we believe the ability to leverage one team to serve both markets will result in significant productivity and cost optimization as we continue to scale our business . we are executing a well-defined , three-pronged strategy designed to expand gross margins . first , we have insourced our console manufacturing to help lower console cost . second , we are adding a second-source contract manufacturer for our cartridges to gain higher efficiency and lower material cost . third , we will continue to utilize our cloud-based data system , as well as enhanced product performance , to help drive down the cost of service . we generate revenue primarily from the initial sale of tablo consoles , and recurring sales of per-treatment consumables , including the tablo cartridge , which generates significant total revenue over the life of the console . we generate additional revenue via annual service contracts and shipping and handling charged to customer . our total revenue was $ 49.9 million , $ 15.1 million and $ 2.0 million for the years ended december 31 , 2020 , 2019 and 2018 , respectively . for the years ended december 31 , 2020 , 2019 and 2018 , we incurred net losses of $ 121.5 million , $ 68.3 million and $ 49.8 million , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 494.1 million . 85 initial public offering on september 17 , 2020 , we completed our ipo , in which we sold 10,293,777 shares of common stock ( which included 1,342,666 shares that were offered and sold pursuant to the full exercise of the ipo underwriters ' option to purchase additional shares in connection with the ipo ) at a price to the public of $ 27.00 per share . including the full exercise of the underwriters ' option to purchase additional shares , we received aggregate net proceeds of approximately $ 254.8 million after deducting offering costs , underwriting discounts and commissions of approximately $ 23.1 million . upon the closing of the ipo , all of our outstanding redeemable convertible preferred stock automatically converted into shares of common stock . factors affecting our business market acceptance of tablo in acute setting . we plan to broaden our installed base by continuing to target idns and health systems , the va and sub-acute ltach and snf providers . in addition , we plan to focus on driving utilization and fleet expansion with existing customers by providing an exceptional user experience delivered through our commercial team and a steady release of software enhancements that amplify tablo 's operational reliability . our ability to successfully execute on this strategy , and thereby increase our revenue , will in part drive our results of operations and impact on our business . expansion of tablo within the home setting . we believe a significant growth opportunity exists within the home hemodialysis market . we are partnering with health systems and innovative dialysis clinic providers who are motivated to grow their home hemodialysis population , and who share our vision of creating a seamless and supported transition to the home . we will also invest in market development over the longer term to expand the home hemodialysis market itself . the expansion of the home hemodialysis market and our ability to penetrate this market will be an important factor in driving the future growth of our business . cost of revenue . the results of our business will depend in part on our ability to increase our gross margins by more effectively managing our costs to produce tablo consoles and consumables , as well as subsequently servicing tablo for our customers . the tablo cartridge is currently produced by our contract manufacturer based in thailand , and , until recently , we exclusively relied on our contract manufacturer based in morgan hill , california for production of the tablo console . utilizing these contract manufacturers has resulted in higher direct console and cartridge costs . as a result , cost of product revenue was $ 57.0 million , $ 27.2 million and $ 7.8 million for the years ended december 31 , 2020 , 2019 and 2018 , respectively . we are currently undertaking a number of initiatives in order to help reduce these costs . we recently established a new manufacturing facility for the production of tablo consoles in tijuana , mexico which we operate in collaboration with our outsourced business administration service provider , tacna , and have begun manufacturing in the first quarter of 2021. in addition , we are moving production of a majority of tablo cartridges from our existing contract manufacturing partner to a new contract manufacturer , also located in tijuana , mexico . our ability to grow our business will depend in part on these and other measures to control the costs of producing tablo being successful . likewise , it will be important that we effectively manage the costs of generating our service revenue . our cost of service and other revenue was $ 5.9 million , $ 5.7 million and $ 0.3 million for the years ended december 31 , 2020 , 2019 and 2018. impacts of the covid-19 pandemic . in march 2020 , the world health organization declared the global outbreak of covid-19 to be a pandemic . since then , covid-19 has continued to spread throughout much of the united states and the world causing uncertainty and disruption to business activities . we continue to closely monitor the recent developments surrounding the continued spread and potential resurgence of covid-19 . the results of our business may be impacted by developments related to the covid-19 pandemic . story_separator_special_tag this was offset by $ 15.9 million in increased costs as a result of selling more product and a $ 5.5 million increase in in higher manufacturing overhead , which was , in turn , driven by a $ 2.2 million investment in our new manufacturing facility in tijuana , mexico , a $ 1.0 million increase in allocated costs and a $ 0.8 million increase in compensation and personnel costs . research and development research and development expenses increased by $ 5.5 million , or 24 % , for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019. the increase was primarily due to a $ 6.1 million increase in compensation and personnel costs , which includes a $ 4.3 million increase in stock-based compensation expense , and a $ 0.3 million increase in materials and supplies . these increases were partially offset by a $ 0.9 million decrease in professional service and consultant service expenses . sales and marketing sales and marketing expenses increased by $ 24.8 million , or 122 % for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019. the increase was primarily due to a $ 22.4 million increase in compensation and personnel costs as a result of increased headcount , which includes a $ 4.3 million increase in stock-based compensation expense , and a $ 10.1 million increase in commission expense as a result of higher orders , a $ 0.9 million increase in supplies , materials and freight expenses related to increased activities in support of driving penetration of tablo , a $ 0.9 million increase in facilities and other allocated costs and a $ 0.6 million increase in professional service and consultant service expenses . general and administrative general and administrative expenses increased by $ 21.6 million , or 242 % , for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019. the increase was primarily due to a $ 17.2 million increase in compensation and personnel costs , which includes a $ 11.8 million increase in stock-based compensation expense , a $ 4.5 million increase in professional and consultant services associated with being a public company including legal , accounting , and secondary offering costs , and a $ 0.3 million increase in depreciation expense . the increases were partially offset by a $ 0.4 million decrease in facilities and other allocated costs . interest income and other income , net interest income and other income , net decreased by $ 2.0 million , or 79 % , for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019. this decrease was driven by lower interest rates and a lower average balance in money market funds and short-term investment securities during 2020 . 91 interest expense interest expense decreased by $ 1.4 million , or 32 % , for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019. this decrease was primarily due to a lower debt discount amortization expense in the year ended december 31 , 2020 , the repayment of our perceptive term loan in july 2020 and a lower interest rate under the svb term loan . change in fair value of redeemable convertible preferred stock warrant liability the change in the fair value of redeemable convertible preferred stock warrant liability was driven by the changes in assumptions used to value the warrant liability . upon the closing of our ipo in september 2020 , all shares of our outstanding redeemable convertible preferred stock warrants were either exercised into common stock or automatically converted into warrants to purchase common stock . accordingly , we have ceased to incur the change in fair value of redeemable convertible preferred stock warrant liability as the entire redeemable convertible preferred stock warrant liability was reclassified to additional paid-in capital . loss on extinguishment of term loan the loss on extinguishment of term loan of $ 1.6 million was recognized for the repayment of the perceptive term loan in july 2020 , which included early prepayment and exit fees . comparison of years ended december 31 , 2019 and 2018 the following table summarizes our results of operations for the years ended december 31 , 2019 and 2018 ( in thousands , except percentages ) : replace_table_token_7_th * not meaningful 92 revenue product revenue product revenue increased by $ 12.0 million , or 686 % , for the year ended december 31 , 2019 , compared to the year ended december 31 , 2018. the increase was primarily due to $ 10.0 million in higher tablo console revenue , which was driven by new customer adoption and fleet expansion with existing customers , as well as $ 0.5 million in increased console leasing revenue and $ 1.0 million in increased sales of tablo consumables , including cartridges , given our higher tablo installed base . service and other revenue service and other revenue increased by $ 1.1 million , or 415 % , for the year ended december 31 , 2019 , compared to the year ended december 31 , 2018. the increase was primarily due to growth in service contracts as a result of a higher tablo installed base , as well as services associated with leased consoles . cost of revenue cost of product revenue cost of product revenue increased by $ 19.4 million , or 248 % , for the year ended december 31 , 2019 , compared to the year ended december 31 , 2018. this increase was primarily due to higher console and consumable volume of $ 30.1 million , which was offset by a $ 10.6 million reduction in product costs and expense associated with upgrading certain prior generation consoles . cost of service and other revenue cost of service and other revenue increased by $ 5.4

net cash flows from operating activities net cash used in operating activities of $ 99.0 million for the year ended december 30 , 2020 was due to a net loss of $ 121.5 million and a net cash outflow from the change in our operating assets and liabilities of $ 5.8 million , partially offset by non-cash adjustments for stock-based compensation expense of $ 21.4 million , depreciation and amortization of $ 3.2 million , loss on extinguishment of term loan of $ 1.6 million , non-cash interest expense of $ 0.6 million , non-cash lease expense of $ 0.6 million , provision for inventories of $ 0.5 million , loss on disposal of property and equipment of $ 0.2 million , and change in fair value of redeemable convertible preferred stock warrant liability of $ 0.1 million . the net cash outflow from operating assets and liabilities was primarily due to an increase in inventories of $ 16.3 million due to the timing of inventory purchases including advance purchases of inventory due to anticipated demand , an increase in prepaid expenses and other assets of $ 6.2 million , an increase in accounts receivable of $ 2.6 million due to timing of collections , and an increase in accrued interest of $ 0.2 million for the svb term loan . the net cash outflow from operating assets and liabilities was partially offset by an increase in accrued payroll and related benefits of $ 9.9 million due to an increase in headcount , an increase in accrued expenses and other current liabilities of $ 4.8 million consistent with the growth of our business , an increase in deferred revenue of $ 2.8 million , an increase in accrued warranty liability of $ 1.2 million , an increase in accounts payable of $ 0.7 million due to timing of vendor payments , and an increase in operating lease liability of $ 0.1 million .


 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 flows from operating activities net cash used in operating activities of $ 99.0 million for the year ended december 30 , 2020 was due to a net loss of $ 121.5 million and a net cash outflow from the change in our operating assets and liabilities of $ 5.8 million , partially offset by non-cash adjustments for stock-based compensation expense of $ 21.4 million , depreciation and amortization of $ 3.2 million , loss on extinguishment of term loan of $ 1.6 million , non-cash interest expense of $ 0.6 million , non-cash lease expense of $ 0.6 million , provision for inventories of $ 0.5 million , loss on disposal of property and equipment of $ 0.2 million , and change in fair value of redeemable convertible preferred stock warrant liability of $ 0.1 million . the net cash outflow from operating assets and liabilities was primarily due to an increase in inventories of $ 16.3 million due to the timing of inventory purchases including advance purchases of inventory due to anticipated demand , an increase in prepaid expenses and other assets of $ 6.2 million , an increase in accounts receivable of $ 2.6 million due to timing of collections , and an increase in accrued interest of $ 0.2 million for the svb term loan . the net cash outflow from operating assets and liabilities was partially offset by an increase in accrued payroll and related benefits of $ 9.9 million due to an increase in headcount , an increase in accrued expenses and other current liabilities of $ 4.8 million consistent with the growth of our business , an increase in deferred revenue of $ 2.8 million , an increase in accrued warranty liability of $ 1.2 million , an increase in accounts payable of $ 0.7 million due to timing of vendor payments , and an increase in operating lease liability of $ 0.1 million .
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 Suspicious Activity Report : we believe the ability to leverage one team to serve both markets will result in significant productivity and cost optimization as we continue to scale our business . we are executing a well-defined , three-pronged strategy designed to expand gross margins . first , we have insourced our console manufacturing to help lower console cost . second , we are adding a second-source contract manufacturer for our cartridges to gain higher efficiency and lower material cost . third , we will continue to utilize our cloud-based data system , as well as enhanced product performance , to help drive down the cost of service . we generate revenue primarily from the initial sale of tablo consoles , and recurring sales of per-treatment consumables , including the tablo cartridge , which generates significant total revenue over the life of the console . we generate additional revenue via annual service contracts and shipping and handling charged to customer . our total revenue was $ 49.9 million , $ 15.1 million and $ 2.0 million for the years ended december 31 , 2020 , 2019 and 2018 , respectively . for the years ended december 31 , 2020 , 2019 and 2018 , we incurred net losses of $ 121.5 million , $ 68.3 million and $ 49.8 million , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 494.1 million . 85 initial public offering on september 17 , 2020 , we completed our ipo , in which we sold 10,293,777 shares of common stock ( which included 1,342,666 shares that were offered and sold pursuant to the full exercise of the ipo underwriters ' option to purchase additional shares in connection with the ipo ) at a price to the public of $ 27.00 per share . including the full exercise of the underwriters ' option to purchase additional shares , we received aggregate net proceeds of approximately $ 254.8 million after deducting offering costs , underwriting discounts and commissions of approximately $ 23.1 million . upon the closing of the ipo , all of our outstanding redeemable convertible preferred stock automatically converted into shares of common stock . factors affecting our business market acceptance of tablo in acute setting . we plan to broaden our installed base by continuing to target idns and health systems , the va and sub-acute ltach and snf providers . in addition , we plan to focus on driving utilization and fleet expansion with existing customers by providing an exceptional user experience delivered through our commercial team and a steady release of software enhancements that amplify tablo 's operational reliability . our ability to successfully execute on this strategy , and thereby increase our revenue , will in part drive our results of operations and impact on our business . expansion of tablo within the home setting . we believe a significant growth opportunity exists within the home hemodialysis market . we are partnering with health systems and innovative dialysis clinic providers who are motivated to grow their home hemodialysis population , and who share our vision of creating a seamless and supported transition to the home . we will also invest in market development over the longer term to expand the home hemodialysis market itself . the expansion of the home hemodialysis market and our ability to penetrate this market will be an important factor in driving the future growth of our business . cost of revenue . the results of our business will depend in part on our ability to increase our gross margins by more effectively managing our costs to produce tablo consoles and consumables , as well as subsequently servicing tablo for our customers . the tablo cartridge is currently produced by our contract manufacturer based in thailand , and , until recently , we exclusively relied on our contract manufacturer based in morgan hill , california for production of the tablo console . utilizing these contract manufacturers has resulted in higher direct console and cartridge costs . as a result , cost of product revenue was $ 57.0 million , $ 27.2 million and $ 7.8 million for the years ended december 31 , 2020 , 2019 and 2018 , respectively . we are currently undertaking a number of initiatives in order to help reduce these costs . we recently established a new manufacturing facility for the production of tablo consoles in tijuana , mexico which we operate in collaboration with our outsourced business administration service provider , tacna , and have begun manufacturing in the first quarter of 2021. in addition , we are moving production of a majority of tablo cartridges from our existing contract manufacturing partner to a new contract manufacturer , also located in tijuana , mexico . our ability to grow our business will depend in part on these and other measures to control the costs of producing tablo being successful . likewise , it will be important that we effectively manage the costs of generating our service revenue . our cost of service and other revenue was $ 5.9 million , $ 5.7 million and $ 0.3 million for the years ended december 31 , 2020 , 2019 and 2018. impacts of the covid-19 pandemic . in march 2020 , the world health organization declared the global outbreak of covid-19 to be a pandemic . since then , covid-19 has continued to spread throughout much of the united states and the world causing uncertainty and disruption to business activities . we continue to closely monitor the recent developments surrounding the continued spread and potential resurgence of covid-19 . the results of our business may be impacted by developments related to the covid-19 pandemic . story_separator_special_tag this was offset by $ 15.9 million in increased costs as a result of selling more product and a $ 5.5 million increase in in higher manufacturing overhead , which was , in turn , driven by a $ 2.2 million investment in our new manufacturing facility in tijuana , mexico , a $ 1.0 million increase in allocated costs and a $ 0.8 million increase in compensation and personnel costs . research and development research and development expenses increased by $ 5.5 million , or 24 % , for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019. the increase was primarily due to a $ 6.1 million increase in compensation and personnel costs , which includes a $ 4.3 million increase in stock-based compensation expense , and a $ 0.3 million increase in materials and supplies . these increases were partially offset by a $ 0.9 million decrease in professional service and consultant service expenses . sales and marketing sales and marketing expenses increased by $ 24.8 million , or 122 % for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019. the increase was primarily due to a $ 22.4 million increase in compensation and personnel costs as a result of increased headcount , which includes a $ 4.3 million increase in stock-based compensation expense , and a $ 10.1 million increase in commission expense as a result of higher orders , a $ 0.9 million increase in supplies , materials and freight expenses related to increased activities in support of driving penetration of tablo , a $ 0.9 million increase in facilities and other allocated costs and a $ 0.6 million increase in professional service and consultant service expenses . general and administrative general and administrative expenses increased by $ 21.6 million , or 242 % , for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019. the increase was primarily due to a $ 17.2 million increase in compensation and personnel costs , which includes a $ 11.8 million increase in stock-based compensation expense , a $ 4.5 million increase in professional and consultant services associated with being a public company including legal , accounting , and secondary offering costs , and a $ 0.3 million increase in depreciation expense . the increases were partially offset by a $ 0.4 million decrease in facilities and other allocated costs . interest income and other income , net interest income and other income , net decreased by $ 2.0 million , or 79 % , for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019. this decrease was driven by lower interest rates and a lower average balance in money market funds and short-term investment securities during 2020 . 91 interest expense interest expense decreased by $ 1.4 million , or 32 % , for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019. this decrease was primarily due to a lower debt discount amortization expense in the year ended december 31 , 2020 , the repayment of our perceptive term loan in july 2020 and a lower interest rate under the svb term loan . change in fair value of redeemable convertible preferred stock warrant liability the change in the fair value of redeemable convertible preferred stock warrant liability was driven by the changes in assumptions used to value the warrant liability . upon the closing of our ipo in september 2020 , all shares of our outstanding redeemable convertible preferred stock warrants were either exercised into common stock or automatically converted into warrants to purchase common stock . accordingly , we have ceased to incur the change in fair value of redeemable convertible preferred stock warrant liability as the entire redeemable convertible preferred stock warrant liability was reclassified to additional paid-in capital . loss on extinguishment of term loan the loss on extinguishment of term loan of $ 1.6 million was recognized for the repayment of the perceptive term loan in july 2020 , which included early prepayment and exit fees . comparison of years ended december 31 , 2019 and 2018 the following table summarizes our results of operations for the years ended december 31 , 2019 and 2018 ( in thousands , except percentages ) : replace_table_token_7_th * not meaningful 92 revenue product revenue product revenue increased by $ 12.0 million , or 686 % , for the year ended december 31 , 2019 , compared to the year ended december 31 , 2018. the increase was primarily due to $ 10.0 million in higher tablo console revenue , which was driven by new customer adoption and fleet expansion with existing customers , as well as $ 0.5 million in increased console leasing revenue and $ 1.0 million in increased sales of tablo consumables , including cartridges , given our higher tablo installed base . service and other revenue service and other revenue increased by $ 1.1 million , or 415 % , for the year ended december 31 , 2019 , compared to the year ended december 31 , 2018. the increase was primarily due to growth in service contracts as a result of a higher tablo installed base , as well as services associated with leased consoles . cost of revenue cost of product revenue cost of product revenue increased by $ 19.4 million , or 248 % , for the year ended december 31 , 2019 , compared to the year ended december 31 , 2018. this increase was primarily due to higher console and consumable volume of $ 30.1 million , which was offset by a $ 10.6 million reduction in product costs and expense associated with upgrading certain prior generation consoles . cost of service and other revenue cost of service and other revenue increased by $ 5.4

