processes to enable high volume manufacturing and minimize manufacturing costs . we will continue to work on increasing the yield of our separators to reduce scrappage and to increase utilization of manufacturing tools . the funds available to us will enable us to expand and accelerate research and development activities and undertake additional initiatives . finally , we will continue to use and expand on our engineering line in san jose , california to prepare for high volume manufacturing and plan our first commercial production pilot facility through our joint venture partnership with volkswagen , including the recently announced planned expansion into our qs-0 facility . 33 the joint venture partnership with volkswagen is described in the section titled “ business ” and the sub-section titled “ joint venture relationship ” appearing elsewhere in this report . the pilot facility to be built and run by qsv , the joint venture between us and volkswagen and the 20gwh expansion of the pilot facility ( the “ 20gwh expansion facility ” ) would represent a small fraction of volkswagen 's demand for batteries and implies vehicle volumes under 2 % of volkswagen 's total production in 2019 , assuming a 100kwh pack size . our goal is to significantly expand the production capacity of the joint venture , in partnership with volkswagen , to meet more of their projected demand . story_separator_special_tag our cash equivalents are invested in u.s. treasury money market funds and short-term u.s. treasury notes and bonds . our marketable securities are primarily invested in u.s. treasury notes and bonds . we have yet to generate any revenue from our business operations . to date , we have funded our capital expenditure and working capital requirements through equity as further discussed below . our ability to successfully develop our products , commence commercial operations and expand our business will depend on many factors , including our working capital needs , the availability of equity or debt financing and , over time , our ability to generate cash flows from operations . prior to the business combination , we financed our operations primarily from the sales of redeemable convertible preferred stock . in connection with the business combination , we received net cash proceeds of approximately $ 676.9 million . additionally , after the business combination , we received proceeds from the series f preferred stock agreements described above under “ other expense ” . we believe that our cash on hand will be sufficient to meet our working capital and capital expenditure requirements for a period of at least twelve months from the date of this filing , and also sufficient to fund our operations until we initially commence production of the pilot line solid-state battery through the first commercial sales , assuming quantumscape is able to do so as currently contemplated . we may , however , need additional cash resources due to changed business conditions or other developments , including unanticipated delays in negotiations with oems and tier-one automotive suppliers or other suppliers , supply chain challenges , disruptions due to the covid-19 pandemic , competitive pressures , and regulatory developments , among other developments . to the extent that our current resources are insufficient to satisfy our cash requirements , we may need to seek additional equity or debt financing . if the financing is not available , or if the terms of financing are less desirable than we expect , we may be forced to decrease our level of investment in product development or scale back our operations , which could have an adverse impact on our business and financial prospects . 36 story_separator_special_tag forfeitures occur . we determine the fair value of stock options using the black-scholes option pricing model , which is impacted by the following assumptions : expected term — we use the simplified method when calculating the expected term due to insufficient historical exercise data . expected volatility —given the limited market trading history of our common stock , volatility is based on a benchmark of comparable companies within the automotive and energy storage industries . expected dividend yield —we have never paid any cash dividends on common stock and do not anticipate doing so in the foreseeable future . risk-free interest rate —the interest rates used are based on the implied yield available on u.s. treasury zero-coupon issues with an equivalent remaining term equal to the expected life of the award . common stock valuations prior to the business combination , the grant date fair value of our common stock was typically determined by our board of directors with the assistance of management and a third-party valuation specialist . given its pre-revenue stage of development , our management believed that an option pricing model ( “ opm ” ) was the most appropriate method for allocating enterprise value to determine the estimated fair value of common stock prior to the business combination . application of the opm involves the use of estimates , judgment , and assumptions that are highly complex and subjective , such as those regarding our expected future revenue , expenses , and cash flows , discount rates , market multiples , the selection of comparable companies , and the probability of future events . the deemed fair value for common stock for options and restricted stock units granted in august 2020 and september 2020 ( prior to the announcement of the business combination ) were based on the accreted estimated business combination price per the business combination agreement . there were no grants of options to purchase common stock or restricted stock units subsequent to september 2 , 2020 for us . subsequent to the business combination , the board determines the fair value of the common stock based on the closing market price on or around the date of grant . redeemable convertible preferred stock warrant liabilities prior to the business combination , warrants to purchase shares of redeemable convertible preferred stock were classified as liabilities on the consolidated balance sheets at fair value upon issuance because the underlying shares of redeemable convertible preferred stock were redeemable outside of our control . the initial liability recorded was adjusted for changes in the fair value at each reporting date and recorded as interest expense in the accompanying consolidated statements of operations and comprehensive loss . in connection with the business combination , the warrant liabilities were adjusted based on the fair value of the underlying common stock . the warrant liabilities became classified as equity as the shares issuable upon exercise of the warrants are shares of the class a common stock , and the fair value of the warrants were reclassified to additional paid-in capital , with no further remeasurement required . convertible preferred stock tranche liabilities prior to the business combination , the obligation to issue , and the company 's investors ' right to purchase , shares of redeemable convertible series f preferred stock represented a freestanding financial instrument classified as liabilities ( the “ tranche liabilities ” ) . the tranche liabilities were initially recorded at fair value and remeasured at each reporting period with gains and losses arising from subsequent changes in its fair value recognized in other expense , net , in the consolidated statements of operations and comprehensive loss . concurrent with the business combination , the entire commitment

cash flows the following table provides a summary of our cash flow data for the periods indicated ( amounts in thousands ) : replace_table_token_2_th cash used in operating activities our cash flows used in operating activities to date have been primarily comprised of payroll , material and supplies , facilities expense , and professional service related to research and development and general and administrative activities . as we continue to ramp up hiring for technical headcounts to accelerate our engineering efforts ahead of starting the pilot line operations , we expect our cash used in operating activities to increase significantly before we start to generate any material cash flows from our business . the most significant component of our cash used during the year ended december 31 , 2020 was a net loss of $ 1,099.9 million , which included non-cash expenses of $ 20.8 million for the change in the fair value of legacy quantumscape convertible preferred stock warrants , and $ 999.9 million for the issuance and change in the fair value of the legacy quantumscape series f preferred stock tranche liabilities , $ 17.0 million related to stock based compensation and $ 7.5 million related to depreciation and amortization . the most significant component of cash used during the year ended december 31 , 2019 was a net loss of $ 51.3 million , which included non-cash expenses of $ 5.6 million related to depreciation and amortization and $ 6.8 million related to stock-based compensation . cash flows from investing activities our cash flows from investing activities , to date , have been comprised of purchases of property and equipment and purchases and maturities of our marketable securities .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flows the following table provides a summary of our cash flow data for the periods indicated ( amounts in thousands ) : replace_table_token_2_th cash used in operating activities our cash flows used in operating activities to date have been primarily comprised of payroll , material and supplies , facilities expense , and professional service related to research and development and general and administrative activities . as we continue to ramp up hiring for technical headcounts to accelerate our engineering efforts ahead of starting the pilot line operations , we expect our cash used in operating activities to increase significantly before we start to generate any material cash flows from our business . the most significant component of our cash used during the year ended december 31 , 2020 was a net loss of $ 1,099.9 million , which included non-cash expenses of $ 20.8 million for the change in the fair value of legacy quantumscape convertible preferred stock warrants , and $ 999.9 million for the issuance and change in the fair value of the legacy quantumscape series f preferred stock tranche liabilities , $ 17.0 million related to stock based compensation and $ 7.5 million related to depreciation and amortization . the most significant component of cash used during the year ended december 31 , 2019 was a net loss of $ 51.3 million , which included non-cash expenses of $ 5.6 million related to depreciation and amortization and $ 6.8 million related to stock-based compensation . cash flows from investing activities our cash flows from investing activities , to date , have been comprised of purchases of property and equipment and purchases and maturities of our marketable securities .
```    
 Suspicious Activity Report : we will need to overcome the developmental challenges to stack these layers and implement the appropriate cell design for our solid-state battery cell . continued improvement in the solid-state separator . we are working to improve the reliability and performance of our solid-state separator , including decreasing the thickness . integration of advanced cathode materials . we benefit from industry cathode chemistry improvements and or cost reduction . our solid-state separator platform is being designed to enable some of the most promising next-generation cathode technologies , including high voltage or high capacity cathode active materials . our team of over 275 scientists , engineers , technicians , and other staff is highly motivated and committed to solving these challenges ahead . however , any delays in the completion of these tasks will require additional cash use and delay market entry . as we grow our team , size of engineering pilot line , and materials consumption , the rate of cash utilization as a function of time will also increase significantly . process development our architecture depends on our proprietary solid-state ceramic separator which we will manufacture ourselves . though our separator 's design is unique , its manufacturing relies on well-established , high-volume production processes currently deployed globally in other industries at large scale . the solid-state separator is being designed to enable our ‘ anode-free ' architecture . as manufactured , the cell has no anode ; the lithium-metal anode is formed during the first charge of the cell ; 100 % of the lithium that forms the anode comes from the cathode material we purchase . eliminating the anode bill of materials and associated manufacturing costs found in conventional lithium-ion cells could result in a meaningful cost of goods sold advantage for us . in addition , our solid-state battery cell is being designed to reduce the time and capital-intensity of the formation process step as compared to conventional lithium-ion manufacturing . we are focused on both the continued expansion of the throughput and capability of our san jose engineering line and qs-0 as well as the planning and execution of our initial pilot facility for our first commercial manufacturing facility . continued expansion of the throughput and capability of our san jose engineering line and qs-0 serves two purposes . first , the engineering line and qs-0 provides a sufficient quantity of solid-state separators and cells for internal development and for customer sampling . and second , our san jose engineering line provides the basis for continued manufacturing process development and helps inform tool selection and specifications for equipment for our pilot facility . delays in the successful buildout of our san jose engineering line may impact both our development and the pilot facility timelines . capturing our forecasted cost advantage at scale as compared to conventional lithium-ion cells will require our team to continue process development to achieve rates of throughput , use of electricity and consumables , yield , and rate of automation demonstrated of mature battery , battery material , and ceramic manufacturing processes . notably , heat treatment of ceramic parts is a process step in ceramic manufacturing critical to both quality and product cost . we believe achieving required process cost advances is possible ; our processes are designed around tools which are already used at scale in the battery or ceramics industries . in addition , we are investigating alternative processing methods that may further increase the capital efficiency of the process . however , delay or failure on these fronts , and in particular with respect to ceramic heat treatment , would result in a higher cost of goods sold , which may limit our ability to profitably sell our batteries . commercialization and market focus as noted above , we will continue developing our battery technology with the goal of enabling commercial production in 2024 ; we have validated the performance capabilities of our solid-state separator and battery technology in single-layer solid-state cells at the commercially required size ( 70x85mm ) and four-layer solid-state battery cells at a smaller size ( 30x30mm ) ; and are now working to develop multi-layer cells at the commercially required size , to continue improving yield and performance and to optimize all components of the cell . we will continue to work to further develop and validate the volume manufacturing processes to enable high volume manufacturing and minimize manufacturing costs . we will continue to work on increasing the yield of our separators to reduce scrappage and to increase utilization of manufacturing tools . the funds available to us will enable us to expand and accelerate research and development activities and undertake additional initiatives . finally , we will continue to use and expand on our engineering line in san jose , california to prepare for high volume manufacturing and plan our first commercial production pilot facility through our joint venture partnership with volkswagen , including the recently announced planned expansion into our qs-0 facility . 33 the joint venture partnership with volkswagen is described in the section titled “ business ” and the sub-section titled “ joint venture relationship ” appearing elsewhere in this report . the pilot facility to be built and run by qsv , the joint venture between us and volkswagen and the 20gwh expansion of the pilot facility ( the “ 20gwh expansion facility ” ) would represent a small fraction of volkswagen 's demand for batteries and implies vehicle volumes under 2 % of volkswagen 's total production in 2019 , assuming a 100kwh pack size . our goal is to significantly expand the production capacity of the joint venture , in partnership with volkswagen , to meet more of their projected demand . story_separator_special_tag our cash equivalents are invested in u.s. treasury money market funds and short-term u.s. treasury notes and bonds . our marketable securities are primarily invested in u.s. treasury notes and bonds . we have yet to generate any revenue from our business operations . to date , we have funded our capital expenditure and working capital requirements through equity as further discussed below . our ability to successfully develop our products , commence commercial operations and expand our business will depend on many factors , including our working capital needs , the availability of equity or debt financing and , over time , our ability to generate cash flows from operations . prior to the business combination , we financed our operations primarily from the sales of redeemable convertible preferred stock . in connection with the business combination , we received net cash proceeds of approximately $ 676.9 million . additionally , after the business combination , we received proceeds from the series f preferred stock agreements described above under “ other expense ” . we believe that our cash on hand will be sufficient to meet our working capital and capital expenditure requirements for a period of at least twelve months from the date of this filing , and also sufficient to fund our operations until we initially commence production of the pilot line solid-state battery through the first commercial sales , assuming quantumscape is able to do so as currently contemplated . we may , however , need additional cash resources due to changed business conditions or other developments , including unanticipated delays in negotiations with oems and tier-one automotive suppliers or other suppliers , supply chain challenges , disruptions due to the covid-19 pandemic , competitive pressures , and regulatory developments , among other developments . to the extent that our current resources are insufficient to satisfy our cash requirements , we may need to seek additional equity or debt financing . if the financing is not available , or if the terms of financing are less desirable than we expect , we may be forced to decrease our level of investment in product development or scale back our operations , which could have an adverse impact on our business and financial prospects . 36 story_separator_special_tag forfeitures occur . we determine the fair value of stock options using the black-scholes option pricing model , which is impacted by the following assumptions : expected term — we use the simplified method when calculating the expected term due to insufficient historical exercise data . expected volatility —given the limited market trading history of our common stock , volatility is based on a benchmark of comparable companies within the automotive and energy storage industries . expected dividend yield —we have never paid any cash dividends on common stock and do not anticipate doing so in the foreseeable future . risk-free interest rate —the interest rates used are based on the implied yield available on u.s. treasury zero-coupon issues with an equivalent remaining term equal to the expected life of the award . common stock valuations prior to the business combination , the grant date fair value of our common stock was typically determined by our board of directors with the assistance of management and a third-party valuation specialist . given its pre-revenue stage of development , our management believed that an option pricing model ( “ opm ” ) was the most appropriate method for allocating enterprise value to determine the estimated fair value of common stock prior to the business combination . application of the opm involves the use of estimates , judgment , and assumptions that are highly complex and subjective , such as those regarding our expected future revenue , expenses , and cash flows , discount rates , market multiples , the selection of comparable companies , and the probability of future events . the deemed fair value for common stock for options and restricted stock units granted in august 2020 and september 2020 ( prior to the announcement of the business combination ) were based on the accreted estimated business combination price per the business combination agreement . there were no grants of options to purchase common stock or restricted stock units subsequent to september 2 , 2020 for us . subsequent to the business combination , the board determines the fair value of the common stock based on the closing market price on or around the date of grant . redeemable convertible preferred stock warrant liabilities prior to the business combination , warrants to purchase shares of redeemable convertible preferred stock were classified as liabilities on the consolidated balance sheets at fair value upon issuance because the underlying shares of redeemable convertible preferred stock were redeemable outside of our control . the initial liability recorded was adjusted for changes in the fair value at each reporting date and recorded as interest expense in the accompanying consolidated statements of operations and comprehensive loss . in connection with the business combination , the warrant liabilities were adjusted based on the fair value of the underlying common stock . the warrant liabilities became classified as equity as the shares issuable upon exercise of the warrants are shares of the class a common stock , and the fair value of the warrants were reclassified to additional paid-in capital , with no further remeasurement required . convertible preferred stock tranche liabilities prior to the business combination , the obligation to issue , and the company 's investors ' right to purchase , shares of redeemable convertible series f preferred stock represented a freestanding financial instrument classified as liabilities ( the “ tranche liabilities ” ) . the tranche liabilities were initially recorded at fair value and remeasured at each reporting period with gains and losses arising from subsequent changes in its fair value recognized in other expense , net , in the consolidated statements of operations and comprehensive loss . concurrent with the business combination , the entire commitment

