subject to certain conditions set forth in the jobs act , as an “ emerging growth company , ” we intend to rely on certain of these exemptions from , without limitation , ( i ) providing an auditor 's attestation report on our system of internal controls over financial reporting pursuant to section 404 ( b ) of the sarbanes-oxley act and ( ii ) complying with any requirement that may be adopted by the public company accounting oversight board ( pcaob ) regarding mandatory audit firm rotation or a supplement to the auditor 's report providing additional information about the audit and the financial statements , known as the auditor discussion and analysis . we will remain an “ emerging growth company ” until the earliest of ( a ) the last day of our fiscal year following the fifth anniversary of the initial public offering ( ipo ) , ( b ) the last day of the first fiscal year in which our annual gross revenues exceed $ 1.07 billion , ( c ) the last day of our fiscal year in which we are deemed to be a “ large accelerated filer ” as defined in rule 12b-2 under the exchange act ( which would occur if the market value of our equity securities that is held by non-affiliates exceeds $ 700 million as of the last business day of our most recently completed second fiscal quarter ) , or ( d ) the date on which we have issued more than $ 1 billion in non-convertible debt during the preceding three-year period . results of operations the fiscal year ended december 31 , 2020 , compared to the fiscal year ended december 31 , 2019 revenues revenues , net of allowances , for the years ended december 31 , 2020 and 2019 were $ 39,433,617 and $ 19,090,071 , respectively , consisted of metal goods and soft goods sold to customers . revenues increased in 2020 over 2019 by $ 20,343,546 , or 106.6 % , primarily due to wide acceptance of our products in the tools industry and receipt of recurring sales orders for metal goods and soft goods from our existing customers and new customers , and introduction and sale of new soft goods products to our customers . cost of goods sold cost of goods sold for the years ended december 31 , 2020 and 2019 was $ 27,687,235 and $ 14,153,670 , respectively . cost of goods sold increased in 2020 over 2019 by $ 13,533,565 or 95.6 % , primarily due to the increase in materials cost of steel and plastics polyester to manufacture metal goods and soft goods and increase in labor cost in china . cost of goods sold as a percentage of revenues in 2020 was 70.2 % as compared to cost of goods sold as a percentage of revenues in 2019 of 74.1 % . we expect to reverse the trend and reduce our cost of goods sold as a percentage of revenue as we achieve operational efficiencies in production and work with automated state-of-the-art factories to manufacture our product lines . operating expenses operating expenses consist of selling , general and administrative expenses , litigation expense , and research and development costs . selling , general and administrative expenses ( the “ sg & a expenses ” ) for the years ended december 31 , 2020 and 2019 were $ 21,076,528 and $ 11,401,039 , respectively . sg & a expenses increased in 2020 over 2019 by $ 9,675,489 or 84.9 % , primarily due to hiring additional employees , independent contractors and consultants to grow the company . sg & a expense in 2020 as a percentage of revenues was 51.9 % as compared to sg & a expense in 2019 as a percentage of revenues was 59.7 % . we expect our sg & a expense will continue to increase/decrease as the company plans to bring professional management team and staff on board , expend cash to raise capital for new products development , and acquire a new warehouse/storage facility to expand its operations and maintain finished products inventory on hand . research and development costs ( the “ r & d ” ) for the years ended december 31 , 2020 and 2019 were $ 5,056,811 and $ 2,116,018 , respectively . r & d costs increased in 2020 over 2019 by $ 2,940,793 or 139.0 % , primarily due to the costs incurred in developing new tools , a ruggedized mobile device , software applications to run on the mobile device related to construction industry , and stock-based compensation expense and bonuses to r & d management team . we expect r & d costs to continue to increase/decrease as the company embarks on developing new tools for the construction industry , and the attachments for the ruggedized mobile device with new software applications . 28 net loss due to factors set forth above , and the lack of a warrant derivative at the end of 2020 , with a change of $ 5,251,852 from 2020 over 2019 and loss of $ 1,810,712 being recognized on an exchange transaction during 2020 , we recorded a net loss of $ 17,348,622 for the year ended december 31 , 2020 as compared to a net loss of $ 4,300,969 for the year ended december 31 , 2019. story_separator_special_tag to its customers and factors to accelerate payments of accounts receivable . in addition , the company negotiated extended payment terms with its suppliers , vendors and related parties to conserve its cash . net cash flows used in operating activities for the year ended december 31 , 2019 was $ 10,229,337 , attributable to a net loss of $ 4,300,969 , offset by depreciation expense of $ 225,426 , amortization of original issuance of debt discount and debt issuance cost and non-cash inducement cost for debt conversion of $ 626,546 , change in the story_separator_special_tag subject to certain conditions set forth in the jobs act , as an “ emerging growth company , ” we intend to rely on certain of these exemptions from , without limitation , ( i ) providing an auditor 's attestation report on our system of internal controls over financial reporting pursuant to section 404 ( b ) of the sarbanes-oxley act and ( ii ) complying with any requirement that may be adopted by the public company accounting oversight board ( pcaob ) regarding mandatory audit firm rotation or a supplement to the auditor 's report providing additional information about the audit and the financial statements , known as the auditor discussion and analysis . we will remain an “ emerging growth company ” until the earliest of ( a ) the last day of our fiscal year following the fifth anniversary of the initial public offering ( ipo ) , ( b ) the last day of the first fiscal year in which our annual gross revenues exceed $ 1.07 billion , ( c ) the last day of our fiscal year in which we are deemed to be a “ large accelerated filer ” as defined in rule 12b-2 under the exchange act ( which would occur if the market value of our equity securities that is held by non-affiliates exceeds $ 700 million as of the last business day of our most recently completed second fiscal quarter ) , or ( d ) the date on which we have issued more than $ 1 billion in non-convertible debt during the preceding three-year period . results of operations the fiscal year ended december 31 , 2020 , compared to the fiscal year ended december 31 , 2019 revenues revenues , net of allowances , for the years ended december 31 , 2020 and 2019 were $ 39,433,617 and $ 19,090,071 , respectively , consisted of metal goods and soft goods sold to customers . revenues increased in 2020 over 2019 by $ 20,343,546 , or 106.6 % , primarily due to wide acceptance of our products in the tools industry and receipt of recurring sales orders for metal goods and soft goods from our existing customers and new customers , and introduction and sale of new soft goods products to our customers . cost of goods sold cost of goods sold for the years ended december 31 , 2020 and 2019 was $ 27,687,235 and $ 14,153,670 , respectively . cost of goods sold increased in 2020 over 2019 by $ 13,533,565 or 95.6 % , primarily due to the increase in materials cost of steel and plastics polyester to manufacture metal goods and soft goods and increase in labor cost in china . cost of goods sold as a percentage of revenues in 2020 was 70.2 % as compared to cost of goods sold as a percentage of revenues in 2019 of 74.1 % . we expect to reverse the trend and reduce our cost of goods sold as a percentage of revenue as we achieve operational efficiencies in production and work with automated state-of-the-art factories to manufacture our product lines . operating expenses operating expenses consist of selling , general and administrative expenses , litigation expense , and research and development costs . selling , general and administrative expenses ( the “ sg & a expenses ” ) for the years ended december 31 , 2020 and 2019 were $ 21,076,528 and $ 11,401,039 , respectively . sg & a expenses increased in 2020 over 2019 by $ 9,675,489 or 84.9 % , primarily due to hiring additional employees , independent contractors and consultants to grow the company . sg & a expense in 2020 as a percentage of revenues was 51.9 % as compared to sg & a expense in 2019 as a percentage of revenues was 59.7 % . we expect our sg & a expense will continue to increase/decrease as the company plans to bring professional management team and staff on board , expend cash to raise capital for new products development , and acquire a new warehouse/storage facility to expand its operations and maintain finished products inventory on hand . research and development costs ( the “ r & d ” ) for the years ended december 31 , 2020 and 2019 were $ 5,056,811 and $ 2,116,018 , respectively . r & d costs increased in 2020 over 2019 by $ 2,940,793 or 139.0 % , primarily due to the costs incurred in developing new tools , a ruggedized mobile device , software applications to run on the mobile device related to construction industry , and stock-based compensation expense and bonuses to r & d management team . we expect r & d costs to continue to increase/decrease as the company embarks on developing new tools for the construction industry , and the attachments for the ruggedized mobile device with new software applications . 28 net loss due to factors set forth above , and the lack of a warrant derivative at the end of 2020 , with a change of $ 5,251,852 from 2020 over 2019 and loss of $ 1,810,712 being recognized on an exchange transaction during 2020 , we recorded a net loss of $ 17,348,622 for the year ended december 31 , 2020 as compared to a net loss of $ 4,300,969 for the year ended december 31 , 2019. story_separator_special_tag to its customers and factors to accelerate payments of accounts receivable . in addition , the company negotiated extended payment terms with its suppliers , vendors and related parties to conserve its cash . net cash flows used in operating activities for the year ended december 31 , 2019 was $ 10,229,337 , attributable to a net loss of $ 4,300,969 , offset by depreciation expense of $ 225,426 , amortization of original issuance of debt discount and debt issuance cost and non-cash inducement cost for debt conversion of $ 626,546 , change in the

liquidity and capital resources although our sales increased by approximately 106.6 % during the year ended december 31 , 2020 , compared to the same period in 2019 , we are continuing to focus our efforts on increased marketing campaigns , and distribution programs to strengthen the demand for our products globally . management anticipates that our capital resources will improve and our products gain wider market recognition and acceptance resulting in increased product sales . we had $ 2.2 million in cash at december 31 , 2020 , compared to $ 0.03 million at december 31 , 2019. since our inception , we have financed our operations through the sale of equities and debt securities . since our initial public offering in 2018 , we have had several subsequent financings which have enabled us to fund operations . on february 24 , 2020 , we closed on the public offering of 0.445 million shares of our common stock , for gross proceeds of $ 912,250 based upon the overallotment option arising from the closing of our january 28 , 2020 public offering . in our january 28 , 2020 public offering , we sold 4.5 million shares of our common stock and 49.45 million warrants ( each exercisable into 1/20 of a share of common stock for a total of 2.4725 million shares of common stock ) from which it received gross proceeds of $ 9,472,250. on june 12 , 2020 , we closed on the public offering of 1.7 million shares of our common stock , for gross proceeds of $ 1,683,000 based upon the overallotment option arising from the closing of its june 2 , 2020 public offering . in our june 2 , 2020 public offering , we sold 19 million shares of our common stock and 20.7 million warrants from which it received gross proceeds of $ 19,017,000. as of december 30 , 2020 , the company 's principal sources of liquidity consisted of approximately $ 2.2 million of cash and future cash generated from operations .


 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 although our sales increased by approximately 106.6 % during the year ended december 31 , 2020 , compared to the same period in 2019 , we are continuing to focus our efforts on increased marketing campaigns , and distribution programs to strengthen the demand for our products globally . management anticipates that our capital resources will improve and our products gain wider market recognition and acceptance resulting in increased product sales . we had $ 2.2 million in cash at december 31 , 2020 , compared to $ 0.03 million at december 31 , 2019. since our inception , we have financed our operations through the sale of equities and debt securities . since our initial public offering in 2018 , we have had several subsequent financings which have enabled us to fund operations . on february 24 , 2020 , we closed on the public offering of 0.445 million shares of our common stock , for gross proceeds of $ 912,250 based upon the overallotment option arising from the closing of our january 28 , 2020 public offering . in our january 28 , 2020 public offering , we sold 4.5 million shares of our common stock and 49.45 million warrants ( each exercisable into 1/20 of a share of common stock for a total of 2.4725 million shares of common stock ) from which it received gross proceeds of $ 9,472,250. on june 12 , 2020 , we closed on the public offering of 1.7 million shares of our common stock , for gross proceeds of $ 1,683,000 based upon the overallotment option arising from the closing of its june 2 , 2020 public offering . in our june 2 , 2020 public offering , we sold 19 million shares of our common stock and 20.7 million warrants from which it received gross proceeds of $ 19,017,000. as of december 30 , 2020 , the company 's principal sources of liquidity consisted of approximately $ 2.2 million of cash and future cash generated from operations .
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 Suspicious Activity Report : subject to certain conditions set forth in the jobs act , as an “ emerging growth company , ” we intend to rely on certain of these exemptions from , without limitation , ( i ) providing an auditor 's attestation report on our system of internal controls over financial reporting pursuant to section 404 ( b ) of the sarbanes-oxley act and ( ii ) complying with any requirement that may be adopted by the public company accounting oversight board ( pcaob ) regarding mandatory audit firm rotation or a supplement to the auditor 's report providing additional information about the audit and the financial statements , known as the auditor discussion and analysis . we will remain an “ emerging growth company ” until the earliest of ( a ) the last day of our fiscal year following the fifth anniversary of the initial public offering ( ipo ) , ( b ) the last day of the first fiscal year in which our annual gross revenues exceed $ 1.07 billion , ( c ) the last day of our fiscal year in which we are deemed to be a “ large accelerated filer ” as defined in rule 12b-2 under the exchange act ( which would occur if the market value of our equity securities that is held by non-affiliates exceeds $ 700 million as of the last business day of our most recently completed second fiscal quarter ) , or ( d ) the date on which we have issued more than $ 1 billion in non-convertible debt during the preceding three-year period . results of operations the fiscal year ended december 31 , 2020 , compared to the fiscal year ended december 31 , 2019 revenues revenues , net of allowances , for the years ended december 31 , 2020 and 2019 were $ 39,433,617 and $ 19,090,071 , respectively , consisted of metal goods and soft goods sold to customers . revenues increased in 2020 over 2019 by $ 20,343,546 , or 106.6 % , primarily due to wide acceptance of our products in the tools industry and receipt of recurring sales orders for metal goods and soft goods from our existing customers and new customers , and introduction and sale of new soft goods products to our customers . cost of goods sold cost of goods sold for the years ended december 31 , 2020 and 2019 was $ 27,687,235 and $ 14,153,670 , respectively . cost of goods sold increased in 2020 over 2019 by $ 13,533,565 or 95.6 % , primarily due to the increase in materials cost of steel and plastics polyester to manufacture metal goods and soft goods and increase in labor cost in china . cost of goods sold as a percentage of revenues in 2020 was 70.2 % as compared to cost of goods sold as a percentage of revenues in 2019 of 74.1 % . we expect to reverse the trend and reduce our cost of goods sold as a percentage of revenue as we achieve operational efficiencies in production and work with automated state-of-the-art factories to manufacture our product lines . operating expenses operating expenses consist of selling , general and administrative expenses , litigation expense , and research and development costs . selling , general and administrative expenses ( the “ sg & a expenses ” ) for the years ended december 31 , 2020 and 2019 were $ 21,076,528 and $ 11,401,039 , respectively . sg & a expenses increased in 2020 over 2019 by $ 9,675,489 or 84.9 % , primarily due to hiring additional employees , independent contractors and consultants to grow the company . sg & a expense in 2020 as a percentage of revenues was 51.9 % as compared to sg & a expense in 2019 as a percentage of revenues was 59.7 % . we expect our sg & a expense will continue to increase/decrease as the company plans to bring professional management team and staff on board , expend cash to raise capital for new products development , and acquire a new warehouse/storage facility to expand its operations and maintain finished products inventory on hand . research and development costs ( the “ r & d ” ) for the years ended december 31 , 2020 and 2019 were $ 5,056,811 and $ 2,116,018 , respectively . r & d costs increased in 2020 over 2019 by $ 2,940,793 or 139.0 % , primarily due to the costs incurred in developing new tools , a ruggedized mobile device , software applications to run on the mobile device related to construction industry , and stock-based compensation expense and bonuses to r & d management team . we expect r & d costs to continue to increase/decrease as the company embarks on developing new tools for the construction industry , and the attachments for the ruggedized mobile device with new software applications . 28 net loss due to factors set forth above , and the lack of a warrant derivative at the end of 2020 , with a change of $ 5,251,852 from 2020 over 2019 and loss of $ 1,810,712 being recognized on an exchange transaction during 2020 , we recorded a net loss of $ 17,348,622 for the year ended december 31 , 2020 as compared to a net loss of $ 4,300,969 for the year ended december 31 , 2019. story_separator_special_tag to its customers and factors to accelerate payments of accounts receivable . in addition , the company negotiated extended payment terms with its suppliers , vendors and related parties to conserve its cash . net cash flows used in operating activities for the year ended december 31 , 2019 was $ 10,229,337 , attributable to a net loss of $ 4,300,969 , offset by depreciation expense of $ 225,426 , amortization of original issuance of debt discount and debt issuance cost and non-cash inducement cost for debt conversion of $ 626,546 , change in the story_separator_special_tag subject to certain conditions set forth in the jobs act , as an “ emerging growth company , ” we intend to rely on certain of these exemptions from , without limitation , ( i ) providing an auditor 's attestation report on our system of internal controls over financial reporting pursuant to section 404 ( b ) of the sarbanes-oxley act and ( ii ) complying with any requirement that may be adopted by the public company accounting oversight board ( pcaob ) regarding mandatory audit firm rotation or a supplement to the auditor 's report providing additional information about the audit and the financial statements , known as the auditor discussion and analysis . we will remain an “ emerging growth company ” until the earliest of ( a ) the last day of our fiscal year following the fifth anniversary of the initial public offering ( ipo ) , ( b ) the last day of the first fiscal year in which our annual gross revenues exceed $ 1.07 billion , ( c ) the last day of our fiscal year in which we are deemed to be a “ large accelerated filer ” as defined in rule 12b-2 under the exchange act ( which would occur if the market value of our equity securities that is held by non-affiliates exceeds $ 700 million as of the last business day of our most recently completed second fiscal quarter ) , or ( d ) the date on which we have issued more than $ 1 billion in non-convertible debt during the preceding three-year period . results of operations the fiscal year ended december 31 , 2020 , compared to the fiscal year ended december 31 , 2019 revenues revenues , net of allowances , for the years ended december 31 , 2020 and 2019 were $ 39,433,617 and $ 19,090,071 , respectively , consisted of metal goods and soft goods sold to customers . revenues increased in 2020 over 2019 by $ 20,343,546 , or 106.6 % , primarily due to wide acceptance of our products in the tools industry and receipt of recurring sales orders for metal goods and soft goods from our existing customers and new customers , and introduction and sale of new soft goods products to our customers . cost of goods sold cost of goods sold for the years ended december 31 , 2020 and 2019 was $ 27,687,235 and $ 14,153,670 , respectively . cost of goods sold increased in 2020 over 2019 by $ 13,533,565 or 95.6 % , primarily due to the increase in materials cost of steel and plastics polyester to manufacture metal goods and soft goods and increase in labor cost in china . cost of goods sold as a percentage of revenues in 2020 was 70.2 % as compared to cost of goods sold as a percentage of revenues in 2019 of 74.1 % . we expect to reverse the trend and reduce our cost of goods sold as a percentage of revenue as we achieve operational efficiencies in production and work with automated state-of-the-art factories to manufacture our product lines . operating expenses operating expenses consist of selling , general and administrative expenses , litigation expense , and research and development costs . selling , general and administrative expenses ( the “ sg & a expenses ” ) for the years ended december 31 , 2020 and 2019 were $ 21,076,528 and $ 11,401,039 , respectively . sg & a expenses increased in 2020 over 2019 by $ 9,675,489 or 84.9 % , primarily due to hiring additional employees , independent contractors and consultants to grow the company . sg & a expense in 2020 as a percentage of revenues was 51.9 % as compared to sg & a expense in 2019 as a percentage of revenues was 59.7 % . we expect our sg & a expense will continue to increase/decrease as the company plans to bring professional management team and staff on board , expend cash to raise capital for new products development , and acquire a new warehouse/storage facility to expand its operations and maintain finished products inventory on hand . research and development costs ( the “ r & d ” ) for the years ended december 31 , 2020 and 2019 were $ 5,056,811 and $ 2,116,018 , respectively . r & d costs increased in 2020 over 2019 by $ 2,940,793 or 139.0 % , primarily due to the costs incurred in developing new tools , a ruggedized mobile device , software applications to run on the mobile device related to construction industry , and stock-based compensation expense and bonuses to r & d management team . we expect r & d costs to continue to increase/decrease as the company embarks on developing new tools for the construction industry , and the attachments for the ruggedized mobile device with new software applications . 28 net loss due to factors set forth above , and the lack of a warrant derivative at the end of 2020 , with a change of $ 5,251,852 from 2020 over 2019 and loss of $ 1,810,712 being recognized on an exchange transaction during 2020 , we recorded a net loss of $ 17,348,622 for the year ended december 31 , 2020 as compared to a net loss of $ 4,300,969 for the year ended december 31 , 2019. story_separator_special_tag to its customers and factors to accelerate payments of accounts receivable . in addition , the company negotiated extended payment terms with its suppliers , vendors and related parties to conserve its cash . net cash flows used in operating activities for the year ended december 31 , 2019 was $ 10,229,337 , attributable to a net loss of $ 4,300,969 , offset by depreciation expense of $ 225,426 , amortization of original issuance of debt discount and debt issuance cost and non-cash inducement cost for debt conversion of $ 626,546 , change in the

