TeraWulf (WULF) 10-K 5 Mar 15 2014 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	Feb. 27, 2015	Jun. 30, 2014
Document and Entity Information
Entity Registrant Name	IKONICS CORP
Entity Central Index Key	1083301
Document Type	10-K
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$22,927,957
Entity Common Stock, Shares Outstanding		2,018,253
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Dec. 31, 2014	Dec. 31, 2013
CURRENT ASSETS:
Cash and cash equivalents	$1,936,214	$1,704,300
Short-term investments	1,766,000	1,464,878
Trade receivables, less allowance of $49,000 in 2014 and $62,000 in 2013 (Notes 5, 7, and 8)	2,096,328	2,050,853
Inventories (Note 8)	2,630,650	2,554,942
Prepaid expenses and other assets	86,400	103,687
Income taxes receivable	163,651	16,400
Deferred income taxes (Note 2)	178,000	150,000
Total current assets	8,857,243	8,045,060
PROPERTY, PLANT, AND EQUIPMENT, at cost:
Land and buildings	6,247,781	6,123,890
Machinery and equipment	3,956,561	3,781,282
Office equipment	754,220	722,567
Vehicles	247,356	237,194
Gross property, plant, and equipment, at cost	11,205,918	10,864,933
Less accumulated depreciation	5,789,070	5,230,837
Net property, plant, and equipment, at cost	5,416,848	5,634,096
INTANGIBLE ASSETS, less accumulated amortization of $198,918 in 2014 and $173,143 in 2013 (Note 3)	353,871	322,647
Total assets	14,627,962	14,001,803
CURRENT LIABILITIES:
Accounts payable	371,181	532,294
Accrued compensation	294,706	274,936
Other accrued liabilities	78,610	67,755
Total current liabilities	744,497	874,985
DEFERRED INCOME TAXES	545,000	527,000
Total liabilities	1,289,497	1,401,985
STOCKHOLDERS' EQUITY:
Common stock, par value $.10 per share; authorized 4,750,000 shares: issued and outstanding 2,018,253 shares in 2014 and 2,012,170 shares in 2013 (Note 6)	201,825	201,217
Additional paid-in capital	2,681,307	2,592,038
Retained earnings	10,455,333	9,806,563
Total stockholders' equity	13,338,465	12,599,818
Total liabilities and stockholders' equity	$14,627,962	$14,001,803

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2014	Dec. 31, 2013
CONDENSED BALANCE SHEETS
Trade receivables, allowance (in dollars)	$49,000	$62,000
INTANGIBLE ASSETS, accumulated amortization (in dollars)	$198,918	$173,143
Preferred stock, par value (in dollars per share)	$0.10	$0.10
Preferred stock, shares authorized	250,000	250,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$0.10	$0.10
Common stock, shares authorized	4,750,000	4,750,000
Common stock, shares issued	2,018,253	2,012,170
Common stock, shares outstanding	2,018,253	2,012,170

STATEMENTS_OF_INCOME

STATEMENTS OF INCOME (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
CONDENSED STATEMENTS OF INCOME
NET SALES	$18,489,837	$17,491,408
COST OF GOODS SOLD	11,786,608	10,553,553
GROSS PROFIT	6,703,229	6,937,855
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	5,124,764	5,368,400
RESEARCH AND DEVELOPMENT EXPENSES	664,999	649,325
OPERATING EXPENSES	5,789,763	6,017,725
INCOME FROM OPERATIONS	913,466	920,130
OTHER	5,304	7,043
INCOME BEFORE INCOME TAXES	918,770	927,173
FEDERAL AND STATE INCOME TAXES (Note 2)	270,000	245,000
NET INCOME	$648,770	$682,173
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$0.32	$0.34
Diluted (in dollars per share)	$0.32	$0.34
WEIGHTED AVERAGE COMMON SHARES:
Basic (in shares)	2,017,144	2,006,843
Diluted (in shares)	2,018,334	2,010,659

STATEMENTS_OF_STOCKHOLDERS_EQU

STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
BALANCE at Dec. 31, 2012	$199,848	$2,470,507	$9,124,390	$11,794,745
BALANCE (in shares) at Dec. 31, 2012	1,998,475
Increase (Decrease) in Stockholders' Equity
Net income			682,173	682,173
Exercise of stock options	1,369	88,029		89,398
Exercise of stock options (in shares)	13,695
Tax benefit resulting from stock option exercises		19,595		19,595
Stock based compensation and related tax benefit		13,907		13,907
BALANCE at Dec. 31, 2013	201,217	2,592,038	9,806,563	12,599,818
BALANCE (in shares) at Dec. 31, 2013	2,012,170			2,012,170
Increase (Decrease) in Stockholders' Equity
Net income			648,770	648,770
Exercise of stock options	608	45,379		45,987
Exercise of stock options (in shares)	6,083
Tax benefit resulting from stock option exercises		25,475		25,475
Stock based compensation and related tax benefit		18,415		18,415
BALANCE at Dec. 31, 2014	$201,825	$2,681,307	$10,455,333	$13,338,465
BALANCE (in shares) at Dec. 31, 2014	2,018,253			2,018,253

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$648,770	$682,173
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	635,607	568,791
Amortization	25,775	53,314
Stock based compensation	18,415	13,907
Net gain on sale of vehicles and equipment exchange	-45,659	-13,979
Deferred income taxes	-10,000	153,000
Changes in working capital components:
Trade receivables	-45,475	9,459
Inventories	-75,708	123,922
Prepaid expenses and other assets	17,287	21,296
Income tax refund receivable	-121,776	-16,400
Accounts payable	-161,113	-61,628
Accrued liabilities	30,625	-4,766
Income taxes payable		-62,557
Net cash provided by operating activities	916,748	1,466,532
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	-434,463	-762,537
Proceeds from sale of equipment and vehicles	61,763	35,507
Purchases of intangibles	-56,998	-70,604
Purchases of short-term investments	-2,716,000	-1,814,878
Proceeds from sale of short-term investments	2,414,877	1,792,939
Net cash used in investing activities	-730,821	-819,573
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	45,987	89,398
Net cash provided by (used in) financing activities	45,987	89,398
NET INCREASE IN CASH AND CASH EQUIVALENTS	231,914	736,357
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	1,704,300	967,943
CASH AND CASH EQUIVALENTS AT END OF PERIOD	1,936,214	1,704,300
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for income taxes, net of refunds received of $13,026 in 2013	$401,776	$171,139

STATEMENTS_OF_CASH_FLOWS_Paren

STATEMENTS OF CASH FLOWS (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2013
CONDENSED STATEMENTS OF CASH FLOWS
Income taxes, received	$13,206

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Description of Business and Foreign Export Sales - IKONICS Corporation’s (the Company) traditional business has been the development and manufacturing of high-quality photochemical imaging systems for sale primarily to a wide range of printers and decorators of surfaces.  Customers’ applications are primarily screen printing and abrasive etching.  These sales have been augmented with inkjet receptive films, ancillary chemicals and related equipment to provide a full line of products and services to its customers.  In 2006, the Company began a major effort to diversify and expand its business to industrial markets. These efforts now include the Company’s Advanced Material Solutions (AMS) business unit, formerly named Micro-Machining, which uses the Company’s proprietary process and photoresist film for the abrasive etching of composite materials, industrial ceramics, silicon wafers, and glass wafers.  The customer base for AMS is primarily the aerospace and electronics industries.  Based on its expertise in ultraviolet curable fluids and inkjet receptive substrates, the Company has also developed a patented digital texturing technology (DTX) for putting patterns and textures into steel molds for the plastic injection molding industry. The ultimate original equipment manufacturer (“OEM”) for the Company’s DTX technology is primarily the automotive industry. The Company offers a suite of products to the mold making industry.  Industrial inkjet printers, which are integral to the DTX system, are manufactured and sold by a strategic partner.  The Company’s business plan is to sell consumable fluids and transfer films.  For most markets these sales are direct to the mold maker.  The DTX technology is being expanded to prototyping where the Company’s technology offers a unique combination of high definition and large format prints.  The Company’s principal markets are throughout the United States.  In addition, the Company sells to Europe, Latin America, Asia, and other parts of the world.  The Company extends credit to its customers, all on an unsecured basis, on terms that it establishes for individual customers.
	Foreign export sales approximated 28.4% of net sales in 2014 and 32.3% of net sales in 2013.  The Company’s trade receivables at December 31, 2014 and 2013 due from foreign customers were 30.6% and 32.5% of total trade receivables, respectively.  The foreign export receivables are composed primarily of open credit arrangements with terms ranging from 30 to 90 days.  No single customer or foreign country represented greater than 10% of net sales in 2014 or in 2013.
	The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure.
	A summary of the Company’s significant accounting policies follows:
	Cash Equivalents - The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.  Cash equivalents consist of money market funds in which the carrying value approximates market value because of the short maturity of these instruments.  The money market fund utilized by IKONICS invests in United States dollar denominated securities that present minimal credit risk and consist of investments in debt securities issued or guaranteed by the United States government or by United States government agencies or instrumentalities and repurchase agreements fully collateralized by the United States Treasury and United States government securities.
	Short-Term Investments - Short-term investments consist of fully insured certificates of deposit with original maturities ranging from four to twelve months as of December 31, 2014 and 2013, respectively.
	Trade Receivables — Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on an on-going basis.  Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions.  Trade receivables are written off when deemed uncollectible.  Recoveries of trade receivables previously written off are recorded when received.  Accounts are considered past due if payment is not received according to agreed-upon terms.
	A small percentage of the trade receivables balance is denominated in a foreign currency with no concentration in any given country.  At the end of each reporting period, the Company analyzes the receivable balance for customers paying in a foreign currency. These balances are adjusted to each quarter or year-end spot rate in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) No. 830, Foreign Currency Matters.  Foreign currency transactions and translation adjustments did not have a significant effect on the Balance Sheet or the Statements of Income, Stockholders’ Equity and Cash Flows for 2014 and 2013.
	Inventories - Inventories are stated at the lower of cost or market using the last-in, first-out (LIFO) method.  If the first-in, first-out (FIFO) cost method had been used, inventories would have been approximately $1,315,000 and $1,248,000 higher than reported at December 31, 2014 and 2013, respectively.  The inventory reserve for obsolescence was $11,000 and $15,000 at December 31, 2014 and 2013, respectively.  The major components of inventories are as follows:
		2014			2013
	Raw materials	$	2,020,151		$	1,952,398
	Work-in-progress	407,964			389,501
	Finished goods	1,517,151			1,461,264
	Reduction to LIFO cost	(1,314,616		)	(1,248,221		)
	Total inventories	$	2,630,650		$	2,554,942
	Property, Plant and Equipment — Major expenditures extending the life of the property, plant and equipment are capitalized.  Repair and maintenance costs are expensed in the period in which they are incurred.  Depreciation of property, plant and equipment is computed using the straight-line method over the following estimated useful lives:
		Years
	Buildings	15-40
	Machinery and equipment	10-May
	Office equipment	10-Mar
	Vehicles	3
	Intangible Assets — Intangible assets consist of patents, licenses and covenants not to compete arising from business acquisitions.  Intangible assets are amortized on a straight-line basis over their estimated useful lives or agreement terms.  To the extent the undiscounted cash flows are less than the carrying value, analysis is performed based on several criteria, including, but not limited to, revenue trends, discounted operating cash flows and other operating factors to determine the impairment amount.
	As of December 31, 2014, the remaining estimated weighted average useful lives of intangible assets are as follows:
		Years
	Patents	13.4
	Licenses	2.7
	Non-compete agreements	0.5
	Impairment of Long-lived Assets — The Company reviews its long-lived assets, including property, plant and equipment and intangible assets, for impairment when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. Any impairment loss recorded is measured as the amount by which the carrying value of the assets exceeds the fair value of the assets. To date, the Company has determined that no impairment of long-lived assets exists.
	Fair Value of Financial Instruments — The carrying amounts of financial instruments, including cash and cash equivalents, short-term investments, trade receivables, accounts payable, and accrued liabilities approximate fair value due to the short maturities of these instruments.
	Revenue Recognition — The Company recognizes revenue on sales of products when title passes which can occur at the time of shipment or when the goods arrive at the customer location depending on the agreement with the customer.  The Company sells its products to both distributors and end-users.  Sales to distributors and end-users are recorded based upon the criteria governed by the sales, delivery, and payment terms stated on the invoices from the Company to the purchaser.  In addition to transfer of title / risk of loss, all revenue is recorded in accordance with the criteria outlined within SAB 104 and FASB ASC 605 Revenue Recognition:
	(a) persuasive evidence of an arrangement (principally in the form of customer sales orders and the Company’s sales invoices, as generally there is no other formal agreement underlying the sale transactions)
	(b) delivery and performance (evidenced by proof of delivery, e.g. the shipment of film and substrates with bill of lading used for proof of delivery for FOB shipping point terms, and the carrier booking confirmation report used for FOB destination terms.  Once the finished product is shipped and physically delivered under the terms of the invoice and sales order, the Company has no additional performance or service obligations to complete)
	(c) a fixed and determinable sales price (the Company’s pricing is established and is not based on variable terms, as evidenced in either the Company’s invoices or the limited number of distribution agreements; the Company rarely grants extended payment terms and has no history of concessions)
	(d) a reasonable likelihood of payment (the Company’s terms are standard, and the Company does not have a substantial history of customer defaults or non-payment)
	Sales are reported on a net basis by deducting credits, estimated normal returns and discounts.  The Company’s return policy does not vary by geography.  The customer has no rotation or price protection rights and the Company is not under a warranty obligation.  Freight billed to customers is included in sales.  Shipping costs are included in cost of goods sold.
	Deferred Taxes - Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences.  Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.  The Company follows the accounting standard on accounting for uncertainty in income taxes, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements.  Under this guidance, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position.  The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement.  The guidance on accounting for uncertainty in income taxes also addresses derecognition, classification, interest and penalties on income taxes, and accounting in interim periods.
	Earnings Per Common Share (EPS) - Basic EPS is calculated using net income divided by the weighted average of common shares outstanding.  Diluted EPS is similar to Basic EPS except that the weighted average number of common shares outstanding is increased to include the number of additional common shares, when dilutive, that would have been outstanding if the potential dilutive common shares, such as those shares subject to options, had been issued.
	Shares used in the calculation of diluted EPS are summarized below:
		2014		2013
	Weighted average common shares outstanding	2,017,144		2,006,843
	Dilutive effect of stock options	1,190		3,816
	Weighted average common and common equivalent shares outstanding	2,018,334		2,010,659
	At December 31, 2014, options to purchase 1,250 shares of common stock with a weighted average exercise price of $28.25 were outstanding, but were excluded from the computation of common share equivalents because they were anti-dilutive.  There were no anti-dilutive options at December 31, 2013.
	Employee Stock Plan - The Company accounts for employee stock options under the provision of ASC 718 Compensation — Stock Compensation.
	Recent Accounting Pronouncemnts - In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers.  ASU 2014-09 supersedes the revenue recognition requirements in Revenue Recognition (Topic 605), and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for the Company in our fiscal year beginning on January 1, 2017, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted.  The Company is currently evaluating the effect that adopting this new accounting guidance will have on our consolidated results of operations, cash flows and financial position.
	In August 2014, FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures.  ASU 2014-15 is effective for the Company in the year ended December 31, 2016, and interim periods beginning March 31, 2017, with early application permitted. The Company does not anticipate a material impact to the financial statements once implemented.
	Use of Estimates - The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  Significant estimates include the allowance for doubtful trade receivables, the reserve for inventory obsolescence, and the valuation allowance for deferred tax assets.

INCOME_TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2014
INCOME TAXES
INCOME TAXES
	2. INCOME TAXES
	Income tax expense for the years ended December 31, 2014 and 2013 consists of the following:
		2014			2013
	Current:
	Federal	$	332,000		$	91,000
	State	15,000			1,000
		347,000			92,000
	Deferred	(77,000		)	153,000
		$	270,000		$	245,000
	The expected provision for income taxes, computed by applying the U.S. federal income tax rate of 34% in 2014 and 34% in 2013 to income before taxes, is reconciled to income tax expense as follows:
		2014			2013
	Expected provision for federal income taxes	$	312,000		$	315,000
	State income taxes, net of federal benefit	15,000			16,000
	Domestic manufacturers deduction	(33,000		)	(20,000		)
	Non-deductible meals, entertainment, and life insurance	21,000			13,000
	Prior year adjustments	(1,000		)	(32,000		)
	Research and development credit	(31,000		)	(45,000		)
	Valuation allowance released on capital loss utilized	(17,000		)	—
	Other	4,000			(2,000		)
		$	270,000		$	245,000
	Net deferred tax liabilities consist of the following as of December 31, 2014 and 2013:
		2014			2013
	Deferred tax assets:
	Accrued vacation	$	23,000		$	23,000
	Inventories reserve	129,000			105,000
	Allowance for doubtful accounts	4,000			9,000
	Allowance for sales returns	13,000			13,000
	Capital loss carryforward	—			309,000
	Research and development credit carryforward	30,000			17,000
	Accrued self-insured medical	9,000			—
	Less valuation allowance	(30,000		)	(326,000		)
		178,000			150,000
	Deferred tax liabilities:
	Property and equipment	(462,000		)	(468,000		)
	Intangible assets	(83,000		)	(59,000		)
	Net deferred tax liabilities	$	(367,000	)	$	(377,000	)
	The deferred tax amounts described above have been included in the accompanying balance sheet as of December 31, 2014 and 2013 as follows:
		2014			2013
	Current Assets	$	178,000		$	150,000
	Noncurrent liabilities	(545,000		)	(527,000		)
		$	(367,000	)	$	(377,000	)
	At December 31, 2013, the Company’s valuation allowance of $326,000 related to a capital loss carryforward of $309,000 and a Minnesota research and development credit of $17,000.  During the fourth quarter of 2014, the Company reversed $17,000 of the valuation allowance related to utilized capital loss carryforwards and wrote off the remaining $292,000 of capital loss carryforward that expired in the current year.  The remaining valuation allowance balance of $30,000 at December 31, 2014 relates entirely to Minnesota research and development credit carryforwards that the Company does not expect to utilize and begin to expire in 2028.
	It has been the Company’s policy to recognize interest and penalties related to uncertain tax positions in income tax expense.  As of December 31, 2014 and 2013, there was no liability for unrecognized tax benefits.
	The Company is subject to federal and state taxation.  The material jurisdictions that are subject to examination by tax authorities primarily include Minnesota and the United States, for tax years 2011, 2012, 2013 and 2014.

INTANGIBLE_ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2014
INTANGIBLE ASSETS
INTANGIBLE ASSETS
	3. INTANGIBLE ASSETS
	Intangible assets consist of patents, patent applications, licenses and covenants not to compete arising from business acquisitions.  Capitalized patent application costs are included with patents.  Intangible assets are amortized on a straight-line basis over their estimated useful lives or terms of their agreement, whichever is shorter.  There were no impairment adjustments to intangible assets during the years ended December 31, 2014 or 2013.
	Intangible assets at December 31, 2014 and 2013 consist of the following:
		December 31, 2014					December 31, 2013
		Gross Carrying		Accumulated			Gross Carrying		Accumulated
		Amount		Amortization			Amount		Amortization
	Amortized intangible assets:
	Patents	$	402,789	$	(62,676	)	$	345,790	$	(46,692	)
	Licenses	50,000		(39,584		)	50,000		(36,459		)
	Non-compete agreements	100,000		(96,658		)	100,000		(89,992		)
		$	552,789	$	(198,918	)	$	495,790	$	(173,143	)
		2014		2013
	Aggregate amortization expense:
	For the years ended December 31	$	25,775	$	53,314
	Estimated amortization expense for the years ending December 31:
	2015	$	23,000
	2016	20,000
	2017	20,000
	2018	18,000
	2019	16,000
	In connection with the license agreement, the Company has agreed to pay royalties ranging from 3% to 5% on the sales of products subject to the agreements.  The Company incurred $16,000 of expense under these agreements during 2014, and $19,000 during 2013 which have been included in selling, general and administrative expenses in the Statements of Income.

RETIREMENT_PLAN

RETIREMENT PLAN	12 Months Ended
	Dec. 31, 2014
RETIREMENT PLAN
RETIREMENT PLAN
	4. RETIREMENT PLAN
	The Company has established a salary deferral plan under Section 401(k) of the Internal Revenue Code.  Such deferrals accumulate on a tax-deferred basis until the employee withdraws the funds.  The Company contributes up to 5% of each eligible employee’s compensation.  Total retirement expense for the years ended December 31, 2014 and 2013 was approximately $213,000 and $208,000, respectively.

SEGMENT_INFORMATION

SEGMENT INFORMATION	12 Months Ended
	Dec. 31, 2014
SEGMENT INFORMATION
SEGMENT INFORMATION
	5. SEGMENT INFORMATION
	The Company’s reportable segments are strategic business units that offer different products and have varied customer bases.  There are five reportable segments:  Domestic, Export, IKONICS Imaging, Digital Texturing (DTX) and AMS.  Domestic sells screen printing film, emulsions, and inkjet receptive film to distributors located in the United States and Canada.  IKONICS Imaging sells photo resistant film, art supplies, glass, metal medium and related abrasive etching equipment to end user customers located in the United States and Canada.  AMS provides sound deadening technology to the aerospace industry along with products and services for etched composites, ceramics, glass and silicon wafers.  DTX includes products and customers related to patented and proprietary inkjet technology used for mold texturing and prototyping.  Export sells primarily the same products as Domestic and the IKONICS Imaging products not related to AMS or DTX.  The accounting policies of the segments are the same as those described in the summary of significant accounting policies included in Note 1.
	Management evaluates the performance of each segment based on the components of divisional income, and does not allocate assets and liabilities to segments except for trade receivables.  Financial information with respect to the reportable segments follows:
	For the year ended December 31, 2014:
								IKONICS
		Domestic			Export			Imaging		DTX			AMS			Unalloc.			Total
	Net sales	$	7,846,457		$	5,249,843		$	4,644,082	$	422,646		$	326,809		$	—		$	18,489,837
	Cost of goods sold	4,571,505			3,840,948			2,167,870		365,828			840,457			—			11,786,608
	Gross profit (loss)	3,274,952			1,408,895			2,476,212		56,818			(513,648		)	—			6,703,229
	Selling general and adminstrative*	1,353,509			549,254			918,337		166,724			425,087			1,711,853			5,124,764
	Research and development*	—			—			—		—			—			664,999			664,999
	Income (loss) from operations	$	1,921,443		$	859,641		$	1,557,875	$	(109,906	)	$	(938,735	)	$	(2,376,852	)	$	913,466
	For the year ended December 31, 2013:
								IKONICS
		Domestic			Export			Imaging		DTX			AMS			Unalloc.			Total
	Net sales	$	7,260,934		$	5,641,544		$	3,836,762	$	407,193		$	344,975		$	—		$	17,491,408
	Cost of goods sold	4,062,141			4,057,111			1,831,047		70,343			532,911			—			10,553,553
	Gross profit (loss)	3,198,793			1,584,433			2,005,715		336,850			(187,936		)	—			6,937,855
	Selling general and adminstrative*	1,307,154			578,084			977,574		474,782			446,803			1,584,003			5,368,400
	Research and development*	—			—			—		—			—			649,325			649,325
	Income (loss) from operations	$	1,891,639		$	1,006,349		$	1,028,141	$	(137,932	)	$	(634,739	)	$	(2,233,328	)	$	920,130
	* The Company does not allocate all general and administrative expenses or any research and development expenses to its operating segments for internal reporting.
	Trade receivables by segment as of December 31, 2014 and December 31, 2013 were as follows:
		Dec 31, 2014			Dec 31, 2013
	Domestic	$	1,068,170		$	1,012,057
	Export	640,464			667,343
	IKONICS Imaging	254,483			339,537
	DTX	86,507			26,910
	AMS	85,170			40,222
	Unallocated	(38,466		)	(35,216		)
	Total	$	2,096,328		$	2,050,853

STOCK_OPTIONS

STOCK OPTIONS	12 Months Ended
	Dec. 31, 2014
STOCK OPTIONS.
STOCK OPTIONS
	6. STOCK OPTIONS
	The Company has a stock incentive plan for the issuance of up to 442,750 shares of common stock.  The plan provides for granting eligible participants stock options or other stock awards, as described by the plan, at option prices ranging from 85% to 110% of fair market value at date of grant.  Options granted expire up to seven years after the date of grant.  Such options generally become exercisable over a three year period.  A total of 115,989 shares of common stock are reserved for additional grants of options under the plan at December 31, 2014.
	Under the plan, the Company charged compensation cost of $18,415 and $13,907 against income in 2014 and 2013, respectively.
	As of December 31, 2014, there was approximately $20,000 of unrecognized compensation cost related to unvested share-based compensation awards granted which is expected to be recognized over the next three years.
	Proceeds from the exercise of stock options were $45,987 for 2014 and $89,398 for 2013.
	The fair value of options granted during 2014 and 2013 were estimated using the Black-Scholes option pricing model with the following assumptions:
		2014		2013
	Dividend yield	0%		0%
	Expected volatility	44.30%		43.90%
	Expected life of option	Five Years		Five Years
	Risk-free interest rate	1.70%		0.70%
	Fair value of each option on grant date	$11.49		$4.72
	There were 1,250 options and 4,250 options granted during 2014 and 2013, respectively.
	FASB ASC 718, Compensation — Stock Compensation specifies that initial accruals be based on the estimated number of instruments for which the requisite service is expected to be rendered.  Therefore, the Company is required to incorporate a preexisting forfeiture rate based on the historical forfeiture experience and prospective actuarial analysis, estimated at 3%.
	A summary of the status of the Company’s stock option plan as of December 31, 2014 and changes during the year then ended is presented below:
	Options	Shares		Weighted		Weighted	Aggregate
				Average		Average	Intrinsic
				Exercise		Remaining	Value
				Price		Contractual
						Term (years)
	Outstanding at January 1, 2014	11,417		$	8.87
	Granted	1,250		28.25
	Exercised	(6,083	)	7.56
	Expired and forfeited	(1,666	)	7.77
	Outstanding at December 31, 2014	4,918		$	15.78	3.31	$	33,126
	Vested or expected to vest at December 31, 2014	4,918		$	15.78	3.31	$	33,126
	Exercisable at December 31, 2014	916		$	9.81	2.23	$	9,846
	The weighted-average grant date fair value of options granted was $11.49 and $4.72 for the years ended December 31, 2014 and 2013, respectively.  The total intrinsic value of options exercised was $107,639 for the year ended December 31, 2014 and $95,477 for the year ended December 31, 2013.
	There were 3,000 shares of restricted stock granted and subsequently forfeited, prior to vesting, during the year ended December 31, 2014.  There were no restricted stock grants during the year ended December 31, 2013.
	Restricted stock activity during the nine months ended December 31, 2014 was as follows:
		Shares		Weighted
				Average
				Price
	Outstanding at January 1, 2014	—		$	—
	Granted	3,000		28.25
	Forfeited	3,000		28.25
	Outstanding at December 31, 2014	—		$	—

CONCENTRATION_OF_CREDIT_RISK

CONCENTRATION OF CREDIT RISK	12 Months Ended
	Dec. 31, 2014
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK
	7. CONCENTRATION OF CREDIT RISK
	The Company maintains its cash balances primarily in two financial institutions.  As of December 31, 2014, the balance at each of the institutions exceeded the Federal Deposit Insurance Corporation coverage.
	Trade receivables are financial instruments that also expose the Company to concentration of credit risk.  The large number of customers comprising the Company’s customer base and their dispersion across different geographic areas limits such exposure. In addition, the Company routinely assesses the financial strength of its customers and maintains an allowance for doubtful accounts that management believes will adequately provide for credit losses.

LINE_OF_CREDIT

LINE OF CREDIT	12 Months Ended
	Dec. 31, 2014
LINE OF CREDIT.
LINE OF CREDIT
	8. LINE OF CREDIT
	The Company has a $1,250,000 bank line of credit that provides for working capital financing.  This line of credit is subject to renewal on May 31, 2015, is collateralized by trade receivables and inventories, and bears interest at 2.5 percentage points over 30-day LIBOR.  There were no outstanding borrowings under this line of credit at December 31, 2014 and 2013.  There are no financial covenants related to the line of credit.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash Equivalents
	Cash Equivalents - The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.  Cash equivalents consist of money market funds in which the carrying value approximates market value because of the short maturity of these instruments.  The money market fund utilized by IKONICS invests in United States dollar denominated securities that present minimal credit risk and consist of investments in debt securities issued or guaranteed by the United States government or by United States government agencies or instrumentalities and repurchase agreements fully collateralized by the United States Treasury and United States government securities.
Short-Term Investments
	Short-Term Investments - Short-term investments consist of fully insured certificates of deposit with original maturities ranging from four to twelve months as of December 31, 2014 and 2013, respectively.
Trade Receivables
	Trade Receivables — Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on an on-going basis.  Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions.  Trade receivables are written off when deemed uncollectible.  Recoveries of trade receivables previously written off are recorded when received.  Accounts are considered past due if payment is not received according to agreed-upon terms.
	A small percentage of the trade receivables balance is denominated in a foreign currency with no concentration in any given country.  At the end of each reporting period, the Company analyzes the receivable balance for customers paying in a foreign currency. These balances are adjusted to each quarter or year-end spot rate in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) No. 830, Foreign Currency Matters.  Foreign currency transactions and translation adjustments did not have a significant effect on the Balance Sheet or the Statements of Income, Stockholders’ Equity and Cash Flows for 2014 and 2013.
Inventories
	Inventories - Inventories are stated at the lower of cost or market using the last-in, first-out (LIFO) method.  If the first-in, first-out (FIFO) cost method had been used, inventories would have been approximately $1,315,000 and $1,248,000 higher than reported at December 31, 2014 and 2013, respectively.  The inventory reserve for obsolescence was $11,000 and $15,000 at December 31, 2014 and 2013, respectively.  The major components of inventories are as follows:
		2014			2013
	Raw materials	$	2,020,151		$	1,952,398
	Work-in-progress	407,964			389,501
	Finished goods	1,517,151			1,461,264
	Reduction to LIFO cost	(1,314,616		)	(1,248,221		)
	Total inventories	$	2,630,650		$	2,554,942
Property, Plant and Equipment, Policy [Policy Text Block]
	Property, Plant and Equipment — Major expenditures extending the life of the property, plant and equipment are capitalized.  Repair and maintenance costs are expensed in the period in which they are incurred.  Depreciation of property, plant and equipment is computed using the straight-line method over the following estimated useful lives:
		Years
	Buildings	15-40
	Machinery and equipment	10-May
	Office equipment	10-Mar
	Vehicles	3
Intangible Assets
	Intangible Assets — Intangible assets consist of patents, licenses and covenants not to compete arising from business acquisitions.  Intangible assets are amortized on a straight-line basis over their estimated useful lives or agreement terms.  To the extent the undiscounted cash flows are less than the carrying value, analysis is performed based on several criteria, including, but not limited to, revenue trends, discounted operating cash flows and other operating factors to determine the impairment amount.
	As of December 31, 2014, the remaining estimated weighted average useful lives of intangible assets are as follows:
		Years
	Patents	13.4
	Licenses	2.7
	Non-compete agreements	0.5
Impairment of Long-lived Assets
	Impairment of Long-lived Assets — The Company reviews its long-lived assets, including property, plant and equipment and intangible assets, for impairment when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. Any impairment loss recorded is measured as the amount by which the carrying value of the assets exceeds the fair value of the assets. To date, the Company has determined that no impairment of long-lived assets exists.
Fair Value of Financial Instruments
	Fair Value of Financial Instruments — The carrying amounts of financial instruments, including cash and cash equivalents, short-term investments, trade receivables, accounts payable, and accrued liabilities approximate fair value due to the short maturities of these instruments.
Revenue Recognition
	Revenue Recognition — The Company recognizes revenue on sales of products when title passes which can occur at the time of shipment or when the goods arrive at the customer location depending on the agreement with the customer.  The Company sells its products to both distributors and end-users.  Sales to distributors and end-users are recorded based upon the criteria governed by the sales, delivery, and payment terms stated on the invoices from the Company to the purchaser.  In addition to transfer of title / risk of loss, all revenue is recorded in accordance with the criteria outlined within SAB 104 and FASB ASC 605 Revenue Recognition:
	(a) persuasive evidence of an arrangement (principally in the form of customer sales orders and the Company’s sales invoices, as generally there is no other formal agreement underlying the sale transactions)
	(b) delivery and performance (evidenced by proof of delivery, e.g. the shipment of film and substrates with bill of lading used for proof of delivery for FOB shipping point terms, and the carrier booking confirmation report used for FOB destination terms.  Once the finished product is shipped and physically delivered under the terms of the invoice and sales order, the Company has no additional performance or service obligations to complete)
	(c) a fixed and determinable sales price (the Company’s pricing is established and is not based on variable terms, as evidenced in either the Company’s invoices or the limited number of distribution agreements; the Company rarely grants extended payment terms and has no history of concessions)
	(d) a reasonable likelihood of payment (the Company’s terms are standard, and the Company does not have a substantial history of customer defaults or non-payment)
	Sales are reported on a net basis by deducting credits, estimated normal returns and discounts.  The Company’s return policy does not vary by geography.  The customer has no rotation or price protection rights and the Company is not under a warranty obligation.  Freight billed to customers is included in sales.  Shipping costs are included in cost of goods sold.
Deferred Taxes
	Deferred Taxes - Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences.  Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.  The Company follows the accounting standard on accounting for uncertainty in income taxes, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements.  Under this guidance, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position.  The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement.  The guidance on accounting for uncertainty in income taxes also addresses derecognition, classification, interest and penalties on income taxes, and accounting in interim periods.
Earnings Per Common Share (EPS)
	Earnings Per Common Share (EPS) - Basic EPS is calculated using net income divided by the weighted average of common shares outstanding.  Diluted EPS is similar to Basic EPS except that the weighted average number of common shares outstanding is increased to include the number of additional common shares, when dilutive, that would have been outstanding if the potential dilutive common shares, such as those shares subject to options, had been issued.
	Shares used in the calculation of diluted EPS are summarized below:
		2014		2013
	Weighted average common shares outstanding	2,017,144		2,006,843
	Dilutive effect of stock options	1,190		3,816
	Weighted average common and common equivalent shares outstanding	2,018,334		2,010,659
	At December 31, 2014, options to purchase 1,250 shares of common stock with a weighted average exercise price of $28.25 were outstanding, but were excluded from the computation of common share equivalents because they were anti-dilutive.  There were no anti-dilutive options at December 31, 2013.
Employee Stock Plan
	Employee Stock Plan - The Company accounts for employee stock options under the provision of ASC 718 Compensation — Stock Compensation.
Recent Accounting Pronouncements
	Recent Accounting Pronouncemnts - In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers.  ASU 2014-09 supersedes the revenue recognition requirements in Revenue Recognition (Topic 605), and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for the Company in our fiscal year beginning on January 1, 2017, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted.  The Company is currently evaluating the effect that adopting this new accounting guidance will have on our consolidated results of operations, cash flows and financial position.
	In August 2014, FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures.  ASU 2014-15 is effective for the Company in the year ended December 31, 2016, and interim periods beginning March 31, 2017, with early application permitted. The Company does not anticipate a material impact to the financial statements once implemented.
Use of Estimates
	Use of Estimates - The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  Significant estimates include the allowance for doubtful trade receivables, the reserve for inventory obsolescence, and the valuation allowance for deferred tax assets.

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of major components of inventories
		2014			2013
	Raw materials	$	2,020,151		$	1,952,398
	Work-in-progress	407,964			389,501
	Finished goods	1,517,151			1,461,264
	Reduction to LIFO cost	(1,314,616		)	(1,248,221		)
	Total inventories	$	2,630,650		$	2,554,942
Schedule of estimated useful lives of property, plant and equipment
		Years
	Buildings	15-40
	Machinery and equipment	10-May
	Office equipment	10-Mar
	Vehicles	3
Schedule of remaining estimated weighted average useful lives of intangible assets
		Years
	Patents	13.4
	Licenses	2.7
	Non-compete agreements	0.5
Summary of shares used in the calculation of diluted EPS
		2014		2013
	Weighted average common shares outstanding	2,017,144		2,006,843
	Dilutive effect of stock options	1,190		3,816
	Weighted average common and common equivalent shares outstanding	2,018,334		2,010,659

INCOME_TAXES_Tables

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2014
INCOME TAXES
Schedule of components of income tax expense
		2014			2013
	Current:
	Federal	$	332,000		$	91,000
	State	15,000			1,000
		347,000			92,000
	Deferred	(77,000		)	153,000
		$	270,000		$	245,000
Schedule of expected provision for income taxes, computed by applying the U.S. federal income tax rate to income before taxes, reconciled to income tax expense
		2014			2013
	Expected provision for federal income taxes	$	312,000		$	315,000
	State income taxes, net of federal benefit	15,000			16,000
	Domestic manufacturers deduction	(33,000		)	(20,000		)
	Non-deductible meals, entertainment, and life insurance	21,000			13,000
	Prior year adjustments	(1,000		)	(32,000		)
	Research and development credit	(31,000		)	(45,000		)
	Valuation allowance released on capital loss utilized	(17,000		)	—
	Other	4,000			(2,000		)
		$	270,000		$	245,000
Schedule of components of net deferred tax liabilities
		2014			2013
	Deferred tax assets:
	Accrued vacation	$	23,000		$	23,000
	Inventories reserve	129,000			105,000
	Allowance for doubtful accounts	4,000			9,000
	Allowance for sales returns	13,000			13,000
	Capital loss carryforward	—			309,000
	Research and development credit carryforward	30,000			17,000
	Accrued self-insured medical	9,000			—
	Less valuation allowance	(30,000		)	(326,000		)
		178,000			150,000
	Deferred tax liabilities:
	Property and equipment	(462,000		)	(468,000		)
	Intangible assets	(83,000		)	(59,000		)
	Net deferred tax liabilities	$	(367,000	)	$	(377,000	)
Schedule of deferred tax amounts included in the accompanying balance sheet
		2014			2013
	Current Assets	$	178,000		$	150,000
	Noncurrent liabilities	(545,000		)	(527,000		)
		$	(367,000	)	$	(377,000	)

INTANGIBLE_ASSETS_Tables

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2014
INTANGIBLE ASSETS
Schedule of components of intangible assets
		December 31, 2014					December 31, 2013
		Gross Carrying		Accumulated			Gross Carrying		Accumulated
		Amount		Amortization			Amount		Amortization
	Amortized intangible assets:
	Patents	$	402,789	$	(62,676	)	$	345,790	$	(46,692	)
	Licenses	50,000		(39,584		)	50,000		(36,459		)
	Non-compete agreements	100,000		(96,658		)	100,000		(89,992		)
		$	552,789	$	(198,918	)	$	495,790	$	(173,143	)
		2014		2013
	Aggregate amortization expense:
	For the years ended December 31	$	25,775	$	53,314
Schedule of estimated amortization expense
	2015	$	23,000
	2016	20,000
	2017	20,000
	2018	18,000
	2019	16,000

SEGMENT_INFORMATION_Tables

SEGMENT INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2014
SEGMENT INFORMATION
Schedule of financial information with respect to the reportable segments
	For the year ended December 31, 2014:
								IKONICS
		Domestic			Export			Imaging		DTX			AMS			Unalloc.			Total
	Net sales	$	7,846,457		$	5,249,843		$	4,644,082	$	422,646		$	326,809		$	—		$	18,489,837
	Cost of goods sold	4,571,505			3,840,948			2,167,870		365,828			840,457			—			11,786,608
	Gross profit (loss)	3,274,952			1,408,895			2,476,212		56,818			(513,648		)	—			6,703,229
	Selling general and adminstrative*	1,353,509			549,254			918,337		166,724			425,087			1,711,853			5,124,764
	Research and development*	—			—			—		—			—			664,999			664,999
	Income (loss) from operations	$	1,921,443		$	859,641		$	1,557,875	$	(109,906	)	$	(938,735	)	$	(2,376,852	)	$	913,466
	For the year ended December 31, 2013:
								IKONICS
		Domestic			Export			Imaging		DTX			AMS			Unalloc.			Total
	Net sales	$	7,260,934		$	5,641,544		$	3,836,762	$	407,193		$	344,975		$	—		$	17,491,408
	Cost of goods sold	4,062,141			4,057,111			1,831,047		70,343			532,911			—			10,553,553
	Gross profit (loss)	3,198,793			1,584,433			2,005,715		336,850			(187,936		)	—			6,937,855
	Selling general and adminstrative*	1,307,154			578,084			977,574		474,782			446,803			1,584,003			5,368,400
	Research and development*	—			—			—		—			—			649,325			649,325
	Income (loss) from operations	$	1,891,639		$	1,006,349		$	1,028,141	$	(137,932	)	$	(634,739	)	$	(2,233,328	)	$	920,130
	* The Company does not allocate all general and administrative expenses or any research and development expenses to its operating segments for internal reporting.
Schedule of trade receivables by segment
		Dec 31, 2014			Dec 31, 2013
	Domestic	$	1,068,170		$	1,012,057
	Export	640,464			667,343
	IKONICS Imaging	254,483			339,537
	DTX	86,507			26,910
	AMS	85,170			40,222
	Unallocated	(38,466		)	(35,216		)
	Total	$	2,096,328		$	2,050,853

STOCK_OPTIONS_Tables

STOCK OPTIONS (Tables)	12 Months Ended
	Dec. 31, 2014
STOCK OPTIONS.
Assumptions used in estimating fair value of stock options
		2014		2013
	Dividend yield	0%		0%
	Expected volatility	44.30%		43.90%
	Expected life of option	Five Years		Five Years
	Risk-free interest rate	1.70%		0.70%
	Fair value of each option on grant date	$11.49		$4.72
Stock option activity
	Options	Shares		Weighted		Weighted	Aggregate
				Average		Average	Intrinsic
				Exercise		Remaining	Value
				Price		Contractual
						Term (years)
	Outstanding at January 1, 2014	11,417		$	8.87
	Granted	1,250		28.25
	Exercised	(6,083	)	7.56
	Expired and forfeited	(1,666	)	7.77
	Outstanding at December 31, 2014	4,918		$	15.78	3.31	$	33,126
	Vested or expected to vest at December 31, 2014	4,918		$	15.78	3.31	$	33,126
	Exercisable at December 31, 2014	916		$	9.81	2.23	$	9,846
Restricted stock activity
		Shares		Weighted
				Average
				Price
	Outstanding at January 1, 2014	—		$	—
	Granted	3,000		28.25
	Forfeited	3,000		28.25
	Outstanding at December 31, 2014	—		$	—

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Export | Minimum
Description of Business and Foreign Export Sales
Term under credit arrangement	30 days
Export | Maximum
Description of Business and Foreign Export Sales
Term under credit arrangement	90 days
Sales Revenue, Segment | Customer Concentration Risk | Export
Description of Business and Foreign Export Sales
Percentage of net sales and trade receivable	28.40%	32.30%
Trade Accounts Receivable | Credit Concentration Risk
Description of Business and Foreign Export Sales
Percentage of net sales and trade receivable	30.60%	32.50%

SUMMARY_OF_SIGNIFICANT_ACCOUNT4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Inventories
Reserve for inventory obsolescence	11,000	15,000
Major components of inventories, net of the allowance for obsolescence
Raw materials	2,020,151	1,952,398
Work-in-progress	407,964	389,501
Finished goods	1,517,151	1,461,264
Reduction to LIFO cost	-1,314,616	-1,248,221
Total inventories	2,630,650	2,554,942
Certificates of Deposit | Minimum
Short-term investments
Maturity period	4 months	4 months
Certificates of Deposit | Maximum
Short-term investments
Maturity period	12 months	12 months

SUMMARY_OF_SIGNIFICANT_ACCOUNT5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3)	12 Months Ended
	Dec. 31, 2014
Building | Minimum
Depreciation
Estimated useful lives	15 years
Building | Maximum
Depreciation
Estimated useful lives	40 years
Machinery and Equipment | Minimum
Depreciation
Estimated useful lives	5 years
Machinery and Equipment | Maximum
Depreciation
Estimated useful lives	10 years
Office Equipment | Minimum
Depreciation
Estimated useful lives	3 years
Office Equipment | Maximum
Depreciation
Estimated useful lives	10 years
Vehicles
Depreciation
Estimated useful lives	3 years

SUMMARY_OF_SIGNIFICANT_ACCOUNT6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4)	12 Months Ended
	Dec. 31, 2014
Patents
INTANGIBLE ASSETS
Remaining estimated weighted average useful lives	13 years 4 months 24 days
Licensing Agreements
INTANGIBLE ASSETS
Remaining estimated weighted average useful lives	2 years 8 months 12 days
Noncompete Agreements
INTANGIBLE ASSETS
Remaining estimated weighted average useful lives	6 months

SUMMARY_OF_SIGNIFICANT_ACCOUNT7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Common Share (EPS)
Weighted average common shares outstanding	2,017,144	2,006,843
Dilutive effect of stock options	1,190	3,816
Weighted average common and common equivalent shares outstanding	2,018,334	2,010,659
Stock Options
Anti-dilutive securities
Anti-dilutive securities outstanding (in shares)		0
Outstanding options to purchase shares of common stock	1,250
Weighted average exercise price of outstanding options (in dollars per share)	28.25

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Current:
Federal	$332,000	$91,000
State	15,000	1,000
Total current	347,000	92,000
Deferred	-77,000	153,000
Income tax expense	$270,000	$245,000

INCOME_TAXES_Details_2

INCOME TAXES (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of expected provision for income taxes, computed by applying the U.S. federal income tax rate to income before taxes, to income tax expense
U.S. federal income tax rate (as a percent)	34.00%	34.00%
Expected provision for federal income taxes	$312,000	$315,000
State income taxes, net of federal benefit	15,000	16,000
Domestic manufacturers deduction	-33,000	-20,000
Non-deductible meals, entertainment, and life insurance	21,000	13,000
Prior year adjustments	-1,000	-32,000
Research and development credit	-31,000	-45,000
Valuation allowance released on capital loss utilized	-17,000
Other	4,000	-2,000
Income tax expense	270,000	245,000
Deferred tax assets:
Accrued vacation	23,000	23,000
Inventories reserve	129,000	105,000
Allowance for doubtful accounts	4,000	9,000
Allowance for sales returns	13,000	13,000
Capital loss carryforward		309,000
Research and development credit carryforward	30,000	17,000
Accrued self-insured medical	9,000
Less valuation allowance	-30,000	-326,000
Total deferred tax assets	178,000	150,000
Deferred tax liabilities:
Property and equipment and other assets	-462,000	-468,000
Intangible assets	-83,000	-59,000
Net deferred tax liabilities	($367,000)	($377,000)

INCOME_TAXES_Details_3

INCOME TAXES (Details 3) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Deferred tax amounts included in balance sheet
Current assets	$178,000	$150,000
Noncurrent liabilities	-545,000	-527,000
Net deferred tax liabilities	-367,000	-377,000
Valuation allowance	30,000	326,000
Capital loss carryforward		309,000
Research and development credit	30,000	17,000
Valuation allowance released on capital loss utilized	-17,000
Capital loss carryforwards expired	292,000
Unrecognized tax benefits	$0	$0

INTANGIBLE_ASSETS_Details

INTANGIBLE ASSETS (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Amortized intangible assets:
Gross Carrying Amount	$552,789	$495,790
Accumulated Amortization	-198,918	-173,143
Aggregate amortization expense:	25,775	53,314
Estimated amortization expense
2015	23,000
2016	20,000
2017	20,000
2018	18,000
2019	16,000
Impairment of Intangible Assets	0	0
Patents
Amortized intangible assets:
Gross Carrying Amount	402,789	345,790
Accumulated Amortization	-62,676	-46,692
Licensing Agreements
Amortized intangible assets:
Gross Carrying Amount	50,000	50,000
Accumulated Amortization	-39,584	-36,459
Estimated amortization expense
Expense under license agreement	16,000	19,000
Licensing Agreements | Minimum
Estimated amortization expense
Payment of royalties (as a percent)	3.00%
Licensing Agreements | Maximum
Estimated amortization expense
Payment of royalties (as a percent)	5.00%
Noncompete Agreements
Amortized intangible assets:
Gross Carrying Amount	100,000	100,000
Accumulated Amortization	($96,658)	($89,992)

RETIREMENT_PLAN_Details

RETIREMENT PLAN (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
RETIREMENT PLAN
Maximum contribution of the entity as a percentage of eligible employee's compensation	5.00%
Retirement expense	$213,000	$208,000

SEGMENT_INFORMATION_Details

SEGMENT INFORMATION (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
	segment
Segment Reporting Information
Number of reportable segments	5
Financial information with respect to the reportable segments
Net sales	$18,489,837	$17,491,408
Cost of goods sold	11,786,608	10,553,553
GROSS PROFIT	6,703,229	6,937,855
Selling general and administrative	5,124,764	5,368,400
Research and development	664,999	649,325
INCOME FROM OPERATIONS	913,466	920,130
Trade receivables by segment
Trade receivables	2,096,328	2,050,853
Corporate, Non-Segment
Financial information with respect to the reportable segments
Selling general and administrative	1,711,853	1,584,003
Research and development	664,999	649,325
INCOME FROM OPERATIONS	-2,376,852	-2,233,328
Trade receivables by segment
Trade receivables	-38,466	-35,216
Domestic
Financial information with respect to the reportable segments
Net sales	7,846,457	7,260,934
Cost of goods sold	4,571,505	4,062,141
GROSS PROFIT	3,274,952	3,198,793
Selling general and administrative	1,353,509	1,307,154
INCOME FROM OPERATIONS	1,921,443	1,891,639
Trade receivables by segment
Trade receivables	1,068,170	1,012,057
Export
Financial information with respect to the reportable segments
Net sales	5,249,843	5,641,544
Cost of goods sold	3,840,948	4,057,111
GROSS PROFIT	1,408,895	1,584,433
Selling general and administrative	549,254	578,084
INCOME FROM OPERATIONS	859,641	1,006,349
Trade receivables by segment
Trade receivables	640,464	667,343
IKONICS Imaging
Financial information with respect to the reportable segments
Net sales	4,644,082	3,836,762
Cost of goods sold	2,167,870	1,831,047
GROSS PROFIT	2,476,212	2,005,715
Selling general and administrative	918,337	977,574
INCOME FROM OPERATIONS	1,557,875	1,028,141
Trade receivables by segment
Trade receivables	254,483	339,537
DTX
Financial information with respect to the reportable segments
Net sales	422,646	407,193
Cost of goods sold	365,828	70,343
GROSS PROFIT	56,818	336,850
Selling general and administrative	166,724	474,782
INCOME FROM OPERATIONS	-109,906	-137,932
Trade receivables by segment
Trade receivables	86,507	26,910
Micro-Machining
Financial information with respect to the reportable segments
Net sales	326,809	344,975
Cost of goods sold	840,457	532,911
GROSS PROFIT	-513,648	-187,936
Selling general and administrative	425,087	446,803
INCOME FROM OPERATIONS	-938,735	-634,739
Trade receivables by segment
Trade receivables	$85,170	$40,222

STOCK_OPTIONS_Details

STOCK OPTIONS (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Stock options
Number of shares of common stock authorized for issuance	442,750
Proceeds from the exercise of stock	$45,987	$89,398
Stock Options
Stock options
Period over which options become exercisable	3 years
Common stock reserved for future grants (in shares)	115,989
Compensation cost recognized	18,415	13,907
Unrecognized compensation cost	20,000
Period during which compensation cost is expected to be recognized	3 years
Proceeds from the exercise of stock	$45,987	$89,398
Granted (in shares)	1,250	4,250
Estimated forfeiture rate (as a percent)	3.00%
Assumptions used to determine fair value of stock options granted
Dividend yield (as a percent)	0.00%	0.00%
Expected volatility (as a percent)	44.30%	43.90%
Expected life of option	5 years	5 years
Risk-free interest rate (as a percent)	1.70%	0.70%
Fair value of each option on grant date (in dollars per share)	$11.49	$4.72
Stock Options | Minimum
Stock options
Option price range(as a percent)	85.00%
Stock Options | Maximum
Stock options
Option price range(as a percent)	110.00%
Expiration period of options granted	7 years

STOCK_OPTIONS_Details_2

STOCK OPTIONS (Details 2) (Stock Options, USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Stock Options
Stock options
Weighted-average grant date fair value of options granted (in dollars per share)	$11.49	$4.72
Total intrinsic value of options exercised (in dollars)	$107,639	$95,477
Shares
Outstanding at beginning of period (in shares)	11,417
Granted (in shares)	1,250	4,250
Exercised (in shares)	-6,083
Expired and forfeited (in shares)	-1,666
Outstanding at end of period (in shares)	4,918	11,417
Vested or expected to vest at the end of the period (in shares)	4,918
Exercisable at end of period (in shares)	916
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per shares)	$8.87
Granted (in dollars per share)	$28.25
Exercised (in dollars per share)	$7.56
Expired and forfeited (in dollars per share)	$7.77
Outstanding at end of period (in dollars per share)	$15.78	$8.87
Vested or expected to vest at the end of the period (in dollars per share)	$15.78
Exercisable at end of period (in dollars per share)	$9.81
Weighted Average Remaining Contractual Term
Outstanding at end of year	3 years 3 months 22 days
Vested or expected to vest at end of period	3 years 3 months 22 days
Exercisable at end of period	2 years 2 months 23 days
Aggregate Intrinsic Value
Outstanding at the end of the year (in dollars)	33,126
Vested or expected to vest at end of period (in dollars)	33,126
Exercisable at the end of the period (in dollars)	$9,846

STOCK_OPTIONS_Details_3

STOCK OPTIONS (Details 3) (Restricted Stock, USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2014
Restricted Stock
Shares
Granted (in shares)	0	3,000
Forfeited (in shares)		3,000
Weighted Average Exercise Price
Granted (in dollars per share)		$28.25
Forfeited (in dollar per shares)		$28.25

CONCENTRATION_OF_CREDIT_RISK_D

CONCENTRATION OF CREDIT RISK (Details)	12 Months Ended
	Dec. 31, 2014
	item
CONCENTRATION OF CREDIT RISK
Number of financial institutions in which cash balance maintained by entity in partially insured checking account	2

LINE_OF_CREDIT_Details

LINE OF CREDIT (Details) (Line Of Credit, USD $)	12 Months Ended
	Dec. 31, 2014
Line of credit
Borrowing capacity	1,250,000
Outstanding borrowings	0
One Month LIBOR
Line of credit
Interest rate added to base rate (as a percent)	2.50%