(

)

Exit and Disposal Activities

February 21, 2017,

the Board of Directors approved a modified exit or disposal plan with respect to the Broadway Plant, which included the relocation of production to other Company facilities, as needed, and/or the closure of the plant. The relocation of production was complete as of the end of

2017.

The Company has relocated certain assets from the Broadway Plant to other manufacturing facilities, as needed, to serve its existing and target customer base and identified underutilized or non-core assets for disposal. Management expects to apply the proceeds from the sale of any underutilized or non-core assets to help fund the costs to transfer any additional equipment from the Broadway Plant. On

April 13, 2020,

the Company completed the sale of the Broadway Plant real estate for

$1,700,000

and recognized a gain of

$807,000.

Management is currently evaluating options for any remaining assets in the Broadway Plant.

As a result of these initiatives, the Company recorded charges of

$91,000,

or less than

$0.01

per share, and

$98,000,

or less than

$0.01

per share, during the

first

three

months of

2020

and

2019,

respectively, related to the transition of production from the Broadway Plant, which is included in severance, relocation and other costs in the consolidated statement of operations. All amounts incurred were recorded within Sypris Technologies. The charges for the

three

months ended

April

2020

were primarily related to mothball costs associated with the closed facility.

A summary of the total pre-tax charges is as follows (in thousands):

			Costs Incurred
				Three Months		Total		Remaining
	Total			Ended		Recognized		Costs to be
	Program			April 5, 2020		to date		Recognized
Severance and benefit related costs	$	1,350		$	0	$	1,350	$	0
Asset impairments		188			0		188		0
Equipment relocation costs		1,826			0		1,826		0
Other		1,689			91		1,637		52
	$	5,053		$	91	$	5,001	$	52

The Company expects to incur additional pre-tax costs of approximately

$52,000

within Sypris Technologies, the majority of which is expected to be cash expenditures.

As noted above, management expects to use proceeds from the sale of underutilized or non-core assets to fund costs incurred on the transfer of equipment from the Broadway Plant. The following assets have been segregated and included in assets held for sale in the consolidated balance sheets (in thousands):

	April 5,			December 31,
	2020			2019
	(Unaudited)
Property, plant and equipment	$	13,623		$	13,346
Accumulated depreciation		(11,456	)		(11,113	)
Property, plant and equipment, net	$	2,167		$	2,233