in our zig-zag products segment , we principally market and distribute ( i ) rolling papers , tubes , and related products ; and ( ii ) finished cigars and make-your-own ( “ myo ” ) cigar wraps . in our stoker 's products segment , we ( i ) manufacture and market moist snuff tobacco ( “ mst ” ) and ( ii ) contract for and market loose leaf chewing tobacco products . in our newgen products segment , we ( i ) market and distribute cbd , liquid vapor products and certain other products without tobacco and or nicotine ; ( ii ) distribute a wide assortment of products to non-traditional retail via vaporbeast ; and ( iii ) market and distribute a wide assortment of products to individual consumers via the vaporfi b2c online platform . refer to the ‘ recent developments ' section below for details regarding the recreation marketing investment . 38 our portfolio of brands includes some of the most widely recognized names in the alternative smoking accessories and otp industries , such as zig-zag ® , stoker 's ® , vapor beast ® and vaporfi ® . the following table sets forth the market share and category rank of our core products and demonstrates their industry positions : replace_table_token_3_th ( 1 ) market share and category rank data for all products are derived from msai data 52 weeks endeding 12/26/20 . operations we subscribe to a sales tracking system from msai that records all otp product shipments ( ours as well as those of our competitors ) from approximately 900 wholesalers to over 250,000 traditional retail stores in the u.s. this system enables us to understand individual product share and volume trends across multiple categories down to the individual retail store level , allowing us to allocate field salesforce coverage to the highest opportunity stores . our sales and marketing group of approximately 180 professionals utilize the msai system to efficiently target markets and sales channels with the highest sales potential . our core zig-zag products and stoker 's products segments primarily generate revenues from the sale of our products to wholesale distributors who , in turn , resell the products to retail operations . our acquisition of vaporbeast in 2016 expanded our revenue streams as we began selling directly to non-traditional retail outlets . our acquisition of ivg in 2018 enhanced our b2c revenue stream with the addition of the vapor-fi online platform . the acquisition of solace provided us with a line of leading liquids and a powerful new product development platform . our net sales , which include federal excise taxes , consist of gross sales net of cash discounts , returns , and selling and marketing allowances . we rely on long-standing relationships with high-quality , established manufacturers to provide the majority of our produced products . more than 80 % of our production , as measured by net sales , is outsourced to suppliers . the remaining production consists primarily of our moist snuff tobacco operations located in dresden , tennessee , and louisville , kentucky . our principal operating expenses include the cost of raw materials used to manufacture the limited number of our products which we produce in-house ; the cost of finished products , which are generally purchased goods ; federal excise taxes ; legal expenses ; and compensation expenses , including benefits and costs of salaried personnel . our other principal expenses include interest expense and other expenses . key factors affecting our results of operations we consider the following to be the key factors affecting our results of operations : our ability to further penetrate markets with our existing products ; our ability to introduce new products and product lines that complement our core business ; decreasing interest in tobacco products among consumers ; price sensitivity in our end-markets ; marketing and promotional initiatives , which cause variability in our results ; general economic conditions , including consumer access to disposable income ; cost and increasing regulation of promotional and advertising activities ; cost of complying with regulation , including “ deeming regulation ” ; counterfeit and other illegal products in our end-markets ; currency fluctuations ; our ability to identify attractive acquisition opportunities ; and our ability to integrate acquisitions . 39 recent developments covid-19 impact as a result of the extraordinary situation caused by the covid-19 pandemic , our focus is on the safety and well-being of our colleagues and the communities and customers we serve . as an organization , we have implemented several changes to enhance safety and mitigate health risk in our work environment . for our warehouse and manufacturing operations , these include split shifts , temperature scans , additional contactless hand sanitizing stations , protective equipment , social distancing guidelines , and increased cleaning and sanitization . these changes resulted in higher operational costs related to maintaining a safer work environment and fulfilling orders . we canceled all unnecessary travel and facilitated telecommuting where possible . like many companies , we have changed the way we communicate through increased use of videoconferencing and have implemented tele-selling initiatives through our sales force . some of these changes that are proving to be efficient are likely to remain in-place even after the restrictions caused by the pandemic are lifted and will lead to on-going cost savings . we have also put a hold on new spending commitments as we cautiously manage through this environment . we hired additional employees in our louisville facility and implemented temporary wage increases for our hourly employees to meet increased demand . we shifted production capacity to manufacture hand sanitizers and have donated bottles to hospitals , nursing homes and first responders in our local communities . covid-19 may impact our results . our third-party cigar wrap manufacturer in the dominican republic was temporarily shut down . our supply chain has remained operational otherwise . story_separator_special_tag income taxes we account for income taxes under asc 740. we record the effects of income taxes under the liability method in which deferred income tax assets and liabilities are recognized based on the difference between the financial and tax basis of assets and liabilities using the enacted tax rates in effect for the years in which the differences are expected to reverse . we assess our ability to realize future benefits of deferred tax assets by determining if they meet the “ more likely than not ” criteria in asc 740 , income taxes . if we determine that future benefits do not meet the “ more likely than not ” criteria , a valuation allowance is recorded . stock-based compensation we measure stock compensation costs related to our stock options on the fair value-based method under the provisions of asc 718 , compensation – stock compensation , which requires compensation cost for stock options to be recognized based on the fair value of stock options granted . we determined the fair value of these awards using the black-scholes option pricing model . we grant performance-based restricted stock units ( “ prsu ” ) subject to both performance-based and service-based vesting conditions . the fair value of each prsu is our stock price on the date of grant . for purposes of recognizing compensation expense as services are rendered in accordance with asc 718 , we assume all employees involved in the prsu grant will provide service through the end of the performance period . stock compensation expense is recorded based on the probability of achievement of the performance conditions specified in the prsu grant . accounts receivable accounts receivable are recognized at their net realizable value . all accounts receivable are trade-related and are recorded at the invoiced amount and do not bear interest . we maintain allowances for doubtful accounts receivable for estimated uncollectible invoices resulting from the customer 's inability to pay , which may result in write-offs . we recorded an allowance for doubtful accounts of $ 0.2 million and less than $ 0.3 million at december 31 , 2020 and 2019 , respectively . 43 inventories inventories are stated at the lower of cost or market . cost was determined using the lifo method for approximately 45.1 % of the inventories as of december 31 , 2020. leaf tobacco is presented in current assets in accordance with standard industry practice , notwithstanding the fact that such tobaccos are carried longer than one year for the purpose of curing . we recorded an inventory valuation allowance of $ 9.9 million and $ 21.5 million at december 31 , 2020 and 2019 , respectively . jumpstart our business startups act of 2012 we chose to “ opt out ” of the provision of the jobs act that permits us , as an “ emerging growth company , ” to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies . as a result , we will comply with new or revised accounting standards as required for public companies . our decision to opt out of the extended transition period provided in the jobs act is irrevocable . results of operations summary the table and discussion set forth below relates to our consolidated results of operations for the years ended december 31 ( in thousands ) : replace_table_token_4_th comparison of year ended december 31 , 2020 , to year ended december 31 , 2019 net sales . for the year ended december 31 , 2020 , overall net sales increased to $ 405.1 million from $ 362.0 million for the year ended december 31 , 2019 , an increase of $ 43.1 million or 11.9 % . the increase in net sales was primarily driven by increased sales volume across all segments . for the year ended december 31 , 2020 , net sales in the zig-zag products segment increased to $ 132.8 million from $ 108.7 million for the year ended december 31 , 2019 , an increase of $ 24.1 million or 22.1 % . for the year ended december 31 , 2020 , zig-zag products volumes increased 19.7 % , and price/mix increased 2.4 % . the increase in net sales was primarily related to double digit growth in us papers and wraps , partially offset by a $ 1.8 million decline in non-focus cigars and myo pipe . 44 for the year ended december 31 , 2020 , net sales in the stoker 's products segment increased to $ 115.9 million from $ 99.9 million for the year ended december 31 , 2019 , an increase of $ 16.0 million or 16.0 % . for the year ended december 31 , 2020 , stoker 's products volume increased 12.0 % and price/mix increased 4.0 % . the increase in net sales was primarily driven by the continuing double-digit volume growth of stoker 's ® mst . sales in chewing tobacco products were up mid-single digits as compared to prior year . mst represented 59 % of stoker 's products revenue in 2020 , up from 54 % a year earlier . for the year ended december 31 , 2020 , net sales in the newgen products segment increased to $ 156.4 million from $ 153.4 million for the year ended december 31 , 2019 , an increase of $ 3.1 million or 2.0 % . the increase in net sales was primarily the result of growth in both the nu-x and vape distribution businesses . gross profit . for the year ended december 31 , 2020 , overall gross profit increased to $ 189.6 million from $ 136.7 million for the year ended december 31 , 2019 , an increase of $ 52.9 million or 38.7 % , due to growth across all segments and $ 24.2 million of costs in 2019 that did not recur primarily related to inventory reserves . consolidated gross

loss on extinguishment of debt . for the year ended december 31 , 2020 , there was no loss on extinguishment of debt . for the year ended december 31 , 2019 , loss on extinguishment of debt was $ 1.3 million as the result of paying off the 2018 second lien credit facility . net periodic benefit cost ( income ) , excluding service cost . for the year ended december 31 , 2020 , net periodic cost was $ 0.9 million primarily as a result of the curtailment from the shutdown of the pension plan . for the year ended december 31 , 2019 , net periodic income was $ 5.0 million primarily due to the gain on the termination of the postretirement plan . 45 income tax expense . the company 's income tax expense was $ 10.0 million , or 23.3 % of income before income taxes , for the year ended december 31 , 2020 , and included a discrete tax deduction of $ 3.3 million relating to stock option exercises during the year and a discrete tax benefit of $ 0.6 million from the shutdown of the pension plan . the company 's income tax expense of $ 2.0 million , or 12.9 % of income before income taxes , for the year ended december 31 , 2019 , was lower than the expected annual effective tax rate as a result of discrete tax benefits of $ 4.6 million from the exercise of stock options during the year . consolidated net income . due to the factors described above , net income for the year ended december 31 , 2020 and 2019 , was $ 33.0 million and $ 13.8 million , respectively . comparison of year ended december 31 , 2019 , to year ended december 31 , 2018 net sales . for the year ended december 31 , 2019 , overall net sales increased to $ 362.0 million from $ 332.7 million for the year ended december 31 , 2018 , an increase of $ 29.3 million or 8.8 % .


 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.
     ```loss on extinguishment of debt . for the year ended december 31 , 2020 , there was no loss on extinguishment of debt . for the year ended december 31 , 2019 , loss on extinguishment of debt was $ 1.3 million as the result of paying off the 2018 second lien credit facility . net periodic benefit cost ( income ) , excluding service cost . for the year ended december 31 , 2020 , net periodic cost was $ 0.9 million primarily as a result of the curtailment from the shutdown of the pension plan . for the year ended december 31 , 2019 , net periodic income was $ 5.0 million primarily due to the gain on the termination of the postretirement plan . 45 income tax expense . the company 's income tax expense was $ 10.0 million , or 23.3 % of income before income taxes , for the year ended december 31 , 2020 , and included a discrete tax deduction of $ 3.3 million relating to stock option exercises during the year and a discrete tax benefit of $ 0.6 million from the shutdown of the pension plan . the company 's income tax expense of $ 2.0 million , or 12.9 % of income before income taxes , for the year ended december 31 , 2019 , was lower than the expected annual effective tax rate as a result of discrete tax benefits of $ 4.6 million from the exercise of stock options during the year . consolidated net income . due to the factors described above , net income for the year ended december 31 , 2020 and 2019 , was $ 33.0 million and $ 13.8 million , respectively . comparison of year ended december 31 , 2019 , to year ended december 31 , 2018 net sales . for the year ended december 31 , 2019 , overall net sales increased to $ 362.0 million from $ 332.7 million for the year ended december 31 , 2018 , an increase of $ 29.3 million or 8.8 % .
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 Suspicious Activity Report : in our zig-zag products segment , we principally market and distribute ( i ) rolling papers , tubes , and related products ; and ( ii ) finished cigars and make-your-own ( “ myo ” ) cigar wraps . in our stoker 's products segment , we ( i ) manufacture and market moist snuff tobacco ( “ mst ” ) and ( ii ) contract for and market loose leaf chewing tobacco products . in our newgen products segment , we ( i ) market and distribute cbd , liquid vapor products and certain other products without tobacco and or nicotine ; ( ii ) distribute a wide assortment of products to non-traditional retail via vaporbeast ; and ( iii ) market and distribute a wide assortment of products to individual consumers via the vaporfi b2c online platform . refer to the ‘ recent developments ' section below for details regarding the recreation marketing investment . 38 our portfolio of brands includes some of the most widely recognized names in the alternative smoking accessories and otp industries , such as zig-zag ® , stoker 's ® , vapor beast ® and vaporfi ® . the following table sets forth the market share and category rank of our core products and demonstrates their industry positions : replace_table_token_3_th ( 1 ) market share and category rank data for all products are derived from msai data 52 weeks endeding 12/26/20 . operations we subscribe to a sales tracking system from msai that records all otp product shipments ( ours as well as those of our competitors ) from approximately 900 wholesalers to over 250,000 traditional retail stores in the u.s. this system enables us to understand individual product share and volume trends across multiple categories down to the individual retail store level , allowing us to allocate field salesforce coverage to the highest opportunity stores . our sales and marketing group of approximately 180 professionals utilize the msai system to efficiently target markets and sales channels with the highest sales potential . our core zig-zag products and stoker 's products segments primarily generate revenues from the sale of our products to wholesale distributors who , in turn , resell the products to retail operations . our acquisition of vaporbeast in 2016 expanded our revenue streams as we began selling directly to non-traditional retail outlets . our acquisition of ivg in 2018 enhanced our b2c revenue stream with the addition of the vapor-fi online platform . the acquisition of solace provided us with a line of leading liquids and a powerful new product development platform . our net sales , which include federal excise taxes , consist of gross sales net of cash discounts , returns , and selling and marketing allowances . we rely on long-standing relationships with high-quality , established manufacturers to provide the majority of our produced products . more than 80 % of our production , as measured by net sales , is outsourced to suppliers . the remaining production consists primarily of our moist snuff tobacco operations located in dresden , tennessee , and louisville , kentucky . our principal operating expenses include the cost of raw materials used to manufacture the limited number of our products which we produce in-house ; the cost of finished products , which are generally purchased goods ; federal excise taxes ; legal expenses ; and compensation expenses , including benefits and costs of salaried personnel . our other principal expenses include interest expense and other expenses . key factors affecting our results of operations we consider the following to be the key factors affecting our results of operations : our ability to further penetrate markets with our existing products ; our ability to introduce new products and product lines that complement our core business ; decreasing interest in tobacco products among consumers ; price sensitivity in our end-markets ; marketing and promotional initiatives , which cause variability in our results ; general economic conditions , including consumer access to disposable income ; cost and increasing regulation of promotional and advertising activities ; cost of complying with regulation , including “ deeming regulation ” ; counterfeit and other illegal products in our end-markets ; currency fluctuations ; our ability to identify attractive acquisition opportunities ; and our ability to integrate acquisitions . 39 recent developments covid-19 impact as a result of the extraordinary situation caused by the covid-19 pandemic , our focus is on the safety and well-being of our colleagues and the communities and customers we serve . as an organization , we have implemented several changes to enhance safety and mitigate health risk in our work environment . for our warehouse and manufacturing operations , these include split shifts , temperature scans , additional contactless hand sanitizing stations , protective equipment , social distancing guidelines , and increased cleaning and sanitization . these changes resulted in higher operational costs related to maintaining a safer work environment and fulfilling orders . we canceled all unnecessary travel and facilitated telecommuting where possible . like many companies , we have changed the way we communicate through increased use of videoconferencing and have implemented tele-selling initiatives through our sales force . some of these changes that are proving to be efficient are likely to remain in-place even after the restrictions caused by the pandemic are lifted and will lead to on-going cost savings . we have also put a hold on new spending commitments as we cautiously manage through this environment . we hired additional employees in our louisville facility and implemented temporary wage increases for our hourly employees to meet increased demand . we shifted production capacity to manufacture hand sanitizers and have donated bottles to hospitals , nursing homes and first responders in our local communities . covid-19 may impact our results . our third-party cigar wrap manufacturer in the dominican republic was temporarily shut down . our supply chain has remained operational otherwise . story_separator_special_tag income taxes we account for income taxes under asc 740. we record the effects of income taxes under the liability method in which deferred income tax assets and liabilities are recognized based on the difference between the financial and tax basis of assets and liabilities using the enacted tax rates in effect for the years in which the differences are expected to reverse . we assess our ability to realize future benefits of deferred tax assets by determining if they meet the “ more likely than not ” criteria in asc 740 , income taxes . if we determine that future benefits do not meet the “ more likely than not ” criteria , a valuation allowance is recorded . stock-based compensation we measure stock compensation costs related to our stock options on the fair value-based method under the provisions of asc 718 , compensation – stock compensation , which requires compensation cost for stock options to be recognized based on the fair value of stock options granted . we determined the fair value of these awards using the black-scholes option pricing model . we grant performance-based restricted stock units ( “ prsu ” ) subject to both performance-based and service-based vesting conditions . the fair value of each prsu is our stock price on the date of grant . for purposes of recognizing compensation expense as services are rendered in accordance with asc 718 , we assume all employees involved in the prsu grant will provide service through the end of the performance period . stock compensation expense is recorded based on the probability of achievement of the performance conditions specified in the prsu grant . accounts receivable accounts receivable are recognized at their net realizable value . all accounts receivable are trade-related and are recorded at the invoiced amount and do not bear interest . we maintain allowances for doubtful accounts receivable for estimated uncollectible invoices resulting from the customer 's inability to pay , which may result in write-offs . we recorded an allowance for doubtful accounts of $ 0.2 million and less than $ 0.3 million at december 31 , 2020 and 2019 , respectively . 43 inventories inventories are stated at the lower of cost or market . cost was determined using the lifo method for approximately 45.1 % of the inventories as of december 31 , 2020. leaf tobacco is presented in current assets in accordance with standard industry practice , notwithstanding the fact that such tobaccos are carried longer than one year for the purpose of curing . we recorded an inventory valuation allowance of $ 9.9 million and $ 21.5 million at december 31 , 2020 and 2019 , respectively . jumpstart our business startups act of 2012 we chose to “ opt out ” of the provision of the jobs act that permits us , as an “ emerging growth company , ” to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies . as a result , we will comply with new or revised accounting standards as required for public companies . our decision to opt out of the extended transition period provided in the jobs act is irrevocable . results of operations summary the table and discussion set forth below relates to our consolidated results of operations for the years ended december 31 ( in thousands ) : replace_table_token_4_th comparison of year ended december 31 , 2020 , to year ended december 31 , 2019 net sales . for the year ended december 31 , 2020 , overall net sales increased to $ 405.1 million from $ 362.0 million for the year ended december 31 , 2019 , an increase of $ 43.1 million or 11.9 % . the increase in net sales was primarily driven by increased sales volume across all segments . for the year ended december 31 , 2020 , net sales in the zig-zag products segment increased to $ 132.8 million from $ 108.7 million for the year ended december 31 , 2019 , an increase of $ 24.1 million or 22.1 % . for the year ended december 31 , 2020 , zig-zag products volumes increased 19.7 % , and price/mix increased 2.4 % . the increase in net sales was primarily related to double digit growth in us papers and wraps , partially offset by a $ 1.8 million decline in non-focus cigars and myo pipe . 44 for the year ended december 31 , 2020 , net sales in the stoker 's products segment increased to $ 115.9 million from $ 99.9 million for the year ended december 31 , 2019 , an increase of $ 16.0 million or 16.0 % . for the year ended december 31 , 2020 , stoker 's products volume increased 12.0 % and price/mix increased 4.0 % . the increase in net sales was primarily driven by the continuing double-digit volume growth of stoker 's ® mst . sales in chewing tobacco products were up mid-single digits as compared to prior year . mst represented 59 % of stoker 's products revenue in 2020 , up from 54 % a year earlier . for the year ended december 31 , 2020 , net sales in the newgen products segment increased to $ 156.4 million from $ 153.4 million for the year ended december 31 , 2019 , an increase of $ 3.1 million or 2.0 % . the increase in net sales was primarily the result of growth in both the nu-x and vape distribution businesses . gross profit . for the year ended december 31 , 2020 , overall gross profit increased to $ 189.6 million from $ 136.7 million for the year ended december 31 , 2019 , an increase of $ 52.9 million or 38.7 % , due to growth across all segments and $ 24.2 million of costs in 2019 that did not recur primarily related to inventory reserves . consolidated gross

