it also included provisions for legalizing on a federal level hemp 's cultivation , transport and sale for the first time in more than 75 years . hemp , not previously distinguished by the federal government from cannabis , a schedule 1 drug and banned as an agricultural crop , lacks substantive plant biology research and suffers from suboptimal genetics , highly fragmented germplasm and rampant inconsistencies . we are targeting hemp-based solutions that allow farmers to reliably and consistently achieve compliance with usda regulations , through varieties with improved functionality and application of specific attributes such as select cannabinoid contents for health and wellness , enhanced proteins profiles for plant-based dietary applications and industrial applications such as clothing and hempcrete . arcadia conducts its business in only federal and state markets in which its activities are legal . 29 on october 31 , 2019 , the usda published the interim final rule as authorized by the agriculture improvement act of 2018 for hemp cultivation , which mandates that states test hemp crops and dispose of `` hot `` crops that exceed 0.3 % thc . while hemp farmers will have access to crop protection options , the destruction of hot crops that fail these stringent inspections will not be a covered loss under crop insurance programs . in 2019 alone , more than 20 % of u.s. hemp crops were non-compliant , representing over $ 2 billion in losses for growers . arcadia goodhemp in december 2019 , we announced the launch of a new product line , goodhemp , as the company 's new commercial brand for delivering genetically superior hemp seeds , transplants , flower and extracts . on august 21 , 2020 , the company acquired by merger industrial seed innovations ( isi ) , an oregon-based industrial hemp breeding and seed company . as a result of the acquisition , the company acquired isi 's commercial and genetic assets , including seed varieties , germplasm library and intellectual property . isi 's rogue and umpqua seed varieties are now part of arcadia 's portfolio , alongside the company 's goodhemp line of genetically superior hemp seeds , transplants , and extracts . the acquisition has significantly broadened and accelerated commercialization of arcadia 's hemp-related breeding platform , as well as established a breeding research and development facility in the pacific northwest , a key production area in the hemp industry . the hemp business journal estimates the hemp cbd market – the primary non-psychoactive compound in hemp – totaled $ 190 million in u.s. sales in 2018. by 2025 , the brightfield group , a hemp and cbd market research firm , projects u.s. sales of hemp-based cbd to reach $ 16.8 billion . additionally , markets and markets estimates the non-cannabinoid , industrial hemp global market will exceed $ 26 billion by 2025. archipelago ventures hawaii , llc in august 2019 , we formed a new joint venture to serve the hawaiian , north american and asian hemp markets , archipelago ventures hawaii , llc ( “ archipelago ” ) . this new venture between arcadia and legacy ventures hawaii ( “ legacy ” ) combines arcadia 's extensive genetic expertise and seed innovation history with legacy 's growth capital and strategic advisory expertise in the hawaiian markets . additionally , legacy brings to the partnership years of proven success in extraction , product formulation and sales of cannabinol oil and distillate products through its equity partner , vapen cbd . legacy was originally formed to be a vehicle for its partners to pursue hemp opportunities within the hawaiian islands . archipelago creates a vertically integrated supply chain , from seed to sale , we believe the first of its kind in hawaii , and has three important strategic imperatives : ( 1 ) ensure a reliable supply chain during critical scale up of the global hemp market , a major risk mitigation for success , ( 2 ) ensure high quality throughout the supply chain , from genetics to the field and field to the customer and ( 3 ) ensure being well-positioned to address the unique needs and opportunities of the hawaiian market . arcadia goodwheat in 2018 , we launched our goodwheat brand , a non-genetically modified ( non-gm ) portfolio of wheat products that enables food manufacturers to differentiate their consumer-facing brands . consumer food companies are looking to simplify their food ingredient formulations and consumers are demanding “ clean labeling ” in their foods , paying more for foods having fewer artificial ingredients and more natural , recognizable and healthy ingredients . a 2017 survey by pr agency ingredient communications found that 73 % of consumers are happy to pay a higher retail price for a food or drink product made with ingredients they recognize . because goodwheat increases the nutrient density directly in the primary grains and oils , it provides the mechanism for food formulation simplification naturally , cost effectively and in a timeframe to meet evolving consumer demands . the brand launch is a key element of the company 's go-to-market strategy to achieve greater value for its innovations by participating in downstream consumer revenue opportunities . we designed the brand to make an immediate connection with consumers that products made with goodwheat meet their demands for healthier wheat options that also taste great . the goodwheat brand encompasses our current and future non-gm wheat portfolio of high fiber resistant starch ( rs ) and reduced gluten wheat varieties , as well as future wheat innovations . in october 2019 , the u.s. patent and trademark office granted us the latest patents for extended shelf life wheat , the newest trait in our non-genetically modified wheat portfolio . this new trait was designed to promote whole wheat consumption by improving the shelf life and taste of whole grain wheat products . story_separator_special_tag this includes replicating field trials , coordinating with our partners on their development programs and scaling harvest production of wheat and hemp . as of december 31 , 2020 , we had cash and cash equivalents of $ 14.0 million , restricted cash of $ 2.0 million and short-term investments of $ 11.6 million . for the years ended december 31 , 2020 and 2019 , the company had net losses of $ 6.0 million and $ 28.9 million , respectively , and net cash used in operations of $ 30.2 million and $ 17.2 million , respectively . as is disclosed in note 23 , on january 25 , 2021 , the company entered into a securities purchase agreement with certain institutional and accredited investors relating to the issuance and sale in a private placement of shares of company common stock and warrants for an aggregate of $ 25.1 million , exclusive of any related transaction fees . as is disclosed in note 12 and 13 , the company obtained funding through one common stock and warrant financing and two warrant exercise financings during 2020 , and two common stock and warrant financings and two 36 warrant exercise financings during 2019 . o n december 22 , 2020 , the company entered into agreements with institutional investors through a registered direct offering in the amount of $ 8 million , exclusive of any related transaction fees . in may and july 20 20 , investors exercised warrants in the amount of $ 9.4 million , exclusive of transactions costs . we believe that our existing cash , restricted cash , cash equivalents and short-term investments will be sufficient to meet our anticipated cash requirements for at least the next 12 months . we may seek to raise additional funds through debt or equity financings , if necessary . we may also consider entering into additional partner arrangements . our sale of additional equity would result in dilution to our stockholders . our incurrence of debt would result in debt service obligations , and the instruments governing our debt could provide for additional operating and financing covenants that would restrict our operations . if we do require additional funds and are not able to secure adequate additional funding , we may be forced to reduce our spending , extend payment terms with our suppliers , liquidate assets , or suspend or curtail planned development programs . any of these actions could materially harm our business , results of operations and financial condition . cash flows the following table summarizes our cash flows for the periods indicated ( in thousands ) : replace_table_token_2_th story_separator_special_tag roman ; font-size:10pt ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > we recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services . see note 2 for further detail . 38 we generally recognize product revenues once passage of title has occurred , which is generally upon shipment . shipping and handling costs charged to customers are recorded as revenues and included in cost of product revenues at the tim e the sale is recognized . we have determined that , at the inception of each license agreement , there is only one deliverable for the license for , access to and assistance with the development of the specified intellectual property . we recognize revenue up-front and annual license fees in full when it is deemed probable to be earned . see note 2 for further detail . we recognize royalty revenue when the company can reasonably determine the amounts earned . we recognize revenue related to milestone payments when it is probable that such amounts would not be reversed . see note 2 for further detail . up-front license fees for newly executed agreements are recognized upon execution . annual license fees and milestone fees are variable consideration that is initially constrained and recognized only when it is probable that such amounts would not be reversed . the evaluation and analysis of such fees is performed and once the annual license or milestone fee is deemed probable to have been earned , it is recognized in full in that period . see note 2 for further detail . contract research revenue consists of amounts earned from performing contracted research activities for third parties . activities performed are related to breeding programs or the genetic engineering of plants and are subject to an executed agreement . we generally recognize fees for research activities ratably over the contractually specified performance period . grant revenues are recognized as eligible research and development expenses are incurred using a proportional performance recognition methodology . inventories inventory costs are tracked on a lot-identified basis , valued at the lower of cost or net realizable value and are included as cost of product revenues when sold . we compare the cost of inventories with market value and write down inventories to net realizable value , if lower . we write down inventory when conditions indicate that the net realizable value may be less than cost due to physical deterioration , obsolescence , changes in price levels or other factors . additionally , we provide reserves for excess and slow-moving inventory to its estimated net realizable value . the inventory write-downs are based upon estimates about future demand from our customers and distributors and market conditions . future events that could significantly influence our judgment and related estimates include conditions in target markets , introduction of new products or changes to current or future competitor products . stock-based compensation we recognize compensation expense related to the employee stock purchase plan and stock options based on the estimated fair value of the awards on the date of grant , net of estimated forfeitures . we estimate the

cash flows from operating activities cash used in operating activities for the year ended december 31 , 2020 was $ 30.2 million . our net loss of $ 6.0 million , adjustments in our working capital accounts of $ 11.5 million , gain on sale of verdeca of $ 8.8 million , corporate securities received in exchange for license agreement of $ 4.3 million , change in fair value of common stock warrant liabilities of $ 6.6 million , operating lease payments of $ 910,000 , unrealized gain on corporate securities of $ 656,000 and net amortization of investment premium of $ 44,000 were partially offset by non-cash charges of $ 2.0 million for stock-based compensation , depreciation and amortization of $ 662,000 , lease amortization of $ 1.0 million , loss on extinguishment of warrant liability of $ 635,000 , as well as $ 4.3 million of inventory write-downs . cash used in operating activities for the year ended december 31 , 2019 was $ 17.2 million . our net loss of $ 28.9 million , change in fair value of contingent consideration of $ 1.0 million , operating lease payments of $ 715,000 , and net amortization of investment premium and discount of $ 180,000 were partially offset by the change in fair value of common stock warrant liabilities and common stock adjustment feature liability of $ 9.2 million , non-cash charges of $ 2.3 million for stock-based compensation , depreciation and amortization of $ 194,000 , lease amortization of $ 708,000 , as well as $ 0.7 million of offering costs incurred in connection with financing activities and adjustments in our working capital accounts of $ 0.1 million .


 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 cash used in operating activities for the year ended december 31 , 2020 was $ 30.2 million . our net loss of $ 6.0 million , adjustments in our working capital accounts of $ 11.5 million , gain on sale of verdeca of $ 8.8 million , corporate securities received in exchange for license agreement of $ 4.3 million , change in fair value of common stock warrant liabilities of $ 6.6 million , operating lease payments of $ 910,000 , unrealized gain on corporate securities of $ 656,000 and net amortization of investment premium of $ 44,000 were partially offset by non-cash charges of $ 2.0 million for stock-based compensation , depreciation and amortization of $ 662,000 , lease amortization of $ 1.0 million , loss on extinguishment of warrant liability of $ 635,000 , as well as $ 4.3 million of inventory write-downs . cash used in operating activities for the year ended december 31 , 2019 was $ 17.2 million . our net loss of $ 28.9 million , change in fair value of contingent consideration of $ 1.0 million , operating lease payments of $ 715,000 , and net amortization of investment premium and discount of $ 180,000 were partially offset by the change in fair value of common stock warrant liabilities and common stock adjustment feature liability of $ 9.2 million , non-cash charges of $ 2.3 million for stock-based compensation , depreciation and amortization of $ 194,000 , lease amortization of $ 708,000 , as well as $ 0.7 million of offering costs incurred in connection with financing activities and adjustments in our working capital accounts of $ 0.1 million .
```    
 Suspicious Activity Report : it also included provisions for legalizing on a federal level hemp 's cultivation , transport and sale for the first time in more than 75 years . hemp , not previously distinguished by the federal government from cannabis , a schedule 1 drug and banned as an agricultural crop , lacks substantive plant biology research and suffers from suboptimal genetics , highly fragmented germplasm and rampant inconsistencies . we are targeting hemp-based solutions that allow farmers to reliably and consistently achieve compliance with usda regulations , through varieties with improved functionality and application of specific attributes such as select cannabinoid contents for health and wellness , enhanced proteins profiles for plant-based dietary applications and industrial applications such as clothing and hempcrete . arcadia conducts its business in only federal and state markets in which its activities are legal . 29 on october 31 , 2019 , the usda published the interim final rule as authorized by the agriculture improvement act of 2018 for hemp cultivation , which mandates that states test hemp crops and dispose of `` hot `` crops that exceed 0.3 % thc . while hemp farmers will have access to crop protection options , the destruction of hot crops that fail these stringent inspections will not be a covered loss under crop insurance programs . in 2019 alone , more than 20 % of u.s. hemp crops were non-compliant , representing over $ 2 billion in losses for growers . arcadia goodhemp in december 2019 , we announced the launch of a new product line , goodhemp , as the company 's new commercial brand for delivering genetically superior hemp seeds , transplants , flower and extracts . on august 21 , 2020 , the company acquired by merger industrial seed innovations ( isi ) , an oregon-based industrial hemp breeding and seed company . as a result of the acquisition , the company acquired isi 's commercial and genetic assets , including seed varieties , germplasm library and intellectual property . isi 's rogue and umpqua seed varieties are now part of arcadia 's portfolio , alongside the company 's goodhemp line of genetically superior hemp seeds , transplants , and extracts . the acquisition has significantly broadened and accelerated commercialization of arcadia 's hemp-related breeding platform , as well as established a breeding research and development facility in the pacific northwest , a key production area in the hemp industry . the hemp business journal estimates the hemp cbd market – the primary non-psychoactive compound in hemp – totaled $ 190 million in u.s. sales in 2018. by 2025 , the brightfield group , a hemp and cbd market research firm , projects u.s. sales of hemp-based cbd to reach $ 16.8 billion . additionally , markets and markets estimates the non-cannabinoid , industrial hemp global market will exceed $ 26 billion by 2025. archipelago ventures hawaii , llc in august 2019 , we formed a new joint venture to serve the hawaiian , north american and asian hemp markets , archipelago ventures hawaii , llc ( “ archipelago ” ) . this new venture between arcadia and legacy ventures hawaii ( “ legacy ” ) combines arcadia 's extensive genetic expertise and seed innovation history with legacy 's growth capital and strategic advisory expertise in the hawaiian markets . additionally , legacy brings to the partnership years of proven success in extraction , product formulation and sales of cannabinol oil and distillate products through its equity partner , vapen cbd . legacy was originally formed to be a vehicle for its partners to pursue hemp opportunities within the hawaiian islands . archipelago creates a vertically integrated supply chain , from seed to sale , we believe the first of its kind in hawaii , and has three important strategic imperatives : ( 1 ) ensure a reliable supply chain during critical scale up of the global hemp market , a major risk mitigation for success , ( 2 ) ensure high quality throughout the supply chain , from genetics to the field and field to the customer and ( 3 ) ensure being well-positioned to address the unique needs and opportunities of the hawaiian market . arcadia goodwheat in 2018 , we launched our goodwheat brand , a non-genetically modified ( non-gm ) portfolio of wheat products that enables food manufacturers to differentiate their consumer-facing brands . consumer food companies are looking to simplify their food ingredient formulations and consumers are demanding “ clean labeling ” in their foods , paying more for foods having fewer artificial ingredients and more natural , recognizable and healthy ingredients . a 2017 survey by pr agency ingredient communications found that 73 % of consumers are happy to pay a higher retail price for a food or drink product made with ingredients they recognize . because goodwheat increases the nutrient density directly in the primary grains and oils , it provides the mechanism for food formulation simplification naturally , cost effectively and in a timeframe to meet evolving consumer demands . the brand launch is a key element of the company 's go-to-market strategy to achieve greater value for its innovations by participating in downstream consumer revenue opportunities . we designed the brand to make an immediate connection with consumers that products made with goodwheat meet their demands for healthier wheat options that also taste great . the goodwheat brand encompasses our current and future non-gm wheat portfolio of high fiber resistant starch ( rs ) and reduced gluten wheat varieties , as well as future wheat innovations . in october 2019 , the u.s. patent and trademark office granted us the latest patents for extended shelf life wheat , the newest trait in our non-genetically modified wheat portfolio . this new trait was designed to promote whole wheat consumption by improving the shelf life and taste of whole grain wheat products . story_separator_special_tag this includes replicating field trials , coordinating with our partners on their development programs and scaling harvest production of wheat and hemp . as of december 31 , 2020 , we had cash and cash equivalents of $ 14.0 million , restricted cash of $ 2.0 million and short-term investments of $ 11.6 million . for the years ended december 31 , 2020 and 2019 , the company had net losses of $ 6.0 million and $ 28.9 million , respectively , and net cash used in operations of $ 30.2 million and $ 17.2 million , respectively . as is disclosed in note 23 , on january 25 , 2021 , the company entered into a securities purchase agreement with certain institutional and accredited investors relating to the issuance and sale in a private placement of shares of company common stock and warrants for an aggregate of $ 25.1 million , exclusive of any related transaction fees . as is disclosed in note 12 and 13 , the company obtained funding through one common stock and warrant financing and two warrant exercise financings during 2020 , and two common stock and warrant financings and two 36 warrant exercise financings during 2019 . o n december 22 , 2020 , the company entered into agreements with institutional investors through a registered direct offering in the amount of $ 8 million , exclusive of any related transaction fees . in may and july 20 20 , investors exercised warrants in the amount of $ 9.4 million , exclusive of transactions costs . we believe that our existing cash , restricted cash , cash equivalents and short-term investments will be sufficient to meet our anticipated cash requirements for at least the next 12 months . we may seek to raise additional funds through debt or equity financings , if necessary . we may also consider entering into additional partner arrangements . our sale of additional equity would result in dilution to our stockholders . our incurrence of debt would result in debt service obligations , and the instruments governing our debt could provide for additional operating and financing covenants that would restrict our operations . if we do require additional funds and are not able to secure adequate additional funding , we may be forced to reduce our spending , extend payment terms with our suppliers , liquidate assets , or suspend or curtail planned development programs . any of these actions could materially harm our business , results of operations and financial condition . cash flows the following table summarizes our cash flows for the periods indicated ( in thousands ) : replace_table_token_2_th story_separator_special_tag roman ; font-size:10pt ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > we recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services . see note 2 for further detail . 38 we generally recognize product revenues once passage of title has occurred , which is generally upon shipment . shipping and handling costs charged to customers are recorded as revenues and included in cost of product revenues at the tim e the sale is recognized . we have determined that , at the inception of each license agreement , there is only one deliverable for the license for , access to and assistance with the development of the specified intellectual property . we recognize revenue up-front and annual license fees in full when it is deemed probable to be earned . see note 2 for further detail . we recognize royalty revenue when the company can reasonably determine the amounts earned . we recognize revenue related to milestone payments when it is probable that such amounts would not be reversed . see note 2 for further detail . up-front license fees for newly executed agreements are recognized upon execution . annual license fees and milestone fees are variable consideration that is initially constrained and recognized only when it is probable that such amounts would not be reversed . the evaluation and analysis of such fees is performed and once the annual license or milestone fee is deemed probable to have been earned , it is recognized in full in that period . see note 2 for further detail . contract research revenue consists of amounts earned from performing contracted research activities for third parties . activities performed are related to breeding programs or the genetic engineering of plants and are subject to an executed agreement . we generally recognize fees for research activities ratably over the contractually specified performance period . grant revenues are recognized as eligible research and development expenses are incurred using a proportional performance recognition methodology . inventories inventory costs are tracked on a lot-identified basis , valued at the lower of cost or net realizable value and are included as cost of product revenues when sold . we compare the cost of inventories with market value and write down inventories to net realizable value , if lower . we write down inventory when conditions indicate that the net realizable value may be less than cost due to physical deterioration , obsolescence , changes in price levels or other factors . additionally , we provide reserves for excess and slow-moving inventory to its estimated net realizable value . the inventory write-downs are based upon estimates about future demand from our customers and distributors and market conditions . future events that could significantly influence our judgment and related estimates include conditions in target markets , introduction of new products or changes to current or future competitor products . stock-based compensation we recognize compensation expense related to the employee stock purchase plan and stock options based on the estimated fair value of the awards on the date of grant , net of estimated forfeitures . we estimate the

