we have observed some degree of seasonality in our business , as there tends to be a lower number of procedures that use our products during the three months ending september 30. interventional procedure volume usually grows throughout the course of the fiscal year , with the quarter ending june 30 usually representing the highest volume of cases and , therefore , the highest amount of revenue generated by us during the course of the fiscal year . cost of goods sold . we assemble the single-use catheter with components purchased from third-party suppliers , as well as with components manufactured in-house . balloons , guide wires , and certain catheters are purchased from third-party suppliers . our cost of goods sold consists primarily of raw materials , direct labor , manufacturing overhead , and purchased finished goods . selling , general and administrative expenses . selling , general and administrative expenses include compensation for executive , sales , marketing , finance , information technology , human resources and administrative personnel , including stock-based compensation and facilities overhead . other significant expenses include bad debt expense , travel , marketing costs , professional fees and professional education . research and development expenses . research and development expenses include costs associated with the design , development , testing , enhancement and regulatory approval of our products . research and development expenses include employee compensation including stock-based compensation , supplies and materials , patent expenses , consulting expenses , travel and facilities overhead . we also incur significant expenses to operate clinical trials , including trial design , third-party fees , clinical site reimbursement , data management and travel expenses . all research and development expenses are expensed as incurred . approved patent applications are capitalized and amortized using the straight-line method over their remaining estimated lives . patent amortization begins at the time of patent application approval and does not exceed 20 years . other ( income ) and expense , net . other ( income ) and expense , net primarily includes interest expense from amounts owed under the lease of our headquarters facility and doj settlement and interest income from money market funds and other investments in marketable securities . net operating loss carryforwards . we have established valuation allowances to fully offset our deferred tax assets due to the uncertainty about our ability to generate the future taxable income necessary to realize these deferred assets , particularly in light of our historical losses . the future use of net operating loss carryforwards is dependent on us attaining profitable operations and will be limited in any one year under internal revenue code section 382 due to significant ownership changes ( as defined in section 382 ) resulting from our equity financings . at june 30 , 2019 , we had net operating loss carryforwards for federal and state income tax reporting purposes of approximately $ 269.4 million , which will expire at various dates through fiscal 2037. critical accounting policies and significant judgments and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of our consolidated financial statements requires us to make estimates , assumptions and judgments that affect amounts reported in those statements . our estimates , assumptions and judgments , including those related to revenue recognition , deferred revenue and stock-based compensation , are updated as appropriate at least quarterly . we use authoritative pronouncements , our technical accounting knowledge , cumulative business experience , valuation specialists , judgment and other factors in the selection and application of our accounting policies . while we believe that the estimates , assumptions and judgments that we use in preparing our consolidated financial statements are appropriate , these estimates , assumptions and judgments are subject to factors and uncertainties regarding their outcome . therefore , actual results may materially differ from these estimates . some of our significant accounting policies require us to make subjective or complex judgments or estimates . an accounting estimate is considered to be critical if it meets both of the following criteria : ( 1 ) the estimate requires assumptions about matters that are highly uncertain at the time the accounting estimate is made , and ( 2 ) different estimates that reasonably could have been used , or changes in the estimate that are reasonably likely to occur from period to period , would have a material impact on the presentation of our financial condition , results of operations , or cash flows . 31 revenue recognition . we sell our peripheral and coronary products to customers through a direct sales force in the united states and through distributors internationally . we have no material concentration of credit risk or significant payment terms extended to customers and , therefore , we do not adjust the promised amount of consideration for the effects of a significant financing component . sales , use , value-added , and other excise taxes are not recognized in revenue . we have elected to present revenue net of sales taxes and other similar taxes . performance obligations the majority of our revenues are from customer arrangements containing a single performance obligation to transfer peripheral and coronary products , and thus revenue is recognized at a point in time when control is transferred . this generally occurs upon shipment or upon delivery to the customer site , based on the contract terms . shipping and handling activities are considered to be fulfillment activities and are not considered to be a separate performance obligation . story_separator_special_tag off-balance sheet arrangements since inception , we have not engaged in any off-balance sheet arrangements as defined in item 303 ( a ) ( 4 ) of regulation s-k. recent accounting pronouncements in february 2016 , the fasb issued accounting standards update ( “ asu ” ) 2016-02 , “ leases . ” the guidance requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet . asu 2016-02 is effective for annual periods beginning after december 15 , 2018 , including interim periods within those annual periods , and should be applied using a modified retrospective approach . the guidance was effective for us on july 1 , 2019. we have elected the prospective transition method with the effects of adoption recognized as a cumulative effect adjustment to the opening balance of retained earnings in our fiscal 2020 financial statements , with no restatement of comparative periods . we have also elected the package of three practical expedients permitted under the transition guidance within the new standard , which among other things , allows us to carry forward the historical lease classification . we have assessed the impact of adopting this guidance on our consolidated financial statements and related disclosures and do not expect a material impact to our results of operations and cash flows . we will record our operating leases on our consolidated balance sheet as right of use assets and lease liabilities , but due to the makeup of our current operating lease portfolio , we do not expect a material amount to be recognized on the consolidated balance sheet . in june 2016 , the fasb issued asu 2016-13 , “ measurement of credit losses on financial instruments , ” which revises guidance for the accounting for credit losses on financial instruments within its scope . the new standard introduces an approach , based on expected losses , to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities . the new approach to estimating credit losses ( referred to as the current expected credit losses model ) applies to most financial assets measured at amortized cost and certain other instruments , including trade and other receivables , loans , held-to-maturity debt securities , net investments in leases and off-balance-sheet credit exposures . asu 2016-13 is effective for annual periods beginning after december 15 , 2019 , including interim periods within those fiscal years . early adoption is permitted and should be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted . the guidance is effective for us on july 1 , 2020. we do not anticipate a material impact on our financial statements upon adoption . private securities litigation reform act the private securities litigation reform act of 1995 provides a “ safe harbor ” for forward-looking statements . such “ forward-looking ” information is included in this form 10-k and in other materials filed or to be filed by us with the securities and exchange commission ( as well as information included in oral statements or other written statements made or to be made by the company ) . forward-looking statements include all statements based on future expectations . this form 10-k contains forward-looking statements that involve risks and uncertainties , including , but not limited to , ( i ) the expectation of selling our products , including recently approved products , future products and products we distribute , domestically and internationally in the future , the timing and structure of our plans to do so , and the specific countries and products to be sold , either by us or through distributors ; ( ii ) our strategy ; ( iii ) the competitive benefits of our products ; ( iv ) potential strategic acquisitions and partnerships ; ( v ) the expected timing of the manufacturing transfer and commercialization of the wirion system ; ( vi ) our products in development ; ( vii ) seasonality in our business ; ( viii ) reimbursement of our products ; ( ix ) our intention to expand our product portfolio through internal development and external relationships ; ( x ) our plan to balance revenue growth with a pathway to profitability and positive cash flow ; ( xi ) our current and anticipated clinical studies , including the results and timing of such studies ; ( xii ) our expectation that our revenue will increase ; ( xiii ) our expectation of increased selling , general and administrative expenses and the rate of such growth ; ( xiv ) our expectation that gross margin in fiscal 2020 will decrease slightly compared to fiscal 2019 ; ( xv ) our expectation that our current facilities will be adequate for the foreseeable future ; ( xvi ) our plans to continue to expand our sales and marketing efforts as well as our product portfolio and clinical studies ; ( xvii ) our intention to file additional patents and our efforts to protect our intellectual property ; ( xviii ) our expectation that we will incur research and development expenses in fiscal 2020 higher than the amounts incurred for fiscal 2019 ; ( xix ) our belief that our current cash and cash equivalents will be sufficient to fund working capital requirements , capital expenditures and operations for the foreseeable future , as well as to fund certain other anticipated expenses ; ( xx ) our intention to retain any future earnings to support operations and to finance the growth and development of our business ; ( xxi ) our dividend expectations ; ( xxii ) our ability to obtain regulatory approvals to market our products ; ( xxiii ) our plan not to borrow under our loan and security agreement ; and ( xxiv ) the anticipated impact of adoption of recent accounting pronouncements on our financial

net cash used in investing activities was $ 54.4 million for the year ended june 30 , 2019 , primarily due to purchases of available-for-sale debt securities made with our excess cash balance . also contributing to cash flows used in investing activities was a combined $ 3.6 million related to capital expenditures and patent costs and an additional $ 3.1 million equity investment . net cash used in investing activities was $ 5.1 million for the year ended june 30 , 2018. contributing to this was a combined $ 3.1 million of capital expenditures and patent costs and a $ 2.5 million equity investment made in june 2018 , partially offset by the collection of a note receivable . financing activities net cash provided by financing activities was $ 2.1 million for the year ended june 30 , 2019 , primarily from proceeds of $ 3.8 million from the employee stock purchase plan and a small amount of cash proceeds from stock option exercises . these amounts were partially offset by $ 1.8 million of payroll tax payments we made on behalf of our employees , associated with the vesting of employee restricted stock . net cash provided by financing activities was $ 3.8 million for the year ended june 30 , 2018 , primarily from proceeds of $ 3.8 million from the employee stock purchase plan and a small amount of cash proceeds from stock option exercises . our future liquidity and capital requirements will be influenced by numerous factors , including the extent and duration of future operating losses , the level and timing of future sales and expenditures , the results and scope of ongoing research and product development programs , working capital required to support our business operations , the receipt of and time required to obtain regulatory clearances and approvals , our sales and marketing programs , the continuing acceptance of our products in the marketplace , competing technologies , market and regulatory developments , ongoing facility requirements , potential strategic transactions ( including the potential acquisition of , or investments in , businesses , technologies and products ) , international expansion , and the existence , defense and resolution of legal proceedings .


 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.
     ```net cash used in investing activities was $ 54.4 million for the year ended june 30 , 2019 , primarily due to purchases of available-for-sale debt securities made with our excess cash balance . also contributing to cash flows used in investing activities was a combined $ 3.6 million related to capital expenditures and patent costs and an additional $ 3.1 million equity investment . net cash used in investing activities was $ 5.1 million for the year ended june 30 , 2018. contributing to this was a combined $ 3.1 million of capital expenditures and patent costs and a $ 2.5 million equity investment made in june 2018 , partially offset by the collection of a note receivable . financing activities net cash provided by financing activities was $ 2.1 million for the year ended june 30 , 2019 , primarily from proceeds of $ 3.8 million from the employee stock purchase plan and a small amount of cash proceeds from stock option exercises . these amounts were partially offset by $ 1.8 million of payroll tax payments we made on behalf of our employees , associated with the vesting of employee restricted stock . net cash provided by financing activities was $ 3.8 million for the year ended june 30 , 2018 , primarily from proceeds of $ 3.8 million from the employee stock purchase plan and a small amount of cash proceeds from stock option exercises . our future liquidity and capital requirements will be influenced by numerous factors , including the extent and duration of future operating losses , the level and timing of future sales and expenditures , the results and scope of ongoing research and product development programs , working capital required to support our business operations , the receipt of and time required to obtain regulatory clearances and approvals , our sales and marketing programs , the continuing acceptance of our products in the marketplace , competing technologies , market and regulatory developments , ongoing facility requirements , potential strategic transactions ( including the potential acquisition of , or investments in , businesses , technologies and products ) , international expansion , and the existence , defense and resolution of legal proceedings .
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 Suspicious Activity Report : we have observed some degree of seasonality in our business , as there tends to be a lower number of procedures that use our products during the three months ending september 30. interventional procedure volume usually grows throughout the course of the fiscal year , with the quarter ending june 30 usually representing the highest volume of cases and , therefore , the highest amount of revenue generated by us during the course of the fiscal year . cost of goods sold . we assemble the single-use catheter with components purchased from third-party suppliers , as well as with components manufactured in-house . balloons , guide wires , and certain catheters are purchased from third-party suppliers . our cost of goods sold consists primarily of raw materials , direct labor , manufacturing overhead , and purchased finished goods . selling , general and administrative expenses . selling , general and administrative expenses include compensation for executive , sales , marketing , finance , information technology , human resources and administrative personnel , including stock-based compensation and facilities overhead . other significant expenses include bad debt expense , travel , marketing costs , professional fees and professional education . research and development expenses . research and development expenses include costs associated with the design , development , testing , enhancement and regulatory approval of our products . research and development expenses include employee compensation including stock-based compensation , supplies and materials , patent expenses , consulting expenses , travel and facilities overhead . we also incur significant expenses to operate clinical trials , including trial design , third-party fees , clinical site reimbursement , data management and travel expenses . all research and development expenses are expensed as incurred . approved patent applications are capitalized and amortized using the straight-line method over their remaining estimated lives . patent amortization begins at the time of patent application approval and does not exceed 20 years . other ( income ) and expense , net . other ( income ) and expense , net primarily includes interest expense from amounts owed under the lease of our headquarters facility and doj settlement and interest income from money market funds and other investments in marketable securities . net operating loss carryforwards . we have established valuation allowances to fully offset our deferred tax assets due to the uncertainty about our ability to generate the future taxable income necessary to realize these deferred assets , particularly in light of our historical losses . the future use of net operating loss carryforwards is dependent on us attaining profitable operations and will be limited in any one year under internal revenue code section 382 due to significant ownership changes ( as defined in section 382 ) resulting from our equity financings . at june 30 , 2019 , we had net operating loss carryforwards for federal and state income tax reporting purposes of approximately $ 269.4 million , which will expire at various dates through fiscal 2037. critical accounting policies and significant judgments and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of our consolidated financial statements requires us to make estimates , assumptions and judgments that affect amounts reported in those statements . our estimates , assumptions and judgments , including those related to revenue recognition , deferred revenue and stock-based compensation , are updated as appropriate at least quarterly . we use authoritative pronouncements , our technical accounting knowledge , cumulative business experience , valuation specialists , judgment and other factors in the selection and application of our accounting policies . while we believe that the estimates , assumptions and judgments that we use in preparing our consolidated financial statements are appropriate , these estimates , assumptions and judgments are subject to factors and uncertainties regarding their outcome . therefore , actual results may materially differ from these estimates . some of our significant accounting policies require us to make subjective or complex judgments or estimates . an accounting estimate is considered to be critical if it meets both of the following criteria : ( 1 ) the estimate requires assumptions about matters that are highly uncertain at the time the accounting estimate is made , and ( 2 ) different estimates that reasonably could have been used , or changes in the estimate that are reasonably likely to occur from period to period , would have a material impact on the presentation of our financial condition , results of operations , or cash flows . 31 revenue recognition . we sell our peripheral and coronary products to customers through a direct sales force in the united states and through distributors internationally . we have no material concentration of credit risk or significant payment terms extended to customers and , therefore , we do not adjust the promised amount of consideration for the effects of a significant financing component . sales , use , value-added , and other excise taxes are not recognized in revenue . we have elected to present revenue net of sales taxes and other similar taxes . performance obligations the majority of our revenues are from customer arrangements containing a single performance obligation to transfer peripheral and coronary products , and thus revenue is recognized at a point in time when control is transferred . this generally occurs upon shipment or upon delivery to the customer site , based on the contract terms . shipping and handling activities are considered to be fulfillment activities and are not considered to be a separate performance obligation . story_separator_special_tag off-balance sheet arrangements since inception , we have not engaged in any off-balance sheet arrangements as defined in item 303 ( a ) ( 4 ) of regulation s-k. recent accounting pronouncements in february 2016 , the fasb issued accounting standards update ( “ asu ” ) 2016-02 , “ leases . ” the guidance requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet . asu 2016-02 is effective for annual periods beginning after december 15 , 2018 , including interim periods within those annual periods , and should be applied using a modified retrospective approach . the guidance was effective for us on july 1 , 2019. we have elected the prospective transition method with the effects of adoption recognized as a cumulative effect adjustment to the opening balance of retained earnings in our fiscal 2020 financial statements , with no restatement of comparative periods . we have also elected the package of three practical expedients permitted under the transition guidance within the new standard , which among other things , allows us to carry forward the historical lease classification . we have assessed the impact of adopting this guidance on our consolidated financial statements and related disclosures and do not expect a material impact to our results of operations and cash flows . we will record our operating leases on our consolidated balance sheet as right of use assets and lease liabilities , but due to the makeup of our current operating lease portfolio , we do not expect a material amount to be recognized on the consolidated balance sheet . in june 2016 , the fasb issued asu 2016-13 , “ measurement of credit losses on financial instruments , ” which revises guidance for the accounting for credit losses on financial instruments within its scope . the new standard introduces an approach , based on expected losses , to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities . the new approach to estimating credit losses ( referred to as the current expected credit losses model ) applies to most financial assets measured at amortized cost and certain other instruments , including trade and other receivables , loans , held-to-maturity debt securities , net investments in leases and off-balance-sheet credit exposures . asu 2016-13 is effective for annual periods beginning after december 15 , 2019 , including interim periods within those fiscal years . early adoption is permitted and should be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted . the guidance is effective for us on july 1 , 2020. we do not anticipate a material impact on our financial statements upon adoption . private securities litigation reform act the private securities litigation reform act of 1995 provides a “ safe harbor ” for forward-looking statements . such “ forward-looking ” information is included in this form 10-k and in other materials filed or to be filed by us with the securities and exchange commission ( as well as information included in oral statements or other written statements made or to be made by the company ) . forward-looking statements include all statements based on future expectations . this form 10-k contains forward-looking statements that involve risks and uncertainties , including , but not limited to , ( i ) the expectation of selling our products , including recently approved products , future products and products we distribute , domestically and internationally in the future , the timing and structure of our plans to do so , and the specific countries and products to be sold , either by us or through distributors ; ( ii ) our strategy ; ( iii ) the competitive benefits of our products ; ( iv ) potential strategic acquisitions and partnerships ; ( v ) the expected timing of the manufacturing transfer and commercialization of the wirion system ; ( vi ) our products in development ; ( vii ) seasonality in our business ; ( viii ) reimbursement of our products ; ( ix ) our intention to expand our product portfolio through internal development and external relationships ; ( x ) our plan to balance revenue growth with a pathway to profitability and positive cash flow ; ( xi ) our current and anticipated clinical studies , including the results and timing of such studies ; ( xii ) our expectation that our revenue will increase ; ( xiii ) our expectation of increased selling , general and administrative expenses and the rate of such growth ; ( xiv ) our expectation that gross margin in fiscal 2020 will decrease slightly compared to fiscal 2019 ; ( xv ) our expectation that our current facilities will be adequate for the foreseeable future ; ( xvi ) our plans to continue to expand our sales and marketing efforts as well as our product portfolio and clinical studies ; ( xvii ) our intention to file additional patents and our efforts to protect our intellectual property ; ( xviii ) our expectation that we will incur research and development expenses in fiscal 2020 higher than the amounts incurred for fiscal 2019 ; ( xix ) our belief that our current cash and cash equivalents will be sufficient to fund working capital requirements , capital expenditures and operations for the foreseeable future , as well as to fund certain other anticipated expenses ; ( xx ) our intention to retain any future earnings to support operations and to finance the growth and development of our business ; ( xxi ) our dividend expectations ; ( xxii ) our ability to obtain regulatory approvals to market our products ; ( xxiii ) our plan not to borrow under our loan and security agreement ; and ( xxiv ) the anticipated impact of adoption of recent accounting pronouncements on our financial

