gross margin from services in 2020 covered 6 % of our total operating costs and expenses in 2020. gross profit from services was 39 % higher in 2020 than in 2019 due to the revenues generated through covid-19 testing that began at the end of may 2020. covid-19 testing is a relatively new business activity , and 96 % of covid-19 testing revenues in 2020 were obtained under 30-day renewable testing agreements with multiple nursing home and pharmacy facilities in the state of new york controlled by a single company . on march 26 , 2021 , we were advised by the company that controls the new york nursing homes and pharmacy facilities we service that the state of new york is allowing on-site employee testing and that on-site testing will be implemented for the new york facilities we service , which will likely have the effect of substantially diminishing our revenues from covid-19 testing after the first quarter of 2021. we are a relatively unknown testing laboratory , so we have relied on word of mouth and management relationships to connect with prospects and vied for new business on the basis of price and service , and we can not predict how well this marketing approach will work in finding new customers for arches ' testing services . even if we are able to find new customers for the covid-19 testing business there remain substantial uncertainties around the covid-19 testing business due to rapid developments in testing and vaccines . our net losses may fluctuate significantly from quarter-to-quarter and year-to-year , depending upon the timing of our clinical trials and our expenditures for satisfying all the conditions of obtaining fda market approval for skinte . cash used to fund operating expenses is impacted by the timing of when we pay these expenses , as reflected in the change in our accounts payable and accrued research and development and other current liabilities . recent developments capital formation we raised capital in december 2020 and january 2021 to fund our operations . we previously reported in november 2020 that at september 30 , 2020 , our cash and cash equivalents totaled $ 23.186 million , which would not be adequate to fund our operations beyond the first quarter of 2021. we embarked on a plan to raise capital to fund our operations that began with a restructuring in november 2020 of warrants sold in a public offering in february 2020 , which we believed had a chilling effect on our ability to attract institutional investors and depressed the public trading price of our common stock . 39 after the warrant restructuring we sold 5,450,000 shares of common stock , pre-funded warrants to purchase up to 5,238,043 shares of common stock ( with an exercise price of $ 0.001 ) , and accompanying common warrants to purchase up to 10,688,043 shares of common stock to a single healthcare-dedicated institutional investor in a registered direct offering . each common share and pre-funded warrant were sold together with a common warrant . the combined offering price of each common share and accompanying common warrant was $ 0.7485 and for each pre-funded warrant and accompanying common warrant was $ 0.7475. the pre-funded warrants were subsequently exercised in january 2021 and the net proceeds we received from the offering were $ 7.2 million . in january 2021 , the holder of the common warrants exercised all 10,688,043 warrants at an exercise price of $ 0.624 per share resulting in gross proceeds of $ 6.7 million . in exchange for the agreement of the holder to exercise those common warrants we issued to the holder new common stock purchase warrants at a price of $ 0.125 per new warrant to purchase up to 8,016,033 shares of common stock at an exercise price of $ 1.20 per share . gross proceeds from the sale of the new warrants was $ 1.0 million . also in january 2021 we sold to the same institutional investor who participated in the december registered direct offering 6,670,000 shares of common stock , pre-funded warrants to purchase up to 2,420,910 shares of common stock ( with an exercise price of $ 0.001 ) , and accompanying common warrants to purchase up to 9,090,910 shares of common stock in another registered direct offering . each common share and pre-funded warrant were sold together with a common warrant . the combined offering price of each common share and accompanying common warrant was $ 1.10 and for each pre-funded warrant and accompanying common warrant was $ 1.099. the pre-funded warrants were subsequently exercised so the gross proceeds of the offering were $ 10.0 million . the common warrants sold in the registered direct offering have an exercise price of $ 1.20 per share . we believe this capital infusion from the foregoing offerings will enable us to fund our ind filing and the start of at least two clinical trials under the bla for skinte . business effects of covid-19 the current covid-19 pandemic has presented a substantial public health and economic challenge around the world and is affecting our employees , patients , clinicians , communities , and business operations , as well as the u.s. economy and financial markets . the full extent to which the covid-19 pandemic will directly or indirectly impact the timing and cost of pursuing fda approval of skinte under a bla is highly uncertain and can not be accurately predicted . we will need to engage contract research organizations ( “ cros ” ) for our future clinical trials and the covid-19 pandemic and response efforts may have an impact on the ability of cros to timely perform the trials we need for skinte . we saw a decrease in skinte cases in march 2020 and procedures scheduled for april 2020 postponed or not being scheduled , which was a trend we expected would continue and adversely affect our results of operations . story_separator_special_tag as a result of our decision to file an ind for skinte and the disturbing trend in skinte cases , in may 2020 we reduced our workforce within our regenerative medicine business segment , which is engaged primarily in the commercialization of skinte . we also refocused our commercialization effort on the territories where we have current and repeat users of skinte , and this new focus resulted in a quarter over quarter increase in the average wound size treated and a concomitant increase in revenues , which we did not expect . in the contract services segment covid-19 had a significant adverse effect on pre-clinical research business from march through the end of 2020 , so we expected our contract services business would also suffer as a result of covid-19 . however , we unexpectedly received inquiries in april 2020 from third parties acquainted with our management team regarding our laboratory and its ability to perform covid-19 testing , which we attribute to the surge in covid-19 testing throughout the united states and what we believe to be a lack of laboratory testing capacity to meet the surging demand . management evaluated arches ' resources and found that it has the capability of performing molecular polymerase chain reaction testing for covid-19 . management decided that covid-19 testing offered an opportunity to use existing resources to generate additional revenue in the contract services segment and thereby help defray our operating expenses . we began providing covid-19 testing services at the end of may 2020 , and from then to the end of 2020 covid-19 testing generated $ 4.3 million in net revenues . these developments notwithstanding , there is great uncertainty around the covid-19 pandemic that makes it impossible to accurately predict how the pandemic may directly or indirectly impact our business , results of operations , liquidity , and financial condition 40 the covid-19 pandemic has caused us to modify our business practices including , but not limited to , curtailing or modifying employee travel , moving to partial remote work , and cancelling physical participation in meetings , events , and conferences . we may take further actions as may be required by government authorities or that we determine are in the best interests of our employees , patients , clinicians , and business partners . the majority of our office-based employees have been working from home since march 2020 , while ensuring essential staffing levels to support our operations remain in place , including maintaining key personnel in our laboratories . story_separator_special_tag general and administrative expenses general and administrative expenses decreased by 56 % in 2020 to $ 27.557 million . in addition to reductions in salary and benefits and stock compensation costs from 2019 , travel and related costs decreased to $ 0.243 million in 2020 from $ 1.318 million in 2019. expenses for our leased facilities were $ 2.094 million in 2020. lease expenses for our corporate office facility was $ 0.357 million in 2020 , which will not recur in 2021 because the lease expired in 2020. our lease expense for our manufacturing facility in utah was $ 1.251 million in 2020 , and we remain obligated under the terms of the lease for that facility until the end of november 2022. sales and marketing sales and marketing expenses decreased by 49 % in 2020 to $ 8.719 million . in addition to reductions in salary and benefits and stock compensation costs from 2019 , promotional consulting and expense was reduced to $ 0.834 million in 2020 from $ 5.270 in 2019 , and travel and related costs decreased to $ 0.444 million in 2020 from $ 1.440 million in 2019 . 42 restructuring and other charges we recorded $ 3.834 million in restructuring and other charges in 2020. the main components of the restructuring charges are capitalized costs in the amount of $ 0.518 million for the development of a vivarium project at our salt lake city facility we abandoned in 2020 , abandonment of equipment purchased in prior periods in the amount of $ 1.014 million , and severance payments in the amount of $ 1.025 million associated with the reduction of personnel in 2020. in addition , when we were pursuing an aggressive commercialization plan for skinte in 2019 we entered into a lease agreement for establishing a manufacturing node at the joseph m. still burn center in augusta , georgia . the node lease has a term of five years and a monthly base rent of $ 10,286. in 2020 we spent $ 0.606 million on node operations , including rent of $ 0.119 million . in the fourth quarter of 2020 we decided to abandon operations at the node , which resulted in the recognition of a charge in the amount of $ 1.175 million comprised of equipment , leasehold improvements , and a right of use asset . we continue to make payments on the lease for the node and are seeking opportunities to sublease the space . other income ( expense ) , net – change in fair value of common stock warrants we have issued and outstanding warrants classified as liabilities . the amount of the liabilities attributable to the warrants are remeasured as of the end of each fiscal quarter and adjusted accordingly through an increase or decrease recorded on our consolidated statement of operations for the period . at december 31 , 2020 , the total common stock warrant liability was $ 5.975 million reflecting a fair value change of $ 2.914 million under other income . critical accounting policies and estimates for a description of our significant accounting policies , see note 2 to our consolidated financial statements . revenue recognition . with respect to revenue recognition in contract services provided by ibex , revenues generally consist of a single performance obligation that ibex satisfies over time using an input method based on costs incurred to date relative to the total costs expected

liquidity and capital resources as of december 31 , 2020 , we had $ 25.5 million in cash and cash equivalents , and working capital of approximately $ 22.7 million . in january 2021 , we raised an additional $ 17.7 million in gross proceeds before offering expenses in a registered direct offering and through a warrant exercise agreement . we believe the net revenues we generate internally together with the cash and cash equivalents on our balance sheet will fund our business activities through the end of 2021 and into the third quarter of 2022. in the fourth quarter of 2020 cash used in operating activities was $ 5.6 million , or an average of $ 1.9 million per month . after our ind is filed and then accepted by the fda , we will move to begin clinical trials as soon as possible . preliminary estimates indicate one clinical trial could cost approximately $ 5.0 million over two years , and we believe we will need to conduct at least two clinical trials for skinte . clinical trials are the major expense we see in the near and long term , and while we are pursuing clinical trials we will continue to incur the costs of maintaining our business . in addition to clinical trials , the most significant uses of cash to maintain our business going forward are compensation and costs of occupying our facilities . if we need to discontinue commercial sales of skinte , we will lose net revenues from the sale of skinte , but we will also focus on eliminating operating expenses related to the skinte service .


 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 as of december 31 , 2020 , we had $ 25.5 million in cash and cash equivalents , and working capital of approximately $ 22.7 million . in january 2021 , we raised an additional $ 17.7 million in gross proceeds before offering expenses in a registered direct offering and through a warrant exercise agreement . we believe the net revenues we generate internally together with the cash and cash equivalents on our balance sheet will fund our business activities through the end of 2021 and into the third quarter of 2022. in the fourth quarter of 2020 cash used in operating activities was $ 5.6 million , or an average of $ 1.9 million per month . after our ind is filed and then accepted by the fda , we will move to begin clinical trials as soon as possible . preliminary estimates indicate one clinical trial could cost approximately $ 5.0 million over two years , and we believe we will need to conduct at least two clinical trials for skinte . clinical trials are the major expense we see in the near and long term , and while we are pursuing clinical trials we will continue to incur the costs of maintaining our business . in addition to clinical trials , the most significant uses of cash to maintain our business going forward are compensation and costs of occupying our facilities . if we need to discontinue commercial sales of skinte , we will lose net revenues from the sale of skinte , but we will also focus on eliminating operating expenses related to the skinte service .
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 Suspicious Activity Report : gross margin from services in 2020 covered 6 % of our total operating costs and expenses in 2020. gross profit from services was 39 % higher in 2020 than in 2019 due to the revenues generated through covid-19 testing that began at the end of may 2020. covid-19 testing is a relatively new business activity , and 96 % of covid-19 testing revenues in 2020 were obtained under 30-day renewable testing agreements with multiple nursing home and pharmacy facilities in the state of new york controlled by a single company . on march 26 , 2021 , we were advised by the company that controls the new york nursing homes and pharmacy facilities we service that the state of new york is allowing on-site employee testing and that on-site testing will be implemented for the new york facilities we service , which will likely have the effect of substantially diminishing our revenues from covid-19 testing after the first quarter of 2021. we are a relatively unknown testing laboratory , so we have relied on word of mouth and management relationships to connect with prospects and vied for new business on the basis of price and service , and we can not predict how well this marketing approach will work in finding new customers for arches ' testing services . even if we are able to find new customers for the covid-19 testing business there remain substantial uncertainties around the covid-19 testing business due to rapid developments in testing and vaccines . our net losses may fluctuate significantly from quarter-to-quarter and year-to-year , depending upon the timing of our clinical trials and our expenditures for satisfying all the conditions of obtaining fda market approval for skinte . cash used to fund operating expenses is impacted by the timing of when we pay these expenses , as reflected in the change in our accounts payable and accrued research and development and other current liabilities . recent developments capital formation we raised capital in december 2020 and january 2021 to fund our operations . we previously reported in november 2020 that at september 30 , 2020 , our cash and cash equivalents totaled $ 23.186 million , which would not be adequate to fund our operations beyond the first quarter of 2021. we embarked on a plan to raise capital to fund our operations that began with a restructuring in november 2020 of warrants sold in a public offering in february 2020 , which we believed had a chilling effect on our ability to attract institutional investors and depressed the public trading price of our common stock . 39 after the warrant restructuring we sold 5,450,000 shares of common stock , pre-funded warrants to purchase up to 5,238,043 shares of common stock ( with an exercise price of $ 0.001 ) , and accompanying common warrants to purchase up to 10,688,043 shares of common stock to a single healthcare-dedicated institutional investor in a registered direct offering . each common share and pre-funded warrant were sold together with a common warrant . the combined offering price of each common share and accompanying common warrant was $ 0.7485 and for each pre-funded warrant and accompanying common warrant was $ 0.7475. the pre-funded warrants were subsequently exercised in january 2021 and the net proceeds we received from the offering were $ 7.2 million . in january 2021 , the holder of the common warrants exercised all 10,688,043 warrants at an exercise price of $ 0.624 per share resulting in gross proceeds of $ 6.7 million . in exchange for the agreement of the holder to exercise those common warrants we issued to the holder new common stock purchase warrants at a price of $ 0.125 per new warrant to purchase up to 8,016,033 shares of common stock at an exercise price of $ 1.20 per share . gross proceeds from the sale of the new warrants was $ 1.0 million . also in january 2021 we sold to the same institutional investor who participated in the december registered direct offering 6,670,000 shares of common stock , pre-funded warrants to purchase up to 2,420,910 shares of common stock ( with an exercise price of $ 0.001 ) , and accompanying common warrants to purchase up to 9,090,910 shares of common stock in another registered direct offering . each common share and pre-funded warrant were sold together with a common warrant . the combined offering price of each common share and accompanying common warrant was $ 1.10 and for each pre-funded warrant and accompanying common warrant was $ 1.099. the pre-funded warrants were subsequently exercised so the gross proceeds of the offering were $ 10.0 million . the common warrants sold in the registered direct offering have an exercise price of $ 1.20 per share . we believe this capital infusion from the foregoing offerings will enable us to fund our ind filing and the start of at least two clinical trials under the bla for skinte . business effects of covid-19 the current covid-19 pandemic has presented a substantial public health and economic challenge around the world and is affecting our employees , patients , clinicians , communities , and business operations , as well as the u.s. economy and financial markets . the full extent to which the covid-19 pandemic will directly or indirectly impact the timing and cost of pursuing fda approval of skinte under a bla is highly uncertain and can not be accurately predicted . we will need to engage contract research organizations ( “ cros ” ) for our future clinical trials and the covid-19 pandemic and response efforts may have an impact on the ability of cros to timely perform the trials we need for skinte . we saw a decrease in skinte cases in march 2020 and procedures scheduled for april 2020 postponed or not being scheduled , which was a trend we expected would continue and adversely affect our results of operations . story_separator_special_tag as a result of our decision to file an ind for skinte and the disturbing trend in skinte cases , in may 2020 we reduced our workforce within our regenerative medicine business segment , which is engaged primarily in the commercialization of skinte . we also refocused our commercialization effort on the territories where we have current and repeat users of skinte , and this new focus resulted in a quarter over quarter increase in the average wound size treated and a concomitant increase in revenues , which we did not expect . in the contract services segment covid-19 had a significant adverse effect on pre-clinical research business from march through the end of 2020 , so we expected our contract services business would also suffer as a result of covid-19 . however , we unexpectedly received inquiries in april 2020 from third parties acquainted with our management team regarding our laboratory and its ability to perform covid-19 testing , which we attribute to the surge in covid-19 testing throughout the united states and what we believe to be a lack of laboratory testing capacity to meet the surging demand . management evaluated arches ' resources and found that it has the capability of performing molecular polymerase chain reaction testing for covid-19 . management decided that covid-19 testing offered an opportunity to use existing resources to generate additional revenue in the contract services segment and thereby help defray our operating expenses . we began providing covid-19 testing services at the end of may 2020 , and from then to the end of 2020 covid-19 testing generated $ 4.3 million in net revenues . these developments notwithstanding , there is great uncertainty around the covid-19 pandemic that makes it impossible to accurately predict how the pandemic may directly or indirectly impact our business , results of operations , liquidity , and financial condition 40 the covid-19 pandemic has caused us to modify our business practices including , but not limited to , curtailing or modifying employee travel , moving to partial remote work , and cancelling physical participation in meetings , events , and conferences . we may take further actions as may be required by government authorities or that we determine are in the best interests of our employees , patients , clinicians , and business partners . the majority of our office-based employees have been working from home since march 2020 , while ensuring essential staffing levels to support our operations remain in place , including maintaining key personnel in our laboratories . story_separator_special_tag general and administrative expenses general and administrative expenses decreased by 56 % in 2020 to $ 27.557 million . in addition to reductions in salary and benefits and stock compensation costs from 2019 , travel and related costs decreased to $ 0.243 million in 2020 from $ 1.318 million in 2019. expenses for our leased facilities were $ 2.094 million in 2020. lease expenses for our corporate office facility was $ 0.357 million in 2020 , which will not recur in 2021 because the lease expired in 2020. our lease expense for our manufacturing facility in utah was $ 1.251 million in 2020 , and we remain obligated under the terms of the lease for that facility until the end of november 2022. sales and marketing sales and marketing expenses decreased by 49 % in 2020 to $ 8.719 million . in addition to reductions in salary and benefits and stock compensation costs from 2019 , promotional consulting and expense was reduced to $ 0.834 million in 2020 from $ 5.270 in 2019 , and travel and related costs decreased to $ 0.444 million in 2020 from $ 1.440 million in 2019 . 42 restructuring and other charges we recorded $ 3.834 million in restructuring and other charges in 2020. the main components of the restructuring charges are capitalized costs in the amount of $ 0.518 million for the development of a vivarium project at our salt lake city facility we abandoned in 2020 , abandonment of equipment purchased in prior periods in the amount of $ 1.014 million , and severance payments in the amount of $ 1.025 million associated with the reduction of personnel in 2020. in addition , when we were pursuing an aggressive commercialization plan for skinte in 2019 we entered into a lease agreement for establishing a manufacturing node at the joseph m. still burn center in augusta , georgia . the node lease has a term of five years and a monthly base rent of $ 10,286. in 2020 we spent $ 0.606 million on node operations , including rent of $ 0.119 million . in the fourth quarter of 2020 we decided to abandon operations at the node , which resulted in the recognition of a charge in the amount of $ 1.175 million comprised of equipment , leasehold improvements , and a right of use asset . we continue to make payments on the lease for the node and are seeking opportunities to sublease the space . other income ( expense ) , net – change in fair value of common stock warrants we have issued and outstanding warrants classified as liabilities . the amount of the liabilities attributable to the warrants are remeasured as of the end of each fiscal quarter and adjusted accordingly through an increase or decrease recorded on our consolidated statement of operations for the period . at december 31 , 2020 , the total common stock warrant liability was $ 5.975 million reflecting a fair value change of $ 2.914 million under other income . critical accounting policies and estimates for a description of our significant accounting policies , see note 2 to our consolidated financial statements . revenue recognition . with respect to revenue recognition in contract services provided by ibex , revenues generally consist of a single performance obligation that ibex satisfies over time using an input method based on costs incurred to date relative to the total costs expected

