our senior management team has extensive industry experience providing pressure pumping services to exploration and production companies across north america . how the company generates revenue we generate revenue by providing hydraulic fracturing services to our customers . we own and operate a fleet of hydraulic fracturing units to perform these services . we seek to enter into contractual arrangements with our customers or fleet dedications , which establish pricing terms for a fixed duration . under the terms of these agreements , we charge our customers base monthly rates , adjusted for activity and provision of materials such as proppant and chemicals , or we charge a variable rate based on the nature of the job including pumping time , well pressure , sand and chemical volumes and transportation . our costs of conducting business the principal costs involved in conducting our hydraulic fracturing services are labor , maintenance , materials , and transportation costs . a large portion of our costs are variable , based on the number and requirements of hydraulic fracturing jobs . we manage our fixed costs , other than depreciation and amortization , based on factors including industry conditions and the expected demand for our services . materials include the cost of sand delivered to the basin of operations , chemicals , and other consumables used in our operations . these costs vary based on the quantity and quality of sand and chemicals utilized when providing hydraulic fracturing services . transportation represents the costs to transport materials and equipment from receipt points to customer locations . labor costs include payroll and benefits related to our field crews and other employees , as well as severance costs . most of our employees are paid on an hourly basis . during the year ended december 31 , 2020 , our labor cost included approximately $ 2.3 million of severance expense . maintenance costs include preventative and other repair costs that do not require the replacement of major components of our hydraulic fracturing fleets . maintenance and repair costs are expensed as incurred . the following table presents our cost of services for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_1_th ( 1 ) other consists of fuel , lubes , equipment rentals , travel and lodging costs for our crews , site safety costs and other costs incurred in performing our operating activities . 35 significant trends the global health and economic crisis sparked by the covid-19 pandemic and the associated decrease in commodity prices significantly impacted industry activity since the beginning of 2020. weaker economic activity and lower demand for crude oil , driven by the persistence of the covid-19 pandemic , has adversely impacted our business , resulting in a reduction in our active fleet count and fleet utilization levels . as such , we are experiencing considerable uncertainty in our near-term business prospects and ability to forecast future financial performance . in response to the challenging business and operating environment created by the covid-19 pandemic , we have taken proactive measures to safeguard the physical health of our employees and the financial health of our business . employees capable of working from home were mandated to do so until conditions improve making it safe for their return on a voluntary basis . additionally , all individuals entering into a company facility or work location undergo a screening process . beginning in february 2020 , we took swift action to reduce costs , rationalizing the size of the organization to match activity through reductions-in-force , furloughing employees , reducing compensation levels across the board , and closing facilities . we also worked with customers to accelerate the collections of accounts receivables in certain cases and worked with suppliers to reduce our cost of goods and ensure the availability of supply . during the second quarter of 2020 , we completed an offering of redeemable convertible preferred equity concurrent with the amendment of certain terms of our debt instruments in order to provide us with greater liquidity and financial flexibility ( see “ note 9 - debt ” and “ note 10 – mezzanine equity ” in the notes to the consolidated financial statements ) . in addition , we have also taken advantage of relief offered by the cares act with the deferral of the employer portion of social security taxes , the carryback of our 2018 nols to prior year taxable income and during the second half of 2020 , the receipt of a $ 10.0 million ppp loan and $ 22.0 million usda loan . in january 2021 , we received the remaining $ 3.0 million proceeds from the usda loan.we have also sold shares of class a common stock pursuant to our atm agreement ( as defined below ) in order to provide us with additional liquidity . results of operations year 2020 compared to year 2019 ( in thousands , except percentages ) replace_table_token_2_th ( 1 ) as a percentage of revenues . percentage totals or differences in the above table may not equal the sum or difference of the components due to rounding . ( 2 ) not meaningful . ( 3 ) selling , general and administrative expenses consist of the following : replace_table_token_3_th 36 revenues . the decrease in revenue was primarily attributable to the decline in business activity , as our average active fleet count during the period decreased to 6 fleets compared to 10 fleets in the prior comparable period . the decrease in revenue was also attributable to an increased amount of self-sourcing by customers of lower-margin consumables such as sand , chemicals , and sand transportation . story_separator_special_tag we reserve amounts based on specific identification after considering each customer 's situation , including payment patterns , current financial condition as well as general economic conditions . it is reasonably possible that our estimates of the allowance for doubtful accounts will change and that losses ultimately incurred could differ materially from the amounts estimated in determining the allowance . property and equipment we calculate depreciation based on the estimated useful lives of our assets . when assets are placed into service , we make estimates with respect to their useful lives that we believe are reasonable . however , the cyclical nature of our business , which results in fluctuations in the use of our equipment and the environments in which we operate , could cause us to change our estimates , thus affecting the future calculation of depreciation . we continuously perform repair and maintenance expenditures on our service equipment . expenditures for renewals and betterments that extend the lives of our service equipment , which may include the replacement of significant components of service equipment , are capitalized and depreciated . other repairs and maintenance costs are expensed as incurred . the determination of whether an expenditure should be capitalized or expensed requires management judgment regarding the effect of the expenditure on the useful life of the equipment . we separately identify and account for certain significant components of our hydraulic fracturing units including the engine , transmission , and pump , which requires us to separately estimate the useful lives of these components . definite-lived intangible asset s our intangible assets are primarily related to patents and trademarks acquired in a business acquisition . we calculate amortization for these assets based on their estimated useful lives . when these assets are recorded , we make estimates with respect to their useful lives that we believe are reasonable . however , these estimates contain judgments regarding the future utility of these assets and a change in our assessment of the useful lives of these assets could materially change the future calculation of amortization . impairment of long-lived assets long-lived assets , such as property and equipment and amortizable identifiable intangible assets , are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . when impairment is indicated , we determine the amount by which the assets carrying value exceeds its fair value . we consider several factors such as estimated future cash flows , appraisals , and current market value analysis in determining fair value . assets are written down to fair value if the concluded current fair value is below the net carrying value . if actual results or performance are not consistent with our estimates and assumptions , we may be subject to additional impairment charges , which could be material to our results of operations . for example , if our results of operations significantly decline because of an extended decline in the price of oil , there could be a material increase in the impairment of long-lived assets in future periods . share-based compensation share based compensation is measured on the grant date and fair value is recognized as expense over the requisite service period , which is generally the vesting period of the award . we recognize forfeitures as they occur rather than estimating expected forfeitures . the fair value of time-based restricted stock , dsus , or other performance incentive awards is determined based on the number of shares or units granted and the closing price of our class a common stock on the date of grant . the fair value of stock options is determined by applying the black-sholes model on the grant-date market value of the underlying class a common stock . restricted stock with market conditions is valued using a monte carlo simulation analysis . deferred compensation expense associated with liability-based awards , such as certain performance incentive awards that could be settled either in cash or the issuance of a variable number of shares based on a fixed monetary amount at inception , is 42 recognized at the fixed monetary amount at inception and is amortized on a straight-line basis over the requisite service period , which is generally the vesting period . however , we consider any delayed settlement as a post-vesting restriction which impacts the determination of the grant-date fair value of the award . we estimate fair value by using a risk-adjusted discount rate , which reflects the weighted average cost of capital of similarly traded public companies . each of these valuation approaches involves significant judgments and estimates , including estimates regarding our future operations or the determination of a comparable public company peer group . income taxes we use the asset and liability method under asc 740 of accounting for income taxes , under which deferred tax assets and liabilities are recognized for the future tax consequences of ( i ) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and ( ii ) operating loss and tax credit carryforwards . deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or settled . the effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted . a valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized . asc 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return . for those benefits to be recognized , a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities . we recognize accrued interest and penalties related

liquidity and capital resources our primary sources of liquidity and capital resources are cash on the balance sheet , cash flow generated from operating activities , proceeds from the issuance of equity , senior secured term loan , ppp loan , usda loan , and borrowings under our revolving credit facility . on april 1 , 2020 , we sold in a private placement 21,000 shares of series b redeemable convertible preferred stock , par value $ 0.0001 per share ( “ series b preferred stock ” ) to certain institutional investors for an aggregate purchase price of $ 21.0 million . we used substantially all the proceeds from the series b preferred stock to obtain the amendment on our senior secured term loan described below . on april 1 , 2020 , we entered into agreements to amend our existing senior secured term loan and revolving credit facility . pursuant to the amendment to our senior secured term loan , the interest rate on the outstanding loan was reduced to 0.0 % and 38 the scheduled principal amortization payments were suspended for the period beginning april 1 , 2020 and ending march 31 , 2022. in addition , the maturity date of the senior secured term loan was extended to december 5 , 2025. pursuant to the amendment to our revolving credit facility , the aggregate revolving commitment was reduced from $ 75.0 million to $ 60.0 million , the maturity date was extended from may 7 , 2024 to april 1 , 2025 , and the interest rate margin applicable to borrowings under our revolving credit facility was increased by 0.50 % per annum . in addition , the borrowing base under the abl facility was amended to include a filo amount , which increases borrowing base availability by up to the lesser of ( i ) $ 4.0 million and ( ii ) 5.0 % of the value of eligible accounts receivables , subject to scheduled monthly reductions .


 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 our primary sources of liquidity and capital resources are cash on the balance sheet , cash flow generated from operating activities , proceeds from the issuance of equity , senior secured term loan , ppp loan , usda loan , and borrowings under our revolving credit facility . on april 1 , 2020 , we sold in a private placement 21,000 shares of series b redeemable convertible preferred stock , par value $ 0.0001 per share ( “ series b preferred stock ” ) to certain institutional investors for an aggregate purchase price of $ 21.0 million . we used substantially all the proceeds from the series b preferred stock to obtain the amendment on our senior secured term loan described below . on april 1 , 2020 , we entered into agreements to amend our existing senior secured term loan and revolving credit facility . pursuant to the amendment to our senior secured term loan , the interest rate on the outstanding loan was reduced to 0.0 % and 38 the scheduled principal amortization payments were suspended for the period beginning april 1 , 2020 and ending march 31 , 2022. in addition , the maturity date of the senior secured term loan was extended to december 5 , 2025. pursuant to the amendment to our revolving credit facility , the aggregate revolving commitment was reduced from $ 75.0 million to $ 60.0 million , the maturity date was extended from may 7 , 2024 to april 1 , 2025 , and the interest rate margin applicable to borrowings under our revolving credit facility was increased by 0.50 % per annum . in addition , the borrowing base under the abl facility was amended to include a filo amount , which increases borrowing base availability by up to the lesser of ( i ) $ 4.0 million and ( ii ) 5.0 % of the value of eligible accounts receivables , subject to scheduled monthly reductions .
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 Suspicious Activity Report : our senior management team has extensive industry experience providing pressure pumping services to exploration and production companies across north america . how the company generates revenue we generate revenue by providing hydraulic fracturing services to our customers . we own and operate a fleet of hydraulic fracturing units to perform these services . we seek to enter into contractual arrangements with our customers or fleet dedications , which establish pricing terms for a fixed duration . under the terms of these agreements , we charge our customers base monthly rates , adjusted for activity and provision of materials such as proppant and chemicals , or we charge a variable rate based on the nature of the job including pumping time , well pressure , sand and chemical volumes and transportation . our costs of conducting business the principal costs involved in conducting our hydraulic fracturing services are labor , maintenance , materials , and transportation costs . a large portion of our costs are variable , based on the number and requirements of hydraulic fracturing jobs . we manage our fixed costs , other than depreciation and amortization , based on factors including industry conditions and the expected demand for our services . materials include the cost of sand delivered to the basin of operations , chemicals , and other consumables used in our operations . these costs vary based on the quantity and quality of sand and chemicals utilized when providing hydraulic fracturing services . transportation represents the costs to transport materials and equipment from receipt points to customer locations . labor costs include payroll and benefits related to our field crews and other employees , as well as severance costs . most of our employees are paid on an hourly basis . during the year ended december 31 , 2020 , our labor cost included approximately $ 2.3 million of severance expense . maintenance costs include preventative and other repair costs that do not require the replacement of major components of our hydraulic fracturing fleets . maintenance and repair costs are expensed as incurred . the following table presents our cost of services for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_1_th ( 1 ) other consists of fuel , lubes , equipment rentals , travel and lodging costs for our crews , site safety costs and other costs incurred in performing our operating activities . 35 significant trends the global health and economic crisis sparked by the covid-19 pandemic and the associated decrease in commodity prices significantly impacted industry activity since the beginning of 2020. weaker economic activity and lower demand for crude oil , driven by the persistence of the covid-19 pandemic , has adversely impacted our business , resulting in a reduction in our active fleet count and fleet utilization levels . as such , we are experiencing considerable uncertainty in our near-term business prospects and ability to forecast future financial performance . in response to the challenging business and operating environment created by the covid-19 pandemic , we have taken proactive measures to safeguard the physical health of our employees and the financial health of our business . employees capable of working from home were mandated to do so until conditions improve making it safe for their return on a voluntary basis . additionally , all individuals entering into a company facility or work location undergo a screening process . beginning in february 2020 , we took swift action to reduce costs , rationalizing the size of the organization to match activity through reductions-in-force , furloughing employees , reducing compensation levels across the board , and closing facilities . we also worked with customers to accelerate the collections of accounts receivables in certain cases and worked with suppliers to reduce our cost of goods and ensure the availability of supply . during the second quarter of 2020 , we completed an offering of redeemable convertible preferred equity concurrent with the amendment of certain terms of our debt instruments in order to provide us with greater liquidity and financial flexibility ( see “ note 9 - debt ” and “ note 10 – mezzanine equity ” in the notes to the consolidated financial statements ) . in addition , we have also taken advantage of relief offered by the cares act with the deferral of the employer portion of social security taxes , the carryback of our 2018 nols to prior year taxable income and during the second half of 2020 , the receipt of a $ 10.0 million ppp loan and $ 22.0 million usda loan . in january 2021 , we received the remaining $ 3.0 million proceeds from the usda loan.we have also sold shares of class a common stock pursuant to our atm agreement ( as defined below ) in order to provide us with additional liquidity . results of operations year 2020 compared to year 2019 ( in thousands , except percentages ) replace_table_token_2_th ( 1 ) as a percentage of revenues . percentage totals or differences in the above table may not equal the sum or difference of the components due to rounding . ( 2 ) not meaningful . ( 3 ) selling , general and administrative expenses consist of the following : replace_table_token_3_th 36 revenues . the decrease in revenue was primarily attributable to the decline in business activity , as our average active fleet count during the period decreased to 6 fleets compared to 10 fleets in the prior comparable period . the decrease in revenue was also attributable to an increased amount of self-sourcing by customers of lower-margin consumables such as sand , chemicals , and sand transportation . story_separator_special_tag we reserve amounts based on specific identification after considering each customer 's situation , including payment patterns , current financial condition as well as general economic conditions . it is reasonably possible that our estimates of the allowance for doubtful accounts will change and that losses ultimately incurred could differ materially from the amounts estimated in determining the allowance . property and equipment we calculate depreciation based on the estimated useful lives of our assets . when assets are placed into service , we make estimates with respect to their useful lives that we believe are reasonable . however , the cyclical nature of our business , which results in fluctuations in the use of our equipment and the environments in which we operate , could cause us to change our estimates , thus affecting the future calculation of depreciation . we continuously perform repair and maintenance expenditures on our service equipment . expenditures for renewals and betterments that extend the lives of our service equipment , which may include the replacement of significant components of service equipment , are capitalized and depreciated . other repairs and maintenance costs are expensed as incurred . the determination of whether an expenditure should be capitalized or expensed requires management judgment regarding the effect of the expenditure on the useful life of the equipment . we separately identify and account for certain significant components of our hydraulic fracturing units including the engine , transmission , and pump , which requires us to separately estimate the useful lives of these components . definite-lived intangible asset s our intangible assets are primarily related to patents and trademarks acquired in a business acquisition . we calculate amortization for these assets based on their estimated useful lives . when these assets are recorded , we make estimates with respect to their useful lives that we believe are reasonable . however , these estimates contain judgments regarding the future utility of these assets and a change in our assessment of the useful lives of these assets could materially change the future calculation of amortization . impairment of long-lived assets long-lived assets , such as property and equipment and amortizable identifiable intangible assets , are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . when impairment is indicated , we determine the amount by which the assets carrying value exceeds its fair value . we consider several factors such as estimated future cash flows , appraisals , and current market value analysis in determining fair value . assets are written down to fair value if the concluded current fair value is below the net carrying value . if actual results or performance are not consistent with our estimates and assumptions , we may be subject to additional impairment charges , which could be material to our results of operations . for example , if our results of operations significantly decline because of an extended decline in the price of oil , there could be a material increase in the impairment of long-lived assets in future periods . share-based compensation share based compensation is measured on the grant date and fair value is recognized as expense over the requisite service period , which is generally the vesting period of the award . we recognize forfeitures as they occur rather than estimating expected forfeitures . the fair value of time-based restricted stock , dsus , or other performance incentive awards is determined based on the number of shares or units granted and the closing price of our class a common stock on the date of grant . the fair value of stock options is determined by applying the black-sholes model on the grant-date market value of the underlying class a common stock . restricted stock with market conditions is valued using a monte carlo simulation analysis . deferred compensation expense associated with liability-based awards , such as certain performance incentive awards that could be settled either in cash or the issuance of a variable number of shares based on a fixed monetary amount at inception , is 42 recognized at the fixed monetary amount at inception and is amortized on a straight-line basis over the requisite service period , which is generally the vesting period . however , we consider any delayed settlement as a post-vesting restriction which impacts the determination of the grant-date fair value of the award . we estimate fair value by using a risk-adjusted discount rate , which reflects the weighted average cost of capital of similarly traded public companies . each of these valuation approaches involves significant judgments and estimates , including estimates regarding our future operations or the determination of a comparable public company peer group . income taxes we use the asset and liability method under asc 740 of accounting for income taxes , under which deferred tax assets and liabilities are recognized for the future tax consequences of ( i ) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and ( ii ) operating loss and tax credit carryforwards . deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or settled . the effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted . a valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized . asc 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return . for those benefits to be recognized , a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities . we recognize accrued interest and penalties related

