TeraWulf (WULF) 8-K Ikonics Reports Second Quarter Results

Exhibit 99

News Contact:  Bill Ulland
Chairman, President & CEO
(218) 628-2217 For Immediate Release
August 13, 2009

IKONICS REPORTS SECOND QUARTER RESULTS

DULUTH, MN — IKONICS Corporation (NASDAQ:IKNX), a Duluth based imaging technology company, reported a 13% decline in 2009 second quarter sales to $3,787,000 compared to the same period in 2008. Earnings per share decreased by 59% to $0.07 per share, down from the $0.17 per share earned in the second quarter of 2008. Despite the sales and earnings decreases the Company generated over $730,000 in cash from operating activities for the first six months of 2009.

Bill Ulland, IKONICS CEO, said, “The recession continues to impact our sales. Although we have recently experienced an increase in revenue from our new businesses, it has been insufficient to compensate for declines in some of our traditional markets, particularly European sales and our higher margin awards and recognition segment.”

“I anticipate that our sales decline will begin to level off and start to trend upward in the second half of 2009, but gross profit will trail that trend until our new businesses accelerate their growth. In the meantime, we are controlling costs without neglecting our growth plans,” added Ulland.

This press release contains forward-looking statements regarding sales, gross profits, net earnings, and new products and businesses that involve risks and uncertainties. The Company’s actual results could differ materially as a result of domestic and global economic conditions, competitive market conditions, acceptance of new products, the ability to identify and make suitable acquisitions, the ability to control costs without impacting growth as well as the factors described in the Company’s Form s 10-K, and 10-Q, and other reports on file with the SEC.

IKONICS Corporation
CONDENSED STATEMENTS OF OPERATIONS
For the Three Months and Six Months Ended June 30, 2009 and 2008

	Three Months Ended				Six Months Ended
	06/30/09		06/30/08		06/30/09		06/30/08
Net sales	$	3,786,501	$	4,330,059	$	7,349,713	$	8,110,907
Cost of goods sold		2,329,999		2,468,468		4,487,897		4,620,261
Gross profit		1,456,502		1,861,591		2,861,816		3,490,646
Operating expenses		1,251,832		1,322,705		2,640,696		2,904,640
Income from operations		204,670		538,886		221,120		586,006
Gain on sale of investment		9,631		—		29,762		—
Interest income		2,050		23,697		2,120		67,372
Income before income taxes		216,351		562,583		253,002		653,378
Income tax expense		69,603		204,146		53,119		189,303
Net income	$	146,748	$	358,437	$	199,883	$	464,075
Earnings per common share-diluted	$	0.07	$	0.17	$	0.10	$	0.22
Average shares outstanding-diluted		1,973,514		2,080,617		1,981,677		2,068,292

Condensed Balance Sheets
As of June 30, 2009 and December 31, 2008

	06/30/09		12/31/08
Assets
Current assets	$	5,788,143	$	5,562,130
Property, plant and equipment, net		5,429,097		5,602,063
Investment in non-marketable equity securities		918,951		918,951
Intangible assets		367,092		403,285
	$	12,503,283	$	12,486,429
Liabilities and Stockholders’ Equity
Current liabilities	$	805,208	$	909,789
Deferred income taxes		178,000		143,000
Long term debt		—		—
Stockholders’ equity		11,520,075		11,433,640
	$	12,503,283	$	12,486,429

CONDENSED STATEMENTS OF CASH FLOW
For the Six Months Ended June 30, 2009 and 2008

	6/30/09			6/30/08
Net cash provided by operating activities	$	733,433		$	716,151
Net cash provided by (used in) investing activities		(629,304	)		2,695,420
Net cash provided by (used in) financing activities		(123,844	)		146,031
Net increase (decrease) in cash and cash equivalents		(19,715	)		3,557,602
Cash and cash equivalents at beginning of period		901,738			1,230,020
Cash and cash equivalents at end of period	$	882,023		$	4,787,622