we then made the strategic decision to transition our business model from low margin commodity markets to higher margin specialty ingredients markets . we began the transition by first commercializing and supplying farnesene-derived squalane as a cosmetic ingredient to formulators and distributors . we also entered into collaboration and supply agreements for the development and commercialization of molecules within the flavor & fragrance and clean beauty markets . we partner with our customers to create sustainable , high performing , low-cost molecules that replace an ingredient in their supply chains . we commercially scale and manufacture those molecules . our revenue is generated from research and development collaboration programs , grants , renewable product sales , and license and royalty revenues from our renewable product portfolios . all of our non-government partnerships include commercial terms for the supply of molecules we produce at commercial scale . the first molecule to generate revenue for us outside of farnesene was a fragrance molecule launched in 2015. since the launch , this and additional fragrance molecules have continued to generate sales year over year . our partners for these molecules are indicating continued strong growth due to their cost advantaged position , high purity of our molecules and our sustainable production method . in 2019 , we commercially produced and shipped our reb m product that is an alternative sweetener and sugar replacement for food and beverages . in 2020 , we added a total of six new ingredients to our portfolio . we have a pipeline that can deliver an estimated two to three new molecules each year over the coming years . our time to market for molecules has decreased from seven years to less than a year for our most recent molecule , mainly due to our ability to leverage our biotechnology platform with proprietary computational tools , strain construction tools , screening and analytics tools , and advanced lab automation and data integration . our state-of-the-art infrastructure includes industry-leading strain engineering and lab automation located in emeryville , california , pilot-scale production facilities in emeryville , california and campinas , brazil , a demonstration-scale facility in campinas , brazil and a commercial scale production facility in leland , north carolina ( owned and operated by our aprinnova joint venture ) . we are able to use a wide variety of feedstocks for production but have focused on sourcing brazilian sugarcane for our large-scale production because of its renewability , low cost and relative price stability . we are constructing a new purpose-built , large-scale specialty ingredients facility in brazil , which we anticipate will allow for the manufacture of up to five products concurrently , including both our specialty ingredients portfolio and our alternative sweetener product . in september 2019 , we obtained the necessary permits and broke ground for this facility and we expect construction to be completed by the end of 2021. during construction , we continue to manufacture our products at manufacturing sites in brazil , the u.s. and europe . sales and revenue we recognize revenue from product sales , license fees and royalties , and grants and collaborations . we have research and development collaboration arrangements for which we receive payments from our collaboration partners , which include darpa , koninklijke dsm n.v. ( dsm ) , firmenich sa ( firmenich ) , givaudan international sa ( givaudan ) , yifan pharmaceutical co. ltd. ( yifan ) and others . some of our collaboration arrangements provide for advance payments to us in consideration for grants of exclusivity or research efforts that we will perform . our collaboration agreements , which may require us to achieve milestones prior to receiving payments , are expected to contribute revenues from product sales and royalties if and when they are commercialized . see note 10 , “ revenue recognition ” in part ii , item 8 of this annual report on form 10-k for additional information . we have several other collaboration molecules in our development pipeline with partners including dsm , givaudan , firmenich and yifan that we expect will contribute revenues from product sales and royalties if and when they are commercialized . covid-19 business update we have been closely monitoring the impact of the global covid-19 pandemic on all aspects of our business , including how it has and will impact our employees , partners , supply chain , and distribution network . since the start of the pandemic in early 2020 , we developed a comprehensive response strategy including establishing a cross-functional covid-19 task force and implementing business continuity plans to manage the impact of the covid-19 pandemic on our employees and our business . we have applied recommended public health strategies designed to prevent the spread of covid-19 and have been 40 focused on the health and welfare of our employees . we have successfully managed to sustain ongoing critical production campaigns and infrastructure while staying in compliance with state and county public health orders . accordingly , since the end of the first quarter of 2020 , we have initiated several precautions in accordance with local regulations and guidelines to mitigate the spread of covid-19 infection across our businesses , which has impacted the way we carry out our business , including additional sanitation and cleaning procedures in our laboratories and other facilities , on-site covid-19 testing , temperature and symptom confirmations , instituting remote working when possible , and implementing social distancing and staggered worktime requirements for our employees who must work on-site . our plans to reopen our sites and enable a broad return to work in our offices , laboratories and production facilities will continue to follow local public health plans and guidelines . story_separator_special_tag 42 the swing from a gain to a loss in change in fair value of derivative instruments was primarily due to a 95 % increase in our stock price during 2020 ; see note 3 , `` fair value measurement `` in part ii , item 8 of this annual report on form 10-k for details regarding our outstanding derivative instruments . the loss upon extinguishment of debt for the year ended december 31 , 2020 was the result of debt modifications and restructuring which required the write-off of significant unamortized debt discount balances and expensing of the fair value of equity instruments granted or modified in connection with the debt settlement or modification . the reduction in interest expense was primarily due to a decrease in debt discount accretion , along with lower average debt principal balances during 2020 as compared to the prior year . income taxes for the years ended december 31 , 2020 and 2019 , we recorded income tax expense of $ 0.3 million and $ 0.6 million related to accrued interest on uncertain tax positions . see note 13 , `` income taxes `` in part ii , item 8 of this annual report on form 10-k for additional information . liquidity and capital resources replace_table_token_5_th liquidity we have incurred operating losses since our inception , and we expect to continue to incur losses and negative cash flows from operations through at least the next 12 months following the issuance of this annual report on form 10-k. as of december 31 , 2020 , we had negative working capital of $ 16.5 million , an accumulated deficit of $ 2.1 billion , and cash and cash equivalents of $ 30.2 million . as of december 31 , 2020 , the principal amounts due under our debt instruments ( including related party debt ) totaled $ 170.5 million , of which $ 56.5 million is classified as current . our debt agreements contain various covenants , including certain restrictions on our business — including restrictions on additional indebtedness , material adverse effect and cross default provisions — that could cause us to be at risk of default . a failure to comply with the covenants and other provisions of our debt instruments , including any failure to make payments when required , would generally result in events of default under such instruments , which could result in the acceleration of a substantial portion of such indebtedness . acceleration would generally also constitute an event of default under our other outstanding debt instruments , which could result in the acceleration of a substantial portion of our debt repayment obligations . during 2020 we failed to meet certain covenants under several credit arrangements , including those associated with missed payments , cross-default provisions , minimum liquidity and minimum asset coverage requirements . these lenders provided permanent waivers to us for breaches of all past covenant violations and cross-default payment failures under the respective credit agreements , and significantly reduced the minimum liquidity requirement and substantially increased the base of eligible assets to calculate the asset coverage requirement . cash and cash equivalents of $ 30.2 million as of december 31 , 2020 are not sufficient to fund expected future negative cash flows from operations and cash debt service obligations through march 2022. these factors raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements in this annual report on form 10-k are issued . the consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty . our ability to continue as a going concern will depend , in large part , on our ability to minimize the anticipated negative cash flows from operations during the 12 months from the date of this filing and to raise additional proceeds through strategic transactions , financings , and refinance or extend other existing debt maturities that will occur in june 2021 ( $ 10 million as of the date of this filing ) , all of which are uncertain and outside of our control . 43 our operating plan for 2021 contemplates a significant reduction in net operating cash outflows as compared to the year ended december 31 , 2020 , resulting from ( i ) revenue growth from sales of existing and new products with positive gross margins , ( ii ) reduced production costs as a result of manufacturing and technical developments , ( iii ) the monetization of certain assets , ( iv ) an increase in cash inflows from collaboration and grants and licenses and royalties , and ( v ) lower debt servicing expense . our operating plan for 2021 also contemplates funding the construction and launch of our new specialty ingredients fermentation facility in brazil , which will most likely require financing that is significantly above any potential to generate excess cash flows from operations . if we are unable to generate sufficient cash inflows from product sales , licenses and collaboration arrangements , we will need to obtain additional funding from new equity or debt financings , which may not occur timely or on reasonable terms , if at all , and agree to burdensome covenants , grant further security interests in our assets , enter into collaboration and licensing arrangements that require us to relinquish commercial rights , or grant licenses on terms that are not favorable . if we do not achieve our planned operating results , we may need to take the following actions to support our liquidity needs in 2021 : shift focus to existing products and customers with significantly reduced investment in new product and commercial development efforts ; reduce expenditures for employees and third-party contractors , including consultants , professional advisors and other vendors ; reduce or delay uncommitted capital expenditures , including expenditures related the construction and commissioning of the new production facility in brazil , nonessential

cash flows from operating activities our primary uses of cash from operating activities are for personnel costs and costs related to the production and sales of our products , offset by cash received from sales to customers . for the year ended december 31 , 2020 , net cash used in operating activities was $ 175.8 million , which was primarily comprised of our $ 326.9 million net loss and a decrease of $ 54.4 million in working capital , partly offset by $ 205.5 million of non-cash charges . non-cash charges were primarily comprised of an $ 89.8 million loss from change in fair value of debt , a $ 52.0 million loss upon extinguishment of debt , $ 13.7 million of stock-based compensation expense , an $ 11.4 million loss from change in fair value of derivative instruments and $ 10.5 million of non-cash interest expense in connection with the release of pre-delivery shares to a debt holder in connection with a previous debt issuance . the decrease in working capital was primarily comprised of a $ 24.2 million increase in accounts receivable , a $ 16.2 million increase in inventories and a $ 4.0 million increase in contract assets .


 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 from operating activities our primary uses of cash from operating activities are for personnel costs and costs related to the production and sales of our products , offset by cash received from sales to customers . for the year ended december 31 , 2020 , net cash used in operating activities was $ 175.8 million , which was primarily comprised of our $ 326.9 million net loss and a decrease of $ 54.4 million in working capital , partly offset by $ 205.5 million of non-cash charges . non-cash charges were primarily comprised of an $ 89.8 million loss from change in fair value of debt , a $ 52.0 million loss upon extinguishment of debt , $ 13.7 million of stock-based compensation expense , an $ 11.4 million loss from change in fair value of derivative instruments and $ 10.5 million of non-cash interest expense in connection with the release of pre-delivery shares to a debt holder in connection with a previous debt issuance . the decrease in working capital was primarily comprised of a $ 24.2 million increase in accounts receivable , a $ 16.2 million increase in inventories and a $ 4.0 million increase in contract assets .
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 Suspicious Activity Report : we then made the strategic decision to transition our business model from low margin commodity markets to higher margin specialty ingredients markets . we began the transition by first commercializing and supplying farnesene-derived squalane as a cosmetic ingredient to formulators and distributors . we also entered into collaboration and supply agreements for the development and commercialization of molecules within the flavor & fragrance and clean beauty markets . we partner with our customers to create sustainable , high performing , low-cost molecules that replace an ingredient in their supply chains . we commercially scale and manufacture those molecules . our revenue is generated from research and development collaboration programs , grants , renewable product sales , and license and royalty revenues from our renewable product portfolios . all of our non-government partnerships include commercial terms for the supply of molecules we produce at commercial scale . the first molecule to generate revenue for us outside of farnesene was a fragrance molecule launched in 2015. since the launch , this and additional fragrance molecules have continued to generate sales year over year . our partners for these molecules are indicating continued strong growth due to their cost advantaged position , high purity of our molecules and our sustainable production method . in 2019 , we commercially produced and shipped our reb m product that is an alternative sweetener and sugar replacement for food and beverages . in 2020 , we added a total of six new ingredients to our portfolio . we have a pipeline that can deliver an estimated two to three new molecules each year over the coming years . our time to market for molecules has decreased from seven years to less than a year for our most recent molecule , mainly due to our ability to leverage our biotechnology platform with proprietary computational tools , strain construction tools , screening and analytics tools , and advanced lab automation and data integration . our state-of-the-art infrastructure includes industry-leading strain engineering and lab automation located in emeryville , california , pilot-scale production facilities in emeryville , california and campinas , brazil , a demonstration-scale facility in campinas , brazil and a commercial scale production facility in leland , north carolina ( owned and operated by our aprinnova joint venture ) . we are able to use a wide variety of feedstocks for production but have focused on sourcing brazilian sugarcane for our large-scale production because of its renewability , low cost and relative price stability . we are constructing a new purpose-built , large-scale specialty ingredients facility in brazil , which we anticipate will allow for the manufacture of up to five products concurrently , including both our specialty ingredients portfolio and our alternative sweetener product . in september 2019 , we obtained the necessary permits and broke ground for this facility and we expect construction to be completed by the end of 2021. during construction , we continue to manufacture our products at manufacturing sites in brazil , the u.s. and europe . sales and revenue we recognize revenue from product sales , license fees and royalties , and grants and collaborations . we have research and development collaboration arrangements for which we receive payments from our collaboration partners , which include darpa , koninklijke dsm n.v. ( dsm ) , firmenich sa ( firmenich ) , givaudan international sa ( givaudan ) , yifan pharmaceutical co. ltd. ( yifan ) and others . some of our collaboration arrangements provide for advance payments to us in consideration for grants of exclusivity or research efforts that we will perform . our collaboration agreements , which may require us to achieve milestones prior to receiving payments , are expected to contribute revenues from product sales and royalties if and when they are commercialized . see note 10 , “ revenue recognition ” in part ii , item 8 of this annual report on form 10-k for additional information . we have several other collaboration molecules in our development pipeline with partners including dsm , givaudan , firmenich and yifan that we expect will contribute revenues from product sales and royalties if and when they are commercialized . covid-19 business update we have been closely monitoring the impact of the global covid-19 pandemic on all aspects of our business , including how it has and will impact our employees , partners , supply chain , and distribution network . since the start of the pandemic in early 2020 , we developed a comprehensive response strategy including establishing a cross-functional covid-19 task force and implementing business continuity plans to manage the impact of the covid-19 pandemic on our employees and our business . we have applied recommended public health strategies designed to prevent the spread of covid-19 and have been 40 focused on the health and welfare of our employees . we have successfully managed to sustain ongoing critical production campaigns and infrastructure while staying in compliance with state and county public health orders . accordingly , since the end of the first quarter of 2020 , we have initiated several precautions in accordance with local regulations and guidelines to mitigate the spread of covid-19 infection across our businesses , which has impacted the way we carry out our business , including additional sanitation and cleaning procedures in our laboratories and other facilities , on-site covid-19 testing , temperature and symptom confirmations , instituting remote working when possible , and implementing social distancing and staggered worktime requirements for our employees who must work on-site . our plans to reopen our sites and enable a broad return to work in our offices , laboratories and production facilities will continue to follow local public health plans and guidelines . story_separator_special_tag 42 the swing from a gain to a loss in change in fair value of derivative instruments was primarily due to a 95 % increase in our stock price during 2020 ; see note 3 , `` fair value measurement `` in part ii , item 8 of this annual report on form 10-k for details regarding our outstanding derivative instruments . the loss upon extinguishment of debt for the year ended december 31 , 2020 was the result of debt modifications and restructuring which required the write-off of significant unamortized debt discount balances and expensing of the fair value of equity instruments granted or modified in connection with the debt settlement or modification . the reduction in interest expense was primarily due to a decrease in debt discount accretion , along with lower average debt principal balances during 2020 as compared to the prior year . income taxes for the years ended december 31 , 2020 and 2019 , we recorded income tax expense of $ 0.3 million and $ 0.6 million related to accrued interest on uncertain tax positions . see note 13 , `` income taxes `` in part ii , item 8 of this annual report on form 10-k for additional information . liquidity and capital resources replace_table_token_5_th liquidity we have incurred operating losses since our inception , and we expect to continue to incur losses and negative cash flows from operations through at least the next 12 months following the issuance of this annual report on form 10-k. as of december 31 , 2020 , we had negative working capital of $ 16.5 million , an accumulated deficit of $ 2.1 billion , and cash and cash equivalents of $ 30.2 million . as of december 31 , 2020 , the principal amounts due under our debt instruments ( including related party debt ) totaled $ 170.5 million , of which $ 56.5 million is classified as current . our debt agreements contain various covenants , including certain restrictions on our business — including restrictions on additional indebtedness , material adverse effect and cross default provisions — that could cause us to be at risk of default . a failure to comply with the covenants and other provisions of our debt instruments , including any failure to make payments when required , would generally result in events of default under such instruments , which could result in the acceleration of a substantial portion of such indebtedness . acceleration would generally also constitute an event of default under our other outstanding debt instruments , which could result in the acceleration of a substantial portion of our debt repayment obligations . during 2020 we failed to meet certain covenants under several credit arrangements , including those associated with missed payments , cross-default provisions , minimum liquidity and minimum asset coverage requirements . these lenders provided permanent waivers to us for breaches of all past covenant violations and cross-default payment failures under the respective credit agreements , and significantly reduced the minimum liquidity requirement and substantially increased the base of eligible assets to calculate the asset coverage requirement . cash and cash equivalents of $ 30.2 million as of december 31 , 2020 are not sufficient to fund expected future negative cash flows from operations and cash debt service obligations through march 2022. these factors raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements in this annual report on form 10-k are issued . the consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty . our ability to continue as a going concern will depend , in large part , on our ability to minimize the anticipated negative cash flows from operations during the 12 months from the date of this filing and to raise additional proceeds through strategic transactions , financings , and refinance or extend other existing debt maturities that will occur in june 2021 ( $ 10 million as of the date of this filing ) , all of which are uncertain and outside of our control . 43 our operating plan for 2021 contemplates a significant reduction in net operating cash outflows as compared to the year ended december 31 , 2020 , resulting from ( i ) revenue growth from sales of existing and new products with positive gross margins , ( ii ) reduced production costs as a result of manufacturing and technical developments , ( iii ) the monetization of certain assets , ( iv ) an increase in cash inflows from collaboration and grants and licenses and royalties , and ( v ) lower debt servicing expense . our operating plan for 2021 also contemplates funding the construction and launch of our new specialty ingredients fermentation facility in brazil , which will most likely require financing that is significantly above any potential to generate excess cash flows from operations . if we are unable to generate sufficient cash inflows from product sales , licenses and collaboration arrangements , we will need to obtain additional funding from new equity or debt financings , which may not occur timely or on reasonable terms , if at all , and agree to burdensome covenants , grant further security interests in our assets , enter into collaboration and licensing arrangements that require us to relinquish commercial rights , or grant licenses on terms that are not favorable . if we do not achieve our planned operating results , we may need to take the following actions to support our liquidity needs in 2021 : shift focus to existing products and customers with significantly reduced investment in new product and commercial development efforts ; reduce expenditures for employees and third-party contractors , including consultants , professional advisors and other vendors ; reduce or delay uncommitted capital expenditures , including expenditures related the construction and commissioning of the new production facility in brazil , nonessential

