we sell our products globally to a diverse array of customers that include the fortune 500 as well as start-ups , design houses , original design manufacturers , oems and universities . our technology has been deployed in the consumer electronics , industrial automation , automotive and medical markets . our global presence in the united states , china , hong kong , singapore and japan , allows us to provide local sales and engineering support services to our existing and future customers . our products are manufactured by our wholly-owned subsidiary in a state-of-the-art facility in shenzhen , china . we control 100 % of the manufacturing and shipping process which enables us to respond quickly to customer product demand and design requirements . we have invested significantly in the expansion of our technology platforms through our own internal development to ensure we provide the market with leading-edge hmi solutions that are seamless to deploy and perform flawlessly . we spent the last three years building a research and development ( r & d ) organization in singapore to develop new product offerings that will meet the market 's growing demand for touch technology and smart surfaces . we are now shifting a majority of r & d and product development efforts to camarillo , california , where we are establishing a global product development and materials science center . we believe an increased presence in the u.s. will allow us to grow our business and be more closely aligned with current and future large-tier customers . we also plan to explore potential strategic relationships with companies and technology institutes that will support our growth initiatives . 26 results of operations the following table sets forth certain consolidated statements of operations data for the periods indicated . the percentages in the tables are based on net revenues . replace_table_token_1_th impact of covid-19 on results of operations the covid-19 pandemic has adversely affected our operating results for the year ended december 31 , 2020 , with the impact of the pandemic being more significant in the second half of 2020. covid-19 has resulted in many of our customers delaying orders or cancelling them altogether due to disruptions in their supply chain and reduced demand for their products . revenues were lower in 2020 because of a significant reduction of shipments to our largest medical customer , which could not install the devices that use our products in hospitals due to covid-19 restrictions . this medical customer accounted for 15.5 % of revenue in 2020 and 36.8 % of revenue in 2019 , and thus its reduction in purchases resulted in a significant decline in revenue for 2020 when compared to the prior year . we experienced a similar decline in sales to other customers due to disruptions in their businesses . to mitigate the effects of covid-19 on our business , we have been working with key customers to reach agreement on the timing for shipment of products on orders previously delayed or cancelled . this has allowed us to accelerate into 2020 the shipment of certain orders previously delayed for shipment in 2021. these efforts have helped us to reduce the amount of lost revenue for 2020 from the pandemic . while the impact of covid-19 is by no means over , orders for our products have begun to stabilize and we do not anticipate further significant declines in product sales to continue . comparison of the years ended december 31 , 2020 and 2019 revenue , net by the markets we serve is as follows : replace_table_token_2_th 27 we sell our custom products into the industrial , medical and consumer markets . we previously sold custom products in the automotive market and continue to pursue opportunities in that sector . we sell our standard products through various distribution networks . the ultimate customer for standard products may come from different markets which are often unknown to us at the time of sale . each market has different product design cycles . products with longer design cycles often have much longer product life-cycles . industrial and medical products generally have longer design and life-cycles than consumer products . we currently have products with life-cycles that have exceeded twenty years and are ongoing . revenues were down in 2020 compared to 2019 in the industrial and medical markets , and were up in the consumer market and for our standard products . the decrease in revenue from our industrial market customers is due to decreased purchasing volume by these customers for use in their ongoing product lines resulting from changes in demand by their customers . the decrease in revenue from our medical market customers is primarily due to significant reduction of shipments to our largest medical customer , which could not install the devices that use our products in hospitals due to covid-19 restrictions . the increase in revenue from our consumer market customers is due to an increase in purchase levels on corresponding products and programs . the increase in revenue on our standard products is due to cyclical purchasing pattern of some of our larger customers who took delivery of bulk quantities during 2020. in the normal cycle , some of our larger customers purchase in bulk quantities and absorption of these products can straddle several financial reporting periods . in all markets , the timing of orders from our customers is not always predictable and can be concentrated in varying periods during the year to coincide with their project and building plans . replace_table_token_3_th our gross profit and gross margin are impacted by various factors including product mix , customer mix , volume , material costs , manufacturing efficiencies , facilities costs , compensation costs and provisions for excess and obsolete inventories . story_separator_special_tag the guidance defines a five-step process to achieve this core principle and , in doing so , judgment and estimates may be required within the revenue recognition process including identifying performance obligations in the contract , estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation . generally , we recognize revenue when there is persuasive evidence that an arrangement exists , title and risk of loss have passed , delivery has occurred or the services have been rendered , the sales price is fixed or determinable and collection of the related receivable is reasonably assured . title and risk of loss generally pass to our customers upon shipment . in limited circumstances where either title or risk of loss pass upon destination or acceptance or when collection is not reasonably assured , we defer revenue recognition until such events occur . we input orders based upon receipt of a customer purchase order , confirm pricing through the customer purchase order , validate credit worthiness through past payment history or other financial data and record revenue upon shipment of goods and when risk of loss and title transfer . all customers have warranty rights , and some customers have explicit or implicit rights of return . we record reserves for potential customer returns and warranty rights . inventory valuation inventories are stated at lower of cost or net realizable value ( “ nrv ” ) and consist of materials , labor and overhead . inventory costs are determined using standard costs which approximate actual costs under the first-in , first-out method . we evaluate inventories for excess quantities and obsolescence . our evaluation considers market and economic conditions , technology changes , new product introductions , and changes in strategic business direction , and requires estimates that may include elements that are uncertain . in order to state the inventory at lower of cost or nrv , we maintain reserves against individual stocking units . inventory write-downs , once established , are not reversed until the related inventories have been sold or scrapped . if future demand or market conditions are less favorable than our projections , a write-down of inventory may be required , and would be reflected in cost of goods sold in the period the revision is made . 31 accounts receivable and allowance for doubtful accounts accounts receivable are recorded at the invoice amount and presented net of the allowance for doubtful accounts . they do not bear interest . we evaluate the collectability of accounts receivable at each balance sheet date using a combination of factors , such as historical experience , credit quality , age of the accounts receivable balances , and economic conditions that may affect a customer 's ability to pay . we include any accounts receivable balances that are determined to be uncollectible in the overall allowance for doubtful accounts using the specific identification method . after all attempts to collect a receivable have failed , the receivable is written off against the allowance . stock-based compensation we account for stock-based compensation under asc topic 718 , compensation-stock compensation , which requires us to record related compensation costs in the statement of operations . calculating the fair value of stock-based compensation awards requires the input of highly subjective assumptions , including the expected life of the awards and expected volatility of our stock price . expected volatility is a statistical measure of the amount by which a stock price is expected to fluctuate during a period . our estimates of expected volatilities are based on weighted historical implied volatility . the expected forfeiture rate applied in calculating stock-based compensation cost is estimated using historical data and is updated annually . the assumptions used in calculating the fair value of stock-based awards involve estimates that require management judgment . if factors change and we use different assumptions , our stock-based compensation expense could change significantly in the future . in addition , if our actual forfeiture rate is different from our estimate , our stock-based compensation expense could change significantly in the future . income taxes we account for income taxes using the asset and liability method in accordance with asc topic 740 , income taxes , which requires recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns . under this method , we must make estimates and judgments in determining the provision for taxes for financial statement purposes . these estimates and judgments occur in the calculation of tax credits , benefits , and deductions , and in the calculation of certain tax assets and liabilities that arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes , as well as the interest and penalties related to uncertain tax positions . in addition , the company operates within multiple tax jurisdictions and is subject to audit in these jurisdictions . significant changes in these estimates may result in an increase or decrease to our tax provision in a subsequent period . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . our foreign subsidiaries are subject to foreign income taxes on earnings in their respective jurisdictions . earnings of our foreign subsidiaries are generally included in our u.s. federal income tax return as they are earned . we assess the likelihood that our deferred tax assets will be recovered from future taxable income and to the extent we believe that recovery is not determinable beyond a “ more likely than not ” standard , we establish a valuation allowance . to the extent we establish a valuation allowance or increase or decrease this allowance in a period , we include an expense or benefit within the tax

liquidity and capital resources cash requirements for working capital and capital expenditures have been funded from cash balances on hand and cash generated from operations . as of december 31 , 2020 , we had cash and cash equivalents of $ 6.125 million , working capital of $ 7.454 million and no indebtedness except for a loan of $ 0.186 million we received from silicon valley bank pursuant to the paycheck protection program . cash and cash equivalents consist of cash and money market funds . we did not have any short-term or long-term investments as of december 31 , 2020. of the $ 6.125 million of cash balances on hand , $ 1.754 million was held by foreign subsidiaries . if these funds are needed for our operations in the u.s. , we have several methods to repatriate the funds without significant tax effects , including repayment of intercompany loans or distributions of previously taxed income . other distributions may require us to incur u.s. or foreign taxes to repatriate these funds . however , our intent is to permanently reinvest these funds outside the u.s. and our current plans do not demonstrate a need to repatriate cash to fund our u.s. operations . the company received a loan from silicon valley bank in the aggregate principal amount of $ 0.186 million pursuant to the paycheck protection program ( the “ ppp ” ) under the coronavirus aid , relief , and economic security act ( the “ cares act ” ) , which was enacted in march 2020. the loan is evidenced by a promissory note , dated april 21 , 2020 , issued by us to the lender , which matures on april 20 , 2022 , and bears interest at a rate of 1.00 % per annum , payable monthly following an initial deferral period as specified under the ppp . we may prepay the note at any time prior to maturity with no prepayment penalties . proceeds from the loan were used to fund designated expenses , including certain payroll costs , group health care benefits and other permitted expenses , in accordance with the ppp .


 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 cash requirements for working capital and capital expenditures have been funded from cash balances on hand and cash generated from operations . as of december 31 , 2020 , we had cash and cash equivalents of $ 6.125 million , working capital of $ 7.454 million and no indebtedness except for a loan of $ 0.186 million we received from silicon valley bank pursuant to the paycheck protection program . cash and cash equivalents consist of cash and money market funds . we did not have any short-term or long-term investments as of december 31 , 2020. of the $ 6.125 million of cash balances on hand , $ 1.754 million was held by foreign subsidiaries . if these funds are needed for our operations in the u.s. , we have several methods to repatriate the funds without significant tax effects , including repayment of intercompany loans or distributions of previously taxed income . other distributions may require us to incur u.s. or foreign taxes to repatriate these funds . however , our intent is to permanently reinvest these funds outside the u.s. and our current plans do not demonstrate a need to repatriate cash to fund our u.s. operations . the company received a loan from silicon valley bank in the aggregate principal amount of $ 0.186 million pursuant to the paycheck protection program ( the “ ppp ” ) under the coronavirus aid , relief , and economic security act ( the “ cares act ” ) , which was enacted in march 2020. the loan is evidenced by a promissory note , dated april 21 , 2020 , issued by us to the lender , which matures on april 20 , 2022 , and bears interest at a rate of 1.00 % per annum , payable monthly following an initial deferral period as specified under the ppp . we may prepay the note at any time prior to maturity with no prepayment penalties . proceeds from the loan were used to fund designated expenses , including certain payroll costs , group health care benefits and other permitted expenses , in accordance with the ppp .
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 Suspicious Activity Report : we sell our products globally to a diverse array of customers that include the fortune 500 as well as start-ups , design houses , original design manufacturers , oems and universities . our technology has been deployed in the consumer electronics , industrial automation , automotive and medical markets . our global presence in the united states , china , hong kong , singapore and japan , allows us to provide local sales and engineering support services to our existing and future customers . our products are manufactured by our wholly-owned subsidiary in a state-of-the-art facility in shenzhen , china . we control 100 % of the manufacturing and shipping process which enables us to respond quickly to customer product demand and design requirements . we have invested significantly in the expansion of our technology platforms through our own internal development to ensure we provide the market with leading-edge hmi solutions that are seamless to deploy and perform flawlessly . we spent the last three years building a research and development ( r & d ) organization in singapore to develop new product offerings that will meet the market 's growing demand for touch technology and smart surfaces . we are now shifting a majority of r & d and product development efforts to camarillo , california , where we are establishing a global product development and materials science center . we believe an increased presence in the u.s. will allow us to grow our business and be more closely aligned with current and future large-tier customers . we also plan to explore potential strategic relationships with companies and technology institutes that will support our growth initiatives . 26 results of operations the following table sets forth certain consolidated statements of operations data for the periods indicated . the percentages in the tables are based on net revenues . replace_table_token_1_th impact of covid-19 on results of operations the covid-19 pandemic has adversely affected our operating results for the year ended december 31 , 2020 , with the impact of the pandemic being more significant in the second half of 2020. covid-19 has resulted in many of our customers delaying orders or cancelling them altogether due to disruptions in their supply chain and reduced demand for their products . revenues were lower in 2020 because of a significant reduction of shipments to our largest medical customer , which could not install the devices that use our products in hospitals due to covid-19 restrictions . this medical customer accounted for 15.5 % of revenue in 2020 and 36.8 % of revenue in 2019 , and thus its reduction in purchases resulted in a significant decline in revenue for 2020 when compared to the prior year . we experienced a similar decline in sales to other customers due to disruptions in their businesses . to mitigate the effects of covid-19 on our business , we have been working with key customers to reach agreement on the timing for shipment of products on orders previously delayed or cancelled . this has allowed us to accelerate into 2020 the shipment of certain orders previously delayed for shipment in 2021. these efforts have helped us to reduce the amount of lost revenue for 2020 from the pandemic . while the impact of covid-19 is by no means over , orders for our products have begun to stabilize and we do not anticipate further significant declines in product sales to continue . comparison of the years ended december 31 , 2020 and 2019 revenue , net by the markets we serve is as follows : replace_table_token_2_th 27 we sell our custom products into the industrial , medical and consumer markets . we previously sold custom products in the automotive market and continue to pursue opportunities in that sector . we sell our standard products through various distribution networks . the ultimate customer for standard products may come from different markets which are often unknown to us at the time of sale . each market has different product design cycles . products with longer design cycles often have much longer product life-cycles . industrial and medical products generally have longer design and life-cycles than consumer products . we currently have products with life-cycles that have exceeded twenty years and are ongoing . revenues were down in 2020 compared to 2019 in the industrial and medical markets , and were up in the consumer market and for our standard products . the decrease in revenue from our industrial market customers is due to decreased purchasing volume by these customers for use in their ongoing product lines resulting from changes in demand by their customers . the decrease in revenue from our medical market customers is primarily due to significant reduction of shipments to our largest medical customer , which could not install the devices that use our products in hospitals due to covid-19 restrictions . the increase in revenue from our consumer market customers is due to an increase in purchase levels on corresponding products and programs . the increase in revenue on our standard products is due to cyclical purchasing pattern of some of our larger customers who took delivery of bulk quantities during 2020. in the normal cycle , some of our larger customers purchase in bulk quantities and absorption of these products can straddle several financial reporting periods . in all markets , the timing of orders from our customers is not always predictable and can be concentrated in varying periods during the year to coincide with their project and building plans . replace_table_token_3_th our gross profit and gross margin are impacted by various factors including product mix , customer mix , volume , material costs , manufacturing efficiencies , facilities costs , compensation costs and provisions for excess and obsolete inventories . story_separator_special_tag the guidance defines a five-step process to achieve this core principle and , in doing so , judgment and estimates may be required within the revenue recognition process including identifying performance obligations in the contract , estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation . generally , we recognize revenue when there is persuasive evidence that an arrangement exists , title and risk of loss have passed , delivery has occurred or the services have been rendered , the sales price is fixed or determinable and collection of the related receivable is reasonably assured . title and risk of loss generally pass to our customers upon shipment . in limited circumstances where either title or risk of loss pass upon destination or acceptance or when collection is not reasonably assured , we defer revenue recognition until such events occur . we input orders based upon receipt of a customer purchase order , confirm pricing through the customer purchase order , validate credit worthiness through past payment history or other financial data and record revenue upon shipment of goods and when risk of loss and title transfer . all customers have warranty rights , and some customers have explicit or implicit rights of return . we record reserves for potential customer returns and warranty rights . inventory valuation inventories are stated at lower of cost or net realizable value ( “ nrv ” ) and consist of materials , labor and overhead . inventory costs are determined using standard costs which approximate actual costs under the first-in , first-out method . we evaluate inventories for excess quantities and obsolescence . our evaluation considers market and economic conditions , technology changes , new product introductions , and changes in strategic business direction , and requires estimates that may include elements that are uncertain . in order to state the inventory at lower of cost or nrv , we maintain reserves against individual stocking units . inventory write-downs , once established , are not reversed until the related inventories have been sold or scrapped . if future demand or market conditions are less favorable than our projections , a write-down of inventory may be required , and would be reflected in cost of goods sold in the period the revision is made . 31 accounts receivable and allowance for doubtful accounts accounts receivable are recorded at the invoice amount and presented net of the allowance for doubtful accounts . they do not bear interest . we evaluate the collectability of accounts receivable at each balance sheet date using a combination of factors , such as historical experience , credit quality , age of the accounts receivable balances , and economic conditions that may affect a customer 's ability to pay . we include any accounts receivable balances that are determined to be uncollectible in the overall allowance for doubtful accounts using the specific identification method . after all attempts to collect a receivable have failed , the receivable is written off against the allowance . stock-based compensation we account for stock-based compensation under asc topic 718 , compensation-stock compensation , which requires us to record related compensation costs in the statement of operations . calculating the fair value of stock-based compensation awards requires the input of highly subjective assumptions , including the expected life of the awards and expected volatility of our stock price . expected volatility is a statistical measure of the amount by which a stock price is expected to fluctuate during a period . our estimates of expected volatilities are based on weighted historical implied volatility . the expected forfeiture rate applied in calculating stock-based compensation cost is estimated using historical data and is updated annually . the assumptions used in calculating the fair value of stock-based awards involve estimates that require management judgment . if factors change and we use different assumptions , our stock-based compensation expense could change significantly in the future . in addition , if our actual forfeiture rate is different from our estimate , our stock-based compensation expense could change significantly in the future . income taxes we account for income taxes using the asset and liability method in accordance with asc topic 740 , income taxes , which requires recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns . under this method , we must make estimates and judgments in determining the provision for taxes for financial statement purposes . these estimates and judgments occur in the calculation of tax credits , benefits , and deductions , and in the calculation of certain tax assets and liabilities that arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes , as well as the interest and penalties related to uncertain tax positions . in addition , the company operates within multiple tax jurisdictions and is subject to audit in these jurisdictions . significant changes in these estimates may result in an increase or decrease to our tax provision in a subsequent period . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . our foreign subsidiaries are subject to foreign income taxes on earnings in their respective jurisdictions . earnings of our foreign subsidiaries are generally included in our u.s. federal income tax return as they are earned . we assess the likelihood that our deferred tax assets will be recovered from future taxable income and to the extent we believe that recovery is not determinable beyond a “ more likely than not ” standard , we establish a valuation allowance . to the extent we establish a valuation allowance or increase or decrease this allowance in a period , we include an expense or benefit within the tax

