based on current engineering work completed to date , the unleveraged capital cost for the net-zero 1 project is projected to be on the order of $ 650 million , including the hydrocarbon production and related renewable energy infrastructure which includes anaerobic digestion to produce biogas to run our plant and generate some electricity on-site . recent developments sas amendment . in february 2021 , we signed an amendment to our fuel sales agreement with scandinavian airlines system ( “ sas ” ) to supply 5 million gallons per year of saf beginning in 2024. lake preston site . on december 21 , 2020 , we announced that we optioned the right to purchase approximately 240 acres of land near lake preston , sd ( the “ lake preston site ” ) . the lake preston site is expected to be the location of the net-zero 1 project . we intend to make a decision on whether to purchase the lake preston site in the future as part of the citigroup led project financing process . story_separator_special_tag covid-19 and in response to an unfavorable commodity environment . our luverne facility is currently shut down until further notice . currently , the south hampton facility is not producing renewable premium gasoline or jet fuel . we expect to produce isobutanol in intermittent campaigns during 2021 to supply the south hampton facility so that renewable premium gasoline or jet fuel can be produced in 2021. hydrocarbon revenues are comprised of saf , isooctane and isooctene sales . hydrocarbon revenue decreased $ 0.8 million during the year ended december 31 , 2020 primarily as a result of fewer shipments of finished products from the south hampton facility . cost of goods sold . our cost of goods sold decreased $ 21.7 million during the year ended december 31 , 2020 compared to the prior year . production was decreased compared to the prior year due to terminating ethanol production in march 2020 as a result of covid-19 and in response to an unfavorable commodity environment . cost of goods sold during the year ended december 31 , 2020 included $ 9.3 million associated with the production of isobutanol , ethanol and related products and $ 5.7 million in depreciation expense . cost of goods sold during the year ended december 31 , 2019 included $ 30.4 million associated with the production of isobutanol , ethanol and related products and $ 6.3 million in depreciation expense . 44 until the luverne facility restarts production , cost of goods sold will primarily be comprised of costs to process saf , isooctane and isooctene at our south hampton facility as well as costs to maintain the luverne facility . research and development expense . we continue to develop technologies for the production of isobutanol . research and development expenses stayed relatively flat during the year ended december 31 , 2020 compared to the prior year . selling , general and administrative expense . selling , general and administrative expenses increased $ 2.4 million during the year ended december 31 , 2020 compared to the prior year , primarily due to increases of $ 1.5 million in personal cost attributed to increased hiring , increases of $ 0.9 million in consulting service due to related regulatory requirements , marketing and investor relations expenditures and increases in insurance cost totaling $ 0.5 million , offset by a reduction $ 0.4 million in travel expenses due to covid-19 . restructuring costs . during the year ended december 31 , 2020 , we incurred $ 0.3 million of restructuring charges related to the restructuring of agri-energy in response to covid-19 , termination of employees at agri-energy and gevo and renegotiating contracts . interest expense . interest expense during the year ended december 31 , 2020 was $ 2.1 million as compared to $ 2.7 million during the year ended december 31 , 2019. the decrease of $ 0.6 million of interest expense was due to lower amortization of original issue discounts and debt issuance costs and conversion of $ 2.0 million of 2020/21 notes into common stock during july 2020. the remaining $ 12.7 million of 2020/21 notes was converted to common stock during december 2020 . ( loss ) from modification of 2020 notes . during the year ended december 31 , 2020 , we incurred $ 0.7 million of legal and professional fees to modify the 12 % convertible senior notes due 2020 , which were issued to wb gevo , ltd. and its affiliates in june 2017 ( the “ 2020 notes ” ) , into the 2020/21 notes . ( loss ) on conversion of 2020/21 notes . during the year ended december 31 , 2020 , we incurred a $ 1.9 million loss related to the conversion of $ 2.0 million of 2020/21 notes into common stock during july 2020 and $ 12.7 million of 2020/21 notes into common stock during december 2020 , which reflects the cost of the make-whole payments . ( loss ) gain from change in fair value of the 2020/21 notes and 2020 notes embedded derivative liability . during the year ended december 31 , 2020 , we recognized a noncash loss of $ 8.6 million related to the 2020/21 notes embedded derivative liability as a result of increasing stock price at the time that the 2021/21 notes were converted into common stock . the loss recorded is the result of the change in fair value between the beginning of the period and the end of the period , or the date on which the derivative liability was extinguished through conversion . story_separator_special_tag no assurance can be given that we will obtain forgiveness of the loan in whole or in part . the loan contains customary events of default relating to , among other things , payment defaults , making materially false and misleading representations to the lender or breaching the terms of the loan documents . see note 9 , debt , to our consolidated financial statements included herein for further discussion . contractual obligations and commitments we are a smaller reporting company as defined by rule 12b-2 of the exchange act and are not required to provide information under this item . off-balance sheet arrangements as of december 31 , 2020 , we did not have any off-balance sheet arrangements or relationships with unconsolidated entities , such as entities often referred to as structured finance or special purpose entities , established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . critical accounting estimates our consolidated financial statements are based on the application of u.s. gaap , which requires us to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and the accompanying notes . future events and their effects can not be determined with certainty ; therefore , the determination of estimates requires the exercise of judgment . we believe our judgments related to these accounting estimates are appropriate . however , if different assumptions or conditions were to prevail , the results could be materially different from the amounts recorded . 48 critical accounting policies while our significant accounting policies are more fully described in note 2 to our consolidated financial statements included in this report , we believe that the following accounting policies are the most critical to aid you in fully understanding and evaluating our reported financial results and reflect the more significant judgments and estimates that we use in the preparation of our consolidated financial statements . accounting for senior secured debt , convertible notes and embedded derivative in june 2017 , the company issued its 12 % convertible senior secured notes due 2020 ( the “ 2020 notes ” ) in exchange for its 12 % convertible senior secured notes due 2017 ( the “ 2017 notes ” ) . in january 2020 , the company issued 12 % convertible senior secured notes due 2020/2021 ( the “ 2020/21 notes ” ) in exchange for its 2020 notes . the 2020 notes contained the following embedded derivatives : ( i ) a make-whole payment ( as defined in the indenture governing the 2020 notes ( the “ 2020 notes indenture ” ) ) upon either conversion or redemption ; ( ii ) right to redeem the outstanding principal upon a fundamental change ( as defined in the 2020 notes indenture ) ; ( iii ) issuer rights to convert into a limited number of shares in any given three-month period commencing nine months from the issuance date and dependent on the stock price exceeding 150 % of the then in-effect conversion price over a ten-business day period ; and ( iv ) holder rights to convert into either shares of the company 's common stock or pre-funded warrants upon the election of the holders of the 2020 notes . the 2020/21 notes contain the following embedded derivatives : ( i ) a make-whole payment ( as defined in the 2020/21 notes indenture ( as defined below ) upon either conversion or redemption in certain circumstances ; ( ii ) holder right to require the company to repurchase the outstanding principal upon a fundamental change ( as defined in the 2020/21 notes indenture ) ; and ( iii ) holder rights to convert into either shares of the company 's common stock or pre-funded warrants upon the election of the holders of the 2020/21 notes . embedded derivatives are separated from the host contract and the 2020 notes and 202/21 notes and carried at fair value when : ( a ) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract ; and ( b ) a separate , stand-alone instrument with the same terms would qualify as a derivative instrument . the company has concluded that certain embedded derivatives within the 2020 notes and 2020/21 notes meet these criteria and , as such , must be valued separate and apart from the 2020 notes and 2020/21 notes as one embedded derivative and recorded at fair value each reporting period . the company used a binomial lattice model in order to estimate the fair value of the embedded derivative in the 2020 notes and 2020/21 notes . a binomial lattice model generates two probable outcomes , whether up or down , arising at each point in time , starting from the date of valuation until the maturity date . a lattice was initially used to determine if the 2020 notes and 20200/21 notes would be converted by the holder , called by the issuer , or held at each decision point . within the lattice model , the following assumptions are made : ( i ) the 2020 notes and 2020/21 notes will be converted by the holder if the conversion value plus the holder 's make-whole payment is greater than the holding value ; or ( ii ) the 2020 notes and 2020/21 notes will be called by the issuer if ( a ) the stock price exceeds 150 % of the then in-effect conversion price over a ten-business day period and ( b ) if the holding value is greater than the conversion value plus the make-whole payment at the time . using this lattice model , the company valued the embedded derivative using a “ with-and-without method ” , where the value of the 2020 notes and 2020/21 notes including the embedded derivative is defined as the “ with ” , and the value of the 2020 notes

senior secured debt . on december 31 , 2020 , we reported that all obligations under its 12 % convertible senior secured notes due 2020/2021 ( the “ 2020/21 notes ” ) had been fully paid and satisfied , and the 2020/21 notes and the related indenture have been terminated in accordance with its terms at maturity on december 31 , 2020. on july 10 , 2020 , the holders of the 2020/21 notes converted $ 2.0 million in aggregate outstanding principal amount of 2020/21 notes ( including the applicable make-whole payment ) into an aggregate of 4,169,426 shares of common stock . in december 2020 , the holders of the 2020/21 notes converted the remaining $ 12.7 million in aggregate outstanding principal amount of 2020/21 notes ( including the applicable make-whole payment ) into an aggregate of 5,672,654 shares of common stock pursuant to the terms of the indenture , which represented the entire outstanding principal amount of the 2020/21 notes . at-the-market offering program . on december 30 , 2020 , the at-the-market offering program was amended to provide available capacity under the at-the-market offering program of $ 150.0 million . during the year ended december 31 , 2020 , we issued 3,518,121 shares of common stock under the at-the-market offering program for total proceeds of $ 8.4 million , net of commissions and other offering related expenses . during the period january 1 , 2021 to february 26 , 2021 , we issued 24,420,579 shares of common stock under the at-the-market offering program for total proceeds of $ 135.8 million , net of commissions and other offering related expenses . 42 january 2021 offering .


 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.
     ```senior secured debt . on december 31 , 2020 , we reported that all obligations under its 12 % convertible senior secured notes due 2020/2021 ( the “ 2020/21 notes ” ) had been fully paid and satisfied , and the 2020/21 notes and the related indenture have been terminated in accordance with its terms at maturity on december 31 , 2020. on july 10 , 2020 , the holders of the 2020/21 notes converted $ 2.0 million in aggregate outstanding principal amount of 2020/21 notes ( including the applicable make-whole payment ) into an aggregate of 4,169,426 shares of common stock . in december 2020 , the holders of the 2020/21 notes converted the remaining $ 12.7 million in aggregate outstanding principal amount of 2020/21 notes ( including the applicable make-whole payment ) into an aggregate of 5,672,654 shares of common stock pursuant to the terms of the indenture , which represented the entire outstanding principal amount of the 2020/21 notes . at-the-market offering program . on december 30 , 2020 , the at-the-market offering program was amended to provide available capacity under the at-the-market offering program of $ 150.0 million . during the year ended december 31 , 2020 , we issued 3,518,121 shares of common stock under the at-the-market offering program for total proceeds of $ 8.4 million , net of commissions and other offering related expenses . during the period january 1 , 2021 to february 26 , 2021 , we issued 24,420,579 shares of common stock under the at-the-market offering program for total proceeds of $ 135.8 million , net of commissions and other offering related expenses . 42 january 2021 offering .
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 Suspicious Activity Report : based on current engineering work completed to date , the unleveraged capital cost for the net-zero 1 project is projected to be on the order of $ 650 million , including the hydrocarbon production and related renewable energy infrastructure which includes anaerobic digestion to produce biogas to run our plant and generate some electricity on-site . recent developments sas amendment . in february 2021 , we signed an amendment to our fuel sales agreement with scandinavian airlines system ( “ sas ” ) to supply 5 million gallons per year of saf beginning in 2024. lake preston site . on december 21 , 2020 , we announced that we optioned the right to purchase approximately 240 acres of land near lake preston , sd ( the “ lake preston site ” ) . the lake preston site is expected to be the location of the net-zero 1 project . we intend to make a decision on whether to purchase the lake preston site in the future as part of the citigroup led project financing process . story_separator_special_tag covid-19 and in response to an unfavorable commodity environment . our luverne facility is currently shut down until further notice . currently , the south hampton facility is not producing renewable premium gasoline or jet fuel . we expect to produce isobutanol in intermittent campaigns during 2021 to supply the south hampton facility so that renewable premium gasoline or jet fuel can be produced in 2021. hydrocarbon revenues are comprised of saf , isooctane and isooctene sales . hydrocarbon revenue decreased $ 0.8 million during the year ended december 31 , 2020 primarily as a result of fewer shipments of finished products from the south hampton facility . cost of goods sold . our cost of goods sold decreased $ 21.7 million during the year ended december 31 , 2020 compared to the prior year . production was decreased compared to the prior year due to terminating ethanol production in march 2020 as a result of covid-19 and in response to an unfavorable commodity environment . cost of goods sold during the year ended december 31 , 2020 included $ 9.3 million associated with the production of isobutanol , ethanol and related products and $ 5.7 million in depreciation expense . cost of goods sold during the year ended december 31 , 2019 included $ 30.4 million associated with the production of isobutanol , ethanol and related products and $ 6.3 million in depreciation expense . 44 until the luverne facility restarts production , cost of goods sold will primarily be comprised of costs to process saf , isooctane and isooctene at our south hampton facility as well as costs to maintain the luverne facility . research and development expense . we continue to develop technologies for the production of isobutanol . research and development expenses stayed relatively flat during the year ended december 31 , 2020 compared to the prior year . selling , general and administrative expense . selling , general and administrative expenses increased $ 2.4 million during the year ended december 31 , 2020 compared to the prior year , primarily due to increases of $ 1.5 million in personal cost attributed to increased hiring , increases of $ 0.9 million in consulting service due to related regulatory requirements , marketing and investor relations expenditures and increases in insurance cost totaling $ 0.5 million , offset by a reduction $ 0.4 million in travel expenses due to covid-19 . restructuring costs . during the year ended december 31 , 2020 , we incurred $ 0.3 million of restructuring charges related to the restructuring of agri-energy in response to covid-19 , termination of employees at agri-energy and gevo and renegotiating contracts . interest expense . interest expense during the year ended december 31 , 2020 was $ 2.1 million as compared to $ 2.7 million during the year ended december 31 , 2019. the decrease of $ 0.6 million of interest expense was due to lower amortization of original issue discounts and debt issuance costs and conversion of $ 2.0 million of 2020/21 notes into common stock during july 2020. the remaining $ 12.7 million of 2020/21 notes was converted to common stock during december 2020 . ( loss ) from modification of 2020 notes . during the year ended december 31 , 2020 , we incurred $ 0.7 million of legal and professional fees to modify the 12 % convertible senior notes due 2020 , which were issued to wb gevo , ltd. and its affiliates in june 2017 ( the “ 2020 notes ” ) , into the 2020/21 notes . ( loss ) on conversion of 2020/21 notes . during the year ended december 31 , 2020 , we incurred a $ 1.9 million loss related to the conversion of $ 2.0 million of 2020/21 notes into common stock during july 2020 and $ 12.7 million of 2020/21 notes into common stock during december 2020 , which reflects the cost of the make-whole payments . ( loss ) gain from change in fair value of the 2020/21 notes and 2020 notes embedded derivative liability . during the year ended december 31 , 2020 , we recognized a noncash loss of $ 8.6 million related to the 2020/21 notes embedded derivative liability as a result of increasing stock price at the time that the 2021/21 notes were converted into common stock . the loss recorded is the result of the change in fair value between the beginning of the period and the end of the period , or the date on which the derivative liability was extinguished through conversion . story_separator_special_tag no assurance can be given that we will obtain forgiveness of the loan in whole or in part . the loan contains customary events of default relating to , among other things , payment defaults , making materially false and misleading representations to the lender or breaching the terms of the loan documents . see note 9 , debt , to our consolidated financial statements included herein for further discussion . contractual obligations and commitments we are a smaller reporting company as defined by rule 12b-2 of the exchange act and are not required to provide information under this item . off-balance sheet arrangements as of december 31 , 2020 , we did not have any off-balance sheet arrangements or relationships with unconsolidated entities , such as entities often referred to as structured finance or special purpose entities , established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . critical accounting estimates our consolidated financial statements are based on the application of u.s. gaap , which requires us to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and the accompanying notes . future events and their effects can not be determined with certainty ; therefore , the determination of estimates requires the exercise of judgment . we believe our judgments related to these accounting estimates are appropriate . however , if different assumptions or conditions were to prevail , the results could be materially different from the amounts recorded . 48 critical accounting policies while our significant accounting policies are more fully described in note 2 to our consolidated financial statements included in this report , we believe that the following accounting policies are the most critical to aid you in fully understanding and evaluating our reported financial results and reflect the more significant judgments and estimates that we use in the preparation of our consolidated financial statements . accounting for senior secured debt , convertible notes and embedded derivative in june 2017 , the company issued its 12 % convertible senior secured notes due 2020 ( the “ 2020 notes ” ) in exchange for its 12 % convertible senior secured notes due 2017 ( the “ 2017 notes ” ) . in january 2020 , the company issued 12 % convertible senior secured notes due 2020/2021 ( the “ 2020/21 notes ” ) in exchange for its 2020 notes . the 2020 notes contained the following embedded derivatives : ( i ) a make-whole payment ( as defined in the indenture governing the 2020 notes ( the “ 2020 notes indenture ” ) ) upon either conversion or redemption ; ( ii ) right to redeem the outstanding principal upon a fundamental change ( as defined in the 2020 notes indenture ) ; ( iii ) issuer rights to convert into a limited number of shares in any given three-month period commencing nine months from the issuance date and dependent on the stock price exceeding 150 % of the then in-effect conversion price over a ten-business day period ; and ( iv ) holder rights to convert into either shares of the company 's common stock or pre-funded warrants upon the election of the holders of the 2020 notes . the 2020/21 notes contain the following embedded derivatives : ( i ) a make-whole payment ( as defined in the 2020/21 notes indenture ( as defined below ) upon either conversion or redemption in certain circumstances ; ( ii ) holder right to require the company to repurchase the outstanding principal upon a fundamental change ( as defined in the 2020/21 notes indenture ) ; and ( iii ) holder rights to convert into either shares of the company 's common stock or pre-funded warrants upon the election of the holders of the 2020/21 notes . embedded derivatives are separated from the host contract and the 2020 notes and 202/21 notes and carried at fair value when : ( a ) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract ; and ( b ) a separate , stand-alone instrument with the same terms would qualify as a derivative instrument . the company has concluded that certain embedded derivatives within the 2020 notes and 2020/21 notes meet these criteria and , as such , must be valued separate and apart from the 2020 notes and 2020/21 notes as one embedded derivative and recorded at fair value each reporting period . the company used a binomial lattice model in order to estimate the fair value of the embedded derivative in the 2020 notes and 2020/21 notes . a binomial lattice model generates two probable outcomes , whether up or down , arising at each point in time , starting from the date of valuation until the maturity date . a lattice was initially used to determine if the 2020 notes and 20200/21 notes would be converted by the holder , called by the issuer , or held at each decision point . within the lattice model , the following assumptions are made : ( i ) the 2020 notes and 2020/21 notes will be converted by the holder if the conversion value plus the holder 's make-whole payment is greater than the holding value ; or ( ii ) the 2020 notes and 2020/21 notes will be called by the issuer if ( a ) the stock price exceeds 150 % of the then in-effect conversion price over a ten-business day period and ( b ) if the holding value is greater than the conversion value plus the make-whole payment at the time . using this lattice model , the company valued the embedded derivative using a “ with-and-without method ” , where the value of the 2020 notes and 2020/21 notes including the embedded derivative is defined as the “ with ” , and the value of the 2020 notes

