overview the company was incorporated in the state of nevada on december 17 , 2009. effective march 23 , 2018 , the company changed its name from vapir enterprises , inc. to gratitude health , inc. on september 14 , 2020 , the company changed its name from gratitude health , inc. to home bistro , inc. the company is in the business of providing prepackaged and prepared meals to consumers focused on offering a broad array of the highest quality meal planning , delivery , and preparation services . the company 's primary former operations were in the business of manufacturing , selling , and marketing functional rtd ( ready to drink ) beverages sold under the company 's trademark ( the “ rtd business ” ) . the rtd business was disposed on september 25 , 2020 as discussed below . on april 7 , 2020 , the board of directors of the company approved the increase of authorized shares of common stock from 600,000,000 to 1,000,000,000. on april 20 , 2020 , the company , fresh market merger sub , inc. , a delaware corporation and a newly created wholly-owned subsidiary of the company ( “ merger sub ” ) , and home bistro , inc. , a privately-held delaware corporation engaged in the food preparation and home-delivery business ( presently known as home bistro holdings , inc. , a nevada corporation ) ( “ home bistro holdings ” ) , entered into an agreement and plan of merger ( the “ merger agreement ” ) pursuant to which , among other things , merger sub agreed to merge with and into home bistro holdings , with home bistro holdings becoming a wholly-owned subsidiary of the company and the surviving corporation in the merger ( the “ merger ” ) . pursuant to the terms of the merger agreement , home bistro holdings filed a certificate of merger with the nevada secretary of state on april 20 , 2020. on april 20 , 2020 , pursuant to the terms of the merger agreement , roy g. warren , jr. , mike edwards , and bruce zanca resigned as directors of the company and roy g. warren , jr. resigned as chief operating officer of the company . the resignations were not the result of any disagreement related to the company 's operations , policies , or practices . furthermore , on april 20 , 2020 , mr. zalmi duchman , the chief executive officer of home bistro holdings , michael finkelstein and michael novielli were appointed as directors of the company . in addition , mr. duchman was appointed chief executive officer . the merger constituted a change of control and the majority of the board of directors changed with the consummation of the merger . the company issued to the stockholders of home bistro holdings shares of common stock and stock warrants which represented approximately 80 % of the combined company on a fully converted basis after the closing of the merger . as a result of the above transactions and the company 's intent to dispose or divest the assets and liabilities associated with the rtd business , this transaction was accounted for as a reverse recapitalization effected by a share exchange of home bistro holdings . the consolidated interim financial statements are those of home bistro holdings ( the accounting acquirer ) prior to the merger and include the activity of the company ( the accounting acquiree ) from the date of the merger . 18 on september 14 , 2020 , the company filed with the secretary of state of the state of nevada a certificate of amendment to its articles of incorporation to effect ( i ) a 1 for 31.993 reverse stock split of its common stock , par value $ 0.001 per share , with fractional shares rounding up to the nearest whole share ( the “ reverse stock split ” ) , and ( ii ) the change of the company 's name from “ gratitude health , inc. ” to “ home bistro , inc. ” . all share and per-share data and amounts have been retroactively adjusted as of the earliest period presented in the consolidated financial statements to reflect the reverse stock split . on sept. 14 , 2020 , the financial industry regulatory authority approved the company 's symbol change from “ grtd ” to “ hbis ” , effective twenty ( 20 ) business days from the approval date . on september 25 , 2020 , the company entered into , and closed the transactions contemplated by , that certain asset purchase agreement ( the “ asset purchase agreement ” ) , by and among the company , gratitude keto holdings , inc. , a florida corporation ( the “ buyer ” or “ gratitude keto ” ) , and the holder of 250,000 of the company 's issued and outstanding shares of series b preferred stock , $ 0.001 par value per share ( such stock , the “ series b preferred stock ” , and such stockholder , the “ stockholder ” ) . pursuant to the asset purchase agreement , among other things , the company agreed to sell to the buyer all of the company 's business , assets and properties used , or held or developed for use , in its functional rtd business , and the buyer agreed to assume certain debts , obligations and liabilities related to the rtd business . story_separator_special_tag critical accounting policies are those that are most important to the portrayal of our financial condition and results of operations and require management 's difficult , subjective , or complex judgment , often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods . certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management 's current judgments . we believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our consolidated financial statements . we believe the critical accounting policies in note 2 to the consolidated financial statements appearing in our audited financial statements for the years ended december 31 , 2020 and 2019 included in this form 10-k , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . use of estimates the preparation of the financial statements in conformity with u.s. gaap requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . actual results could differ from these estimates . significant estimates as of december 31 , 2020 and 2019 include the assumptions used in the redemption recognition method for unredeemed gift cards , collectability of note receivable , estimates of current and deferred income taxes and deferred tax valuation allowances , valuation of derivative liabilities , and the fair value of non-cash equity transactions . 22 fair value of financial instruments and fair value measurements fasb asc 820 - fair value measurements and disclosures , defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . fasb asc 820 requires disclosures about the fair value of all financial instruments , whether or not recognized , for financial statement purposes . disclosures about the fair value of financial instruments are based on pertinent information available to the company on december 31 , 2020. accordingly , the estimates presented in these financial statements are not necessarily indicative of the amounts that could be realized on disposition of the financial instruments . fasb asc 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable . observable inputs reflect market data obtained from independent sources , while unobservable inputs reflect market assumptions . the hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ( level 1 measurement ) and the lowest priority to unobservable inputs ( level 3 measurement ) . the three levels of the fair value hierarchy are as follows : level 1—inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date . level 2—inputs are unadjusted quoted prices for similar assets and liabilities in active markets , quoted prices for identical or similar assets and liabilities in markets that are not active , inputs other than quoted prices that are observable , and inputs derived from or corroborated by observable market data . level 3—inputs are unobservable inputs which reflect the reporting entity 's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information . the carrying amounts reported in the consolidated balance sheets for cash , due from and to related parties , prepaid expenses , accounts payable and accrued liabilities approximate their fair market value based on the short-term maturity of these instruments . derivative liabilities the company has certain financial instruments that are embedded derivatives associated with capital raises . the company evaluates all its financial instruments to determine if those contracts or any potential embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with asc 815-10 – derivative and hedging – contract in entity 's own equity . this accounting treatment requires that the carrying amount of any derivatives be recorded at fair value at issuance and marked-to-market at each balance sheet date . in the event that the fair value is recorded as a liability , as is the case with the company , the change in the fair value during the period is recorded as either other income or expense . upon conversion , exercise or repayment , the respective derivative liability is marked to fair value at the conversion , repayment , or exercise date and then the related fair value amount is reclassified to other income or expense as part of gain or loss on debt extinguishment . in july 2017 , fasb issued asu no . 2017-11 , earnings per share ( topic 260 ) ; distinguishing liabilities from equity ( topic 480 ) ; derivatives and hedging ( topic 815 ) : ( part i ) accounting for certain financial instruments with down round features . these amendments simplify the accounting for certain financial instruments with down-round features . the amendments require companies to disregard the down-round feature when assessing whether the instrument is indexed to its own stock , for purposes of determining liability or equity classification . for public business entities , the amendments in part i of the asu are effective for fiscal years , and interim periods within those fiscal years , beginning after december 15 , 2018. revenue recognition the company 's revenues consist of high quality , direct-to-consumer , ready-made meals that can be ordered by customers through www.homebistro.com , and restaurant quality meats and seafood through its colorado prime brand . revenues from the company 's ready-made meals are recognized when the product is

net cash used in operating activities net cash used in operating activities was $ 273,816 for the year ended december 31 , 2020 as compared to $ 30,244 for the year ended december 31 , 2019 , an increase of $ 243,572 or 805 % . ● net cash used in operating activities for the year ended december 31 , 2020 primarily reflected our net loss of $ 1,241,661 adjusted for the add-back on non-cash items such as depreciation expense of $ 440 , stock-based compensation of $ 213,841 and commons stock and warrants issued for services of $ 609,740 , amortization of debt discount of $ 7,983 , offset by gain on extinguishment of accounts payable of $ 7,075 , and gain from change in fair value of derivative liabilities $ 32,315 and changes in operating asset and liabilities consisting primarily of an increase of prepaid expenses and other current assets of $ 8,896 , an increase in unredeemed gift cards of $ 37,946 , an increase in accrued expense and other liabilities of $ 102,201 and an increase in accounts payable of $ 43,980 . ● net cash used in operating activities from continuing operations for the year ended december 31 , 2019 primarily reflected our net loss of $ 199,061 adjusted for the add-back on non-cash items such as stock-based compensation of $ 183,294 , gain on extinguishment of accounts payable of $ 18,470 and changes in operating asset and liabilities consisting primarily of a decrease in inventory of $ 7,306 , a decrease in prepaid expenses and other current assets of $ 7,428 , an increase in unredeemed gift cards of $ 399 offset by a decrease in accounts payable of $ 11,140. net cash provided investing activities net cash provided by investing activities was $ 1,749 for the


 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.
     ```net cash used in operating activities net cash used in operating activities was $ 273,816 for the year ended december 31 , 2020 as compared to $ 30,244 for the year ended december 31 , 2019 , an increase of $ 243,572 or 805 % . ● net cash used in operating activities for the year ended december 31 , 2020 primarily reflected our net loss of $ 1,241,661 adjusted for the add-back on non-cash items such as depreciation expense of $ 440 , stock-based compensation of $ 213,841 and commons stock and warrants issued for services of $ 609,740 , amortization of debt discount of $ 7,983 , offset by gain on extinguishment of accounts payable of $ 7,075 , and gain from change in fair value of derivative liabilities $ 32,315 and changes in operating asset and liabilities consisting primarily of an increase of prepaid expenses and other current assets of $ 8,896 , an increase in unredeemed gift cards of $ 37,946 , an increase in accrued expense and other liabilities of $ 102,201 and an increase in accounts payable of $ 43,980 . ● net cash used in operating activities from continuing operations for the year ended december 31 , 2019 primarily reflected our net loss of $ 199,061 adjusted for the add-back on non-cash items such as stock-based compensation of $ 183,294 , gain on extinguishment of accounts payable of $ 18,470 and changes in operating asset and liabilities consisting primarily of a decrease in inventory of $ 7,306 , a decrease in prepaid expenses and other current assets of $ 7,428 , an increase in unredeemed gift cards of $ 399 offset by a decrease in accounts payable of $ 11,140. net cash provided investing activities net cash provided by investing activities was $ 1,749 for the
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 Suspicious Activity Report : overview the company was incorporated in the state of nevada on december 17 , 2009. effective march 23 , 2018 , the company changed its name from vapir enterprises , inc. to gratitude health , inc. on september 14 , 2020 , the company changed its name from gratitude health , inc. to home bistro , inc. the company is in the business of providing prepackaged and prepared meals to consumers focused on offering a broad array of the highest quality meal planning , delivery , and preparation services . the company 's primary former operations were in the business of manufacturing , selling , and marketing functional rtd ( ready to drink ) beverages sold under the company 's trademark ( the “ rtd business ” ) . the rtd business was disposed on september 25 , 2020 as discussed below . on april 7 , 2020 , the board of directors of the company approved the increase of authorized shares of common stock from 600,000,000 to 1,000,000,000. on april 20 , 2020 , the company , fresh market merger sub , inc. , a delaware corporation and a newly created wholly-owned subsidiary of the company ( “ merger sub ” ) , and home bistro , inc. , a privately-held delaware corporation engaged in the food preparation and home-delivery business ( presently known as home bistro holdings , inc. , a nevada corporation ) ( “ home bistro holdings ” ) , entered into an agreement and plan of merger ( the “ merger agreement ” ) pursuant to which , among other things , merger sub agreed to merge with and into home bistro holdings , with home bistro holdings becoming a wholly-owned subsidiary of the company and the surviving corporation in the merger ( the “ merger ” ) . pursuant to the terms of the merger agreement , home bistro holdings filed a certificate of merger with the nevada secretary of state on april 20 , 2020. on april 20 , 2020 , pursuant to the terms of the merger agreement , roy g. warren , jr. , mike edwards , and bruce zanca resigned as directors of the company and roy g. warren , jr. resigned as chief operating officer of the company . the resignations were not the result of any disagreement related to the company 's operations , policies , or practices . furthermore , on april 20 , 2020 , mr. zalmi duchman , the chief executive officer of home bistro holdings , michael finkelstein and michael novielli were appointed as directors of the company . in addition , mr. duchman was appointed chief executive officer . the merger constituted a change of control and the majority of the board of directors changed with the consummation of the merger . the company issued to the stockholders of home bistro holdings shares of common stock and stock warrants which represented approximately 80 % of the combined company on a fully converted basis after the closing of the merger . as a result of the above transactions and the company 's intent to dispose or divest the assets and liabilities associated with the rtd business , this transaction was accounted for as a reverse recapitalization effected by a share exchange of home bistro holdings . the consolidated interim financial statements are those of home bistro holdings ( the accounting acquirer ) prior to the merger and include the activity of the company ( the accounting acquiree ) from the date of the merger . 18 on september 14 , 2020 , the company filed with the secretary of state of the state of nevada a certificate of amendment to its articles of incorporation to effect ( i ) a 1 for 31.993 reverse stock split of its common stock , par value $ 0.001 per share , with fractional shares rounding up to the nearest whole share ( the “ reverse stock split ” ) , and ( ii ) the change of the company 's name from “ gratitude health , inc. ” to “ home bistro , inc. ” . all share and per-share data and amounts have been retroactively adjusted as of the earliest period presented in the consolidated financial statements to reflect the reverse stock split . on sept. 14 , 2020 , the financial industry regulatory authority approved the company 's symbol change from “ grtd ” to “ hbis ” , effective twenty ( 20 ) business days from the approval date . on september 25 , 2020 , the company entered into , and closed the transactions contemplated by , that certain asset purchase agreement ( the “ asset purchase agreement ” ) , by and among the company , gratitude keto holdings , inc. , a florida corporation ( the “ buyer ” or “ gratitude keto ” ) , and the holder of 250,000 of the company 's issued and outstanding shares of series b preferred stock , $ 0.001 par value per share ( such stock , the “ series b preferred stock ” , and such stockholder , the “ stockholder ” ) . pursuant to the asset purchase agreement , among other things , the company agreed to sell to the buyer all of the company 's business , assets and properties used , or held or developed for use , in its functional rtd business , and the buyer agreed to assume certain debts , obligations and liabilities related to the rtd business . story_separator_special_tag critical accounting policies are those that are most important to the portrayal of our financial condition and results of operations and require management 's difficult , subjective , or complex judgment , often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods . certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management 's current judgments . we believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our consolidated financial statements . we believe the critical accounting policies in note 2 to the consolidated financial statements appearing in our audited financial statements for the years ended december 31 , 2020 and 2019 included in this form 10-k , affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . use of estimates the preparation of the financial statements in conformity with u.s. gaap requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . actual results could differ from these estimates . significant estimates as of december 31 , 2020 and 2019 include the assumptions used in the redemption recognition method for unredeemed gift cards , collectability of note receivable , estimates of current and deferred income taxes and deferred tax valuation allowances , valuation of derivative liabilities , and the fair value of non-cash equity transactions . 22 fair value of financial instruments and fair value measurements fasb asc 820 - fair value measurements and disclosures , defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . fasb asc 820 requires disclosures about the fair value of all financial instruments , whether or not recognized , for financial statement purposes . disclosures about the fair value of financial instruments are based on pertinent information available to the company on december 31 , 2020. accordingly , the estimates presented in these financial statements are not necessarily indicative of the amounts that could be realized on disposition of the financial instruments . fasb asc 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable . observable inputs reflect market data obtained from independent sources , while unobservable inputs reflect market assumptions . the hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ( level 1 measurement ) and the lowest priority to unobservable inputs ( level 3 measurement ) . the three levels of the fair value hierarchy are as follows : level 1—inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date . level 2—inputs are unadjusted quoted prices for similar assets and liabilities in active markets , quoted prices for identical or similar assets and liabilities in markets that are not active , inputs other than quoted prices that are observable , and inputs derived from or corroborated by observable market data . level 3—inputs are unobservable inputs which reflect the reporting entity 's own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information . the carrying amounts reported in the consolidated balance sheets for cash , due from and to related parties , prepaid expenses , accounts payable and accrued liabilities approximate their fair market value based on the short-term maturity of these instruments . derivative liabilities the company has certain financial instruments that are embedded derivatives associated with capital raises . the company evaluates all its financial instruments to determine if those contracts or any potential embedded components of those contracts qualify as derivatives to be separately accounted for in accordance with asc 815-10 – derivative and hedging – contract in entity 's own equity . this accounting treatment requires that the carrying amount of any derivatives be recorded at fair value at issuance and marked-to-market at each balance sheet date . in the event that the fair value is recorded as a liability , as is the case with the company , the change in the fair value during the period is recorded as either other income or expense . upon conversion , exercise or repayment , the respective derivative liability is marked to fair value at the conversion , repayment , or exercise date and then the related fair value amount is reclassified to other income or expense as part of gain or loss on debt extinguishment . in july 2017 , fasb issued asu no . 2017-11 , earnings per share ( topic 260 ) ; distinguishing liabilities from equity ( topic 480 ) ; derivatives and hedging ( topic 815 ) : ( part i ) accounting for certain financial instruments with down round features . these amendments simplify the accounting for certain financial instruments with down-round features . the amendments require companies to disregard the down-round feature when assessing whether the instrument is indexed to its own stock , for purposes of determining liability or equity classification . for public business entities , the amendments in part i of the asu are effective for fiscal years , and interim periods within those fiscal years , beginning after december 15 , 2018. revenue recognition the company 's revenues consist of high quality , direct-to-consumer , ready-made meals that can be ordered by customers through www.homebistro.com , and restaurant quality meats and seafood through its colorado prime brand . revenues from the company 's ready-made meals are recognized when the product is

