as used in this report , the terms “ company ” , “ we ” , “ our ” , and “ us ” refer to i-on digital corp. , a delaware corporation . preliminary note regarding forward-looking statements this annual report contains forward-looking statements within the meaning of the federal securities laws . these forward-looking statements can be identified by the use of words such as “ believes , ” “ estimates , ” “ intends ” , “ plans ” , “ could , ” “ possibly , ” “ probably , ” anticipates , ” “ projects , ” “ expects , ” “ may , ” “ will , ” or “ should , ” “ designed to , ” “ designed for , ” or other variations or similar words or language . the forward-looking statements are based on the current expectations of the company and are subject to certain risks , uncertainties and assumptions , including those set forth in the discussion under “ management 's discussion and analysis of financial condition and results of operations ” in this report . actual results may differ materially from results anticipated in these forward-looking statements . we base the forward-looking statements on information currently available to us , and we assume no obligation to update them 23 business history of company i-on digital corp. ( the “ company ” ) was incorporated under the laws of the state of delaware on june 18 , 2013. on april 4 , 2014 , the michael j. rapport trust ( the “ trust ” ) purchased 10,000,000 shares of the company 's common stock which was all of the outstanding shares of alpine 3 , inc. , and subsequently changed the name to evans brewing company inc. ( “ ebc ” ) on may 29 , 2014. on october 9 , 2014 , the trust agreed to the cancellation of 9,600,000 of the shares of common stock that it had acquired and retained 400,000 shares of common stock . from april 2014 through december 2015 , ebc has been in the process of acquiring the bayhawk brands and related assets , as discussed in more detail below . on october 15 , 2014 , ebc entered into an asset purchase and share exchange agreement ( the “ agreement ” ) , with bayhawk ales , inc. ( “ bayhawk ” ) whereby bayhawk sold to ebc , and ebc purchased from bayhawk , assets of bayhawk , in exchange for 4,033,863 shares of ebc common stock upon the terms and subject to the conditions set forth in the asset purchase and share exchange agreement . on september 29 , 2016 , evans brewing company , inc. , closed the acquisition of a restaurant business located in the downtown soco district of fullerton , california , through the acquisition of all the outstanding stock of ebc public house , inc. , which the company now operates as its first branded restaurant and taproom under the trade name “ the public house by evans brewing company ” . the public house features the company 's beers – as well as beers from other selected local orange county , california breweries , food and , occasional entertainment . in connection with such closing , the company acquired 100 % of the outstanding shares of ebc public house from mr. rapport and issued 1,000,000 shares of the company 's series a preferred stock to mr. rapport . the asset purchase and share exchange have been treated as business combination as both companies are controlled by the same management . on january 25 , 2018 , the company consummated an agreement of merger and plan of reorganization ( the “ merger agreement ” ) , with i-on digital corp .. , a company organized under the laws of the republic of korea ( south korea ) ( “ i-on ” ) and i-on acquisition corp. , a wholly-owned subsidiary of the registrant ( “ acquisition ” ) . pursuant to the terms of the merger agreement , acquisition merged with and into i-on in a statutory reverse triangular merger ( the “ merger ” ) with i-on surviving as a wholly-owned subsidiary of the registrant . as consideration for the merger , the registrant agreed to issue the shareholders of i-on ( the “ i-on holders ” ) an aggregate of 26,000,000 shares of our common stock . following the merger , the registrant adopted the business plan of i-on in information technology consultancy and software development . on december 14 , 2017 , in connection with the merger , the registrant 's board of directors approved an amendment to its certificate of incorporation ( the “ amendment ” ) to change its name to i-on digital corp. on april 2 , 2019 , the company amended its certificate of incorporation to change the name of the company to “ i-on digital corp. ” overview prior to the merger , the company operated a craft brewery based on orange county , california that produces and sells premium craft beers , including a variety of ales and lagers . ebc 's beers are currently produced in its 17-barrel brewery in irvine , california , the oldest continuously operating brewing facility in orange county and one of the oldest in all of southern california . this facility has been producing craft beers since january 1995. following the merger , the company adopted the business plan of i-on . i-on was founded by jae cheol james oh , who currently serves as ceo , the company 's roots of which are in it consultancy and software development . story_separator_special_tag i-on services south korea 's enterprise content management system 's market and specializes in advancing market-leading internet software applications to capitalize on rapidly growing market sectors . 24 after being awarded its first of 6 patents in 2003 , i-on has since evolved into an industry-leading and recognized software developer and provider of enterprise-class unstructured data management and digital marketing software and solutions . i-on services over 1,000 blue-chip and middle-market clients across virtually all verticals in both private and public sectors . the company has meaningfully expanded its reach over the past decade and now currently licenses and sells its products and services directly to clients in south korea and japan , as well as in singapore , malaysia , indonesia , thailand , vietnam , and the u.s. through value-added resellers and partnerships . i-on 's portfolio of software and solutions serves the digital marketing and technology needs of organizations , enabling clients to create , measure , and optimizes digital experiences for their audiences across marketing channels and devices . we believe these solutions help clients reduce the cost of content management and delivery and increase the return on their investments in digital communication . on currently holds 6 international patents for both products and methodologies ( with 3 more pending ) built into the 11 product offerings the company currently has at market . these encompass enterprise web content management ( cms ) , web experience and service delivery software , digital marketing , smart mobility and analytics tools , and , more recently , energy management solutions . the company has designed and developed industry-leading technologies that are compliant with global standards including gs ( good software ) and net ( new excellent technology ) . i-on also holds numerous domestic and global industry awards , earning high rankings and recognition from the likes of gartner ( magic quadrant 2014 ) and red herring ( 2014 asia top 100 winner ) , among many others . basis of presentation the financial statements of the company are presented in united states dollars and have been prepared in accordance with accounting principles generally accepted in the united states . summary of significant accounting policies our significant accounting policies are more fully described in the notes to our consolidated financial statements included in this annual report on form 10-k for the fiscal year ended december 31 , 2019. we believe that the accounting policies below are critical for one to fully understand and evaluate our financial condition and results of operations . results of operations for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019 replace_table_token_2_th 25 net sales net sales increased by $ 2,517,487 or 31 .7 % , to $ 10,471,502 for the year ended december 31 , 20 20 from $ 7,954,015 for the year ended december 31 , 201 9 . the net increase in net sales was primarily due the following : ● revenue from customization increased by $ 710,087 or 15.8 % , to $ 5,209,443 for the year ended december 31 , 20 20 from $ 4,499,346 for the year ended december 31 , 201 9 . the increase was due to increase in amount of customer contract revenue which was $ 9,578,588 for year ended december 31 , 20 20 compared to $ 6,980,876 for the year ended december 31 , 201 9 . ● revenue from maintenance increased by $ 338,571 or 23.1 % , to $ 1,802,032 for the year ended december 31 , 2020 from $ 1,463,461 for the year ended december 31 , 2019. the increase was due to increase in maintenance and development contracts and increase in number of customers to 91 in 2020 from 65 in 2019 . ● revenue from installation in creased by $ 1,140,802 or 144.2 % , to $ 1,931,765 for the year ended december 31 , 20 20 from $ 790,963 for the year ended december 31 , 201 9 . the in crease was due to increase in number of customers to 19 in 2020 from 9 in 201 9 . cost of goods sold cost of goods sold increased by $ 558 ,099 or 10 .1 % , to $ 6 ,078,030 for the year ended december 31 , 20 20 from $ 5,519,931 for the year ended december 31 , 201 9 . the increase was primarily due to increase in outside services ( outsourced developers ) followed by increase in revenue . gross profit ( loss ) gross profit increased by $ 1,959,388 , or 80.5 % , to gross profit of $ 4,393,472 , or 42 .0 % of net sales , for the year ended december 31 , 20 20 , from gross profit of $ 2,434,084 , or 30.6 % of net sales , for the year ended december 31 , 201 9 . the gross profit increase was mainly due to increase in sales of 31 .7 % in year 20 20 compared to year 201 9 . while outside services ( outsourced developers ) costs increased in year 20 20 compared to year 201 9 , salaries maintained same in year 20 20 compared to year 201 9 , which resulted in higher gross margin . research and development research and development expenses increased by $ 160 ,972 or 19 .2 % , to $ 999,209 for the year ended december 31 , 20 20 from $ 838,237 for the year ended december 31 , 201 9 . the in crease was due to in crease in head count . general and administrative general and administrative expenses decreased by $ 174 ,441 or -9 .3 % , to $ 1,697,377 for the year ended december 31 , 20 20 from $ 1,871,818 for the year ended december 31 , 201 9 , maintaining same expenses as prior year . other income ( expense ) other income ( expense ) for the year

liquidity and capital resources at december 31 , 2020 , the company had cash and cash equivalents of $ 4,521,328. we estimate that we will require up to $ 3,000,000 of capital for the next year of operations . we estimate that our expenses will be comprised primarily of general expenses including particularly marketing , research and development costs , overhead , legal and accounting fees . replace_table_token_3_th operating activities . operating cash flows for the fiscal 20 20 and 201 9 were a positive $ 2,600,978 and a positive $ 134,444 , respectively . the more increased cash flow from operating activities for the fiscal 20 20 compared to the same period last year primarily reflects increased net income . investing activities . net cash flows of investing activities for the fiscal 20 20 and 201 9 was negative $ 7,002 and a negative $ 462,131 , respectively . capital expenditures represented most of the cash used in investing activities flows for the fiscal 20 20 . the increase payable in short-term loans represented most of the cash provided by investing activities flows for fiscal 201 9 . financing activities . financing cash flows for the fiscal 20 20 and 201 9 were a positive $ 200,694 and a positive $ 57,296 , respectively . for the fiscal 2020 , net cash was provided primarily by receipt of government grants . for the fiscal 201 9 , net cash was provided primarily from increased borrowings under short term loan payable and long term loan payable , which was partially offset by treasury stock purchase . off balance sheet arrangements as of december 31 , 2020 , there were no off balance sheet arrangements .


 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 at december 31 , 2020 , the company had cash and cash equivalents of $ 4,521,328. we estimate that we will require up to $ 3,000,000 of capital for the next year of operations . we estimate that our expenses will be comprised primarily of general expenses including particularly marketing , research and development costs , overhead , legal and accounting fees . replace_table_token_3_th operating activities . operating cash flows for the fiscal 20 20 and 201 9 were a positive $ 2,600,978 and a positive $ 134,444 , respectively . the more increased cash flow from operating activities for the fiscal 20 20 compared to the same period last year primarily reflects increased net income . investing activities . net cash flows of investing activities for the fiscal 20 20 and 201 9 was negative $ 7,002 and a negative $ 462,131 , respectively . capital expenditures represented most of the cash used in investing activities flows for the fiscal 20 20 . the increase payable in short-term loans represented most of the cash provided by investing activities flows for fiscal 201 9 . financing activities . financing cash flows for the fiscal 20 20 and 201 9 were a positive $ 200,694 and a positive $ 57,296 , respectively . for the fiscal 2020 , net cash was provided primarily by receipt of government grants . for the fiscal 201 9 , net cash was provided primarily from increased borrowings under short term loan payable and long term loan payable , which was partially offset by treasury stock purchase . off balance sheet arrangements as of december 31 , 2020 , there were no off balance sheet arrangements .
```    
 Suspicious Activity Report : as used in this report , the terms “ company ” , “ we ” , “ our ” , and “ us ” refer to i-on digital corp. , a delaware corporation . preliminary note regarding forward-looking statements this annual report contains forward-looking statements within the meaning of the federal securities laws . these forward-looking statements can be identified by the use of words such as “ believes , ” “ estimates , ” “ intends ” , “ plans ” , “ could , ” “ possibly , ” “ probably , ” anticipates , ” “ projects , ” “ expects , ” “ may , ” “ will , ” or “ should , ” “ designed to , ” “ designed for , ” or other variations or similar words or language . the forward-looking statements are based on the current expectations of the company and are subject to certain risks , uncertainties and assumptions , including those set forth in the discussion under “ management 's discussion and analysis of financial condition and results of operations ” in this report . actual results may differ materially from results anticipated in these forward-looking statements . we base the forward-looking statements on information currently available to us , and we assume no obligation to update them 23 business history of company i-on digital corp. ( the “ company ” ) was incorporated under the laws of the state of delaware on june 18 , 2013. on april 4 , 2014 , the michael j. rapport trust ( the “ trust ” ) purchased 10,000,000 shares of the company 's common stock which was all of the outstanding shares of alpine 3 , inc. , and subsequently changed the name to evans brewing company inc. ( “ ebc ” ) on may 29 , 2014. on october 9 , 2014 , the trust agreed to the cancellation of 9,600,000 of the shares of common stock that it had acquired and retained 400,000 shares of common stock . from april 2014 through december 2015 , ebc has been in the process of acquiring the bayhawk brands and related assets , as discussed in more detail below . on october 15 , 2014 , ebc entered into an asset purchase and share exchange agreement ( the “ agreement ” ) , with bayhawk ales , inc. ( “ bayhawk ” ) whereby bayhawk sold to ebc , and ebc purchased from bayhawk , assets of bayhawk , in exchange for 4,033,863 shares of ebc common stock upon the terms and subject to the conditions set forth in the asset purchase and share exchange agreement . on september 29 , 2016 , evans brewing company , inc. , closed the acquisition of a restaurant business located in the downtown soco district of fullerton , california , through the acquisition of all the outstanding stock of ebc public house , inc. , which the company now operates as its first branded restaurant and taproom under the trade name “ the public house by evans brewing company ” . the public house features the company 's beers – as well as beers from other selected local orange county , california breweries , food and , occasional entertainment . in connection with such closing , the company acquired 100 % of the outstanding shares of ebc public house from mr. rapport and issued 1,000,000 shares of the company 's series a preferred stock to mr. rapport . the asset purchase and share exchange have been treated as business combination as both companies are controlled by the same management . on january 25 , 2018 , the company consummated an agreement of merger and plan of reorganization ( the “ merger agreement ” ) , with i-on digital corp .. , a company organized under the laws of the republic of korea ( south korea ) ( “ i-on ” ) and i-on acquisition corp. , a wholly-owned subsidiary of the registrant ( “ acquisition ” ) . pursuant to the terms of the merger agreement , acquisition merged with and into i-on in a statutory reverse triangular merger ( the “ merger ” ) with i-on surviving as a wholly-owned subsidiary of the registrant . as consideration for the merger , the registrant agreed to issue the shareholders of i-on ( the “ i-on holders ” ) an aggregate of 26,000,000 shares of our common stock . following the merger , the registrant adopted the business plan of i-on in information technology consultancy and software development . on december 14 , 2017 , in connection with the merger , the registrant 's board of directors approved an amendment to its certificate of incorporation ( the “ amendment ” ) to change its name to i-on digital corp. on april 2 , 2019 , the company amended its certificate of incorporation to change the name of the company to “ i-on digital corp. ” overview prior to the merger , the company operated a craft brewery based on orange county , california that produces and sells premium craft beers , including a variety of ales and lagers . ebc 's beers are currently produced in its 17-barrel brewery in irvine , california , the oldest continuously operating brewing facility in orange county and one of the oldest in all of southern california . this facility has been producing craft beers since january 1995. following the merger , the company adopted the business plan of i-on . i-on was founded by jae cheol james oh , who currently serves as ceo , the company 's roots of which are in it consultancy and software development . story_separator_special_tag i-on services south korea 's enterprise content management system 's market and specializes in advancing market-leading internet software applications to capitalize on rapidly growing market sectors . 24 after being awarded its first of 6 patents in 2003 , i-on has since evolved into an industry-leading and recognized software developer and provider of enterprise-class unstructured data management and digital marketing software and solutions . i-on services over 1,000 blue-chip and middle-market clients across virtually all verticals in both private and public sectors . the company has meaningfully expanded its reach over the past decade and now currently licenses and sells its products and services directly to clients in south korea and japan , as well as in singapore , malaysia , indonesia , thailand , vietnam , and the u.s. through value-added resellers and partnerships . i-on 's portfolio of software and solutions serves the digital marketing and technology needs of organizations , enabling clients to create , measure , and optimizes digital experiences for their audiences across marketing channels and devices . we believe these solutions help clients reduce the cost of content management and delivery and increase the return on their investments in digital communication . on currently holds 6 international patents for both products and methodologies ( with 3 more pending ) built into the 11 product offerings the company currently has at market . these encompass enterprise web content management ( cms ) , web experience and service delivery software , digital marketing , smart mobility and analytics tools , and , more recently , energy management solutions . the company has designed and developed industry-leading technologies that are compliant with global standards including gs ( good software ) and net ( new excellent technology ) . i-on also holds numerous domestic and global industry awards , earning high rankings and recognition from the likes of gartner ( magic quadrant 2014 ) and red herring ( 2014 asia top 100 winner ) , among many others . basis of presentation the financial statements of the company are presented in united states dollars and have been prepared in accordance with accounting principles generally accepted in the united states . summary of significant accounting policies our significant accounting policies are more fully described in the notes to our consolidated financial statements included in this annual report on form 10-k for the fiscal year ended december 31 , 2019. we believe that the accounting policies below are critical for one to fully understand and evaluate our financial condition and results of operations . results of operations for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019 replace_table_token_2_th 25 net sales net sales increased by $ 2,517,487 or 31 .7 % , to $ 10,471,502 for the year ended december 31 , 20 20 from $ 7,954,015 for the year ended december 31 , 201 9 . the net increase in net sales was primarily due the following : ● revenue from customization increased by $ 710,087 or 15.8 % , to $ 5,209,443 for the year ended december 31 , 20 20 from $ 4,499,346 for the year ended december 31 , 201 9 . the increase was due to increase in amount of customer contract revenue which was $ 9,578,588 for year ended december 31 , 20 20 compared to $ 6,980,876 for the year ended december 31 , 201 9 . ● revenue from maintenance increased by $ 338,571 or 23.1 % , to $ 1,802,032 for the year ended december 31 , 2020 from $ 1,463,461 for the year ended december 31 , 2019. the increase was due to increase in maintenance and development contracts and increase in number of customers to 91 in 2020 from 65 in 2019 . ● revenue from installation in creased by $ 1,140,802 or 144.2 % , to $ 1,931,765 for the year ended december 31 , 20 20 from $ 790,963 for the year ended december 31 , 201 9 . the in crease was due to increase in number of customers to 19 in 2020 from 9 in 201 9 . cost of goods sold cost of goods sold increased by $ 558 ,099 or 10 .1 % , to $ 6 ,078,030 for the year ended december 31 , 20 20 from $ 5,519,931 for the year ended december 31 , 201 9 . the increase was primarily due to increase in outside services ( outsourced developers ) followed by increase in revenue . gross profit ( loss ) gross profit increased by $ 1,959,388 , or 80.5 % , to gross profit of $ 4,393,472 , or 42 .0 % of net sales , for the year ended december 31 , 20 20 , from gross profit of $ 2,434,084 , or 30.6 % of net sales , for the year ended december 31 , 201 9 . the gross profit increase was mainly due to increase in sales of 31 .7 % in year 20 20 compared to year 201 9 . while outside services ( outsourced developers ) costs increased in year 20 20 compared to year 201 9 , salaries maintained same in year 20 20 compared to year 201 9 , which resulted in higher gross margin . research and development research and development expenses increased by $ 160 ,972 or 19 .2 % , to $ 999,209 for the year ended december 31 , 20 20 from $ 838,237 for the year ended december 31 , 201 9 . the in crease was due to in crease in head count . general and administrative general and administrative expenses decreased by $ 174 ,441 or -9 .3 % , to $ 1,697,377 for the year ended december 31 , 20 20 from $ 1,871,818 for the year ended december 31 , 201 9 , maintaining same expenses as prior year . other income ( expense ) other income ( expense ) for the year

