as described in part i , item 3 , legal proceedings , of this annual report , we have initiated lawsuits to enforce our patent rights against certain generic pharmaceutical companies . critical accounting policies the preparation of our 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 at the date of our financial statements , as well as the reported revenues and expenses during the reported periods . we base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . a summary of our significant accounting policies appears in the notes to our audited consolidated financial statements for the year ended december 31 , 2019 included in this annual report . however , we believe that the following accounting policies are important to understanding and evaluating our reported financial results , and we have accordingly included them in this discussion . leases . in accordance with accounting standards codification ( asc ) 842 , leases , effective january 1 , 2019 , we determine if an arrangement contains a lease at inception . right-of-use ( rou ) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from that lease . for leases with a term greater than 12 months , rou assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term . the lease term includes the option to extend the lease when it is reasonably certain we will exercise that option . we do not combine lease and non-lease elements for office leases . for existing leases as of january 1 , 2019 , executory costs are excluded from lease expense , which is consistent with our accounting under asc 840 , leases . for all leases entered into after january 1 , 2019 , executory costs are allocated between lease and non-lease elements based upon their relative stand-alone prices . when available , we use the rate implicit in the lease to discount lease payments to present value ; however , most of our leases do not provide a readily determinable implicit rate . therefore , we use our incremental borrowing rate based on information available at the lease commencement date in determining the present value of lease payments . our incremental borrowing rate is derived from information available at the lease commencement date in determining the present value of lease payments . since we do not have outstanding debt that could provide an indication of the appropriate discount rate we used publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates . in making this estimation we considered market comparable data on companies with similar credit rating , secured contracts and contract length terms . we use the lease term to determine the incremental borrowing rate . net product sales . our net product sales consist of sales of hetlioz ® and sales of fanapt ® . in accordance with asc subtopic 606 revenue from contracts with customers ( asc 606 ) , which we adopted january 1 , 2018 , we account for a contract when it has approval and commitment from both parties , the rights of the parties are identified , payment terms are identified , the contract has commercial substance and collectability of consideration is probable . we recognize revenue when control of the product is transferred to the customer in an amount that reflects the consideration we expect to be entitled to in exchange for those product sales , which is typically once the product physically arrives at the customer . sales taxes , value add taxes , and usage-based taxes are excluded from revenues . hetlioz ® is available in the u.s. for distribution through a limited number of specialty pharmacies , and is not available in retail pharmacies . fanapt ® is available in the u.s. for distribution through a limited number of wholesalers and is 57 available in retail pharmacies . we invoice and record revenue when customers , specialty pharmacies and wholesalers , receive product from the third-party logistics warehouse which is the point at which control is transferred to the customer . revenues and accounts receivable are concentrated with these customers . outside the u.s. , we commercially launched hetlioz ® in germany in august 2016. we have also entered into a distribution agreement with megapharm ltd. for the commercialization of fanapt ® in israel . the company evaluates outstanding receivables to assess collectability . in performing this evaluation , the company analyzes economic conditions , the aging of receivables and customer specific risks . the transaction price is determined based upon the consideration to which we will be entitled in exchange for transferring product to the customer . our product sales are recorded net of applicable product revenue allowances for which reserves are established and include discounts , rebates , chargebacks , service fees , co-pay assistance and product returns that are applicable for various government and commercial payors . we estimate the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method and update our estimate at each reporting date . variable consideration is included in the transaction price if , in our judgment , it is probable that a significant future reversal of cumulative revenue under the contract will not occur . story_separator_special_tag the income tax benefit for 2019 was primarily due to the reduction of the tax valuation allowance against substantially all of its deferred tax assets in the u.s. tax expense associated with u.s. income before income taxes for the years ended december 31 , 2019 and 2018 was offset by a corresponding tax benefit for the reduction of the valuation allowance recorded against tax attributes that were utilized in those periods . income tax expense was recorded related to certain u.s. state and foreign jurisdictions for the years ended december 31 , 2019 and 2018. liquidity and capital resources as of december 31 , 2019 , our total cash and cash equivalents and marketable securities were $ 312.1 million compared to $ 257.4 million at december 31 , 2018 . our cash and cash equivalents are deposits in operating accounts and highly liquid investments with an original maturity of 90 days or less at date of purchase and consist of investments in money market funds with commercial banks and financial institutions , and commercial paper of high-quality corporate issuers . our marketable securities consist of investments in government sponsored and corporate enterprises and commercial paper . our liquidity resources as of december 31 , 2019 and 2018 are summarized as follows : replace_table_token_6_th as of december 31 , 2019 , we maintained all of our cash in two financial institutions . deposits held with these institutions may exceed the amount of insurance provided on such deposits , but we do not anticipate any losses with respect to such deposits . we expect to incur substantial costs and expenses throughout 2020 and beyond in connection with our continued clinical development of tradipitant and our other products , u.s. commercial activities for hetlioz ® and fanapt ® , the european commercial launch activities for hetlioz ® and payments due upon achievement of milestones under our license agreements . additionally , we continue to pursue market approval of hetlioz ® and fanapt ® in other regions . the actual costs to advance tradipitant and our research and development projects and commercial activities for hetlioz ® and fanapt ® are difficult to estimate and may vary significantly . we believe that our existing funds will be sufficient to meet our operating plans for at least the next twelve months . our future capital requirements and the adequacy of our available funds will depend on many factors , primarily including our ability to generate revenue , the scope and costs of our commercial , manufacturing and process development activities , the magnitude of our discovery , preclinical and clinical development programs , and potential costs to acquire or license the rights to additional products . we may need or desire to obtain additional capital to finance our operations through debt , equity or alternative financing arrangements . we may also seek capital through collaborations or partnerships with other companies . the issuance of debt could require us to grant liens on certain of our assets that may limit our flexibility and debt securities may be convertible 62 into common stock . if we raise additional capital by issuing equity securities , the terms and prices for these financings may be much more favorable to the new investors than the terms obtained by our existing stockholders . these financings also may significantly dilute the ownership of our existing stockholders . if we are unable to obtain additional financing , we may be required to reduce the scope of our future activities which could harm our business , financial condition and operating results . there can be no assurance that any additional financing required in the future will be available on acceptable terms , if at all . story_separator_special_tag table does not include various other long-term agreements entered into for services with other third party vendors , such as inventory purchase commitments , due to the cancelable nature of the services or variable terms within the agreement . additionally , this table does not include rebates , chargebacks or discounts recorded as liabilities at the time that product sales are recognized as revenue . ( 3 ) this table does not include potential future milestone obligations under our license agreements for which we have not deemed it probable that the milestone event will occur as of december 31 , 2019 . see part i , item 1 , business , of this annual report , for a description of our licensing arrangements and remaining milestone obligations . ( 4 ) this table does not include liabilities related to uncertain tax positions taken as of december 31 , 2019 . due to the uncertainties in the timing of potential tax audits , the timing associated with the resolution of these positions is also uncertain . item 7a . qualitative and quantitative disclosures about market risk interest rate risks our exposure to market risk is currently confined to our cash and cash equivalents , marketable securities and restricted cash . we currently do not hedge interest rate exposure . we have not used derivative financial instruments for speculation or trading purposes . because of the short-term maturities of our cash and cash equivalents and marketable securities , we do not believe that an increase in market rates would have any significant impact on the realized value of our investments . concentrations of credit risk we deposit our cash with financial institutions that we consider to be of high credit quality and purchase marketable securities which are generally investment grade , liquid , short-term fixed income securities and money-market instruments denominated in u.s. dollars . our marketable securities consist of commercial paper , corporate notes , asset-backed securities and u.s. government agency notes . revenues and accounts receivable are concentrated with specialty pharmacies and wholesalers . there were 5 major customers that each accounted for more than 10 % of total revenues and , as a group , represented 96 % of total revenues for the year ended december 31

cash flow the following table summarizes our net cash flows from operating , investing and financing activities for the years ended december 31 , 2019 and 2018 : replace_table_token_7_th operating activities . cash flows provided by operating activities during the year ended december 31 , 2019 were $ 45.9 million , an increase of $ 16.0 million compared to $ 30.0 million during the year ended december 31 , 2018 . the increase reflects an increase of $ 90.3 million in net income and $ 10.9 million from the net change in operating assets and liabilities , partially offset by a decrease of $ 85.3 million in non-cash charges primarily due to the reduction of our tax valuation allowance against substantially all of our deferred tax assets in the u.s. the increase of $ 10.9 million from the net change in operating assets and liabilities primarily relates to a decrease in accounts receivable attributable to the timing of shipments and payments and an increase in accounts payable and other liabilities attributable to the timing of activities and payments . investing activities . cash flows used in investing activities during the year ended december 31 , 2019 were $ 68.3 million , a decrease of $ 41.4 million compared to $ 109.7 million during the year ended december 31 , 2018 .


 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 flow the following table summarizes our net cash flows from operating , investing and financing activities for the years ended december 31 , 2019 and 2018 : replace_table_token_7_th operating activities . cash flows provided by operating activities during the year ended december 31 , 2019 were $ 45.9 million , an increase of $ 16.0 million compared to $ 30.0 million during the year ended december 31 , 2018 . the increase reflects an increase of $ 90.3 million in net income and $ 10.9 million from the net change in operating assets and liabilities , partially offset by a decrease of $ 85.3 million in non-cash charges primarily due to the reduction of our tax valuation allowance against substantially all of our deferred tax assets in the u.s. the increase of $ 10.9 million from the net change in operating assets and liabilities primarily relates to a decrease in accounts receivable attributable to the timing of shipments and payments and an increase in accounts payable and other liabilities attributable to the timing of activities and payments . investing activities . cash flows used in investing activities during the year ended december 31 , 2019 were $ 68.3 million , a decrease of $ 41.4 million compared to $ 109.7 million during the year ended december 31 , 2018 .
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 Suspicious Activity Report : as described in part i , item 3 , legal proceedings , of this annual report , we have initiated lawsuits to enforce our patent rights against certain generic pharmaceutical companies . critical accounting policies the preparation of our 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 at the date of our financial statements , as well as the reported revenues and expenses during the reported periods . we base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . a summary of our significant accounting policies appears in the notes to our audited consolidated financial statements for the year ended december 31 , 2019 included in this annual report . however , we believe that the following accounting policies are important to understanding and evaluating our reported financial results , and we have accordingly included them in this discussion . leases . in accordance with accounting standards codification ( asc ) 842 , leases , effective january 1 , 2019 , we determine if an arrangement contains a lease at inception . right-of-use ( rou ) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from that lease . for leases with a term greater than 12 months , rou assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term . the lease term includes the option to extend the lease when it is reasonably certain we will exercise that option . we do not combine lease and non-lease elements for office leases . for existing leases as of january 1 , 2019 , executory costs are excluded from lease expense , which is consistent with our accounting under asc 840 , leases . for all leases entered into after january 1 , 2019 , executory costs are allocated between lease and non-lease elements based upon their relative stand-alone prices . when available , we use the rate implicit in the lease to discount lease payments to present value ; however , most of our leases do not provide a readily determinable implicit rate . therefore , we use our incremental borrowing rate based on information available at the lease commencement date in determining the present value of lease payments . our incremental borrowing rate is derived from information available at the lease commencement date in determining the present value of lease payments . since we do not have outstanding debt that could provide an indication of the appropriate discount rate we used publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates . in making this estimation we considered market comparable data on companies with similar credit rating , secured contracts and contract length terms . we use the lease term to determine the incremental borrowing rate . net product sales . our net product sales consist of sales of hetlioz ® and sales of fanapt ® . in accordance with asc subtopic 606 revenue from contracts with customers ( asc 606 ) , which we adopted january 1 , 2018 , we account for a contract when it has approval and commitment from both parties , the rights of the parties are identified , payment terms are identified , the contract has commercial substance and collectability of consideration is probable . we recognize revenue when control of the product is transferred to the customer in an amount that reflects the consideration we expect to be entitled to in exchange for those product sales , which is typically once the product physically arrives at the customer . sales taxes , value add taxes , and usage-based taxes are excluded from revenues . hetlioz ® is available in the u.s. for distribution through a limited number of specialty pharmacies , and is not available in retail pharmacies . fanapt ® is available in the u.s. for distribution through a limited number of wholesalers and is 57 available in retail pharmacies . we invoice and record revenue when customers , specialty pharmacies and wholesalers , receive product from the third-party logistics warehouse which is the point at which control is transferred to the customer . revenues and accounts receivable are concentrated with these customers . outside the u.s. , we commercially launched hetlioz ® in germany in august 2016. we have also entered into a distribution agreement with megapharm ltd. for the commercialization of fanapt ® in israel . the company evaluates outstanding receivables to assess collectability . in performing this evaluation , the company analyzes economic conditions , the aging of receivables and customer specific risks . the transaction price is determined based upon the consideration to which we will be entitled in exchange for transferring product to the customer . our product sales are recorded net of applicable product revenue allowances for which reserves are established and include discounts , rebates , chargebacks , service fees , co-pay assistance and product returns that are applicable for various government and commercial payors . we estimate the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method and update our estimate at each reporting date . variable consideration is included in the transaction price if , in our judgment , it is probable that a significant future reversal of cumulative revenue under the contract will not occur . story_separator_special_tag the income tax benefit for 2019 was primarily due to the reduction of the tax valuation allowance against substantially all of its deferred tax assets in the u.s. tax expense associated with u.s. income before income taxes for the years ended december 31 , 2019 and 2018 was offset by a corresponding tax benefit for the reduction of the valuation allowance recorded against tax attributes that were utilized in those periods . income tax expense was recorded related to certain u.s. state and foreign jurisdictions for the years ended december 31 , 2019 and 2018. liquidity and capital resources as of december 31 , 2019 , our total cash and cash equivalents and marketable securities were $ 312.1 million compared to $ 257.4 million at december 31 , 2018 . our cash and cash equivalents are deposits in operating accounts and highly liquid investments with an original maturity of 90 days or less at date of purchase and consist of investments in money market funds with commercial banks and financial institutions , and commercial paper of high-quality corporate issuers . our marketable securities consist of investments in government sponsored and corporate enterprises and commercial paper . our liquidity resources as of december 31 , 2019 and 2018 are summarized as follows : replace_table_token_6_th as of december 31 , 2019 , we maintained all of our cash in two financial institutions . deposits held with these institutions may exceed the amount of insurance provided on such deposits , but we do not anticipate any losses with respect to such deposits . we expect to incur substantial costs and expenses throughout 2020 and beyond in connection with our continued clinical development of tradipitant and our other products , u.s. commercial activities for hetlioz ® and fanapt ® , the european commercial launch activities for hetlioz ® and payments due upon achievement of milestones under our license agreements . additionally , we continue to pursue market approval of hetlioz ® and fanapt ® in other regions . the actual costs to advance tradipitant and our research and development projects and commercial activities for hetlioz ® and fanapt ® are difficult to estimate and may vary significantly . we believe that our existing funds will be sufficient to meet our operating plans for at least the next twelve months . our future capital requirements and the adequacy of our available funds will depend on many factors , primarily including our ability to generate revenue , the scope and costs of our commercial , manufacturing and process development activities , the magnitude of our discovery , preclinical and clinical development programs , and potential costs to acquire or license the rights to additional products . we may need or desire to obtain additional capital to finance our operations through debt , equity or alternative financing arrangements . we may also seek capital through collaborations or partnerships with other companies . the issuance of debt could require us to grant liens on certain of our assets that may limit our flexibility and debt securities may be convertible 62 into common stock . if we raise additional capital by issuing equity securities , the terms and prices for these financings may be much more favorable to the new investors than the terms obtained by our existing stockholders . these financings also may significantly dilute the ownership of our existing stockholders . if we are unable to obtain additional financing , we may be required to reduce the scope of our future activities which could harm our business , financial condition and operating results . there can be no assurance that any additional financing required in the future will be available on acceptable terms , if at all . story_separator_special_tag table does not include various other long-term agreements entered into for services with other third party vendors , such as inventory purchase commitments , due to the cancelable nature of the services or variable terms within the agreement . additionally , this table does not include rebates , chargebacks or discounts recorded as liabilities at the time that product sales are recognized as revenue . ( 3 ) this table does not include potential future milestone obligations under our license agreements for which we have not deemed it probable that the milestone event will occur as of december 31 , 2019 . see part i , item 1 , business , of this annual report , for a description of our licensing arrangements and remaining milestone obligations . ( 4 ) this table does not include liabilities related to uncertain tax positions taken as of december 31 , 2019 . due to the uncertainties in the timing of potential tax audits , the timing associated with the resolution of these positions is also uncertain . item 7a . qualitative and quantitative disclosures about market risk interest rate risks our exposure to market risk is currently confined to our cash and cash equivalents , marketable securities and restricted cash . we currently do not hedge interest rate exposure . we have not used derivative financial instruments for speculation or trading purposes . because of the short-term maturities of our cash and cash equivalents and marketable securities , we do not believe that an increase in market rates would have any significant impact on the realized value of our investments . concentrations of credit risk we deposit our cash with financial institutions that we consider to be of high credit quality and purchase marketable securities which are generally investment grade , liquid , short-term fixed income securities and money-market instruments denominated in u.s. dollars . our marketable securities consist of commercial paper , corporate notes , asset-backed securities and u.s. government agency notes . revenues and accounts receivable are concentrated with specialty pharmacies and wholesalers . there were 5 major customers that each accounted for more than 10 % of total revenues and , as a group , represented 96 % of total revenues for the year ended december 31

