annually the company reviews this unused material and establishes an obsolescence reserve for the amount it does not expect to use over the next three years . income taxes deferred tax assets and liabilities are based on the net tax effects of tax credits , operating loss carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes . the company considers many factors in assessing whether or not a valuation allowance for its deferred tax asset is warranted . on the positive side , the company considered such factors as its : history of taxable earnings ( three of the last four years had operating profits ) , global customer base consisting of large companies with significant resources , current products and their expected life , technological advantages , potential for price increases , trend of improved manufacturing efficiencies and the magnitude of the deferred tax asset compared with the company 's expectation of future earnings over the remaining life of the asset . on the negative side , the company considered such factors as : the global economic environment , the company 's ability to absorb a period of operating losses and negative cash flow and the potential for the technological breakthroughs and substitution of the company 's products by lower cost solutions . at december 30 , 2017 the company 's deferred tax asset and other temporary differences will require taxable income of approximately $ 11 million and reversals of existing temporary differences to fully utilize , assuming an effective corporate tax rate of 21 % based on the recently enacted tax cuts and jobs act . the company has concluded that it is more likely than not that its deferred tax asset will be fully realized . current projections of future taxable income , including the reversal of temporary differences , reflect the company 's belief that it has attractive growth opportunities and a favorable cost structure . these projections support the conclusion that the company will generate taxable income sufficient to utilize the losses before they expire . the company 's policy is to recognize interest and penalties related to income tax matters in income tax expense . as of december 30 , 2017 and december 31 , 2016 , the company had no accruals for interest or penalties related to income tax matters . the company did not have any uncertain tax positions at december 30 , 2017 or december 31 , 2016 which required accrual or disclosure . income tax effects related to share-based compensation that are in excess , or less than , grant-date fair value , less any proceeds received on exercise of stock prices , are recognized . results of operations results of operations for the year 2017 ( “ 2017 ” ) compared with the year 2016 ( “ 2016 ” ) : total revenue was $ 14.6 million in 2017 , a 5 % decrease compared with total revenue of $ 15.4 million in 2016. this decrease was due primarily to a reduction in the sales of armor products . there were no significant price changes during 2017 compared with 2016. gross margin in 2017 totaled $ 1.7 million or 11 % of sales . this compares with $ 2.2 million , or 14 % of sales , generated during 2016. this decline in margin was due primarily to lower revenues . selling , general and administrative ( sg & a ) expenses were $ 3.6 million during 2017 , an increase of 8 % compared with sg & a expenses of $ 3.3 million incurred during 2016. during 2017 the company incurred approximately $ 0.2 million in one-time legal and other costs associated with the annual proxy process and $ 0.2 million associated with the separation of an executive officer , offset by other cost reductions . the company generated interest of $ 11 thousand in 2017. this compares with interest and other income in 2016 of $ 51 thousand , $ 40 thousand of which was due to the sale of used equipment in excess of book value . primarily as a result of lower volume and higher sg & a spending , as cited above , the company incurred an operating loss of $ 2.0 million in 2017 , compared with an operating loss of $ 1.2 million last year . in 2017 the effective tax rate was 11 % and as a result the operating loss of $ 2.0 million led to a net loss of $ 1.7 million . this unusually low effective rate was due in large part to the impact of the tax cuts and jobs act which reduced the corporate statutory rate from 35 % to 21 % . the effective tax rate in 2016 was 60 % in which case the operating loss of $ 1.2 million resulted in a net loss of $ 0.5 million . significant fourth quarter activity in 2017 : revenues totaled $ 3.8 million versus $ 2.9 million in the last quarter of 2016 , representing a 32 % increase . this increase was entirely due higher shipments of baseplates . the impact of price changes was insignificant in the quarter compared with the same period in 2016. gross margin increased in the fourth quarter of 2017 compared with the fourth quarter of 2016 from $ 77 thousand to $ 563 thousand . this increase was directly associated with the increase in sales volume . there was no significant impact from price changes during the last quarter of 2017 compared with the last quarter of 2016. sg & a expenses increased from $ 773 thousand to $ 959 thousand . this increase was due to the fact that the company incurred $ 230 thousand of costs associated with the resignation of an executive officer . all other sg & a costs were down $ 44 thousand quarter on quarter . primarily story_separator_special_tag annually the company reviews this unused material and establishes an obsolescence reserve for the amount it does not expect to use over the next three years . income taxes deferred tax assets and liabilities are based on the net tax effects of tax credits , operating loss carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes . the company considers many factors in assessing whether or not a valuation allowance for its deferred tax asset is warranted . on the positive side , the company considered such factors as its : history of taxable earnings ( three of the last four years had operating profits ) , global customer base consisting of large companies with significant resources , current products and their expected life , technological advantages , potential for price increases , trend of improved manufacturing efficiencies and the magnitude of the deferred tax asset compared with the company 's expectation of future earnings over the remaining life of the asset . on the negative side , the company considered such factors as : the global economic environment , the company 's ability to absorb a period of operating losses and negative cash flow and the potential for the technological breakthroughs and substitution of the company 's products by lower cost solutions . at december 30 , 2017 the company 's deferred tax asset and other temporary differences will require taxable income of approximately $ 11 million and reversals of existing temporary differences to fully utilize , assuming an effective corporate tax rate of 21 % based on the recently enacted tax cuts and jobs act . the company has concluded that it is more likely than not that its deferred tax asset will be fully realized . current projections of future taxable income , including the reversal of temporary differences , reflect the company 's belief that it has attractive growth opportunities and a favorable cost structure . these projections support the conclusion that the company will generate taxable income sufficient to utilize the losses before they expire . the company 's policy is to recognize interest and penalties related to income tax matters in income tax expense . as of december 30 , 2017 and december 31 , 2016 , the company had no accruals for interest or penalties related to income tax matters . the company did not have any uncertain tax positions at december 30 , 2017 or december 31 , 2016 which required accrual or disclosure . income tax effects related to share-based compensation that are in excess , or less than , grant-date fair value , less any proceeds received on exercise of stock prices , are recognized . results of operations results of operations for the year 2017 ( “ 2017 ” ) compared with the year 2016 ( “ 2016 ” ) : total revenue was $ 14.6 million in 2017 , a 5 % decrease compared with total revenue of $ 15.4 million in 2016. this decrease was due primarily to a reduction in the sales of armor products . there were no significant price changes during 2017 compared with 2016. gross margin in 2017 totaled $ 1.7 million or 11 % of sales . this compares with $ 2.2 million , or 14 % of sales , generated during 2016. this decline in margin was due primarily to lower revenues . selling , general and administrative ( sg & a ) expenses were $ 3.6 million during 2017 , an increase of 8 % compared with sg & a expenses of $ 3.3 million incurred during 2016. during 2017 the company incurred approximately $ 0.2 million in one-time legal and other costs associated with the annual proxy process and $ 0.2 million associated with the separation of an executive officer , offset by other cost reductions . the company generated interest of $ 11 thousand in 2017. this compares with interest and other income in 2016 of $ 51 thousand , $ 40 thousand of which was due to the sale of used equipment in excess of book value . primarily as a result of lower volume and higher sg & a spending , as cited above , the company incurred an operating loss of $ 2.0 million in 2017 , compared with an operating loss of $ 1.2 million last year . in 2017 the effective tax rate was 11 % and as a result the operating loss of $ 2.0 million led to a net loss of $ 1.7 million . this unusually low effective rate was due in large part to the impact of the tax cuts and jobs act which reduced the corporate statutory rate from 35 % to 21 % . the effective tax rate in 2016 was 60 % in which case the operating loss of $ 1.2 million resulted in a net loss of $ 0.5 million . significant fourth quarter activity in 2017 : revenues totaled $ 3.8 million versus $ 2.9 million in the last quarter of 2016 , representing a 32 % increase . this increase was entirely due higher shipments of baseplates . the impact of price changes was insignificant in the quarter compared with the same period in 2016. gross margin increased in the fourth quarter of 2017 compared with the fourth quarter of 2016 from $ 77 thousand to $ 563 thousand . this increase was directly associated with the increase in sales volume . there was no significant impact from price changes during the last quarter of 2017 compared with the last quarter of 2016. sg & a expenses increased from $ 773 thousand to $ 959 thousand . this increase was due to the fact that the company incurred $ 230 thousand of costs associated with the resignation of an executive officer . all other sg & a costs were down $ 44 thousand quarter on quarter . primarily

liquidity and capital resources : the company 's cash and cash equivalents at december 30 , 2017 totaled $ 1.3 million compared with cash and cash equivalents at december 31 , 2016 of $ 3.4 million . this decrease was due to operating losses and , to a lesser extent , an increase in working capital , offset in small part by depreciation in excess of capital expenditures . accounts receivable at december 30 , 2017 totaled $ 2.9 million compared with $ 2.0 million at december 31 , 2016. days sales outstanding ( dsos ) , increased from 61 days at the end of 2016 to 70 days at the end of 2017. both of these statistics are consistent with historical patterns and do not represent a change in terms of an increase in the aging of receivables . inventories totaled $ 2.1 million at december 30 , 2017 , compared with inventories of $ 2.0 million at december 31 , 2016. the inventory turnover in 2016 was 5.6 times and 6.7 times for 2017 . ( both based on a 5 point inventory average ) . all consigned inventory is shipped under existing purchase orders and per customers ' requests . of the inventory of $ 2.1 million at december 30 , 2017 , $ 742 thousand was located at customers ' locations pursuant to consigned inventory agreements . of the total inventory of $ 2.0 million at december 31 , 2016 , $ 848 thousand was located at customers ' locations pursuant to consigned inventory agreements .


 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 : the company 's cash and cash equivalents at december 30 , 2017 totaled $ 1.3 million compared with cash and cash equivalents at december 31 , 2016 of $ 3.4 million . this decrease was due to operating losses and , to a lesser extent , an increase in working capital , offset in small part by depreciation in excess of capital expenditures . accounts receivable at december 30 , 2017 totaled $ 2.9 million compared with $ 2.0 million at december 31 , 2016. days sales outstanding ( dsos ) , increased from 61 days at the end of 2016 to 70 days at the end of 2017. both of these statistics are consistent with historical patterns and do not represent a change in terms of an increase in the aging of receivables . inventories totaled $ 2.1 million at december 30 , 2017 , compared with inventories of $ 2.0 million at december 31 , 2016. the inventory turnover in 2016 was 5.6 times and 6.7 times for 2017 . ( both based on a 5 point inventory average ) . all consigned inventory is shipped under existing purchase orders and per customers ' requests . of the inventory of $ 2.1 million at december 30 , 2017 , $ 742 thousand was located at customers ' locations pursuant to consigned inventory agreements . of the total inventory of $ 2.0 million at december 31 , 2016 , $ 848 thousand was located at customers ' locations pursuant to consigned inventory agreements .
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 Suspicious Activity Report : annually the company reviews this unused material and establishes an obsolescence reserve for the amount it does not expect to use over the next three years . income taxes deferred tax assets and liabilities are based on the net tax effects of tax credits , operating loss carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes . the company considers many factors in assessing whether or not a valuation allowance for its deferred tax asset is warranted . on the positive side , the company considered such factors as its : history of taxable earnings ( three of the last four years had operating profits ) , global customer base consisting of large companies with significant resources , current products and their expected life , technological advantages , potential for price increases , trend of improved manufacturing efficiencies and the magnitude of the deferred tax asset compared with the company 's expectation of future earnings over the remaining life of the asset . on the negative side , the company considered such factors as : the global economic environment , the company 's ability to absorb a period of operating losses and negative cash flow and the potential for the technological breakthroughs and substitution of the company 's products by lower cost solutions . at december 30 , 2017 the company 's deferred tax asset and other temporary differences will require taxable income of approximately $ 11 million and reversals of existing temporary differences to fully utilize , assuming an effective corporate tax rate of 21 % based on the recently enacted tax cuts and jobs act . the company has concluded that it is more likely than not that its deferred tax asset will be fully realized . current projections of future taxable income , including the reversal of temporary differences , reflect the company 's belief that it has attractive growth opportunities and a favorable cost structure . these projections support the conclusion that the company will generate taxable income sufficient to utilize the losses before they expire . the company 's policy is to recognize interest and penalties related to income tax matters in income tax expense . as of december 30 , 2017 and december 31 , 2016 , the company had no accruals for interest or penalties related to income tax matters . the company did not have any uncertain tax positions at december 30 , 2017 or december 31 , 2016 which required accrual or disclosure . income tax effects related to share-based compensation that are in excess , or less than , grant-date fair value , less any proceeds received on exercise of stock prices , are recognized . results of operations results of operations for the year 2017 ( “ 2017 ” ) compared with the year 2016 ( “ 2016 ” ) : total revenue was $ 14.6 million in 2017 , a 5 % decrease compared with total revenue of $ 15.4 million in 2016. this decrease was due primarily to a reduction in the sales of armor products . there were no significant price changes during 2017 compared with 2016. gross margin in 2017 totaled $ 1.7 million or 11 % of sales . this compares with $ 2.2 million , or 14 % of sales , generated during 2016. this decline in margin was due primarily to lower revenues . selling , general and administrative ( sg & a ) expenses were $ 3.6 million during 2017 , an increase of 8 % compared with sg & a expenses of $ 3.3 million incurred during 2016. during 2017 the company incurred approximately $ 0.2 million in one-time legal and other costs associated with the annual proxy process and $ 0.2 million associated with the separation of an executive officer , offset by other cost reductions . the company generated interest of $ 11 thousand in 2017. this compares with interest and other income in 2016 of $ 51 thousand , $ 40 thousand of which was due to the sale of used equipment in excess of book value . primarily as a result of lower volume and higher sg & a spending , as cited above , the company incurred an operating loss of $ 2.0 million in 2017 , compared with an operating loss of $ 1.2 million last year . in 2017 the effective tax rate was 11 % and as a result the operating loss of $ 2.0 million led to a net loss of $ 1.7 million . this unusually low effective rate was due in large part to the impact of the tax cuts and jobs act which reduced the corporate statutory rate from 35 % to 21 % . the effective tax rate in 2016 was 60 % in which case the operating loss of $ 1.2 million resulted in a net loss of $ 0.5 million . significant fourth quarter activity in 2017 : revenues totaled $ 3.8 million versus $ 2.9 million in the last quarter of 2016 , representing a 32 % increase . this increase was entirely due higher shipments of baseplates . the impact of price changes was insignificant in the quarter compared with the same period in 2016. gross margin increased in the fourth quarter of 2017 compared with the fourth quarter of 2016 from $ 77 thousand to $ 563 thousand . this increase was directly associated with the increase in sales volume . there was no significant impact from price changes during the last quarter of 2017 compared with the last quarter of 2016. sg & a expenses increased from $ 773 thousand to $ 959 thousand . this increase was due to the fact that the company incurred $ 230 thousand of costs associated with the resignation of an executive officer . all other sg & a costs were down $ 44 thousand quarter on quarter . primarily story_separator_special_tag annually the company reviews this unused material and establishes an obsolescence reserve for the amount it does not expect to use over the next three years . income taxes deferred tax assets and liabilities are based on the net tax effects of tax credits , operating loss carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes . the company considers many factors in assessing whether or not a valuation allowance for its deferred tax asset is warranted . on the positive side , the company considered such factors as its : history of taxable earnings ( three of the last four years had operating profits ) , global customer base consisting of large companies with significant resources , current products and their expected life , technological advantages , potential for price increases , trend of improved manufacturing efficiencies and the magnitude of the deferred tax asset compared with the company 's expectation of future earnings over the remaining life of the asset . on the negative side , the company considered such factors as : the global economic environment , the company 's ability to absorb a period of operating losses and negative cash flow and the potential for the technological breakthroughs and substitution of the company 's products by lower cost solutions . at december 30 , 2017 the company 's deferred tax asset and other temporary differences will require taxable income of approximately $ 11 million and reversals of existing temporary differences to fully utilize , assuming an effective corporate tax rate of 21 % based on the recently enacted tax cuts and jobs act . the company has concluded that it is more likely than not that its deferred tax asset will be fully realized . current projections of future taxable income , including the reversal of temporary differences , reflect the company 's belief that it has attractive growth opportunities and a favorable cost structure . these projections support the conclusion that the company will generate taxable income sufficient to utilize the losses before they expire . the company 's policy is to recognize interest and penalties related to income tax matters in income tax expense . as of december 30 , 2017 and december 31 , 2016 , the company had no accruals for interest or penalties related to income tax matters . the company did not have any uncertain tax positions at december 30 , 2017 or december 31 , 2016 which required accrual or disclosure . income tax effects related to share-based compensation that are in excess , or less than , grant-date fair value , less any proceeds received on exercise of stock prices , are recognized . results of operations results of operations for the year 2017 ( “ 2017 ” ) compared with the year 2016 ( “ 2016 ” ) : total revenue was $ 14.6 million in 2017 , a 5 % decrease compared with total revenue of $ 15.4 million in 2016. this decrease was due primarily to a reduction in the sales of armor products . there were no significant price changes during 2017 compared with 2016. gross margin in 2017 totaled $ 1.7 million or 11 % of sales . this compares with $ 2.2 million , or 14 % of sales , generated during 2016. this decline in margin was due primarily to lower revenues . selling , general and administrative ( sg & a ) expenses were $ 3.6 million during 2017 , an increase of 8 % compared with sg & a expenses of $ 3.3 million incurred during 2016. during 2017 the company incurred approximately $ 0.2 million in one-time legal and other costs associated with the annual proxy process and $ 0.2 million associated with the separation of an executive officer , offset by other cost reductions . the company generated interest of $ 11 thousand in 2017. this compares with interest and other income in 2016 of $ 51 thousand , $ 40 thousand of which was due to the sale of used equipment in excess of book value . primarily as a result of lower volume and higher sg & a spending , as cited above , the company incurred an operating loss of $ 2.0 million in 2017 , compared with an operating loss of $ 1.2 million last year . in 2017 the effective tax rate was 11 % and as a result the operating loss of $ 2.0 million led to a net loss of $ 1.7 million . this unusually low effective rate was due in large part to the impact of the tax cuts and jobs act which reduced the corporate statutory rate from 35 % to 21 % . the effective tax rate in 2016 was 60 % in which case the operating loss of $ 1.2 million resulted in a net loss of $ 0.5 million . significant fourth quarter activity in 2017 : revenues totaled $ 3.8 million versus $ 2.9 million in the last quarter of 2016 , representing a 32 % increase . this increase was entirely due higher shipments of baseplates . the impact of price changes was insignificant in the quarter compared with the same period in 2016. gross margin increased in the fourth quarter of 2017 compared with the fourth quarter of 2016 from $ 77 thousand to $ 563 thousand . this increase was directly associated with the increase in sales volume . there was no significant impact from price changes during the last quarter of 2017 compared with the last quarter of 2016. sg & a expenses increased from $ 773 thousand to $ 959 thousand . this increase was due to the fact that the company incurred $ 230 thousand of costs associated with the resignation of an executive officer . all other sg & a costs were down $ 44 thousand quarter on quarter . primarily

