we record customer rebates and discounts as a component of net sales and record vendor rebates and discounts as a component of cost of sales . ​ selling , general and administrative expenses are comprised mainly of employee salaries , commissions and other employee related expenses , facility costs , costs to maintain our it infrastructure , public company compliance costs and professional fees . we monitor our level of accounts payable , inventory turnover and accounts receivable turnover which are measures of how efficiently we utilize capital in our business . ​ the company 's sales , gross profit and results of operations have fluctuated and are expected to continue to fluctuate on a quarterly basis as a result of a number of factors , including but not limited to : the condition of the software industry in general , shifts in demand for software products , pricing , industry shipments of new software products or upgrades , fluctuations in merchandise returns , adverse weather conditions that affect response , distribution or shipping , shifts in the timing of holidays and changes in the company 's product offerings . the company 's operating expenditures are based on sales forecasts . if sales do not meet expectations in any given quarter , operating results may be materially adversely affected . ​ dividend policy and share repurchase program . historically we have sought to return value to investors through the payment of quarterly dividends and share repurchases . total dividends paid and the dollar value of shares repurchased were $ 3.0 million and $ 3.7 million for the year ended december 31 , 2020 , respectively , and $ 3.1 and $ 0.1 million for the year ended december 31 , 2019 , respectively . the payment of future dividends is at the discretion of our board of directors and dependent on results of operations , projected capital requirements and other factors the board of directors may find relevant . ​ stock volatility . the technology , distribution and services sectors of the united states stock markets is subject to substantial volatility . numerous conditions which impact these sectors or the stock market in general or the company in particular , whether or not such events relate to or reflect upon the company 's operating performance , could adversely affect the market price of the company 's common stock . furthermore , fluctuations in the company 's operating results , announcements regarding litigation , the loss of a significant vendor partner or customer , increased competition , reduced vendor incentives and trade credit , higher operating expenses , and other developments , could have a significant impact on the market price of our common stock . 19 ​ financial overview ​ net sales increased 21 % , or $ 42.8 million , to $ 251.6 million for the year ended december 31 , 2020 , compared to $ 208.8 million for the same period in 2019. gross profit increased 10 % , or $ 3.0 million , to $ 33.0 million for the year ended december 31 , 2020 , compared to $ 30.0 million for the same period in 2019. selling , general and administrative ( “ sg & a ” ) expenses increased 15 % , or $ 3.0 million , to $ 23.9 million for the year ended december 31 , 2020 , compared to $ 20.9 million for the same period in 2019. legal and financial advisory expenses , net - unsolicited bid and related matters were $ 1.6 million for the year ended december 31 , 2020 compared to no expense for the same period in 2019. acquisition related costs were $ 1.5 million for the year ended december 31 , 2020 compared to no expense for the same period in 2019. amortization and depreciation expense increased $ 0.2 million to $ 0.7 million for the year ended december 31 , 2020 compared to $ 0.5 million for the same period in the prior year . net income was $ 4.5 million for the year ended december 31 , 2020 compared to $ 6.8 million for the same period in 2019. weighted average diluted shares outstanding decreased by 3 % from the prior year . income per diluted share was $ 1.01 for the year ended december 31 , 2020 compared to $ 1.51 for the same period in 2019 . ​ critical accounting policies and estimates ​ management 's discussion and analysis of the company 's financial condition and results of operations are based upon the company 's consolidated financial statements that have been prepared in accordance with generally accepted accounting principles in the united states of america ( “ us gaap ” ) . the preparation of these financial statements requires the company to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . ​ on an on-going basis , the company evaluates its estimates , including those related to product returns , bad debts , inventories , investments , intangible assets , income taxes , stock-based compensation , contingencies and litigation . ​ the company bases its estimates on historical experience and on various other assumptions 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 . actual results may differ from these estimates . ​ the company believes the following critical accounting policies used in the preparation of its consolidated financial statements affect its more significant judgments and estimates . ​ revenue ​ the company utilizes judgment regarding performance obligations inherent in the products for services it sells including , whether ongoing maintenance obligations performed by third party vendors are distinct from the related software licenses , and allocation of sales prices among distinct performance obligations . story_separator_special_tag one major customer accounted for 24 % and the other for 14 % , of our total net sales during the year ended december 31 , 2020. these same customers accounted for 19 % and 9 % , of total net accounts receivable as of december 31 , 2020 . ​ gross profit ​ gross profit for the year ended december 31 , 2020 increased 10 % , or $ 3.0 million , to $ 33.0 million compared to $ 30.0 million for the same period in 2019. distribution segment gross profit for the year ended december 31 , 2020 increased 9 % , or $ 2.3 million , to $ 29.1 million compared to $ 26.8 million for the same period in 2019 due to higher net sales discussed above , which were partially offset by the impact of lower gross margin as a percentage of net sales . the decline in gross margin as a percentage of net sales was partially attributable to early pay discount programs implemented in 2020 , resulting in lower accounts receivable and increased cash and liquidity ( see liquidity and capital resources ) . solutions segment gross profit for the year ended december 31 , 2020 increased 22 % , or $ 0.7 million , to $ 3.9 million compared to $ 3.2 million for the same period in 2019 due to the increased level of net sales discussed above and a higher 25 gross margin as a percentage of net sales resulting from the inclusion of the cdf business . cdf solutions sales gross profit as a percentage of net sales is generally higher than our historical average . ​ customer rebates and discounts for the year ended december 31 , 2020 were $ 6.3 million compared to $ 3.8 million for the same period in the prior year . this increase is attributable to a change in payment terms with one of our larger customers during the second quarter of 2020 and timing of payments from other larger customers . customer rebates and discounts vary based on terms of rebate and early pay discount programs offered to customers and timing of payments ultimately received from our customers . ​ vendor rebates and discounts for the year ended december 31 , 2020 were $ 3.9 million compared to $ 3.3 million for the same period in 2019. vendor rebates are dependent on reaching certain targets set by our vendors . the company monitors vendor rebate levels , competitive pricing , and gross profit margins carefully . we anticipate that price competition in our market will continue in both of our business segments . ​ selling , general and administrative expenses ​ sg & a expenses for the year ended december 31 , 2020 increased 15 % , or $ 3.0 million , to $ 23.9 million , compared to $ 20.9 million for the same period in 2019 primarily due to expenses from interwork and cdf for the period from acquisition to december 31 , 2020. sales related salaries and commissions , higher stock compensation expense and higher professional fees related to our obligations as a public company also increased during the period . sg & a expenses were 9.5 % of net sales for the year ended december 31 , 2020 , compared to 10.0 % for the same period in 2019 . ​ the company expects that its sg & a expenses , as a percentage of net sales , may vary depending on changes in sales volume , as well as the levels of continuing investments in key growth initiatives . we plan to continue to expand our investment in information technology and sales marketing to support the growth of our business . ​ legal and financial advisory expenses , net – unsolicited bid and related matters ​ legal and financial advisory expenses , net – unsolicited bid and related matters for year ended december 31 , 2020 were $ 1.6 million compared to no expense for the same period in the prior year . these expenses relate to the costs incurred in conjunction with the unsolicited bid and shareholder demand discussed below . ​ acquisition related costs ​ acquisition related costs for the year ended december 31 , 2020 were $ 1.5 million compared to no expense for the same period in the prior year . these expenses relate to costs incurred in conjunction with the acquisition of interwork and cdf . ​ foreign currency transaction gain ​ foreign currency transaction gain for the year ended december 31 , 2020 was $ 0.8 million compared to $ 0.1 million in for the same period in 2019. these expenses primarily relate to the change in the value of accounts payable and other monetary assets and liabilities denominated in currencies other than their functional currency between the date of origination and settlement . ​ income taxes ​ for the year ended december 31 , 2020 , the company recorded a provision for income taxes of $ 1.7 million , or 28.1 % of income before taxes , compared to $ 2.3 million , or 25.0 % of income before taxes for the same period in 2019. the company 's effective tax rate for the year ended december 31 , 2020 was impacted by limitations on the deductibility of certain facilitative acquisition related costs . ​ 26 unsolicited bid and shareholder demand ​ on july 15 , 2019 and august 23 , 2019 , the company received letters from shepherd kaplan krochuk , llc ( “ skk ” ) and north & webster ssg , llc ( “ n & w ” ) announcing an unsolicited bid to acquire the company . the proposal was subject to a number of contingencies , including the need for skk and n & w to secure financing to complete a transaction . ​ on november 27 , 2019 , skk , n & w , and messrs. shepherd , kaplan , krochuk and kidston

liquidity and capital resources ​ our cash and cash equivalents increased by $ 14.3 million to $ 29.3 million at december 31 , 2020 from $ 15.0 million at december 31 , 2019. the increase in cash and cash equivalents was primarily the result of $ 38.0 million of cash and cash equivalents provided by operating activities resulting from a change in payment terms with one of our customers , offset by $ 16.8 million of cash for acquisitions , $ 3.7 million of cash used to purchase treasury stock and $ 3.0 million of cash used for dividends . ​ net cash provided by operating activities for the year ended december 31 , 2020 was $ 38.0 million , comprised of net income adjusted for non-cash items of $ 6.7 million and changes in operating assets and liabilities of $ 31.3 million . during the second quarter of 2020 , we implemented a change in the payment terms with one of our large customers . the impact of this change in payment terms resulted in a reduction of our accounts receivable and corresponding increase in cash of approximately $ 30 million from the date the program was implemented . this change in terms also had the impact of reducing our net sales and gross profit by approximately $ 1.1 million for the year ended december 31 , 2020 , however , we believe the additional liquidity will improve our return on equity and provide us greater flexibility in pursuing our strategic objectives . ​ net cash and cash equivalents used in investing activities during the year ended december 31 , 2020 primarily consisted of payments for acquisitions . on april 30 , 2020 , the company completed the purchase of interwork us and interwork canada for an aggregate purchase price of $ 5 million canadian dollar ( equivalent to $ 3.6 million usd ) , subject to certain working capital adjustments , paid at closing plus a potential post-closing $ 1.1 million canadian dollar ( equivalent to $ 0.8 million usd ) earn-out .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources ​ our cash and cash equivalents increased by $ 14.3 million to $ 29.3 million at december 31 , 2020 from $ 15.0 million at december 31 , 2019. the increase in cash and cash equivalents was primarily the result of $ 38.0 million of cash and cash equivalents provided by operating activities resulting from a change in payment terms with one of our customers , offset by $ 16.8 million of cash for acquisitions , $ 3.7 million of cash used to purchase treasury stock and $ 3.0 million of cash used for dividends . ​ net cash provided by operating activities for the year ended december 31 , 2020 was $ 38.0 million , comprised of net income adjusted for non-cash items of $ 6.7 million and changes in operating assets and liabilities of $ 31.3 million . during the second quarter of 2020 , we implemented a change in the payment terms with one of our large customers . the impact of this change in payment terms resulted in a reduction of our accounts receivable and corresponding increase in cash of approximately $ 30 million from the date the program was implemented . this change in terms also had the impact of reducing our net sales and gross profit by approximately $ 1.1 million for the year ended december 31 , 2020 , however , we believe the additional liquidity will improve our return on equity and provide us greater flexibility in pursuing our strategic objectives . ​ net cash and cash equivalents used in investing activities during the year ended december 31 , 2020 primarily consisted of payments for acquisitions . on april 30 , 2020 , the company completed the purchase of interwork us and interwork canada for an aggregate purchase price of $ 5 million canadian dollar ( equivalent to $ 3.6 million usd ) , subject to certain working capital adjustments , paid at closing plus a potential post-closing $ 1.1 million canadian dollar ( equivalent to $ 0.8 million usd ) earn-out .
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 Suspicious Activity Report : we record customer rebates and discounts as a component of net sales and record vendor rebates and discounts as a component of cost of sales . ​ selling , general and administrative expenses are comprised mainly of employee salaries , commissions and other employee related expenses , facility costs , costs to maintain our it infrastructure , public company compliance costs and professional fees . we monitor our level of accounts payable , inventory turnover and accounts receivable turnover which are measures of how efficiently we utilize capital in our business . ​ the company 's sales , gross profit and results of operations have fluctuated and are expected to continue to fluctuate on a quarterly basis as a result of a number of factors , including but not limited to : the condition of the software industry in general , shifts in demand for software products , pricing , industry shipments of new software products or upgrades , fluctuations in merchandise returns , adverse weather conditions that affect response , distribution or shipping , shifts in the timing of holidays and changes in the company 's product offerings . the company 's operating expenditures are based on sales forecasts . if sales do not meet expectations in any given quarter , operating results may be materially adversely affected . ​ dividend policy and share repurchase program . historically we have sought to return value to investors through the payment of quarterly dividends and share repurchases . total dividends paid and the dollar value of shares repurchased were $ 3.0 million and $ 3.7 million for the year ended december 31 , 2020 , respectively , and $ 3.1 and $ 0.1 million for the year ended december 31 , 2019 , respectively . the payment of future dividends is at the discretion of our board of directors and dependent on results of operations , projected capital requirements and other factors the board of directors may find relevant . ​ stock volatility . the technology , distribution and services sectors of the united states stock markets is subject to substantial volatility . numerous conditions which impact these sectors or the stock market in general or the company in particular , whether or not such events relate to or reflect upon the company 's operating performance , could adversely affect the market price of the company 's common stock . furthermore , fluctuations in the company 's operating results , announcements regarding litigation , the loss of a significant vendor partner or customer , increased competition , reduced vendor incentives and trade credit , higher operating expenses , and other developments , could have a significant impact on the market price of our common stock . 19 ​ financial overview ​ net sales increased 21 % , or $ 42.8 million , to $ 251.6 million for the year ended december 31 , 2020 , compared to $ 208.8 million for the same period in 2019. gross profit increased 10 % , or $ 3.0 million , to $ 33.0 million for the year ended december 31 , 2020 , compared to $ 30.0 million for the same period in 2019. selling , general and administrative ( “ sg & a ” ) expenses increased 15 % , or $ 3.0 million , to $ 23.9 million for the year ended december 31 , 2020 , compared to $ 20.9 million for the same period in 2019. legal and financial advisory expenses , net - unsolicited bid and related matters were $ 1.6 million for the year ended december 31 , 2020 compared to no expense for the same period in 2019. acquisition related costs were $ 1.5 million for the year ended december 31 , 2020 compared to no expense for the same period in 2019. amortization and depreciation expense increased $ 0.2 million to $ 0.7 million for the year ended december 31 , 2020 compared to $ 0.5 million for the same period in the prior year . net income was $ 4.5 million for the year ended december 31 , 2020 compared to $ 6.8 million for the same period in 2019. weighted average diluted shares outstanding decreased by 3 % from the prior year . income per diluted share was $ 1.01 for the year ended december 31 , 2020 compared to $ 1.51 for the same period in 2019 . ​ critical accounting policies and estimates ​ management 's discussion and analysis of the company 's financial condition and results of operations are based upon the company 's consolidated financial statements that have been prepared in accordance with generally accepted accounting principles in the united states of america ( “ us gaap ” ) . the preparation of these financial statements requires the company to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . ​ on an on-going basis , the company evaluates its estimates , including those related to product returns , bad debts , inventories , investments , intangible assets , income taxes , stock-based compensation , contingencies and litigation . ​ the company bases its estimates on historical experience and on various other assumptions 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 . actual results may differ from these estimates . ​ the company believes the following critical accounting policies used in the preparation of its consolidated financial statements affect its more significant judgments and estimates . ​ revenue ​ the company utilizes judgment regarding performance obligations inherent in the products for services it sells including , whether ongoing maintenance obligations performed by third party vendors are distinct from the related software licenses , and allocation of sales prices among distinct performance obligations . story_separator_special_tag one major customer accounted for 24 % and the other for 14 % , of our total net sales during the year ended december 31 , 2020. these same customers accounted for 19 % and 9 % , of total net accounts receivable as of december 31 , 2020 . ​ gross profit ​ gross profit for the year ended december 31 , 2020 increased 10 % , or $ 3.0 million , to $ 33.0 million compared to $ 30.0 million for the same period in 2019. distribution segment gross profit for the year ended december 31 , 2020 increased 9 % , or $ 2.3 million , to $ 29.1 million compared to $ 26.8 million for the same period in 2019 due to higher net sales discussed above , which were partially offset by the impact of lower gross margin as a percentage of net sales . the decline in gross margin as a percentage of net sales was partially attributable to early pay discount programs implemented in 2020 , resulting in lower accounts receivable and increased cash and liquidity ( see liquidity and capital resources ) . solutions segment gross profit for the year ended december 31 , 2020 increased 22 % , or $ 0.7 million , to $ 3.9 million compared to $ 3.2 million for the same period in 2019 due to the increased level of net sales discussed above and a higher 25 gross margin as a percentage of net sales resulting from the inclusion of the cdf business . cdf solutions sales gross profit as a percentage of net sales is generally higher than our historical average . ​ customer rebates and discounts for the year ended december 31 , 2020 were $ 6.3 million compared to $ 3.8 million for the same period in the prior year . this increase is attributable to a change in payment terms with one of our larger customers during the second quarter of 2020 and timing of payments from other larger customers . customer rebates and discounts vary based on terms of rebate and early pay discount programs offered to customers and timing of payments ultimately received from our customers . ​ vendor rebates and discounts for the year ended december 31 , 2020 were $ 3.9 million compared to $ 3.3 million for the same period in 2019. vendor rebates are dependent on reaching certain targets set by our vendors . the company monitors vendor rebate levels , competitive pricing , and gross profit margins carefully . we anticipate that price competition in our market will continue in both of our business segments . ​ selling , general and administrative expenses ​ sg & a expenses for the year ended december 31 , 2020 increased 15 % , or $ 3.0 million , to $ 23.9 million , compared to $ 20.9 million for the same period in 2019 primarily due to expenses from interwork and cdf for the period from acquisition to december 31 , 2020. sales related salaries and commissions , higher stock compensation expense and higher professional fees related to our obligations as a public company also increased during the period . sg & a expenses were 9.5 % of net sales for the year ended december 31 , 2020 , compared to 10.0 % for the same period in 2019 . ​ the company expects that its sg & a expenses , as a percentage of net sales , may vary depending on changes in sales volume , as well as the levels of continuing investments in key growth initiatives . we plan to continue to expand our investment in information technology and sales marketing to support the growth of our business . ​ legal and financial advisory expenses , net – unsolicited bid and related matters ​ legal and financial advisory expenses , net – unsolicited bid and related matters for year ended december 31 , 2020 were $ 1.6 million compared to no expense for the same period in the prior year . these expenses relate to the costs incurred in conjunction with the unsolicited bid and shareholder demand discussed below . ​ acquisition related costs ​ acquisition related costs for the year ended december 31 , 2020 were $ 1.5 million compared to no expense for the same period in the prior year . these expenses relate to costs incurred in conjunction with the acquisition of interwork and cdf . ​ foreign currency transaction gain ​ foreign currency transaction gain for the year ended december 31 , 2020 was $ 0.8 million compared to $ 0.1 million in for the same period in 2019. these expenses primarily relate to the change in the value of accounts payable and other monetary assets and liabilities denominated in currencies other than their functional currency between the date of origination and settlement . ​ income taxes ​ for the year ended december 31 , 2020 , the company recorded a provision for income taxes of $ 1.7 million , or 28.1 % of income before taxes , compared to $ 2.3 million , or 25.0 % of income before taxes for the same period in 2019. the company 's effective tax rate for the year ended december 31 , 2020 was impacted by limitations on the deductibility of certain facilitative acquisition related costs . ​ 26 unsolicited bid and shareholder demand ​ on july 15 , 2019 and august 23 , 2019 , the company received letters from shepherd kaplan krochuk , llc ( “ skk ” ) and north & webster ssg , llc ( “ n & w ” ) announcing an unsolicited bid to acquire the company . the proposal was subject to a number of contingencies , including the need for skk and n & w to secure financing to complete a transaction . ​ on november 27 , 2019 , skk , n & w , and messrs. shepherd , kaplan , krochuk and kidston

