however , the company continues to supply component parts to sistemas automotrices de mexico , s.a de c.v. ( “ sistemas ” ) , meritor 's joint venture in mexico , and continues to supply axle shafts to meritor 's brazilian subsidiary . during the fourth quarter of 2018 , the company entered into a new three-year agreement to supply axle shafts to sistemas , as well as a number of other product lines for periods of up to six years from the commencement of production . the oil and gas markets , served by our tube turns® brand of engineered product lines , have strengthened along with the overall economy , and domestic pipeline projects continue to be active with u.s. domestic gas and oil production increasing in 2017 and 2018. we are pursuing new business in a wide variety of markets from light automotive to refrigeration valves to new energy related product lines to achieve a more balanced portfolio across our customers , markets and products . we have recently announced new program awards in each of these markets that have contributed to revenue growth for sypris technologies in 2018. we believe these opportunities provide a solid multi-year foundation for growth and that additional prospective business will result in increased revenue in 2019. sypris electronics outlook we have faced challenges within sypris electronics , such as the uncertainty in the worldwide macroeconomic climate and its impact on aerospace and defense spending patterns globally over the last several years , the emergence of new competitors to our manufacturing capabilities , as well as federal government spending uncertainties in the u.s. and the allocation of funds by the u.s. department of defense . more recently , we have begun to generate revenue from the ramp-up of new electronic manufacturing programs . 19 we announced new program awards for sypris electronics that contributed to revenue in 2017 and 2018 , with certain programs continuing into 2019. in addition to program awards related to weapons systems , electronic warfare and infrared countermeasures in our traditional aerospace and defense markets , we have also been awarded programs related to the communication and navigation markets which align with our unique capabilities for delivering products for complex , high cost of failure platforms . the national defense authorization act for fiscal year 2019 provides nearly $ 700 billion in funding for the u.s. department of defense , which is expected to support program growth and market expansion during the coming year for aerospace and defense participants . we expect to compete favorably for follow-on business opportunities on future builds of these programs , as our competitiveness is enhanced by the reduction in our overhead structure following our relocation into a new manufacturing facility as of the beginning of 2017. in the near term , certain electronic component shortages and extensive lead-time issues are becoming prevalent in many of the segments in the electronic manufacturing industry that we serve . we are working with our customers to qualify alternative components or suppliers to mitigate the impact on our business . the majority of our aerospace and defense programs require specific components that are sole-sourced to specific suppliers ; therefore , the resolution of supplier constraints requires coordination with our customers or the end-users of the products . strategic actions the company completed a number of strategic actions during the past three years in response to the nonrenewal of its supply agreement with certain tier i automotive customers primarily due to global pricing constraints , the downturn in the commercial vehicle market beginning in the fourth quarter of 2015 and other market and economic factors impacting the company during this period . strategic actions taken included : ( i ) the initiation of the exit of the broadway plant ( see discussion below ) , ( ii ) the sale of the company 's siometrics , cyber range , information security solutions and data systems product lines ( the “ css business ” ) in 2016 , ( iii ) the sale and leaseback of the company 's facility in toluca , mexico in 2016 , ( iv ) the sale of the company 's manufacturing facility in morganton , north carolina in 2015 , ( v ) the capacity reallocation of certain oil and gas industry components to mexico , ( vi ) the relocation of its sypris electronics operation to a new facility , and ( vii ) reductions in employment costs through senior management pay reductions . using a portion of the proceeds generated from asset sales noted above , the company paid off all of its most senior , secured debt consisting of a “ term loan ” and “ revolving credit facility ” in august 2016. during this period , the company also received the benefit of cash infusions from gill family capital management , inc. ( “ gfcm ” ) in the form of secured promissory note obligations totaling $ 6.5 million in principal , scheduled to mature in part in 2021 , 2023 and 2025 ( see note 14 to the consolidated financial statements in this form 10-k ) . the company has reduced its reliance on certain of its traditional tier 1 customers that represent the primary suppliers to the original equipment manufacturers ( “ oems ” ) in the commercial vehicle markets , while targeting to replace these customers with more diversified , longer-term relationships , especially among the oems and others who place a higher value on the company 's innovation , flexibility and core commitment to lean manufacturing principles . among the customer programs not being renewed was a supply agreement with meritor inc. ( “ meritor ” ) that expired on january 1 , 2017 , which utilized production at the company 's broadway plant , and the company has also not renewed its business with eaton . story_separator_special_tag one program was launched during 2018 and is expected to have an 18-month production cycle with potential follow-on awards , while the second was an engineering manufacturing development program that is expected to lead to the award of a long-term production contract that is scheduled to launch in the second half of 2019. volumes on certain other smaller programs also increased during 2018 that are expected to provide long-term growth opportunities for sypris electronics . at the beginning of 2018 , we adopted accounting standards update no . 2014-09 , revenue from contracts with customers ( asc 606 ) using the modified retrospective transition method applied to contracts that were not substantially complete at the end of 2017. we recorded a $ 0.2 million adjustment to decrease accumulated deficit to reflect the cumulative impact of adopting this standard at the beginning of 2018 , primarily related to certain contracts where sypris electronics serves as a contractor for aerospace and defense companies under federally funded programs that converted from an output method to an input method for revenue recognition . revenues in 2018 for these federally funded contracts are primarily recognized as labor costs are incurred , while revenues for 2017 were primarily recognized as units were delivered . the comparative information has not been restated and is reported under the accounting standards in effect for those periods . we estimate that the impact on revenue for the year ended december 31 , 2018 was an increase in revenue of $ 0.6 million ( see note 1 to the consolidated financial statements in this form 10-k ) . gross profit . sypris technologies ' gross profit improved $ 6.8 million to $ 7.5 million in 2018 as compared to $ 0.7 million in the prior year . the net increase in volumes contributed to an increase in gross profit of $ 1.1 million for the year ended december 31 , 2018. additionally , gross profit for 2018 was positively impacted by cost improvements following the transfer of production from our broadway plant , which was completed at the end of 2017 and a price increase on a commercial vehicle program implemented during the fourth quarter of 2018. sypris electronics ' gross profit decreased $ 2.5 million to $ 0.1 million in 2018. the decrease in gross profit resulted from an unfavorable revenue mix , which included the start-up of new programs , and shortages of certain electronic components . the engineering manufacturing development program that was started and substantially completed during 2018 involved a number of design and material component changes and supply issues which contributed to labor inefficiencies and engineering support costs in excess of planned levels . shipments on this program were complete during the first quarter of 2019. additionally , lower volumes , on certain higher margin programs from 2017 were replaced with the start-up of new programs during 2018 and margin performance during the ramp-up phase of the new programs is lower than what is expected after full run rates are achieved . gross profit was further impacted during 2018 by a $ 0.4 million physical inventory adjustment and additional excess and obsolete inventory reserves of $ 0.5 million . the adoption of asc 606 decreased our gross profit by $ 0.1 million in 2018. selling , general and administrative . selling , general and administrative expense decreased $ 2.6 million to $ 10.5 million in 2018 as compared to $ 13.1 million in 2017 , primarily as a result of the resolution of an outstanding disputed legal fee for an amount less than originally charged and lower employment costs during the year as compared to 2017. the resolution of the disputed legal fee resulted in a decrease in selling , general and administrative expense of $ 1.9 million and was recognized in the fourth quarter of 2018. selling , general and administrative expense decreased as a percentage of revenue to 11.9 % in 2018 from 15.9 % in 2017 , primarily due to the legal fee adjustment . 25 severance , relocation and other costs . severance , relocation and other costs were $ 1.4 million and $ 2.4 million for the years ended december 31 , 2018 and 2017 , respectively . the charges for 2018 included $ 0.4 million in equipment relocation costs and $ 1.0 million of other costs primarily related to mothball costs associated with the closure of the broadway plant . the charges for 2017 included $ 1.0 million in severance and benefit related costs and $ 1.4 million in equipment relocation and other costs associated with the closure of the broadway plant ( see note 4 to the consolidated financial statements in this form 10-k ) . other income , net . other income , net , decreased $ 0.1 million to $ 1.4 million for 2018 from $ 1.5 million in 2017. as described in note 1 and note 6 to the consolidated financial statements , in the first quarter of 2018 , the company adopted asu no . 2017-07 , improving the presentation of net periodic pension cost and net periodic postretirement benefit cost ( asu 2017-07 ) . the asu requires the company to disaggregate the service cost component from the other components of net periodic benefit costs and requires application on a retrospective basis . as such , the other components of net periodic benefit costs included in other income for 2018 and 2017 were $ 0.6 million and $ 0.4 million , respectively . during 2018 , the company recognized an insurance recovery gain of $ 2.3 million related to proceeds received for damage sustained at the broadway plant ( see note 5 to the consolidated financial statements in this form 10-k ) . the gain was partially offset by a loss of $ 0.2 million related to the sale or disposal of idle assets . other income for 2017 includes $ 2.7 million related to the gain recorded on the sale of idle assets

liquidity and capital resources gill family capital management note . the company has received the benefit of cash infusions from gfcm in the form of secured promissory note obligations totaling $ 6.5 million in principal as of december 31 , 2018 and 2017. gfcm is an entity controlled by the company 's chairman , president and chief executive officer , jeffrey t. gill and one of our directors , r. scott gill . gfcm , jeffrey t. gill and r. scott gill are significant beneficial stockholders of the company . during 2017 , the company amended its secured promissory note obligation with gfcm to , among other things : ( i ) extend the maturity dates for $ 2.5 million of the obligation to april 1 , 2021 , $ 2.0 million to april 1 , 2023 and the balance to april 1 , 2025 , ( ii ) adjust the interest rate beginning on april 1 , 2019 and on each april 1 thereafter , to reflect the greater of 8.0 % or 500 basis points above the five-year treasury note average during the previous 90-day period , ( iii ) allow for up to an 18-month deferral of payment for up to 60 % of the interest due on the notes maturing in april of 2021 and 2023 , and ( iv ) provide for a first security interest in substantially all assets , including those in mexico ( see note 14 to the consolidated financial statements in this form 10-k ) . 27 capital lease obligation s. on march 9 , 2016 , the company completed the sale of its 24-acre toluca property for 215 million mexican pesos , or approximately $ 12.2 million in u.s. dollars . simultaneously , the company entered into a ten-year lease of the 9 acres and buildings currently occupied by the company and needed for its ongoing business in toluca ( see note 14 to the consolidated financial statements in this form 10-k ) .


 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 gill family capital management note . the company has received the benefit of cash infusions from gfcm in the form of secured promissory note obligations totaling $ 6.5 million in principal as of december 31 , 2018 and 2017. gfcm is an entity controlled by the company 's chairman , president and chief executive officer , jeffrey t. gill and one of our directors , r. scott gill . gfcm , jeffrey t. gill and r. scott gill are significant beneficial stockholders of the company . during 2017 , the company amended its secured promissory note obligation with gfcm to , among other things : ( i ) extend the maturity dates for $ 2.5 million of the obligation to april 1 , 2021 , $ 2.0 million to april 1 , 2023 and the balance to april 1 , 2025 , ( ii ) adjust the interest rate beginning on april 1 , 2019 and on each april 1 thereafter , to reflect the greater of 8.0 % or 500 basis points above the five-year treasury note average during the previous 90-day period , ( iii ) allow for up to an 18-month deferral of payment for up to 60 % of the interest due on the notes maturing in april of 2021 and 2023 , and ( iv ) provide for a first security interest in substantially all assets , including those in mexico ( see note 14 to the consolidated financial statements in this form 10-k ) . 27 capital lease obligation s. on march 9 , 2016 , the company completed the sale of its 24-acre toluca property for 215 million mexican pesos , or approximately $ 12.2 million in u.s. dollars . simultaneously , the company entered into a ten-year lease of the 9 acres and buildings currently occupied by the company and needed for its ongoing business in toluca ( see note 14 to the consolidated financial statements in this form 10-k ) .
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 Suspicious Activity Report : however , the company continues to supply component parts to sistemas automotrices de mexico , s.a de c.v. ( “ sistemas ” ) , meritor 's joint venture in mexico , and continues to supply axle shafts to meritor 's brazilian subsidiary . during the fourth quarter of 2018 , the company entered into a new three-year agreement to supply axle shafts to sistemas , as well as a number of other product lines for periods of up to six years from the commencement of production . the oil and gas markets , served by our tube turns® brand of engineered product lines , have strengthened along with the overall economy , and domestic pipeline projects continue to be active with u.s. domestic gas and oil production increasing in 2017 and 2018. we are pursuing new business in a wide variety of markets from light automotive to refrigeration valves to new energy related product lines to achieve a more balanced portfolio across our customers , markets and products . we have recently announced new program awards in each of these markets that have contributed to revenue growth for sypris technologies in 2018. we believe these opportunities provide a solid multi-year foundation for growth and that additional prospective business will result in increased revenue in 2019. sypris electronics outlook we have faced challenges within sypris electronics , such as the uncertainty in the worldwide macroeconomic climate and its impact on aerospace and defense spending patterns globally over the last several years , the emergence of new competitors to our manufacturing capabilities , as well as federal government spending uncertainties in the u.s. and the allocation of funds by the u.s. department of defense . more recently , we have begun to generate revenue from the ramp-up of new electronic manufacturing programs . 19 we announced new program awards for sypris electronics that contributed to revenue in 2017 and 2018 , with certain programs continuing into 2019. in addition to program awards related to weapons systems , electronic warfare and infrared countermeasures in our traditional aerospace and defense markets , we have also been awarded programs related to the communication and navigation markets which align with our unique capabilities for delivering products for complex , high cost of failure platforms . the national defense authorization act for fiscal year 2019 provides nearly $ 700 billion in funding for the u.s. department of defense , which is expected to support program growth and market expansion during the coming year for aerospace and defense participants . we expect to compete favorably for follow-on business opportunities on future builds of these programs , as our competitiveness is enhanced by the reduction in our overhead structure following our relocation into a new manufacturing facility as of the beginning of 2017. in the near term , certain electronic component shortages and extensive lead-time issues are becoming prevalent in many of the segments in the electronic manufacturing industry that we serve . we are working with our customers to qualify alternative components or suppliers to mitigate the impact on our business . the majority of our aerospace and defense programs require specific components that are sole-sourced to specific suppliers ; therefore , the resolution of supplier constraints requires coordination with our customers or the end-users of the products . strategic actions the company completed a number of strategic actions during the past three years in response to the nonrenewal of its supply agreement with certain tier i automotive customers primarily due to global pricing constraints , the downturn in the commercial vehicle market beginning in the fourth quarter of 2015 and other market and economic factors impacting the company during this period . strategic actions taken included : ( i ) the initiation of the exit of the broadway plant ( see discussion below ) , ( ii ) the sale of the company 's siometrics , cyber range , information security solutions and data systems product lines ( the “ css business ” ) in 2016 , ( iii ) the sale and leaseback of the company 's facility in toluca , mexico in 2016 , ( iv ) the sale of the company 's manufacturing facility in morganton , north carolina in 2015 , ( v ) the capacity reallocation of certain oil and gas industry components to mexico , ( vi ) the relocation of its sypris electronics operation to a new facility , and ( vii ) reductions in employment costs through senior management pay reductions . using a portion of the proceeds generated from asset sales noted above , the company paid off all of its most senior , secured debt consisting of a “ term loan ” and “ revolving credit facility ” in august 2016. during this period , the company also received the benefit of cash infusions from gill family capital management , inc. ( “ gfcm ” ) in the form of secured promissory note obligations totaling $ 6.5 million in principal , scheduled to mature in part in 2021 , 2023 and 2025 ( see note 14 to the consolidated financial statements in this form 10-k ) . the company has reduced its reliance on certain of its traditional tier 1 customers that represent the primary suppliers to the original equipment manufacturers ( “ oems ” ) in the commercial vehicle markets , while targeting to replace these customers with more diversified , longer-term relationships , especially among the oems and others who place a higher value on the company 's innovation , flexibility and core commitment to lean manufacturing principles . among the customer programs not being renewed was a supply agreement with meritor inc. ( “ meritor ” ) that expired on january 1 , 2017 , which utilized production at the company 's broadway plant , and the company has also not renewed its business with eaton . story_separator_special_tag one program was launched during 2018 and is expected to have an 18-month production cycle with potential follow-on awards , while the second was an engineering manufacturing development program that is expected to lead to the award of a long-term production contract that is scheduled to launch in the second half of 2019. volumes on certain other smaller programs also increased during 2018 that are expected to provide long-term growth opportunities for sypris electronics . at the beginning of 2018 , we adopted accounting standards update no . 2014-09 , revenue from contracts with customers ( asc 606 ) using the modified retrospective transition method applied to contracts that were not substantially complete at the end of 2017. we recorded a $ 0.2 million adjustment to decrease accumulated deficit to reflect the cumulative impact of adopting this standard at the beginning of 2018 , primarily related to certain contracts where sypris electronics serves as a contractor for aerospace and defense companies under federally funded programs that converted from an output method to an input method for revenue recognition . revenues in 2018 for these federally funded contracts are primarily recognized as labor costs are incurred , while revenues for 2017 were primarily recognized as units were delivered . the comparative information has not been restated and is reported under the accounting standards in effect for those periods . we estimate that the impact on revenue for the year ended december 31 , 2018 was an increase in revenue of $ 0.6 million ( see note 1 to the consolidated financial statements in this form 10-k ) . gross profit . sypris technologies ' gross profit improved $ 6.8 million to $ 7.5 million in 2018 as compared to $ 0.7 million in the prior year . the net increase in volumes contributed to an increase in gross profit of $ 1.1 million for the year ended december 31 , 2018. additionally , gross profit for 2018 was positively impacted by cost improvements following the transfer of production from our broadway plant , which was completed at the end of 2017 and a price increase on a commercial vehicle program implemented during the fourth quarter of 2018. sypris electronics ' gross profit decreased $ 2.5 million to $ 0.1 million in 2018. the decrease in gross profit resulted from an unfavorable revenue mix , which included the start-up of new programs , and shortages of certain electronic components . the engineering manufacturing development program that was started and substantially completed during 2018 involved a number of design and material component changes and supply issues which contributed to labor inefficiencies and engineering support costs in excess of planned levels . shipments on this program were complete during the first quarter of 2019. additionally , lower volumes , on certain higher margin programs from 2017 were replaced with the start-up of new programs during 2018 and margin performance during the ramp-up phase of the new programs is lower than what is expected after full run rates are achieved . gross profit was further impacted during 2018 by a $ 0.4 million physical inventory adjustment and additional excess and obsolete inventory reserves of $ 0.5 million . the adoption of asc 606 decreased our gross profit by $ 0.1 million in 2018. selling , general and administrative . selling , general and administrative expense decreased $ 2.6 million to $ 10.5 million in 2018 as compared to $ 13.1 million in 2017 , primarily as a result of the resolution of an outstanding disputed legal fee for an amount less than originally charged and lower employment costs during the year as compared to 2017. the resolution of the disputed legal fee resulted in a decrease in selling , general and administrative expense of $ 1.9 million and was recognized in the fourth quarter of 2018. selling , general and administrative expense decreased as a percentage of revenue to 11.9 % in 2018 from 15.9 % in 2017 , primarily due to the legal fee adjustment . 25 severance , relocation and other costs . severance , relocation and other costs were $ 1.4 million and $ 2.4 million for the years ended december 31 , 2018 and 2017 , respectively . the charges for 2018 included $ 0.4 million in equipment relocation costs and $ 1.0 million of other costs primarily related to mothball costs associated with the closure of the broadway plant . the charges for 2017 included $ 1.0 million in severance and benefit related costs and $ 1.4 million in equipment relocation and other costs associated with the closure of the broadway plant ( see note 4 to the consolidated financial statements in this form 10-k ) . other income , net . other income , net , decreased $ 0.1 million to $ 1.4 million for 2018 from $ 1.5 million in 2017. as described in note 1 and note 6 to the consolidated financial statements , in the first quarter of 2018 , the company adopted asu no . 2017-07 , improving the presentation of net periodic pension cost and net periodic postretirement benefit cost ( asu 2017-07 ) . the asu requires the company to disaggregate the service cost component from the other components of net periodic benefit costs and requires application on a retrospective basis . as such , the other components of net periodic benefit costs included in other income for 2018 and 2017 were $ 0.6 million and $ 0.4 million , respectively . during 2018 , the company recognized an insurance recovery gain of $ 2.3 million related to proceeds received for damage sustained at the broadway plant ( see note 5 to the consolidated financial statements in this form 10-k ) . the gain was partially offset by a loss of $ 0.2 million related to the sale or disposal of idle assets . other income for 2017 includes $ 2.7 million related to the gain recorded on the sale of idle assets

