gross profit percentage decreased 8.2 percentage points to 20.2 % in 2018 from 28.4 % in the prior year . the decrease in gross profit was primarily attributable to an approximately 16 % increase in raw bran prices , product mix and reduced plant utilization during 2018 compared to 2017. the decrease in plant utilization was primarily due to closures or production delays caused by the drum dryer capital expenditure project and plant improvements related to the sqf certification project at the dillon plant . additionally , our mermentau plant experienced a supply shortage which caused production to idle in the second quarter of 2018. due to the supply shortage , we shipped our animal feed orders from california which resulted in higher production and freight costs . we anticipate our ability to control the production schedule and quality of milled rice at golden ridge will reduce our risk of experiencing supply shortages in 2019. selling , general and administrative ( sg & a ) expenses were $ 11 . 2 million in 2018 , compared to $ 9.9 million in 2017 , an increase of $ 1 . 3 million , or 13 .2 % . salary , wages and benefit related expenses increased $ 0.7 million in 2018 , compared to the prior year . the increase was primarily due to the increase in headcount related to building out our sales team and an increase in headcount related to operations and quality assurance staff to meet sqf certification . outside services increased $ 0.2 million in 2018 , compared to the prior year , primarily related to golden ridge along with our gras ( generally recognized as safe ) project . rent expense increased $ 0.1 million in 2018 , compared to the prior year . the increase is related to the full year rent expense for our distribution center in northern california . other increases in expenses of $ 0.4 million related to travel expenses of $ 0.1 million , increase in warehouse expenses related to sqf certification of $ 0.1 million and an increase in general administrative expenses and related to the acquisition of golden ridge . corporate portion of the sg & a expenses were relatively flat in 2018 , compared to the prior year . in connection with the golden ridge acquisition , we incurred approximately $ 0.1 million in non-capitalized acquisition-related costs , primarily driven by professional fees . other income ( expense ) was $ 0.2 million for 2018 compared to $ 9.1 million of other expense for 2017. the $ 9.3 million decrease in expense is primarily related to an $ 8.3 million loss on extinguishment comprised of ( i ) a $ 6.6 million loss related to accreting the senior debentures and subordinated notes to face value when the notes were fully paid off in july 2017 from the hn divestiture proceeds and ( ii ) a $ 1.7 million loss on extinguishment of debt related to the extinguishment which occurred upon replacement of subordinated notes in february 2017. in addition , golden ridge was able to recover approximately $ 0.1 million in other income related to a previously uncollectible debt . interest expense decreased $ 1.6 million from 2017 . 18 index liquidity , going concern and capital resources see note 1 of our notes to consolidated financial statements for a discussion of liquidity . story_separator_special_tag goodwill impairment , or both . revenue recognition – we account for a contract with a customer when the written contract is committed , the rights of the parties , including payment terms , are identified , the contract has commercial substance and consideration is probable of collection . substantially all of our revenue is derived by fulfilling customer orders for the purchase of our products under contracts which contain a single performance obligation , to supply continually defined quantities of product at fixed prices . we account for shipping and handling activities that occur after the customer has obtained control of a good as a fulfillment cost rather than as an additional promised service . we recognize revenue at the point in time that control of the ordered product ( s ) is transferred to the customer , which is upon delivery to the customer , or its designee at our location , a customer location or other customer-designated delivery point . for substantially all of our contracts , control of the ordered product ( s ) transfers at our location . amounts invoiced to customers for shipping and handling are reported as revenues and the related costs incurred to deliver product to the customer are reported as cost of goods sold . amounts billed and due from our customers are classified as accounts receivables on our consolidated balance sheets and require payment on a short-term basis . invoices are generally issued at the point control transfers and substantially all of our invoices due within 30 days or less . periodically , we require payment prior to the point in time we recognize revenue . amounts received from customers prior to revenue recognition on a contract are contract liabilities , are classified as unearned revenue on our consolidated balance sheets and are typically applied to an invoice within 30 days of receipt . revenues recognized in 2018 include less than $ 0.1 million in unearned revenue as of january 1 , 2018. revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders . incidental items that are immaterial in the context of the contract are recognized as expense . our contracts do not include a significant financing component . our contracts may include terms that could cause variability in the transaction price , including , for example , rebates and volume discounts , or other forms of contingent revenue . the amount of consideration we expect to receive and revenue we recognize includes estimates of variable consideration , including costs for rebates and discounts story_separator_special_tag gross profit percentage decreased 8.2 percentage points to 20.2 % in 2018 from 28.4 % in the prior year . the decrease in gross profit was primarily attributable to an approximately 16 % increase in raw bran prices , product mix and reduced plant utilization during 2018 compared to 2017. the decrease in plant utilization was primarily due to closures or production delays caused by the drum dryer capital expenditure project and plant improvements related to the sqf certification project at the dillon plant . additionally , our mermentau plant experienced a supply shortage which caused production to idle in the second quarter of 2018. due to the supply shortage , we shipped our animal feed orders from california which resulted in higher production and freight costs . we anticipate our ability to control the production schedule and quality of milled rice at golden ridge will reduce our risk of experiencing supply shortages in 2019. selling , general and administrative ( sg & a ) expenses were $ 11 . 2 million in 2018 , compared to $ 9.9 million in 2017 , an increase of $ 1 . 3 million , or 13 .2 % . salary , wages and benefit related expenses increased $ 0.7 million in 2018 , compared to the prior year . the increase was primarily due to the increase in headcount related to building out our sales team and an increase in headcount related to operations and quality assurance staff to meet sqf certification . outside services increased $ 0.2 million in 2018 , compared to the prior year , primarily related to golden ridge along with our gras ( generally recognized as safe ) project . rent expense increased $ 0.1 million in 2018 , compared to the prior year . the increase is related to the full year rent expense for our distribution center in northern california . other increases in expenses of $ 0.4 million related to travel expenses of $ 0.1 million , increase in warehouse expenses related to sqf certification of $ 0.1 million and an increase in general administrative expenses and related to the acquisition of golden ridge . corporate portion of the sg & a expenses were relatively flat in 2018 , compared to the prior year . in connection with the golden ridge acquisition , we incurred approximately $ 0.1 million in non-capitalized acquisition-related costs , primarily driven by professional fees . other income ( expense ) was $ 0.2 million for 2018 compared to $ 9.1 million of other expense for 2017. the $ 9.3 million decrease in expense is primarily related to an $ 8.3 million loss on extinguishment comprised of ( i ) a $ 6.6 million loss related to accreting the senior debentures and subordinated notes to face value when the notes were fully paid off in july 2017 from the hn divestiture proceeds and ( ii ) a $ 1.7 million loss on extinguishment of debt related to the extinguishment which occurred upon replacement of subordinated notes in february 2017. in addition , golden ridge was able to recover approximately $ 0.1 million in other income related to a previously uncollectible debt . interest expense decreased $ 1.6 million from 2017 . 18 index liquidity , going concern and capital resources see note 1 of our notes to consolidated financial statements for a discussion of liquidity . story_separator_special_tag goodwill impairment , or both . revenue recognition – we account for a contract with a customer when the written contract is committed , the rights of the parties , including payment terms , are identified , the contract has commercial substance and consideration is probable of collection . substantially all of our revenue is derived by fulfilling customer orders for the purchase of our products under contracts which contain a single performance obligation , to supply continually defined quantities of product at fixed prices . we account for shipping and handling activities that occur after the customer has obtained control of a good as a fulfillment cost rather than as an additional promised service . we recognize revenue at the point in time that control of the ordered product ( s ) is transferred to the customer , which is upon delivery to the customer , or its designee at our location , a customer location or other customer-designated delivery point . for substantially all of our contracts , control of the ordered product ( s ) transfers at our location . amounts invoiced to customers for shipping and handling are reported as revenues and the related costs incurred to deliver product to the customer are reported as cost of goods sold . amounts billed and due from our customers are classified as accounts receivables on our consolidated balance sheets and require payment on a short-term basis . invoices are generally issued at the point control transfers and substantially all of our invoices due within 30 days or less . periodically , we require payment prior to the point in time we recognize revenue . amounts received from customers prior to revenue recognition on a contract are contract liabilities , are classified as unearned revenue on our consolidated balance sheets and are typically applied to an invoice within 30 days of receipt . revenues recognized in 2018 include less than $ 0.1 million in unearned revenue as of january 1 , 2018. revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders . incidental items that are immaterial in the context of the contract are recognized as expense . our contracts do not include a significant financing component . our contracts may include terms that could cause variability in the transaction price , including , for example , rebates and volume discounts , or other forms of contingent revenue . the amount of consideration we expect to receive and revenue we recognize includes estimates of variable consideration , including costs for rebates and discounts

cash flows cash used in operating activities of continuing operations is presented below ( in thousands ) . replace_table_token_1_th we used $ 5.2 million in operating cash during 2018 , compared to $ 5.0 million of operating cash in 2017. we also funded $ 3 . 3 million of capital expenditures in 2018 , compared to $ 0.9 million in in the prior year . these capital expenditures relate primarily to our specialty ingredients ' equipment in our dillon plant and our sqf projects to certify our facilities . offsetting these uses of cash was $ 11.1 million of proceeds from warrant exercises . as of december 31 , 2018 , our cash and cash equivalents balance was $ 7.0 million and our restricted cash balance was $ 0.2 million ( see note 1 ) , compared to $ 6.2 million and $ 0.8 million of restricted cash as of december 31 , 2017. in march 2019 , we completed a private placement of 3,046,668 shares of common stock and a pre-funded warrant exercisable into 1,003,344 shares of common stock for aggregate gross proceeds of approximately $ 12.1 million , discussed further in note 9. off-balance sheet arrangements we have no off-balance sheet arrangements , other than normal operating leases and employee contracts , that have or are likely to have a current or future material effect on our financial condition , changes in financial condition , revenue , expenses , results of operations , liquidity , capital expenditures , or capital resources . critical accounting policies the accompanying consolidated financial statements have been prepared in u.s. dollars and in accordance with accounting principles generally accepted in the united states ( gaap ) . the preparation of the consolidated financial statements in conformity with gaap requires management to make estimates and assumptions that affect the reported amount of assets and liabilities , disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses .


 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.
     ```cash flows cash used in operating activities of continuing operations is presented below ( in thousands ) . replace_table_token_1_th we used $ 5.2 million in operating cash during 2018 , compared to $ 5.0 million of operating cash in 2017. we also funded $ 3 . 3 million of capital expenditures in 2018 , compared to $ 0.9 million in in the prior year . these capital expenditures relate primarily to our specialty ingredients ' equipment in our dillon plant and our sqf projects to certify our facilities . offsetting these uses of cash was $ 11.1 million of proceeds from warrant exercises . as of december 31 , 2018 , our cash and cash equivalents balance was $ 7.0 million and our restricted cash balance was $ 0.2 million ( see note 1 ) , compared to $ 6.2 million and $ 0.8 million of restricted cash as of december 31 , 2017. in march 2019 , we completed a private placement of 3,046,668 shares of common stock and a pre-funded warrant exercisable into 1,003,344 shares of common stock for aggregate gross proceeds of approximately $ 12.1 million , discussed further in note 9. off-balance sheet arrangements we have no off-balance sheet arrangements , other than normal operating leases and employee contracts , that have or are likely to have a current or future material effect on our financial condition , changes in financial condition , revenue , expenses , results of operations , liquidity , capital expenditures , or capital resources . critical accounting policies the accompanying consolidated financial statements have been prepared in u.s. dollars and in accordance with accounting principles generally accepted in the united states ( gaap ) . the preparation of the consolidated financial statements in conformity with gaap requires management to make estimates and assumptions that affect the reported amount of assets and liabilities , disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses .
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 Suspicious Activity Report : gross profit percentage decreased 8.2 percentage points to 20.2 % in 2018 from 28.4 % in the prior year . the decrease in gross profit was primarily attributable to an approximately 16 % increase in raw bran prices , product mix and reduced plant utilization during 2018 compared to 2017. the decrease in plant utilization was primarily due to closures or production delays caused by the drum dryer capital expenditure project and plant improvements related to the sqf certification project at the dillon plant . additionally , our mermentau plant experienced a supply shortage which caused production to idle in the second quarter of 2018. due to the supply shortage , we shipped our animal feed orders from california which resulted in higher production and freight costs . we anticipate our ability to control the production schedule and quality of milled rice at golden ridge will reduce our risk of experiencing supply shortages in 2019. selling , general and administrative ( sg & a ) expenses were $ 11 . 2 million in 2018 , compared to $ 9.9 million in 2017 , an increase of $ 1 . 3 million , or 13 .2 % . salary , wages and benefit related expenses increased $ 0.7 million in 2018 , compared to the prior year . the increase was primarily due to the increase in headcount related to building out our sales team and an increase in headcount related to operations and quality assurance staff to meet sqf certification . outside services increased $ 0.2 million in 2018 , compared to the prior year , primarily related to golden ridge along with our gras ( generally recognized as safe ) project . rent expense increased $ 0.1 million in 2018 , compared to the prior year . the increase is related to the full year rent expense for our distribution center in northern california . other increases in expenses of $ 0.4 million related to travel expenses of $ 0.1 million , increase in warehouse expenses related to sqf certification of $ 0.1 million and an increase in general administrative expenses and related to the acquisition of golden ridge . corporate portion of the sg & a expenses were relatively flat in 2018 , compared to the prior year . in connection with the golden ridge acquisition , we incurred approximately $ 0.1 million in non-capitalized acquisition-related costs , primarily driven by professional fees . other income ( expense ) was $ 0.2 million for 2018 compared to $ 9.1 million of other expense for 2017. the $ 9.3 million decrease in expense is primarily related to an $ 8.3 million loss on extinguishment comprised of ( i ) a $ 6.6 million loss related to accreting the senior debentures and subordinated notes to face value when the notes were fully paid off in july 2017 from the hn divestiture proceeds and ( ii ) a $ 1.7 million loss on extinguishment of debt related to the extinguishment which occurred upon replacement of subordinated notes in february 2017. in addition , golden ridge was able to recover approximately $ 0.1 million in other income related to a previously uncollectible debt . interest expense decreased $ 1.6 million from 2017 . 18 index liquidity , going concern and capital resources see note 1 of our notes to consolidated financial statements for a discussion of liquidity . story_separator_special_tag goodwill impairment , or both . revenue recognition – we account for a contract with a customer when the written contract is committed , the rights of the parties , including payment terms , are identified , the contract has commercial substance and consideration is probable of collection . substantially all of our revenue is derived by fulfilling customer orders for the purchase of our products under contracts which contain a single performance obligation , to supply continually defined quantities of product at fixed prices . we account for shipping and handling activities that occur after the customer has obtained control of a good as a fulfillment cost rather than as an additional promised service . we recognize revenue at the point in time that control of the ordered product ( s ) is transferred to the customer , which is upon delivery to the customer , or its designee at our location , a customer location or other customer-designated delivery point . for substantially all of our contracts , control of the ordered product ( s ) transfers at our location . amounts invoiced to customers for shipping and handling are reported as revenues and the related costs incurred to deliver product to the customer are reported as cost of goods sold . amounts billed and due from our customers are classified as accounts receivables on our consolidated balance sheets and require payment on a short-term basis . invoices are generally issued at the point control transfers and substantially all of our invoices due within 30 days or less . periodically , we require payment prior to the point in time we recognize revenue . amounts received from customers prior to revenue recognition on a contract are contract liabilities , are classified as unearned revenue on our consolidated balance sheets and are typically applied to an invoice within 30 days of receipt . revenues recognized in 2018 include less than $ 0.1 million in unearned revenue as of january 1 , 2018. revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders . incidental items that are immaterial in the context of the contract are recognized as expense . our contracts do not include a significant financing component . our contracts may include terms that could cause variability in the transaction price , including , for example , rebates and volume discounts , or other forms of contingent revenue . the amount of consideration we expect to receive and revenue we recognize includes estimates of variable consideration , including costs for rebates and discounts story_separator_special_tag gross profit percentage decreased 8.2 percentage points to 20.2 % in 2018 from 28.4 % in the prior year . the decrease in gross profit was primarily attributable to an approximately 16 % increase in raw bran prices , product mix and reduced plant utilization during 2018 compared to 2017. the decrease in plant utilization was primarily due to closures or production delays caused by the drum dryer capital expenditure project and plant improvements related to the sqf certification project at the dillon plant . additionally , our mermentau plant experienced a supply shortage which caused production to idle in the second quarter of 2018. due to the supply shortage , we shipped our animal feed orders from california which resulted in higher production and freight costs . we anticipate our ability to control the production schedule and quality of milled rice at golden ridge will reduce our risk of experiencing supply shortages in 2019. selling , general and administrative ( sg & a ) expenses were $ 11 . 2 million in 2018 , compared to $ 9.9 million in 2017 , an increase of $ 1 . 3 million , or 13 .2 % . salary , wages and benefit related expenses increased $ 0.7 million in 2018 , compared to the prior year . the increase was primarily due to the increase in headcount related to building out our sales team and an increase in headcount related to operations and quality assurance staff to meet sqf certification . outside services increased $ 0.2 million in 2018 , compared to the prior year , primarily related to golden ridge along with our gras ( generally recognized as safe ) project . rent expense increased $ 0.1 million in 2018 , compared to the prior year . the increase is related to the full year rent expense for our distribution center in northern california . other increases in expenses of $ 0.4 million related to travel expenses of $ 0.1 million , increase in warehouse expenses related to sqf certification of $ 0.1 million and an increase in general administrative expenses and related to the acquisition of golden ridge . corporate portion of the sg & a expenses were relatively flat in 2018 , compared to the prior year . in connection with the golden ridge acquisition , we incurred approximately $ 0.1 million in non-capitalized acquisition-related costs , primarily driven by professional fees . other income ( expense ) was $ 0.2 million for 2018 compared to $ 9.1 million of other expense for 2017. the $ 9.3 million decrease in expense is primarily related to an $ 8.3 million loss on extinguishment comprised of ( i ) a $ 6.6 million loss related to accreting the senior debentures and subordinated notes to face value when the notes were fully paid off in july 2017 from the hn divestiture proceeds and ( ii ) a $ 1.7 million loss on extinguishment of debt related to the extinguishment which occurred upon replacement of subordinated notes in february 2017. in addition , golden ridge was able to recover approximately $ 0.1 million in other income related to a previously uncollectible debt . interest expense decreased $ 1.6 million from 2017 . 18 index liquidity , going concern and capital resources see note 1 of our notes to consolidated financial statements for a discussion of liquidity . story_separator_special_tag goodwill impairment , or both . revenue recognition – we account for a contract with a customer when the written contract is committed , the rights of the parties , including payment terms , are identified , the contract has commercial substance and consideration is probable of collection . substantially all of our revenue is derived by fulfilling customer orders for the purchase of our products under contracts which contain a single performance obligation , to supply continually defined quantities of product at fixed prices . we account for shipping and handling activities that occur after the customer has obtained control of a good as a fulfillment cost rather than as an additional promised service . we recognize revenue at the point in time that control of the ordered product ( s ) is transferred to the customer , which is upon delivery to the customer , or its designee at our location , a customer location or other customer-designated delivery point . for substantially all of our contracts , control of the ordered product ( s ) transfers at our location . amounts invoiced to customers for shipping and handling are reported as revenues and the related costs incurred to deliver product to the customer are reported as cost of goods sold . amounts billed and due from our customers are classified as accounts receivables on our consolidated balance sheets and require payment on a short-term basis . invoices are generally issued at the point control transfers and substantially all of our invoices due within 30 days or less . periodically , we require payment prior to the point in time we recognize revenue . amounts received from customers prior to revenue recognition on a contract are contract liabilities , are classified as unearned revenue on our consolidated balance sheets and are typically applied to an invoice within 30 days of receipt . revenues recognized in 2018 include less than $ 0.1 million in unearned revenue as of january 1 , 2018. revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders . incidental items that are immaterial in the context of the contract are recognized as expense . our contracts do not include a significant financing component . our contracts may include terms that could cause variability in the transaction price , including , for example , rebates and volume discounts , or other forms of contingent revenue . the amount of consideration we expect to receive and revenue we recognize includes estimates of variable consideration , including costs for rebates and discounts

