new intellectual property titles include the preschool property rainbow rangers , which debuted in november 2018 on nickelodeon and which was renewed for a second season and preschool property llama llama , which debuted on netflix in january 2018 and was renewed by netflix for a second season . our library titles include the award-winning baby genius , adventure comedy thomas edison 's secret lab ® and warren buffett 's secret millionaires club , created with and starring iconic investor warren buffett , which is distributed across our genius brands network on comcast 's xfinity on demand , appletv , roku , amazon fire , youtube , amazon prime , cox , dish , sling and zumo , as well as connected tv . we are also developing an all-new animated series , stan lee 's superhero kindergarten with stan lee 's pow ! entertainment , oak productions and alibaba . arnold schwarzenegger lends his voice as the lead and is also an executive producer on the series . the show will be broadcast in the united states on amazon prime and the company 's wholly owned distribution outlet , kartoon channel ! . in july 2020 , the company entered into a binding term sheet with pow , inc. ( “ pow ! ” ) in which we agreed to form an entity with pow ! to exploit certain rights in intellectual property created by stan lee , as well as the name and likeness of stan lee . the entity is called “ stan lee universe , llc ” and pow ! and the company are finalizing the details of the venture . through this agreement we are assuming the worldwide rights , in perpetuity , to the name , physical likeness , physical signature , live-action and animated motion picture , television , online , digital , publishing , comic book , merchandising and licensing rights to stan lee and over 100 original stan lee creations , from which genius brands plans to develop and license approximately multiple properties each year . 18 in addition , we act as licensing agent for penguin young readers , a division of penguin random house llc which owns or controls the underlying rights to llama llama , leveraging our existing licensing infrastructure to expand this brand into new product categories , new retailers , and new territories . recent developments on january 28 , 2021 , we entered into letter agreements ( the “ letter agreements ” ) with certain existing institutional and accredited investors to exercise certain outstanding warrants ( the “ existing warrants ” ) to purchase up to an aggregate of 39,740,500 shares of the company 's common stock at their original exercise price of $ 1.55 per share ( the “ exercise ” ) . the existing warrants ( the “ registered existing warrants ” ) and the shares of common stock underlying the registered existing warrants were previously registered pursuant to a registration statement on form s-3 ( file no . 333-248623 ) . in consideration for the exercise of the existing warrants for cash , the exercising holders will receive new unregistered warrants to purchase up to an aggregate of 39,740,500 shares of common stock ( the “ new warrants ” ) at an exercise price of $ 2.37 per share and with an exercise period of five years from the initial issuance date . the special equities group , a division of bradley woods & co. ltd. , acted as warrant solicitation agent and will receive a cash fee of approximately $ 4.3 million . the gross proceeds to the company from the exercise were approximately $ 61.6 million . the company intends to use the net proceeds from the exercise for acquisitions of children 's and family intellectual property , and or companies in the children 's and family entertainment space . on february 1 , 2021 , the company through gbi acquisition llc , a new jersey limited liability company , and 2811210 ontario inc. , a company organized under the laws of the province of ontario , two wholly owned subsidiaries of the company , closed its previously announced acquisition pursuant to a purchase and sale agreement ( the “ purchase agreement ” ) with ( i ) harold aaron chizick , ( ii ) jennifer mara chizick , ( iii ) wishing thumbelina inc. ( “ wishing thumbelina ” ) , and ( iv ) harold aaron chizick and jennifer mara chizick , the trustees of the chizsix ( 2019 ) family trust for and on behalf of harold aaron chizick , jennifer mara chizick and jay mark sonshine , trustees of the chizsix ( 2019 ) family trust , ( the “ trustees ” ) ( each a “ seller ” and , collectively , “ sellers ” ) , pursuant to which the company acquired from the sellers all of the issued and outstanding equity interests of chizcomm ltd. , a corporation organized in canada ( “ chizcomm canada ” ) , and chizcomm usa corp. , a new jersey corporation ( “ chizcomm usa ” and , together with chizcomm canada , “ chizcomm ” ) ( the “ acquisition ” ) . total consideration paid by the company in the transaction at closing consisted of $ 8.5 million in cash and 1,966,292 shares ( the “ closing shares ” ) of the company 's common stock , $ 0.001 par value per share ( the “ common stock ” ) with a value of approximately $ 3.5 million , both as subject to certain purchase price adjustments . of the closing shares , 674,157 shares of common stock , with a value of approximately $ 1.2 million , were deposited into an escrow account to cover potential post-closing indemnification obligations of sellers under the purchase agreement . story_separator_special_tag direct operating costs include costs of our product sales , unamortizable post-production costs , film and television cost amortization expense , and participation expense related to agreements with various animation studios , post-production studios , writers , directors , musicians or other creative talent with which we are obligated to share net profits of the properties on which they have rendered services . direct operating costs for the year ended december 31 , 2020 decreased $ 2,444,539 , or 54 % , compared to the year ended december 31 , 2019. during the year ended december 31 , 2020 , we recorded film and television cost amortization expense of $ 979,598 and participation expense of $ 1,043,214 , compared to the year ended december 31 , 2019 , where we recorded expenses of $ 2,230,024 and $ 1,690,936 , respectively . the decreases in direct operating costs in the year ended december 31 , 2020 compared to the prior year reflect decreases in film amortization expense , participation expense and dubbing costs related to the delivery of llama llama to netflix and the delivery of rainbow rangers to nickelodeon in 2019. general and administrative expenses consist primarily of salaries , employee benefits , share-based compensation related to stock options , insurances , rent , depreciation , and amortization as well as other professional fees related to finance , accounting , legal and investor relations . general and administrative costs for year ended december 31 , 2020 increased $ 10,307,243 , or 145 % , compared to the same period in 2019. this increase is primarily due to an increase of $ 8,745,186 in stock based compensation , $ 648,493 in professional fees , and $ 680,779 in increased salaries and wages . fluctuations in other general and administrative expenses comprise the balance of the variance . interest expense for the year ended december 31 , 2020 increased $ 372,652 , compared to the same period in 2019. the increase in interest expense was due to the costs associated with the senior convertible notes exceeding the face amount of the notes . the excess was recorded as interest expense . story_separator_special_tag have any material commitments for capital expenditures . critical accounting policies and estimates our accounting policies are described in the notes to the consolidated financial statements . below is a summary of the critical accounting policies , among others , that management believes involve significant judgments and estimates used in the preparation of its consolidated financial statements . goodwill and intangible assets goodwill represents the excess of purchase price over the estimated fair value of net assets acquired in business combinations accounted for by the purchase method . in accordance with fasb asc 350 intangibles goodwill and other , goodwill and certain intangible assets are presumed to have indefinite useful lives and are thus not amortized , but subject to an impairment test annually or more frequently if indicators of impairment arise . we complete the annual goodwill and indefinite-lived intangible asset impairment tests at the end of each fiscal year . in testing goodwill , we initially use a qualitative approach and analyze relevant factors to determine if events and circumstances have affected the value of the goodwill . if the result of this qualitative analysis indicates that the value has been impaired , we then apply a quantitative approach to calculate the difference between the goodwill 's recorded value and its fair value . an impairment loss is recognized to the extent that the recorded value exceeds its fair value . goodwill , in addition to being tested for impairment annually , is tested for impairment at interim periods if an event occurs or circumstances change such that it is more likely than not that the carrying amount of goodwill may be impaired . for the year ended december 31 , 2020 , the company performed a qualitative analysis of the carrying value of goodwill . based on the results of our analysis , we concluded that there is no impairment to the goodwill balance and no adjustment is necessary at this time . other intangible assets have been acquired , either individually or with a group of other assets , and were initially recognized and measured based on fair value . in accordance with fasb asc 350 intangible assets , the costs of new product development and significant improvement to existing products are capitalized while routine and periodic alterations to existing products are expensed as incurred . annual amortization of these intangible assets is computed based on the straight-line method over the remaining economic life of the asset . film and television costs we capitalize production costs for episodic series produced in accordance with fasb asc 926-20 entertainment-films – other assets – film costs . accordingly , production costs are capitalized at actual cost and then charged against revenue based on the initial market revenue evidenced by a firm commitment over the period of commitment . we expense all capitalized costs that exceed the initial market firm commitment revenue in the period of delivery of the episodes . we capitalize production costs for films produced in accordance with fasb asc 926-20 entertainment-films – other assets – film costs . accordingly , production costs are capitalized at actual cost and then charged against revenue quarterly as a cost of production based on the relative fair value of the film ( s ) delivered and recognized as revenue . we evaluate our capitalized production costs annually and limit recorded amounts by our ability to recover such costs through expected future sales . additionally , for both episodic series and films , from time to time , we develop additional content , improved animation and bonus songs/features for our existing content . after the initial release of the film or episodic series , the costs of significant improvement to existing products are capitalized while routine and periodic alterations to existing products are expensed as incurred . 26 debt and attached

liquidity and capital resources working capital as of december 31 , 2020 , we had current assets of $ 108,566,089 , including cash and cash equivalents of $ 100,456,324 , and current liabilities of $ 7,178,906 , resulting in working capital of $ 101,387,183 , compared to a negative working capital of $ 3,650,136 as of december 31 , 2019. increases in working capital were primarily the result of the increase in cash of $ 100,151,203 resulting from capital raises and warrant exercises and an increase in prepaid expenses of $ 6,608,554 resulting from the $ 500,000 cash payment , issuance of shares and warrants for prepayment of production and marketing services . decreases in working capital were primarily the result of the repayment of the secured convertible notes in the amount of $ 2,373,952 , an increase in the warrant derivative liability of $ 1,197,068 , an increase in participations payable . comparison of cash flows for the years ended december 31 , 2020 and 2019 our total cash and cash equivalents were $ 100,456,324 and $ 305,121 at december 31 , 2020 and 2019 , respectively . 24 replace_table_token_3_th during the year ended december 31 , 2020 , our primary sources of cash from financing activities included the $ 98,583,549 in net sales of common stock , $ 5,874,329 from warrant exercises , $ 6,098,000 in net proceeds from senior secured convertible notes and $ 3,600,000 from the collection of the investor notes .


 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 working capital as of december 31 , 2020 , we had current assets of $ 108,566,089 , including cash and cash equivalents of $ 100,456,324 , and current liabilities of $ 7,178,906 , resulting in working capital of $ 101,387,183 , compared to a negative working capital of $ 3,650,136 as of december 31 , 2019. increases in working capital were primarily the result of the increase in cash of $ 100,151,203 resulting from capital raises and warrant exercises and an increase in prepaid expenses of $ 6,608,554 resulting from the $ 500,000 cash payment , issuance of shares and warrants for prepayment of production and marketing services . decreases in working capital were primarily the result of the repayment of the secured convertible notes in the amount of $ 2,373,952 , an increase in the warrant derivative liability of $ 1,197,068 , an increase in participations payable . comparison of cash flows for the years ended december 31 , 2020 and 2019 our total cash and cash equivalents were $ 100,456,324 and $ 305,121 at december 31 , 2020 and 2019 , respectively . 24 replace_table_token_3_th during the year ended december 31 , 2020 , our primary sources of cash from financing activities included the $ 98,583,549 in net sales of common stock , $ 5,874,329 from warrant exercises , $ 6,098,000 in net proceeds from senior secured convertible notes and $ 3,600,000 from the collection of the investor notes .
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 Suspicious Activity Report : new intellectual property titles include the preschool property rainbow rangers , which debuted in november 2018 on nickelodeon and which was renewed for a second season and preschool property llama llama , which debuted on netflix in january 2018 and was renewed by netflix for a second season . our library titles include the award-winning baby genius , adventure comedy thomas edison 's secret lab ® and warren buffett 's secret millionaires club , created with and starring iconic investor warren buffett , which is distributed across our genius brands network on comcast 's xfinity on demand , appletv , roku , amazon fire , youtube , amazon prime , cox , dish , sling and zumo , as well as connected tv . we are also developing an all-new animated series , stan lee 's superhero kindergarten with stan lee 's pow ! entertainment , oak productions and alibaba . arnold schwarzenegger lends his voice as the lead and is also an executive producer on the series . the show will be broadcast in the united states on amazon prime and the company 's wholly owned distribution outlet , kartoon channel ! . in july 2020 , the company entered into a binding term sheet with pow , inc. ( “ pow ! ” ) in which we agreed to form an entity with pow ! to exploit certain rights in intellectual property created by stan lee , as well as the name and likeness of stan lee . the entity is called “ stan lee universe , llc ” and pow ! and the company are finalizing the details of the venture . through this agreement we are assuming the worldwide rights , in perpetuity , to the name , physical likeness , physical signature , live-action and animated motion picture , television , online , digital , publishing , comic book , merchandising and licensing rights to stan lee and over 100 original stan lee creations , from which genius brands plans to develop and license approximately multiple properties each year . 18 in addition , we act as licensing agent for penguin young readers , a division of penguin random house llc which owns or controls the underlying rights to llama llama , leveraging our existing licensing infrastructure to expand this brand into new product categories , new retailers , and new territories . recent developments on january 28 , 2021 , we entered into letter agreements ( the “ letter agreements ” ) with certain existing institutional and accredited investors to exercise certain outstanding warrants ( the “ existing warrants ” ) to purchase up to an aggregate of 39,740,500 shares of the company 's common stock at their original exercise price of $ 1.55 per share ( the “ exercise ” ) . the existing warrants ( the “ registered existing warrants ” ) and the shares of common stock underlying the registered existing warrants were previously registered pursuant to a registration statement on form s-3 ( file no . 333-248623 ) . in consideration for the exercise of the existing warrants for cash , the exercising holders will receive new unregistered warrants to purchase up to an aggregate of 39,740,500 shares of common stock ( the “ new warrants ” ) at an exercise price of $ 2.37 per share and with an exercise period of five years from the initial issuance date . the special equities group , a division of bradley woods & co. ltd. , acted as warrant solicitation agent and will receive a cash fee of approximately $ 4.3 million . the gross proceeds to the company from the exercise were approximately $ 61.6 million . the company intends to use the net proceeds from the exercise for acquisitions of children 's and family intellectual property , and or companies in the children 's and family entertainment space . on february 1 , 2021 , the company through gbi acquisition llc , a new jersey limited liability company , and 2811210 ontario inc. , a company organized under the laws of the province of ontario , two wholly owned subsidiaries of the company , closed its previously announced acquisition pursuant to a purchase and sale agreement ( the “ purchase agreement ” ) with ( i ) harold aaron chizick , ( ii ) jennifer mara chizick , ( iii ) wishing thumbelina inc. ( “ wishing thumbelina ” ) , and ( iv ) harold aaron chizick and jennifer mara chizick , the trustees of the chizsix ( 2019 ) family trust for and on behalf of harold aaron chizick , jennifer mara chizick and jay mark sonshine , trustees of the chizsix ( 2019 ) family trust , ( the “ trustees ” ) ( each a “ seller ” and , collectively , “ sellers ” ) , pursuant to which the company acquired from the sellers all of the issued and outstanding equity interests of chizcomm ltd. , a corporation organized in canada ( “ chizcomm canada ” ) , and chizcomm usa corp. , a new jersey corporation ( “ chizcomm usa ” and , together with chizcomm canada , “ chizcomm ” ) ( the “ acquisition ” ) . total consideration paid by the company in the transaction at closing consisted of $ 8.5 million in cash and 1,966,292 shares ( the “ closing shares ” ) of the company 's common stock , $ 0.001 par value per share ( the “ common stock ” ) with a value of approximately $ 3.5 million , both as subject to certain purchase price adjustments . of the closing shares , 674,157 shares of common stock , with a value of approximately $ 1.2 million , were deposited into an escrow account to cover potential post-closing indemnification obligations of sellers under the purchase agreement . story_separator_special_tag direct operating costs include costs of our product sales , unamortizable post-production costs , film and television cost amortization expense , and participation expense related to agreements with various animation studios , post-production studios , writers , directors , musicians or other creative talent with which we are obligated to share net profits of the properties on which they have rendered services . direct operating costs for the year ended december 31 , 2020 decreased $ 2,444,539 , or 54 % , compared to the year ended december 31 , 2019. during the year ended december 31 , 2020 , we recorded film and television cost amortization expense of $ 979,598 and participation expense of $ 1,043,214 , compared to the year ended december 31 , 2019 , where we recorded expenses of $ 2,230,024 and $ 1,690,936 , respectively . the decreases in direct operating costs in the year ended december 31 , 2020 compared to the prior year reflect decreases in film amortization expense , participation expense and dubbing costs related to the delivery of llama llama to netflix and the delivery of rainbow rangers to nickelodeon in 2019. general and administrative expenses consist primarily of salaries , employee benefits , share-based compensation related to stock options , insurances , rent , depreciation , and amortization as well as other professional fees related to finance , accounting , legal and investor relations . general and administrative costs for year ended december 31 , 2020 increased $ 10,307,243 , or 145 % , compared to the same period in 2019. this increase is primarily due to an increase of $ 8,745,186 in stock based compensation , $ 648,493 in professional fees , and $ 680,779 in increased salaries and wages . fluctuations in other general and administrative expenses comprise the balance of the variance . interest expense for the year ended december 31 , 2020 increased $ 372,652 , compared to the same period in 2019. the increase in interest expense was due to the costs associated with the senior convertible notes exceeding the face amount of the notes . the excess was recorded as interest expense . story_separator_special_tag have any material commitments for capital expenditures . critical accounting policies and estimates our accounting policies are described in the notes to the consolidated financial statements . below is a summary of the critical accounting policies , among others , that management believes involve significant judgments and estimates used in the preparation of its consolidated financial statements . goodwill and intangible assets goodwill represents the excess of purchase price over the estimated fair value of net assets acquired in business combinations accounted for by the purchase method . in accordance with fasb asc 350 intangibles goodwill and other , goodwill and certain intangible assets are presumed to have indefinite useful lives and are thus not amortized , but subject to an impairment test annually or more frequently if indicators of impairment arise . we complete the annual goodwill and indefinite-lived intangible asset impairment tests at the end of each fiscal year . in testing goodwill , we initially use a qualitative approach and analyze relevant factors to determine if events and circumstances have affected the value of the goodwill . if the result of this qualitative analysis indicates that the value has been impaired , we then apply a quantitative approach to calculate the difference between the goodwill 's recorded value and its fair value . an impairment loss is recognized to the extent that the recorded value exceeds its fair value . goodwill , in addition to being tested for impairment annually , is tested for impairment at interim periods if an event occurs or circumstances change such that it is more likely than not that the carrying amount of goodwill may be impaired . for the year ended december 31 , 2020 , the company performed a qualitative analysis of the carrying value of goodwill . based on the results of our analysis , we concluded that there is no impairment to the goodwill balance and no adjustment is necessary at this time . other intangible assets have been acquired , either individually or with a group of other assets , and were initially recognized and measured based on fair value . in accordance with fasb asc 350 intangible assets , the costs of new product development and significant improvement to existing products are capitalized while routine and periodic alterations to existing products are expensed as incurred . annual amortization of these intangible assets is computed based on the straight-line method over the remaining economic life of the asset . film and television costs we capitalize production costs for episodic series produced in accordance with fasb asc 926-20 entertainment-films – other assets – film costs . accordingly , production costs are capitalized at actual cost and then charged against revenue based on the initial market revenue evidenced by a firm commitment over the period of commitment . we expense all capitalized costs that exceed the initial market firm commitment revenue in the period of delivery of the episodes . we capitalize production costs for films produced in accordance with fasb asc 926-20 entertainment-films – other assets – film costs . accordingly , production costs are capitalized at actual cost and then charged against revenue quarterly as a cost of production based on the relative fair value of the film ( s ) delivered and recognized as revenue . we evaluate our capitalized production costs annually and limit recorded amounts by our ability to recover such costs through expected future sales . additionally , for both episodic series and films , from time to time , we develop additional content , improved animation and bonus songs/features for our existing content . after the initial release of the film or episodic series , the costs of significant improvement to existing products are capitalized while routine and periodic alterations to existing products are expensed as incurred . 26 debt and attached

