through this process , which typically takes several weeks , we are able to assess the characteristics and size of the prospect 's service revenue , identify potential areas of performance improvement , and formulate our proposal for managing the prospect 's service revenue . the length of our sales cycle for a new client , inclusive of the service performance analysis process and measured from our first formal discussion with the client until execution of a new client contract , is typically six months and has decreased in recent periods . implementation cycle . after entering into an engagement with a new client , and to a lesser extent after adding an engagement with an existing client , we incur sales and marketing expenses related to the commissions owed to our sales personnel . these commissions are based on realized revenue that the contract delivers over time and on the estimated total annual contract value . commission amounts based on realized revenue are expensed in the period the related revenue is recognized by the company . upfront commissions based on estimated total annual contract value are capitalizable as contract acquisition costs and expensed ratably over the expected life of the applicable contract or five years if the contract is between the company and one of its long-standing clients . we also make upfront investments in technology and personnel to support the engagement . these upfront commissions and investments are typically incurred one to three months before we begin generating sales and recognizing revenue . accordingly , in a given quarter , an increase in new clients , and , to a lesser extent , an increase in engagements with existing clients , or a significant increase in the contract value associated with such new clients and engagements , will negatively impact our gross margin and operating margins until we begin to achieve anticipated sales levels associated with the new engagements , which is typically two to three quarters after we begin selling contracts on behalf of our clients . although we expect new client engagements to contribute to our operating profitability over time , in the initial periods of a client relationship , our near-term profitability can be negatively impacted by slower-than anticipated growth in revenues for these engagements as well as the impact of the upfront costs we incur , the lower initial level of associated service sales team productivity and lack of mature data and technology integration with the client . as a result , an increase in the mix of new 16 clients as a percentage of total clients may initially have a negative impact on our operating results . similarly , a decline in the ratio of new clients to total clients may positively impact our near-term operating results . contract terms . a significant portion of our revenue comes from our pay-for-performance model . under our pay-for-performance model , we earn commissions based on the value of service contracts we sell on behalf of our clients . in some cases , we earn additional performance-based commissions for exceeding pre-determined service performance targets . our new client contracts typically have an initial term between one and two years . our contracts generally require our clients to deliver a minimum value of qualifying service revenue contracts for us to renew on their behalf during a specified period . to the extent that our clients do not meet their minimum contractual commitments over a specified period , they may be subject to fees for the shortfall . our client contracts are cancelable with relatively short notice and can be subject to the payment of an early termination fee by the client . the amount of this fee is based on the length of the remaining term and value of the contract . merger and acquisition activity . our clients , particularly those in the technology sector , participate in an active environment for mergers and acquisitions . large technology companies have maintained active acquisition programs to increase the breadth and depth of their product and service offerings and small and mid-sized companies have combined to better compete with large technology companies . a number of our clients have merged , purchased other companies or been acquired by other companies . we expect merger and acquisition activity to continue to occur in the future . the impact of these transactions on our business can vary . acquisitions of other companies by our clients can provide us with the opportunity to pursue additional business to the extent the acquired company is not already one of our clients . similarly , when a client is acquired , we may be able to use our relationship with the acquired company to build a relationship with the acquirer . in some cases , we have been able to maintain our relationship with an acquired client even where the acquiring company handles its other service contract renewals through internal resources . in other cases , however , acquirers have elected to terminate or not renew our contract with the acquired company . seasonality . we experience a seasonal variance in our revenue which is typically higher in the fourth quarter when many of our clients ' products come up for renewal , and for the third quarter of the year which is typically lower as a result of lower or flat renewal volume corresponding to the timing of our customers ' product sales particularly in the international regions . the impact of this seasonal fluctuation can be amplified if the economy as a whole is experiencing disruption or uncertainty , leading to deferral of some renewal decisions . foreign currency . our results of operations and cash flows are subject to fluctuations due to changes in foreign currency exchange rates , particularly changes in the euro , british pound , singapore dollar , philippine peso , bulgarian lev and malaysian ringgit . story_separator_special_tag story_separator_special_tag roman ' , sans-serif ; font-size:10pt ; font-weight:400 ; line-height:120 % `` > as of december 31 , 2020 and 2019 , we did not have any relationships with other entities or financial partnerships such as entities often referred to as structured finance or special-purpose entities , which have been established for facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . critical accounting policies and estimates general the preparation of financial statements in conformity with gaap requires management to use judgment in the application of accounting policies , including making estimates and assumptions . if our judgment or interpretation of the facts and circumstances relating to various transactions had been different or different assumptions were made , it is possible that different accounting policies would have been applied , resulting in different financial results or a different presentation of our financial statements . our discussion and analysis of financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with gaap . estimates , judgments and assumptions are based on historical experiences that we believe to be reasonable under the circumstances . from time to time , we re-evaluate those estimates and assumptions . the company 's significant accounting policies are described in notes to the consolidated financial statements , `` note 2 — summary of significant accounting policies . ” these policies were followed in preparing the consolidated financial statements as of and for the year ended december 31 , 2020 and are consistent with the year ended december 31 , 2019. the company has identified the following as critical accounting policies . these accounting policies have the most significant impact on our financial condition and results of operations and require management 's most difficult , subjective and or complex estimates . revenue recognition the company derives its revenues primarily from selling and professional services . revenue is recognized in accordance with asc 606 when performance obligations identified in a contract are satisfied , which is achieved through the transfer of control of the services to our client . selling services selling services primarily consist of variable fees earned from the following categories of selling motions : ( 1 ) digital sales , ( 2 ) customer success , and ( 3 ) channel management . professional services professional services primarily consist of fixed fees for providing data integration at scale with our systems and processes , combined with client data enhancement , enablement and optimization . professional services revenues from fixed consideration are recognized based on proportional performance over the performance period which is typically concluded within 90 days of contract execution . multiple arrangements the company enters into contracts with multiple performance obligations that incorporate fixed consideration , pay-for-performance commissions and variable bonus commissions . judgment is required to estimate the amount of variable consideration to include when estimating the total contract consideration and how to allocate the consideration if one of the distinct performance obligations is not sold at ssp . performance obligations revenue is measured based on the consideration specified in a contract . individual services within a single contract are accounted separately if they are distinct . the total contract consideration , or transaction price , is allocated between the separate services identified in the contract based on their ssp . ssp is determined based on a cost plus margin analysis for selling 23 services and a standard hourly rate card for professional services . for professional services that are contractually priced differently from ssp , the company estimates ssp using a standard hourly rate card and allocates a portion of the total contract consideration to reflect professional services revenue at ssp . the company 's performance obligations are satisfied over time and revenue is recognized based on monthly or quarterly time increments and the variable volume of closed bookings during the period at the contractual commission rates for selling services , or proportional performance during the period at ssp for professional services . because the client simultaneously receives and consumes the benefit of the company 's selling services as provided , the time increment output method depicts the measure of progress in transferring control of the services to the client . while multiple selling motions in a contract are performed at various times and patterns throughout the month or quarter and the number of closed bookings vary in any given period , each time increment of a service activity is substantially the same and has the same pattern of transfer to the client , and therefore , represents a series of distinct performance obligations that form a single performance obligation . as a result , the company allocates all variable consideration in a contract to the selling services performance obligation in accordance with the variable consideration allocation exception provisions in asc 606 ( less amounts for which it is probable a significant reversal of revenue will occur when the uncertainties related to the variability are resolved ) and applies a single measure of progress to record revenue in the period based on when the output of the variable number of closed bookings occurs or when the variable performance metric is achieved . our revenue contracts often include promises to transfer services involving multiple selling motions to a client . determining whether those services are considered distinct performance obligations and qualify as a series of distinct performance obligations that represent a single performance obligation requires significant judgment . also , due to the continuous nature of providing services to our clients , judgment is required in determining when control of the services is transferred to the client . a significant portion of our contracts is based on a pay-for-performance model that provides the company with commissions and revenue based on a volume of closed bookings each time period and variable consideration if certain performance targets are achieved during a given period of time ( such as exceeding quarterly closure rate thresholds

liquidity and capital resources our primary operating cash requirements include the payment of compensation and related employee costs and costs for our facilities and information technology infrastructure . historically , we have financed our operations from cash provided by our operating activities . we believe our existing cash and cash equivalents will be sufficient to meet our working capital and capital expenditure needs over the next twelve months . we have considered the effects of the covid-19 pandemic , including customer purchasing and renewal decisions in our assessment of the sufficiency of our liquidity and capital resources . we will continue to monitor our financial position as pandemic-related challenges develop over time . 21 as of december 31 , 2020 , we had cash and cash equivalents of $ 34.0 million , which primarily consist of demand deposits and money market mutual funds . included in cash and cash equivalents was $ 6.7 million held by our foreign subsidiaries used to satisfy their operating requirements . we consider the undistributed earnings of servicesource europe ltd. and servicesource international singapore pte . ltd. permanently reinvested in foreign operations and have not provided for u.s. income taxes on such earnings . as of december 31 , 2020 , the company had no unremitted earnings from our foreign subsidiaries .


 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 our primary operating cash requirements include the payment of compensation and related employee costs and costs for our facilities and information technology infrastructure . historically , we have financed our operations from cash provided by our operating activities . we believe our existing cash and cash equivalents will be sufficient to meet our working capital and capital expenditure needs over the next twelve months . we have considered the effects of the covid-19 pandemic , including customer purchasing and renewal decisions in our assessment of the sufficiency of our liquidity and capital resources . we will continue to monitor our financial position as pandemic-related challenges develop over time . 21 as of december 31 , 2020 , we had cash and cash equivalents of $ 34.0 million , which primarily consist of demand deposits and money market mutual funds . included in cash and cash equivalents was $ 6.7 million held by our foreign subsidiaries used to satisfy their operating requirements . we consider the undistributed earnings of servicesource europe ltd. and servicesource international singapore pte . ltd. permanently reinvested in foreign operations and have not provided for u.s. income taxes on such earnings . as of december 31 , 2020 , the company had no unremitted earnings from our foreign subsidiaries .
```    
 Suspicious Activity Report : through this process , which typically takes several weeks , we are able to assess the characteristics and size of the prospect 's service revenue , identify potential areas of performance improvement , and formulate our proposal for managing the prospect 's service revenue . the length of our sales cycle for a new client , inclusive of the service performance analysis process and measured from our first formal discussion with the client until execution of a new client contract , is typically six months and has decreased in recent periods . implementation cycle . after entering into an engagement with a new client , and to a lesser extent after adding an engagement with an existing client , we incur sales and marketing expenses related to the commissions owed to our sales personnel . these commissions are based on realized revenue that the contract delivers over time and on the estimated total annual contract value . commission amounts based on realized revenue are expensed in the period the related revenue is recognized by the company . upfront commissions based on estimated total annual contract value are capitalizable as contract acquisition costs and expensed ratably over the expected life of the applicable contract or five years if the contract is between the company and one of its long-standing clients . we also make upfront investments in technology and personnel to support the engagement . these upfront commissions and investments are typically incurred one to three months before we begin generating sales and recognizing revenue . accordingly , in a given quarter , an increase in new clients , and , to a lesser extent , an increase in engagements with existing clients , or a significant increase in the contract value associated with such new clients and engagements , will negatively impact our gross margin and operating margins until we begin to achieve anticipated sales levels associated with the new engagements , which is typically two to three quarters after we begin selling contracts on behalf of our clients . although we expect new client engagements to contribute to our operating profitability over time , in the initial periods of a client relationship , our near-term profitability can be negatively impacted by slower-than anticipated growth in revenues for these engagements as well as the impact of the upfront costs we incur , the lower initial level of associated service sales team productivity and lack of mature data and technology integration with the client . as a result , an increase in the mix of new 16 clients as a percentage of total clients may initially have a negative impact on our operating results . similarly , a decline in the ratio of new clients to total clients may positively impact our near-term operating results . contract terms . a significant portion of our revenue comes from our pay-for-performance model . under our pay-for-performance model , we earn commissions based on the value of service contracts we sell on behalf of our clients . in some cases , we earn additional performance-based commissions for exceeding pre-determined service performance targets . our new client contracts typically have an initial term between one and two years . our contracts generally require our clients to deliver a minimum value of qualifying service revenue contracts for us to renew on their behalf during a specified period . to the extent that our clients do not meet their minimum contractual commitments over a specified period , they may be subject to fees for the shortfall . our client contracts are cancelable with relatively short notice and can be subject to the payment of an early termination fee by the client . the amount of this fee is based on the length of the remaining term and value of the contract . merger and acquisition activity . our clients , particularly those in the technology sector , participate in an active environment for mergers and acquisitions . large technology companies have maintained active acquisition programs to increase the breadth and depth of their product and service offerings and small and mid-sized companies have combined to better compete with large technology companies . a number of our clients have merged , purchased other companies or been acquired by other companies . we expect merger and acquisition activity to continue to occur in the future . the impact of these transactions on our business can vary . acquisitions of other companies by our clients can provide us with the opportunity to pursue additional business to the extent the acquired company is not already one of our clients . similarly , when a client is acquired , we may be able to use our relationship with the acquired company to build a relationship with the acquirer . in some cases , we have been able to maintain our relationship with an acquired client even where the acquiring company handles its other service contract renewals through internal resources . in other cases , however , acquirers have elected to terminate or not renew our contract with the acquired company . seasonality . we experience a seasonal variance in our revenue which is typically higher in the fourth quarter when many of our clients ' products come up for renewal , and for the third quarter of the year which is typically lower as a result of lower or flat renewal volume corresponding to the timing of our customers ' product sales particularly in the international regions . the impact of this seasonal fluctuation can be amplified if the economy as a whole is experiencing disruption or uncertainty , leading to deferral of some renewal decisions . foreign currency . our results of operations and cash flows are subject to fluctuations due to changes in foreign currency exchange rates , particularly changes in the euro , british pound , singapore dollar , philippine peso , bulgarian lev and malaysian ringgit . story_separator_special_tag story_separator_special_tag roman ' , sans-serif ; font-size:10pt ; font-weight:400 ; line-height:120 % `` > as of december 31 , 2020 and 2019 , we did not have any relationships with other entities or financial partnerships such as entities often referred to as structured finance or special-purpose entities , which have been established for facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . critical accounting policies and estimates general the preparation of financial statements in conformity with gaap requires management to use judgment in the application of accounting policies , including making estimates and assumptions . if our judgment or interpretation of the facts and circumstances relating to various transactions had been different or different assumptions were made , it is possible that different accounting policies would have been applied , resulting in different financial results or a different presentation of our financial statements . our discussion and analysis of financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with gaap . estimates , judgments and assumptions are based on historical experiences that we believe to be reasonable under the circumstances . from time to time , we re-evaluate those estimates and assumptions . the company 's significant accounting policies are described in notes to the consolidated financial statements , `` note 2 — summary of significant accounting policies . ” these policies were followed in preparing the consolidated financial statements as of and for the year ended december 31 , 2020 and are consistent with the year ended december 31 , 2019. the company has identified the following as critical accounting policies . these accounting policies have the most significant impact on our financial condition and results of operations and require management 's most difficult , subjective and or complex estimates . revenue recognition the company derives its revenues primarily from selling and professional services . revenue is recognized in accordance with asc 606 when performance obligations identified in a contract are satisfied , which is achieved through the transfer of control of the services to our client . selling services selling services primarily consist of variable fees earned from the following categories of selling motions : ( 1 ) digital sales , ( 2 ) customer success , and ( 3 ) channel management . professional services professional services primarily consist of fixed fees for providing data integration at scale with our systems and processes , combined with client data enhancement , enablement and optimization . professional services revenues from fixed consideration are recognized based on proportional performance over the performance period which is typically concluded within 90 days of contract execution . multiple arrangements the company enters into contracts with multiple performance obligations that incorporate fixed consideration , pay-for-performance commissions and variable bonus commissions . judgment is required to estimate the amount of variable consideration to include when estimating the total contract consideration and how to allocate the consideration if one of the distinct performance obligations is not sold at ssp . performance obligations revenue is measured based on the consideration specified in a contract . individual services within a single contract are accounted separately if they are distinct . the total contract consideration , or transaction price , is allocated between the separate services identified in the contract based on their ssp . ssp is determined based on a cost plus margin analysis for selling 23 services and a standard hourly rate card for professional services . for professional services that are contractually priced differently from ssp , the company estimates ssp using a standard hourly rate card and allocates a portion of the total contract consideration to reflect professional services revenue at ssp . the company 's performance obligations are satisfied over time and revenue is recognized based on monthly or quarterly time increments and the variable volume of closed bookings during the period at the contractual commission rates for selling services , or proportional performance during the period at ssp for professional services . because the client simultaneously receives and consumes the benefit of the company 's selling services as provided , the time increment output method depicts the measure of progress in transferring control of the services to the client . while multiple selling motions in a contract are performed at various times and patterns throughout the month or quarter and the number of closed bookings vary in any given period , each time increment of a service activity is substantially the same and has the same pattern of transfer to the client , and therefore , represents a series of distinct performance obligations that form a single performance obligation . as a result , the company allocates all variable consideration in a contract to the selling services performance obligation in accordance with the variable consideration allocation exception provisions in asc 606 ( less amounts for which it is probable a significant reversal of revenue will occur when the uncertainties related to the variability are resolved ) and applies a single measure of progress to record revenue in the period based on when the output of the variable number of closed bookings occurs or when the variable performance metric is achieved . our revenue contracts often include promises to transfer services involving multiple selling motions to a client . determining whether those services are considered distinct performance obligations and qualify as a series of distinct performance obligations that represent a single performance obligation requires significant judgment . also , due to the continuous nature of providing services to our clients , judgment is required in determining when control of the services is transferred to the client . a significant portion of our contracts is based on a pay-for-performance model that provides the company with commissions and revenue based on a volume of closed bookings each time period and variable consideration if certain performance targets are achieved during a given period of time ( such as exceeding quarterly closure rate thresholds

