we have a team in-place with tremendous depth and breadth of experience and knowledge , with a legacy business that is providing an ongoing source of funding for the development of new product lines . we have a strong balance sheet and liquidity position that we anticipate will provide financial flexibility and security in the current environment of economic uncertainty with no current expectations of additional cash infusions required . generally , our primary source of liquidity is cash generated from operating activities . our level of cash and cash flows from operations have historically been sufficient to meet our operating and capital needs . we believe that during the next 12 months the covid-19 global pandemic could impact general economic activity and demand in our end markets . although we can not estimate the length or gravity of the impact of the covid-19 outbreak at this time , if the pandemic continues , it may have an adverse effect on our results of operations , financial position , and liquidity in fiscal year 2021. on march 27 , 2020 , the coronavirus aid , relief , and economic security act ( “ cares act ” ) was enacted to provide emergency economic stimulus in response to the covid-19 global pandemic . the cares act includes direct financial assistance to americans in the form of one-time payments to individuals , aid to small businesses in the form of loans and grants , and other efforts to stabilize the u.s. economy and keep americans employed . we have not filed , and currently do not intend to file , for funding related to the cares act due to our strong balance sheet and liquidity position with $ 70.7 million in cash and cash equivalents , short-term investments and long-term investments and no debt outstanding . we currently have no plans to defer payroll taxes , to layoff or furlough employees or to modify leases and stock compensation plans . also included in the cares act are numerous income tax provisions including changes to the net operating loss rules that we believe will not have significant impact on us . 31 revenues . our revenues are derived primarily from sales of our very fast sram products . sales to networking and telecommunications oems accounted for 50 % to 55 % of our net revenues during our last three fiscal years . we also sell our products to oems that manufacture products for military and aerospace applications such as radar and guidance systems , missiles and satellites , for professional audio applications such as sound mixing systems , for test and measurement applications such as high-speed testers , for automotive applications such as smart cruise control and voice recognition systems , and for medical applications such as ultrasound and cat scan equipment . as is typical in the semiconductor industry , the selling prices of our products generally decline over the life of the product . our ability to increase net revenues , therefore , is dependent upon our ability to increase unit sales volumes of existing products and to introduce and sell new products with higher average selling prices in quantities sufficient to compensate for the anticipated declines in selling prices of our more mature products . although we expect the average selling prices of individual products to decline over time , we believe that , over the next several quarters , our overall average selling prices will increase due to a continuing shift in product mix to a higher percentage of higher price , higher density products . our ability to increase unit sales volumes is dependent primarily upon increases in customer demand but , particularly in periods of increasing demand , can also be affected by our ability to increase production through the availability of increased wafer fabrication capacity from tsmc , our wafer supplier , and our ability to increase the number of good integrated circuit die produced from each wafer through die size reductions and yield enhancement activities . we may experience fluctuations in quarterly net revenues for a number of reasons . historically , orders on hand at the beginning of each quarter are insufficient to meet our revenue objectives for that quarter and are generally cancelable up to 30 days prior to scheduled delivery . accordingly , we depend on obtaining and shipping orders in the same quarter to achieve our revenue objectives . in addition , the timing of product releases , purchase orders and product availability could result in significant product shipments at the end of a quarter . failure to ship these products by the end of the quarter may adversely affect our operating results . furthermore , our customers may delay scheduled delivery dates and or cancel orders within specified timeframes without significant penalty . we sell our products through our direct sales force , international and domestic sales representatives and distributors . our revenues may be impacted by possible changes in customer buying patterns and communication limitations related to covid-19 shelter in place restrictions that require a significant number of our customer contacts to work from home . the majority of our customer contracts , which may be in the form of purchase orders , contracts or purchase agreements , contain performance obligations for delivery of agreed upon products . delivery of all performance obligations contained within a contract with a customer typically occurs at the same time ( or within the same accounting period ) . transfer of control typically occurs at the time of shipment or at the time the product is pulled from consignment as that is the point at which delivery has occurred , title and the risks and rewards of ownership have passed to the customer , and we have a right to payment . thus , we will generally recognize revenue upon shipment of the product . story_separator_special_tag % of total shipments in fiscal 2018. the increase in sigmaquad shipments was primarily due to the increased sales to nokia . cost of revenues . although net revenues increased in fiscal 2019 compared to fiscal 2018 , cost of revenues decreased by 1.8 % from $ 20.2 million in fiscal 2018 to $ 19.9 million in fiscal 2019. the decrease was primarily due to an increase in gross margin from 52.6 % in fiscal 2018 to 61.4 % in fiscal 2019 resulting from the favorable product mix . cost of revenues included stock-based compensation expense of $ 234,000 and $ 259,000 , respectively , in fiscal 2019 and fiscal 2018. gross profit . gross profit increased by 41.0 % from $ 22.4 million in fiscal 2018 to $ 31.6 million in fiscal 2019. gross margin increased from 52.6 % in fiscal 2018 to 61.4 % in fiscal 2019. the increase in gross margin was primarily related to changes in the mix of products and customers . research and development expenses . research and development expenses increased 25.6 % from $ 17.0 million in fiscal 2018 to $ 21.4 million in fiscal 2019. the increase was primarily due to increases of $ 1.5 million in payroll related expenses , $ 1.2 million in outside consultant expenses , $ 986,000 in non-production mask sets and $ 214,000 in depreciation expense , all related to our associative processing development activities . research and development expenses included stock-based compensation expense of $ 1.3 million and $ 1.1 million , respectively , in fiscal 2019 and fiscal 2018. selling , general and administrative expenses . selling , general and administrative expenses increased 5.6 % from $ 9.9 million in fiscal 2018 to $ 10.5 million in fiscal 2019. this increase was primarily related to an increase in payroll related expenses of $ 713,000 and a lesser increase in outside sales representative commissions , partially offset by a decrease of $ 712,000 in professional fees . in addition , re-measurement of the contingent consideration liability related to our acquisition of mikamonu resulted in a reduction of the liability of $ 179,000 in fiscal 2019 compared to $ 308,000 in fiscal 2018 , for a year over year increase in expenses of $ 129,000. selling , general and administrative expenses included stock-based compensation expense of $ 722,000 and $ 670,000 , respectively , in fiscal 2019 and fiscal 2018. interest and other income ( expense ) , net . interest and other income ( expense ) , net increased 10.0 % from $ 409,000 in fiscal 2018 to $ 450,000 in fiscal 2019. interest income increased by $ 250,000 due to higher interest rates received on cash and short-term and long-term investments . the foreign currency exchange loss increased from ( $ 12,000 ) in fiscal 2018 to ( $ 221,000 ) in fiscal 2019. the exchange loss in each period was primarily related to our taiwan branch operations and operations in israel . provision for income taxes . the provision for income taxes was $ 453,000 in fiscal 2018 compared to $ 105,000 in fiscal 2019. the “ tax cuts and jobs act ” ( `` h.r . 1 `` ) resulted in an estimated tax provision of $ 367,000 in the year ended march 31 , 2018 related to the transition tax associated with deemed repatriation of foreign earnings . during the year ended march 31 , 2019 , we completed our assessment of the impact of h.r . 1 and recorded an immaterial additional liability that is included in income taxes payable in the consolidated balance sheet as of march 31 , 2019. because we recorded a cumulative three-year loss on a u.s. tax basis for the year ended march 31 , 2019 and the realization of our deferred tax assets is questionable , we recorded a tax provision reflecting a valuation allowance of $ 6.7 million in net deferred tax assets in fiscal 2019. reductions in uncertain tax benefits due to lapses in the statute of limitations were not significant in the years ended march 31 , 2019 and 2018. net income ( loss ) . net loss was ( $ 4.5 ) million in fiscal 2018 compared to net income of $ 163,000 in fiscal 2019. this improvement was primarily due to the changes in net revenues , gross profit and operating expenses discussed above . 37 story_separator_special_tag style= `` display : inline ; font-weight : bold ; font-size:10pt ; `` > contractual obligations the following table describes our contractual obligations as of march 31 , 2020 : replace_table_token_4_th as of march 31 , 2020 , the current portion of our unrecognized tax benefits was $ 0 , and the long-term portion was $ 613,000. in connection with the acquisition of mikamonu on november 23 , 2015 , we are required to make contingent consideration payments to the former mikamonu shareholders conditioned upon the achievement of certain revenue targets for products based on the mikamonu technology . as of march 31 , 2020 , the accrual for potential payment of contingent consideration was $ 3.9 million . critical accounting policies and estimates the preparation of our consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the united states ( “ gaap ” ) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period . significant estimates are inherent in the preparation of the consolidated financial statements and include estimates affecting revenue recognition , obsolete and excess inventory , the valuation allowance on deferred tax assets , stock-based compensation , contingent consideration and the valuation of goodwill . we believe that we consistently apply these judgments and estimates and that our financial statements and accompanying notes fairly represent our financial results for all periods presented

liquidity and capital resources as of march 31 , 2020 , our principal sources of liquidity were cash , cash equivalents and short-term investments of $ 66.6 million compared to $ 61.8 million as of march 31 , 2019 . cash , cash equivalents and short-term investments totaling $ 36.2 million were held in foreign locations as of march 31 , 2020. net cash used in operating activities was $ 4.7 million for fiscal 2020 compared to net cash provided by operating activities of $ 3.0 million and $ 1.1 million for fiscal 2019 and 2018 , respectively . the primary use of cash in fiscal 2020 was the net loss of $ 10.3 million . the primary sources of cash in fiscal 2020 were non-cash items including stock-based compensation of $ 2.6 million , depreciation and amortization expenses of $ 1.5 million and a provision for excess and obsolete inventories of $ 343,000 , a decrease in inventories of $ 1.1 million and a decrease of $ 1.0 million in accounts receivable . accounts receivable decreased primarily due to the decreased level of shipments during the fourth quarter of fiscal 2020 compared to the prior year . the primary sources of cash in fiscal 2019 were an increase in accrued expenses and other liabilities of $ 1.5 million and non-cash items including stock-based compensation of $ 2.3 million , depreciation and amortization expenses of $ 1.5 million and a provision for excess and obsolete inventories of $ 1.2 million . accrued expenses and other liabilities increased primarily due to increased levels of compensation related accruals in fiscal 2019 compared to the prior year . the primary uses of cash in fiscal 2019 were increases in accounts receivable of $ 2.1 million and inventory of $ 1.3 million . accounts receivable increased primarily due to the timing of payments received from customers and the increased level of shipments during fourth quarter of fiscal 2019 compared to the prior year .


 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 as of march 31 , 2020 , our principal sources of liquidity were cash , cash equivalents and short-term investments of $ 66.6 million compared to $ 61.8 million as of march 31 , 2019 . cash , cash equivalents and short-term investments totaling $ 36.2 million were held in foreign locations as of march 31 , 2020. net cash used in operating activities was $ 4.7 million for fiscal 2020 compared to net cash provided by operating activities of $ 3.0 million and $ 1.1 million for fiscal 2019 and 2018 , respectively . the primary use of cash in fiscal 2020 was the net loss of $ 10.3 million . the primary sources of cash in fiscal 2020 were non-cash items including stock-based compensation of $ 2.6 million , depreciation and amortization expenses of $ 1.5 million and a provision for excess and obsolete inventories of $ 343,000 , a decrease in inventories of $ 1.1 million and a decrease of $ 1.0 million in accounts receivable . accounts receivable decreased primarily due to the decreased level of shipments during the fourth quarter of fiscal 2020 compared to the prior year . the primary sources of cash in fiscal 2019 were an increase in accrued expenses and other liabilities of $ 1.5 million and non-cash items including stock-based compensation of $ 2.3 million , depreciation and amortization expenses of $ 1.5 million and a provision for excess and obsolete inventories of $ 1.2 million . accrued expenses and other liabilities increased primarily due to increased levels of compensation related accruals in fiscal 2019 compared to the prior year . the primary uses of cash in fiscal 2019 were increases in accounts receivable of $ 2.1 million and inventory of $ 1.3 million . accounts receivable increased primarily due to the timing of payments received from customers and the increased level of shipments during fourth quarter of fiscal 2019 compared to the prior year .
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 Suspicious Activity Report : we have a team in-place with tremendous depth and breadth of experience and knowledge , with a legacy business that is providing an ongoing source of funding for the development of new product lines . we have a strong balance sheet and liquidity position that we anticipate will provide financial flexibility and security in the current environment of economic uncertainty with no current expectations of additional cash infusions required . generally , our primary source of liquidity is cash generated from operating activities . our level of cash and cash flows from operations have historically been sufficient to meet our operating and capital needs . we believe that during the next 12 months the covid-19 global pandemic could impact general economic activity and demand in our end markets . although we can not estimate the length or gravity of the impact of the covid-19 outbreak at this time , if the pandemic continues , it may have an adverse effect on our results of operations , financial position , and liquidity in fiscal year 2021. on march 27 , 2020 , the coronavirus aid , relief , and economic security act ( “ cares act ” ) was enacted to provide emergency economic stimulus in response to the covid-19 global pandemic . the cares act includes direct financial assistance to americans in the form of one-time payments to individuals , aid to small businesses in the form of loans and grants , and other efforts to stabilize the u.s. economy and keep americans employed . we have not filed , and currently do not intend to file , for funding related to the cares act due to our strong balance sheet and liquidity position with $ 70.7 million in cash and cash equivalents , short-term investments and long-term investments and no debt outstanding . we currently have no plans to defer payroll taxes , to layoff or furlough employees or to modify leases and stock compensation plans . also included in the cares act are numerous income tax provisions including changes to the net operating loss rules that we believe will not have significant impact on us . 31 revenues . our revenues are derived primarily from sales of our very fast sram products . sales to networking and telecommunications oems accounted for 50 % to 55 % of our net revenues during our last three fiscal years . we also sell our products to oems that manufacture products for military and aerospace applications such as radar and guidance systems , missiles and satellites , for professional audio applications such as sound mixing systems , for test and measurement applications such as high-speed testers , for automotive applications such as smart cruise control and voice recognition systems , and for medical applications such as ultrasound and cat scan equipment . as is typical in the semiconductor industry , the selling prices of our products generally decline over the life of the product . our ability to increase net revenues , therefore , is dependent upon our ability to increase unit sales volumes of existing products and to introduce and sell new products with higher average selling prices in quantities sufficient to compensate for the anticipated declines in selling prices of our more mature products . although we expect the average selling prices of individual products to decline over time , we believe that , over the next several quarters , our overall average selling prices will increase due to a continuing shift in product mix to a higher percentage of higher price , higher density products . our ability to increase unit sales volumes is dependent primarily upon increases in customer demand but , particularly in periods of increasing demand , can also be affected by our ability to increase production through the availability of increased wafer fabrication capacity from tsmc , our wafer supplier , and our ability to increase the number of good integrated circuit die produced from each wafer through die size reductions and yield enhancement activities . we may experience fluctuations in quarterly net revenues for a number of reasons . historically , orders on hand at the beginning of each quarter are insufficient to meet our revenue objectives for that quarter and are generally cancelable up to 30 days prior to scheduled delivery . accordingly , we depend on obtaining and shipping orders in the same quarter to achieve our revenue objectives . in addition , the timing of product releases , purchase orders and product availability could result in significant product shipments at the end of a quarter . failure to ship these products by the end of the quarter may adversely affect our operating results . furthermore , our customers may delay scheduled delivery dates and or cancel orders within specified timeframes without significant penalty . we sell our products through our direct sales force , international and domestic sales representatives and distributors . our revenues may be impacted by possible changes in customer buying patterns and communication limitations related to covid-19 shelter in place restrictions that require a significant number of our customer contacts to work from home . the majority of our customer contracts , which may be in the form of purchase orders , contracts or purchase agreements , contain performance obligations for delivery of agreed upon products . delivery of all performance obligations contained within a contract with a customer typically occurs at the same time ( or within the same accounting period ) . transfer of control typically occurs at the time of shipment or at the time the product is pulled from consignment as that is the point at which delivery has occurred , title and the risks and rewards of ownership have passed to the customer , and we have a right to payment . thus , we will generally recognize revenue upon shipment of the product . story_separator_special_tag % of total shipments in fiscal 2018. the increase in sigmaquad shipments was primarily due to the increased sales to nokia . cost of revenues . although net revenues increased in fiscal 2019 compared to fiscal 2018 , cost of revenues decreased by 1.8 % from $ 20.2 million in fiscal 2018 to $ 19.9 million in fiscal 2019. the decrease was primarily due to an increase in gross margin from 52.6 % in fiscal 2018 to 61.4 % in fiscal 2019 resulting from the favorable product mix . cost of revenues included stock-based compensation expense of $ 234,000 and $ 259,000 , respectively , in fiscal 2019 and fiscal 2018. gross profit . gross profit increased by 41.0 % from $ 22.4 million in fiscal 2018 to $ 31.6 million in fiscal 2019. gross margin increased from 52.6 % in fiscal 2018 to 61.4 % in fiscal 2019. the increase in gross margin was primarily related to changes in the mix of products and customers . research and development expenses . research and development expenses increased 25.6 % from $ 17.0 million in fiscal 2018 to $ 21.4 million in fiscal 2019. the increase was primarily due to increases of $ 1.5 million in payroll related expenses , $ 1.2 million in outside consultant expenses , $ 986,000 in non-production mask sets and $ 214,000 in depreciation expense , all related to our associative processing development activities . research and development expenses included stock-based compensation expense of $ 1.3 million and $ 1.1 million , respectively , in fiscal 2019 and fiscal 2018. selling , general and administrative expenses . selling , general and administrative expenses increased 5.6 % from $ 9.9 million in fiscal 2018 to $ 10.5 million in fiscal 2019. this increase was primarily related to an increase in payroll related expenses of $ 713,000 and a lesser increase in outside sales representative commissions , partially offset by a decrease of $ 712,000 in professional fees . in addition , re-measurement of the contingent consideration liability related to our acquisition of mikamonu resulted in a reduction of the liability of $ 179,000 in fiscal 2019 compared to $ 308,000 in fiscal 2018 , for a year over year increase in expenses of $ 129,000. selling , general and administrative expenses included stock-based compensation expense of $ 722,000 and $ 670,000 , respectively , in fiscal 2019 and fiscal 2018. interest and other income ( expense ) , net . interest and other income ( expense ) , net increased 10.0 % from $ 409,000 in fiscal 2018 to $ 450,000 in fiscal 2019. interest income increased by $ 250,000 due to higher interest rates received on cash and short-term and long-term investments . the foreign currency exchange loss increased from ( $ 12,000 ) in fiscal 2018 to ( $ 221,000 ) in fiscal 2019. the exchange loss in each period was primarily related to our taiwan branch operations and operations in israel . provision for income taxes . the provision for income taxes was $ 453,000 in fiscal 2018 compared to $ 105,000 in fiscal 2019. the “ tax cuts and jobs act ” ( `` h.r . 1 `` ) resulted in an estimated tax provision of $ 367,000 in the year ended march 31 , 2018 related to the transition tax associated with deemed repatriation of foreign earnings . during the year ended march 31 , 2019 , we completed our assessment of the impact of h.r . 1 and recorded an immaterial additional liability that is included in income taxes payable in the consolidated balance sheet as of march 31 , 2019. because we recorded a cumulative three-year loss on a u.s. tax basis for the year ended march 31 , 2019 and the realization of our deferred tax assets is questionable , we recorded a tax provision reflecting a valuation allowance of $ 6.7 million in net deferred tax assets in fiscal 2019. reductions in uncertain tax benefits due to lapses in the statute of limitations were not significant in the years ended march 31 , 2019 and 2018. net income ( loss ) . net loss was ( $ 4.5 ) million in fiscal 2018 compared to net income of $ 163,000 in fiscal 2019. this improvement was primarily due to the changes in net revenues , gross profit and operating expenses discussed above . 37 story_separator_special_tag style= `` display : inline ; font-weight : bold ; font-size:10pt ; `` > contractual obligations the following table describes our contractual obligations as of march 31 , 2020 : replace_table_token_4_th as of march 31 , 2020 , the current portion of our unrecognized tax benefits was $ 0 , and the long-term portion was $ 613,000. in connection with the acquisition of mikamonu on november 23 , 2015 , we are required to make contingent consideration payments to the former mikamonu shareholders conditioned upon the achievement of certain revenue targets for products based on the mikamonu technology . as of march 31 , 2020 , the accrual for potential payment of contingent consideration was $ 3.9 million . critical accounting policies and estimates the preparation of our consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the united states ( “ gaap ” ) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period . significant estimates are inherent in the preparation of the consolidated financial statements and include estimates affecting revenue recognition , obsolete and excess inventory , the valuation allowance on deferred tax assets , stock-based compensation , contingent consideration and the valuation of goodwill . we believe that we consistently apply these judgments and estimates and that our financial statements and accompanying notes fairly represent our financial results for all periods presented

