the amendments are effective for fiscal years beginning after december story_separator_special_tag the following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and related notes thereto included elsewhere in this annual report . this discussion and analysis contains forward-looking statements that are based upon current expectations and involve risks , assumptions and uncertainties . overview kubient , a delaware corporation , was incorporated in may 2017 to solve some of the most significant problems facing the global digital advertising industry . our experienced team of marketing and technology veterans has developed the audience cloud , a modular , highly scalable , transparent , cloud-based software platform for real-time trading of digital , programmatic advertising . our platform 's open marketplace gives both advertisers ( ad space buyers ) and publishers ( ad space sellers ) the ability to use machine learning in the most critical parts of any programmatic advertising inventory auction , while simultaneously and significantly reducing those advertisers and publishers ' exposure to fraud , even in a pre-bid environment . by becoming a one stop shop for advertisers and publishers , providing them with the technology to deliver meaningful messages to their target audience , all in one place , on a single platform that is computationally efficient , transparent , and as safely fraud-free as possible , we believe that our platform ( and the application of its machine learning algorithms ) leads to increased publisher revenue , lower advertiser cost , reduced latency and increased economic transparency during the advertising auction process . furthermore , we believe that our technology allows advertisers to reach entire audiences rather than buying single impressions from disparate sources . we call this approach audience-based marketing . combining this approach with our proprietary solutions for fraud prevention and the reduction of latency in auctions , we are confident that we are poised to alter the status quo as the next generation of the industry 's advertising inventory auction infrastructure . 17 results of operations year ended december 31 , 2020 compared with year ended december 31 , 2019 replace_table_token_1_th net revenues for the year ended december 31 , 2020 , net revenues increased by $ 2,722,394 or 1,533 % , to $ 2,900,029 from $ 177,635 for the year ended december 31 , 2019. the increase was primarily due to approximately $ 1,300,000 of revenue generated in connection with beta testing of kai , our fraud detection service , which commenced during the 2020 period , as well as approximately $ 1,496,000 of net revenue generated from one new customer in the 2020 period . we do not expect to generate future revenue from our beta testing of kai . that being said , we do expect that revenues will increase , in part , based upon customers adopting our kai product in the future , however , we can not provide any assurance of this . technology for the year ended december 31 , 2020 , technology expenses increased by $ 658,350 or 44 % , to $ 2,144,406 from $ 1,486,056 for the year ended december 31 , 2019. the increase is primarily due to an increase of approximately $ 410,000 of compensation expenses resulting from increased headcount , one-time bonuses earned by certain employees in connection with their efforts that led to the successful completion of the ipo and follow-on offering , which bonuses were approved by our board of directors during the year ended december 31 , 2020 , as well as additional compensation in connection with our salary reduction program , approximately $ 295,000 in amortization expense of our intangible assets , and increased cloud hosting and subscription costs of approximately $ 120,000 , partially offset by the decrease in other technology expense of approximately $ 215,000 due to the termination of consulting services . 18 general and administrative for the year ended december 31 , 2020 , general and administrative expenses increased by $ 3,214,999 , or 160 % , to $ 5,222,361 from $ 2,007,362 for the year ended december 31 , 2019. the increase is primarily due to increased legal , consulting and audit fees of approximately $ 466,000 associated with work performed in connection with our public filings , an increase of approximately $ 1,716,000 of compensation expenses resulting from an increase in headcount , from one-time bonuses earned by certain employees in connection with their efforts that led to the successful completion of the ipo , which bonuses were approved by our board of directors during the year ended december 31 , 2020 , additional compensation in connection with our salary reduction program , and a severance payment to the former ceo , an increase of approximately $ 435,000 of stock-based compensation in primarily connection with accrued issuable equity to certain employees and consultants for severance payment , an increase of approximately $ 347,000 commissions expenses resulting from increased sales , an increase of approximately $ 177,000 of insurance expense due to a new insurance policy entered into in 2020 , and increased board of directors compensation expenses of approximately $ 144,000 due to their appointment to our board of directors in late 2019 , partially offset by an allowance of approximately $ 200,000 in connection with a deposit recognized during the 2019 period . other ( expense ) income for the year ended december 31 , 2020 , other ( expense ) income increased by $ 2,601,832 , or 318 % , to $ 3,418,922 from $ 817,090 for the year ended december 31 , 2019. the increase is primarily due to interest expense in associated with a beneficial conversion feature of story_separator_special_tag the preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements as well as the reported expenses during the reporting periods . the accounting estimates that require our most significant , difficult and subjective judgments have an impact on revenue recognition , the determination of share-based compensation and financial instruments . we evaluate our estimates and judgments on an ongoing basis . actual results may differ materially from these estimates under different assumptions or conditions . the following is not intended to be a comprehensive list of all of our accounting policies or estimates . our significant accounting policies are more fully described in note 2 to our consolidated financial statements included elsewhere in this annual report . revenue recognition the company maintains a contract with each customer and supplier , which specify the terms of the relationship and potential access to the company 's platform . the company provides a service to its customers ( the buy-side ad networks who work for advertisers ) by connecting advertisers and publishers . for this service , the company earns a percentage of the amount that is paid by the advertiser , who wants to run a digital advertising campaign , which , in some cases , is reduced by the amount paid to the publisher , who wants to sell its ad space to the advertiser . the transaction price is determined based on the consideration to which it expects to be entitled , including the impact of any implicit price concessions over the course of the contract . the company 's performance obligation is to facilitate the publication of advertisements . the performance obligation is satisfied at the point in time that the ad is placed . subsequent to a bid being won , the associated fees are generally not subject to refund or adjustment . historically , any refunds and adjustments have not been material . the revenue recognized is the amount the company is responsible to collect from the customer related to the placement of an ad ( the “ gross billing ” ) , less the amount the company remits to the supplier for the ad space ( the “ supplier cost ” ) , if any . the determination of whether the company is the principal or agent , and hence whether to report revenue on a gross basis equal to the gross billing or on a net basis for the difference between the gross billing and supplier cost , requires judgment . the company acts as an agent in arranging via its platform for the specified good ( the ad space ) to be purchased by the advertiser , as it does not control the goods or services being transferred to the end customer , it does not take responsibility for the quality or acceptability of the ad space , it does not bear inventory risk , nor does it have discretion in establishing price of the ad space . as a result , the company recognizes revenue on a net basis for the difference between the gross billing and the supplier cost . 22 the company invoices customers on a monthly basis for the amount of gross billings in the relevant period . invoice payment terms , negotiated on a customer-by- customer basis , are typically between 45 to 90 days . however , for certain agency customers with sequential liability terms as specified by the interactive advertising bureau , ( i ) payments are not due to the company until such agency customers has received payment from its customers ( ii ) the company is not required to make a payment to its supplier until payment is received from the company 's customer and ( iii ) the supplier is responsible to pursue collection directly with the advertiser . as a result , once the company has met the requirements of each of the five steps under asc 606 , the company 's accounts receivable are recorded at the amount of gross billings which represent amounts it is responsible to collect and accounts payable , if applicable , are recorded at the amount payable to suppliers . in the event step 1 under asc 606 is not met , the company does not record either the accounts receivable or accounts payable . accordingly , both accounts receivable and accounts payable appear large in relation to revenue reported on a net basis . accounts receivable and accounts payable accounts receivable are carried at their contractual amounts , less an estimate for uncollectible amounts . management estimates the allowance for bad debts based on existing economic conditions , the financial conditions of the customers , and the amount and age of past due accounts . receivables are considered past due if full payment is not received by the contractual due date . past due accounts are generally written off against the corresponding accounts payable in the event that the company 's contract contains sequential liability terms , with the excess receivable being written off against the allowance for bad debts only after all collection attempts have been exhausted . accounts receivable are recorded at the amount the company is responsible to collect from the customer . in the event that the company does not collect the gross billing amount from the customer , the company generally is not contractually obligated to pay the associated supplier cost . intangible assets intangible assets are comprised of costs to acquire and develop computer software , including ( i ) the costs to acquire third-party data which is used to improve the company 's artificial intelligence platform for client use as well as ( ii ) the costs to acquire third-party software as well as the related source code . the intangible assets have estimated useful lives of two years

cash $ 24,782,128 $ 33,785 working capital ( deficiency ) $ 23,570,158 $ ( 5,413,735 ) 20 on august 14 , 2020 , the company raised aggregate gross and net proceeds of approximately $ 12.5 million and $ 10.6 million , respectively , in its initial public offering ( “ ipo ” ) . in connection with and following the ipo , convertible notes payable with an aggregate principal balance of approximately $ 5.1 million and accrued interest of approximately $ 0.3 million were converted into equity . on december 28 , 2020 , the company raised aggregate gross and net proceeds of approximately $ 20.7 million and $ 18.9 million , respectively , in a follow-on public offering ( the “ follow-on offering ” ) . as of march 23 , 2021 , the company had received aggregate proceeds of approximately $ 9.7 million in connection with warrant exercises . availability of additional funds the company believes its current cash on hand is sufficient to meet its operating and capital requirements for at least the next twelve months from the date of this annual report . our operating needs include the planned costs to operate our business , including amounts required to fund working capital and capital expenditures .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash $ 24,782,128 $ 33,785 working capital ( deficiency ) $ 23,570,158 $ ( 5,413,735 ) 20 on august 14 , 2020 , the company raised aggregate gross and net proceeds of approximately $ 12.5 million and $ 10.6 million , respectively , in its initial public offering ( “ ipo ” ) . in connection with and following the ipo , convertible notes payable with an aggregate principal balance of approximately $ 5.1 million and accrued interest of approximately $ 0.3 million were converted into equity . on december 28 , 2020 , the company raised aggregate gross and net proceeds of approximately $ 20.7 million and $ 18.9 million , respectively , in a follow-on public offering ( the “ follow-on offering ” ) . as of march 23 , 2021 , the company had received aggregate proceeds of approximately $ 9.7 million in connection with warrant exercises . availability of additional funds the company believes its current cash on hand is sufficient to meet its operating and capital requirements for at least the next twelve months from the date of this annual report . our operating needs include the planned costs to operate our business , including amounts required to fund working capital and capital expenditures .
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 Suspicious Activity Report : the amendments are effective for fiscal years beginning after december story_separator_special_tag the following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and related notes thereto included elsewhere in this annual report . this discussion and analysis contains forward-looking statements that are based upon current expectations and involve risks , assumptions and uncertainties . overview kubient , a delaware corporation , was incorporated in may 2017 to solve some of the most significant problems facing the global digital advertising industry . our experienced team of marketing and technology veterans has developed the audience cloud , a modular , highly scalable , transparent , cloud-based software platform for real-time trading of digital , programmatic advertising . our platform 's open marketplace gives both advertisers ( ad space buyers ) and publishers ( ad space sellers ) the ability to use machine learning in the most critical parts of any programmatic advertising inventory auction , while simultaneously and significantly reducing those advertisers and publishers ' exposure to fraud , even in a pre-bid environment . by becoming a one stop shop for advertisers and publishers , providing them with the technology to deliver meaningful messages to their target audience , all in one place , on a single platform that is computationally efficient , transparent , and as safely fraud-free as possible , we believe that our platform ( and the application of its machine learning algorithms ) leads to increased publisher revenue , lower advertiser cost , reduced latency and increased economic transparency during the advertising auction process . furthermore , we believe that our technology allows advertisers to reach entire audiences rather than buying single impressions from disparate sources . we call this approach audience-based marketing . combining this approach with our proprietary solutions for fraud prevention and the reduction of latency in auctions , we are confident that we are poised to alter the status quo as the next generation of the industry 's advertising inventory auction infrastructure . 17 results of operations year ended december 31 , 2020 compared with year ended december 31 , 2019 replace_table_token_1_th net revenues for the year ended december 31 , 2020 , net revenues increased by $ 2,722,394 or 1,533 % , to $ 2,900,029 from $ 177,635 for the year ended december 31 , 2019. the increase was primarily due to approximately $ 1,300,000 of revenue generated in connection with beta testing of kai , our fraud detection service , which commenced during the 2020 period , as well as approximately $ 1,496,000 of net revenue generated from one new customer in the 2020 period . we do not expect to generate future revenue from our beta testing of kai . that being said , we do expect that revenues will increase , in part , based upon customers adopting our kai product in the future , however , we can not provide any assurance of this . technology for the year ended december 31 , 2020 , technology expenses increased by $ 658,350 or 44 % , to $ 2,144,406 from $ 1,486,056 for the year ended december 31 , 2019. the increase is primarily due to an increase of approximately $ 410,000 of compensation expenses resulting from increased headcount , one-time bonuses earned by certain employees in connection with their efforts that led to the successful completion of the ipo and follow-on offering , which bonuses were approved by our board of directors during the year ended december 31 , 2020 , as well as additional compensation in connection with our salary reduction program , approximately $ 295,000 in amortization expense of our intangible assets , and increased cloud hosting and subscription costs of approximately $ 120,000 , partially offset by the decrease in other technology expense of approximately $ 215,000 due to the termination of consulting services . 18 general and administrative for the year ended december 31 , 2020 , general and administrative expenses increased by $ 3,214,999 , or 160 % , to $ 5,222,361 from $ 2,007,362 for the year ended december 31 , 2019. the increase is primarily due to increased legal , consulting and audit fees of approximately $ 466,000 associated with work performed in connection with our public filings , an increase of approximately $ 1,716,000 of compensation expenses resulting from an increase in headcount , from one-time bonuses earned by certain employees in connection with their efforts that led to the successful completion of the ipo , which bonuses were approved by our board of directors during the year ended december 31 , 2020 , additional compensation in connection with our salary reduction program , and a severance payment to the former ceo , an increase of approximately $ 435,000 of stock-based compensation in primarily connection with accrued issuable equity to certain employees and consultants for severance payment , an increase of approximately $ 347,000 commissions expenses resulting from increased sales , an increase of approximately $ 177,000 of insurance expense due to a new insurance policy entered into in 2020 , and increased board of directors compensation expenses of approximately $ 144,000 due to their appointment to our board of directors in late 2019 , partially offset by an allowance of approximately $ 200,000 in connection with a deposit recognized during the 2019 period . other ( expense ) income for the year ended december 31 , 2020 , other ( expense ) income increased by $ 2,601,832 , or 318 % , to $ 3,418,922 from $ 817,090 for the year ended december 31 , 2019. the increase is primarily due to interest expense in associated with a beneficial conversion feature of story_separator_special_tag the preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements as well as the reported expenses during the reporting periods . the accounting estimates that require our most significant , difficult and subjective judgments have an impact on revenue recognition , the determination of share-based compensation and financial instruments . we evaluate our estimates and judgments on an ongoing basis . actual results may differ materially from these estimates under different assumptions or conditions . the following is not intended to be a comprehensive list of all of our accounting policies or estimates . our significant accounting policies are more fully described in note 2 to our consolidated financial statements included elsewhere in this annual report . revenue recognition the company maintains a contract with each customer and supplier , which specify the terms of the relationship and potential access to the company 's platform . the company provides a service to its customers ( the buy-side ad networks who work for advertisers ) by connecting advertisers and publishers . for this service , the company earns a percentage of the amount that is paid by the advertiser , who wants to run a digital advertising campaign , which , in some cases , is reduced by the amount paid to the publisher , who wants to sell its ad space to the advertiser . the transaction price is determined based on the consideration to which it expects to be entitled , including the impact of any implicit price concessions over the course of the contract . the company 's performance obligation is to facilitate the publication of advertisements . the performance obligation is satisfied at the point in time that the ad is placed . subsequent to a bid being won , the associated fees are generally not subject to refund or adjustment . historically , any refunds and adjustments have not been material . the revenue recognized is the amount the company is responsible to collect from the customer related to the placement of an ad ( the “ gross billing ” ) , less the amount the company remits to the supplier for the ad space ( the “ supplier cost ” ) , if any . the determination of whether the company is the principal or agent , and hence whether to report revenue on a gross basis equal to the gross billing or on a net basis for the difference between the gross billing and supplier cost , requires judgment . the company acts as an agent in arranging via its platform for the specified good ( the ad space ) to be purchased by the advertiser , as it does not control the goods or services being transferred to the end customer , it does not take responsibility for the quality or acceptability of the ad space , it does not bear inventory risk , nor does it have discretion in establishing price of the ad space . as a result , the company recognizes revenue on a net basis for the difference between the gross billing and the supplier cost . 22 the company invoices customers on a monthly basis for the amount of gross billings in the relevant period . invoice payment terms , negotiated on a customer-by- customer basis , are typically between 45 to 90 days . however , for certain agency customers with sequential liability terms as specified by the interactive advertising bureau , ( i ) payments are not due to the company until such agency customers has received payment from its customers ( ii ) the company is not required to make a payment to its supplier until payment is received from the company 's customer and ( iii ) the supplier is responsible to pursue collection directly with the advertiser . as a result , once the company has met the requirements of each of the five steps under asc 606 , the company 's accounts receivable are recorded at the amount of gross billings which represent amounts it is responsible to collect and accounts payable , if applicable , are recorded at the amount payable to suppliers . in the event step 1 under asc 606 is not met , the company does not record either the accounts receivable or accounts payable . accordingly , both accounts receivable and accounts payable appear large in relation to revenue reported on a net basis . accounts receivable and accounts payable accounts receivable are carried at their contractual amounts , less an estimate for uncollectible amounts . management estimates the allowance for bad debts based on existing economic conditions , the financial conditions of the customers , and the amount and age of past due accounts . receivables are considered past due if full payment is not received by the contractual due date . past due accounts are generally written off against the corresponding accounts payable in the event that the company 's contract contains sequential liability terms , with the excess receivable being written off against the allowance for bad debts only after all collection attempts have been exhausted . accounts receivable are recorded at the amount the company is responsible to collect from the customer . in the event that the company does not collect the gross billing amount from the customer , the company generally is not contractually obligated to pay the associated supplier cost . intangible assets intangible assets are comprised of costs to acquire and develop computer software , including ( i ) the costs to acquire third-party data which is used to improve the company 's artificial intelligence platform for client use as well as ( ii ) the costs to acquire third-party software as well as the related source code . the intangible assets have estimated useful lives of two years

