TeraWulf (WULF) 10-Q 13 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 07, 2015
Document and Entity Information
Entity Registrant Name	IKONICS CORP
Entity Central Index Key	1,083,301
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,018,253
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($)	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 2,368,778	$ 1,936,214
Short-term investments	1,205,000	1,766,000
Trade receivables, less allowance of $56,000 in 2015 and $49,000 in 2014	2,154,908	2,096,328
Inventories	2,363,893	2,630,650
Prepaid expenses and other assets	145,920	86,400
Income taxes receivable	246,111	163,651
Deferred income taxes	178,000	178,000
Total current assets	8,662,610	8,857,243
PROPERTY, PLANT, AND EQUIPMENT, at cost:
Land and buildings	6,500,802	6,247,781
Machinery and equipment	4,208,267	3,956,561
Office equipment	817,072	754,220
Vehicles	247,356	247,356
Gross property, plant, and equipment, at cost	11,773,497	11,205,918
Less accumulated depreciation	6,116,830	5,789,070
Net property, plant, and equipment, at cost	5,656,667	5,416,848
INTANGIBLE ASSETS, less accumulated amortization of $212,079 in 2015 and $198,918 in 2014	325,113	353,871
Total assets	14,644,390	14,627,962
CURRENT LIABILITIES:
Accounts payable	596,217	371,181
Accrued compensation	248,483	294,706
Other accrued liabilities	107,015	78,610
Total current liabilities	951,715	744,497
DEFERRED INCOME TAXES	545,000	545,000
Total liabilities	$ 1,496,715	$ 1,289,497
STOCKHOLDERS' EQUITY:
Preferred stock, par value $.10 per share; authorized 250,000 shares: issued none
Common stock, par value $.10 per share; authorized 4,750,000 shares: issued and outstanding 2,018,253 shares in 2015 and 2014	$ 201,825	$ 201,825
Additional paid-in capital	2,691,740	2,681,307
Retained earnings	10,254,110	10,455,333
Total stockholders' equity	13,147,675	13,338,465
Total liabilities and stockholders' equity	$ 14,644,390	$ 14,627,962

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
CONDENSED BALANCE SHEETS
Trade receivables, allowance (in dollars)	$ 56,000	$ 49,000
INTANGIBLE ASSETS, accumulated amortization (in dollars)	$ 212,079	$ 198,918
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	2,018,253
Common stock, shares outstanding	2,018,253	2,018,253

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONDENSED STATEMENTS OF OPERATIONS
NET SALES	$ 4,653,548	$ 4,924,747	$ 8,251,437	$ 9,389,323
COST OF GOODS SOLD	3,013,806	3,213,875	5,511,020	5,919,298
GROSS PROFIT	1,639,742	1,710,872	2,740,417	3,470,025
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	1,252,521	1,240,413	2,668,118	2,541,063
RESEARCH AND DEVELOPMENT EXPENSES	192,539	177,479	348,383	320,809
INCOME (LOSS) FROM OPERATIONS	194,682	292,980	(276,084)	608,153
OTHER	1,510	1,552	3,206	3,510
INCOME (LOSS) BEFORE INCOME TAXES	196,192	294,532	(272,878)	611,663
INCOME TAX EXPENSE (BENEFIT)	168,468	96,100	(71,655)	208,316
NET INCOME (LOSS)	$ 27,724	$ 198,432	$ (201,223)	$ 403,347
EARNINGS (LOSS) PER COMMON SHARE:
Basic (in dollars per share)	$ 0.01	$ 0.10	$ (0.10)	$ 0.20
Diluted (in dollars per share)	$ 0.01	$ 0.10	$ (0.10)	$ 0.20
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic (in shares)	2,018,253	2,016,885	2,018,253	2,014,836
Diluted (in shares)	2,018,792	2,019,721	2,018,253	2,016,774

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (201,223)	$ 403,347
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	327,759	320,140
Amortization	13,161	12,887
Stock based compensation	10,433	11,502
Loss on disposal of property, plant and equipment		3,102
Loss on intangible asset abandonment	45,873
Changes in working capital components:
Trade receivables	(58,580)	(193,186)
Inventories	266,757	(76,405)
Prepaid expenses and other assets	(59,520)	(31,713)
Income taxes receivable	(82,460)	(33,307)
Accounts payable	225,036	(20,571)
Accrued expenses	(17,818)	(31,419)
Net cash provided by operating activities	469,418	364,377
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(567,578)	(403,212)
Proceeds from sales of equipment and vehicles		9,163
Purchases of intangibles	(30,276)	(38,590)
Purchases of short-term investments	(650,000)	(1,510,000)
Proceeds on sale of short-term investments	1,211,000	958,948
Net cash used in investing activities	(36,854)	(983,691)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		44,730
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	432,564	(574,584)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	1,936,214	1,704,300
CASH AND CASH EQUIVALENTS AT END OF PERIOD	2,368,778	1,129,716
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for income taxes	$ 10,805	$ 241,624

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Basis of Presentation
Basis of Presentation	1. Basis of Presentation The condensed balance sheet of IKONICS Corporation (the “Company”) as of June 30, 2015, and the related condensed statements of operations for the three and six months ended June 30, 2015 and 2014, and cash flows for the six months ended June 30, 2015 and 2014, have been prepared without being audited. In the opinion of management, these statements reflect all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position of IKONICS Corporation as of June 30, 2015, and the results of operations and cash flows for all periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted. Therefore, these statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for interim periods are not necessarily indicative of results that will be realized for the full fiscal year.

Short-Term Investments

Short-Term Investments	6 Months Ended
	Jun. 30, 2015
Short-Term Investments
Short-Term Investments	2. Short-Term Investments The Company’s $1,205,000 of short-term investments at June 30, 2015 is comprised of fully insured certificates of deposit with original maturities ranging from six to twelve months and interest rates ranging from 0.3% to 0.5%.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2015
Inventories
Inventories	3. Inventories The major components of inventories are as follows: June 30, 2015 Dec 31, 2014 Raw materials $ $ Work-in-progress Finished goods Reduction to LIFO cost ) ) Total Inventory $ $

Earnings Per Common Share (EPS)

Earnings Per Common Share (EPS)	6 Months Ended
	Jun. 30, 2015
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS)	4. Earnings Per Common Share (EPS) Basic EPS is calculated using net income (loss) 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 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: Three Months Ended June 30, 2015 June 30, 2014 Weighted average common shares outstanding Dilutive effect of stock options Weighted average common and common equivalent shares outstanding Six Months Ended June 30, 2015 June 30, 2014 Weighted average common shares outstanding Dilutive effect of stock options — Weighted average common and common equivalent shares outstanding For three months ended June 30, 2015, options to purchase 6,250 shares of common stock with a weighted average price of $18.28 were outstanding but were excluded from the computation of common share equivalents because they were anti-dilutive. Options to purchase 1,250 shares of common stock with a weighted average price of $28.25 were outstanding during the three and six months ended June 30, 2014, but were excluded from the computation of common share equivalents because they were anti-dilutive. If the Company was in a net income position for the first six months of 2015, 5,918 options with a weighted average exercise price of $12.49 would have been included as part of the weighted average common and common equivalent shares outstanding as the options would have been dilutive while 6,250 options with a weighted average exercise price of $18.28 would have remained excluded as the options were anti-dilutive.

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Jun. 30, 2015
Stock-based Compensation
Stock-Based Compensation	5. Stock-Based Compensation The Company maintains a stock incentive plan which authorizes the issuance of up to 442,750 shares of common stock. Of those shares, 12,168 were subject to outstanding options and 108,739 were reserved for future grants at June 30, 2015. 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 the date of grant. Options granted expire up to seven years after the date of grant. Such options generally become exercisable over a one to three year period. The Company charged compensation cost of approximately $5,700 against income for the three months ended June 30, 2015 and approximately $8,900 for the three months ended June 30, 2014. For the first six months of 2015, the Company charged compensation cost of approximately $10,400 against income and approximately $11,500 for the same period in 2014. As of June 30, 2015, there was approximately $51,000 of unrecognized compensation cost related to unvested share-based compensation awards granted. That cost is expected to be recognized over the next three years. The Company receives a tax deduction for certain stock option exercises during the period in which the options are exercised, generally for the excess of the market price at the time the stock options are exercised over the exercise price of the options, which increases additional paid in capital and reduces income taxes payable. Proceeds from the exercise of 5,916 stock options were approximately $45,000 for the six months ended June 30, 2014. No stock options were exercised during the six months ended June 30, 2015. The fair value of options granted during the six months ended June 30, 2015 and 2014 was estimated using the Black-Scholes option pricing model with the following assumptions: 2015 2014 Dividend yield 0% 0% Expected volatility 42.3% - 42.4% 44.3% Expected life of option Five Years Five Years Risk-free interest rate 1.4% -1.5% 1.7% Fair value of each option on grant date $5.43 - $6.14 $11.49 There were 7,250 and 1,250 options granted during each of the six months ended June 30, 2015 and 2014, respectively. Stock option activity during the six months ended June 30, 2015 was as follows: Weighted Average Exercise Shares Price Outstanding at January 1, 2015 $ Granted Exercised — — Expired and forfeited — — Outstanding at June 30, 2015 $ Exercisable at June 30, 2015 $ The aggregate intrinsic value of all options outstanding and for those exercisable at June 30, 2015 was approximately $18,000 and $11,000, respectively.

Commitments

Commitments	6 Months Ended
	Jun. 30, 2015
Commitments
Commitments	6. Commitments Building: In July 2015, the Company committed to proceed with a 27,300 square-foot building expansion project. The new, 27,300 square-foot structure will contain a 20,500 square-foot production floor in addition to offices and ancillary facilities and is expected to cost $3.5 million. The building will be an addition to IKONICS 37,000 square-foot building on its Morgan Park site in western Duluth, which currently houses AMS production, warehousing, shipping and film conversion for all IKONICS business units. All AMS activities will relocate to the new facility with an expected project completion date in second quarter of 2016. ERP System: During the second quarter of 2015, the Company committed to purchase $140,000 of software related to the implementation of a new Enterprise Resource Planning (ERP) system. The new ERP system will better support and accommodate IKONICS’ operations and replacing the Company’s existing ERP system. The total ERP system project is expected to cost approximately $400,000 and is expected to be completed by the second quarter of 2016. Line of Credit: A bank line of credit exists providing for borrowings of up to $1,250,000 and expires on May 31, 2017. The line of credit is collateralized by the Company’s assets and bears interest at 2.5 percentage points over the 30-day LIBOR rate. The Company did not utilize this line of credit during the first six months of 2015 or 2014 and there were no borrowings outstanding as of June 30, 2015 and 2014. There are no financial covenants related to the line of credit. In July 2015, the bank line of credit was increased to $2,050,000 and the interest rate was decreased to 1.8 percentage points over the 30-day LIBOR rate. The bank line of credit expiration date did not change from May 31, 2017.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2015
Segment Information
Segment Information	7. 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 Advanced Material Solutions (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 applied to determine the segment information are the same as those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. 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 which are allocated based on the previous segmentation. Financial information with respect to the reportable segments follows: For the three months ended June 30, 2015: IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ $ $ $ $ $ — $ Cost of goods sold — Gross profit (loss) ) — Selling general and adminstrative* Research and development* — — — — — Income (loss) from operations $ $ $ $ ) $ ) $ ) $ For the three months ended June 30, 2014: IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ $ $ $ $ $ — $ Cost of goods sold — Gross profit (loss) ) — Selling general and adminstrative* Research and development* — — — — — Income (loss) from operations $ $ $ $ ) $ ) $ ) $ For the six months ended June 30, 2015: IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ $ $ $ $ $ — $ Cost of goods sold — Gross profit (loss) ) — Selling general and adminstrative* Research and development* — — — — — Income (loss) from operations $ $ $ $ ) $ ) $ ) $ ) For the six months ended June 30, 2014: IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ $ $ $ $ $ — $ Cost of goods sold — Gross profit (loss) ) — Selling general and adminstrative* Research and development* — — — — — Income (loss) from operations $ $ $ $ ) $ ) $ ) $ * 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 June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 Dec 31, 2014 Domestic $ $ Export IKONICS Imaging DTX AMS Unallocated ) ) Total $ $

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Taxes
Income Taxes	8. Income Taxes The Company reports a liability for unrecognized tax benefits taken or expected to be taken when they are uncertain. As of June 30, 2015 and 2014, there was no liability for unrecognized tax benefits. The Company is subject to taxation in the United States and various states. The material jurisdictions that are subject to examination by tax authorities primarily include Minnesota and the United States, for tax years 2012, 2013, and 2014.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2015
Inventories
Schedule of major components of inventories	June 30, 2015 Dec 31, 2014 Raw materials $ $ Work-in-progress Finished goods Reduction to LIFO cost ) ) Total Inventory $ $

Earnings Per Common Share (EP15

Earnings Per Common Share (EPS) (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Common Share (EPS)
Summary of shares used in the calculation of diluted EPS	Three Months Ended June 30, 2015 June 30, 2014 Weighted average common shares outstanding Dilutive effect of stock options Weighted average common and common equivalent shares outstanding Six Months Ended June 30, 2015 June 30, 2014 Weighted average common shares outstanding Dilutive effect of stock options — Weighted average common and common equivalent shares outstanding

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Stock-based Compensation
Assumptions used in estimating fair value of stock options	2015 2014 Dividend yield 0% 0% Expected volatility 42.3% - 42.4% 44.3% Expected life of option Five Years Five Years Risk-free interest rate 1.4% -1.5% 1.7% Fair value of each option on grant date $5.43 - $6.14 $11.49
Stock option activity	Weighted Average Exercise Shares Price Outstanding at January 1, 2015 $ Granted Exercised — — Expired and forfeited — — Outstanding at June 30, 2015 $ Exercisable at June 30, 2015 $

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Information
Schedule of financial information with respect to the reportable segments	For the three months ended June 30, 2015: IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ $ $ $ $ $ — $ Cost of goods sold — Gross profit (loss) ) — Selling general and adminstrative* Research and development* — — — — — Income (loss) from operations $ $ $ $ ) $ ) $ ) $ For the three months ended June 30, 2014: IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ $ $ $ $ $ — $ Cost of goods sold — Gross profit (loss) ) — Selling general and adminstrative* Research and development* — — — — — Income (loss) from operations $ $ $ $ ) $ ) $ ) $ For the six months ended June 30, 2015: IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ $ $ $ $ $ — $ Cost of goods sold — Gross profit (loss) ) — Selling general and adminstrative* Research and development* — — — — — Income (loss) from operations $ $ $ $ ) $ ) $ ) $ ) For the six months ended June 30, 2014: IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ $ $ $ $ $ — $ Cost of goods sold — Gross profit (loss) ) — Selling general and adminstrative* Research and development* — — — — — Income (loss) from operations $ $ $ $ ) $ ) $ ) $
Schedule of trade receivables by segment	June 30, 2015 Dec 31, 2014 Domestic $ $ Export IKONICS Imaging DTX AMS Unallocated ) ) Total $ $

Short-Term Investments (Details

Short-Term Investments (Details) - Jun. 30, 2015 - Certificates of Deposit - USD ($)	Total
Short-term investments
Fully insured certificates of deposit	$ 1,205,000
Minimum
Short-term investments
Maturity period	6 months
Interest rate (as a percent)	0.30%
Maximum
Short-term investments
Maturity period	12 months
Interest rate (as a percent)	0.50%

Inventories (Details)

Inventories (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Inventories
Raw materials	$ 1,854,302	$ 2,020,151
Work-in-progress	421,764	407,964
Finished goods	1,399,940	1,517,151
Reduction to LIFO cost	(1,312,113)	(1,314,616)
Total inventory	$ 2,363,893	$ 2,630,650

Earnings Per Common Share (EP20

Earnings Per Common Share (EPS) (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Shares used in calculation of diluted EPS
Weighted average common shares outstanding	2,018,253	2,016,885	2,018,253	2,014,836
Dilutive effect of stock options	539	2,836		1,938
Weighted average common and common equivalent shares outstanding	2,018,792	2,019,721	2,018,253	2,016,774
Anti-dilutive securities
Outstanding options to purchase shares of common stock not included			5,918
Weighted average exercise price of outstanding options not included (in dollars per share)	$ 12.49		$ 12.49
Stock Options
Anti-dilutive securities
Outstanding options to purchase shares of common stock not included	6,250	1,250		1,250
Weighted average exercise price of outstanding options not included (in dollars per share)	$ 18.28	$ 28.25	$ 18.28	$ 28.25

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock options
Common stock reserved for future grants (in shares)	108,739		108,739
Proceeds from the exercise of stock				$ 44,730
Maximum
Stock options
Number of shares of common stock authorized for issuance	442,750		442,750
Stock Options
Stock options
Compensation cost recognized	$ 5,700	$ 8,900	$ 10,400	$ 11,500
Unrecognized compensation cost	$ 51,000		$ 51,000
Period during which compensation cost is expected to be recognized			3 years
Exercise of stock options (in shares)	0			5,916
Stock Options | Minimum
Stock options
Option price range(as a percent)			85.00%
Period over which options become exercisable			1 year
Stock Options | Maximum
Stock options
Option price range(as a percent)			110.00%
Expiration period of options granted			7 years
Period over which options become exercisable			3 years

Stock-Based Compensation (Det22

Stock-Based Compensation (Details 2) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014
Weighted Average Exercise Price
Aggregate intrinsic value of all options outstanding	$ 18,000	$ 18,000
Aggregate intrinsic value of all options exercisable	$ 11,000	$ 11,000
Stock Options
Assumptions used to determine fair value of stock options granted
Dividend yield (as a percent)		0.00%	0.00%
Expected volatility (as a percent)		42.30%	44.30%
Expected life of option		5 years	5 years
Risk-free interest rate (as a percent)		1.40%	1.70%
Fair value of each option on grant date (in dollars per share)		$ 5.43	$ 11.49
Granted (in shares)		7,250	1,250
Shares
Outstanding at beginning of period (in shares)		4,918
Granted (in shares)		7,250	1,250
Exercised (in shares)	0		(5,916)
Outstanding at end of period (in shares)	12,168	12,168
Exercisable at end of period (in shares)	2,833	2,833
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per shares)		$ 15.78
Granted (in dollars per share)		15.25
Outstanding at end of period (in dollars per share)	$ 15.47	15.47
Exercisable at end of period (in dollars per share)	$ 13.53	$ 13.53
Maximum | Stock Options
Assumptions used to determine fair value of stock options granted
Expected volatility (as a percent)		42.40%
Risk-free interest rate (as a percent)		1.50%
Fair value of each option on grant date (in dollars per share)		$ 6.14

Commitments (Details)

Commitments (Details)	1 Months Ended	6 Months Ended
	Jul. 31, 2015USD ($)ft²	Jun. 30, 2015USD ($)ft²	Jun. 30, 2016USD ($)	Jun. 30, 2014USD ($)
ERP System
Expected ERP system project cost		$ 140,000
Forecast
ERP System
Expected ERP system project cost			$ 400,000
Line Of Credit.
Line of Credit
Maximum borrowing capacity	$ 2,050,000	1,250,000
Outstanding borrowings		$ 0		$ 0
Line Of Credit. | 30-day LIBOR
Line of Credit
Variable rate margin	1.80%	2.50%
Production Floor
Building
Area of property | ft²	20,500
Expansion Project
Building
Area of property | ft²	27,300
Expected cost of expansion	$ 3,500,000
Morgan Park site
Building
Area of property | ft²		37,000

Segment Information (Details)

Segment Information (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)segment	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Segment Reporting Information
Number of reportable segments | segment			5
Financial information with respect to the reportable segments
Net sales	$ 4,653,548	$ 4,924,747	$ 8,251,437	$ 9,389,323
Cost of goods sold	3,013,806	3,213,875	5,511,020	5,919,298
GROSS PROFIT	1,639,742	1,710,872	2,740,417	3,470,025
Selling general and administrative	1,252,521	1,240,413	2,668,118	2,541,063
Research and development	192,539	177,479	348,383	320,809
INCOME (LOSS) FROM OPERATIONS	194,682	292,980	(276,084)	608,153
Trade receivables by segment
Trade receivables	2,154,908		2,154,908		$ 2,096,328
Corporate, Non-Segment
Financial information with respect to the reportable segments
Selling general and administrative	424,085	391,448	969,905	879,807
Research and development	192,539	177,479	348,383	320,809
INCOME (LOSS) FROM OPERATIONS	(616,624)	(568,927)	(1,318,288)	(1,200,616)
Trade receivables by segment
Trade receivables	(22,685)		(22,685)		(38,466)
Domestic
Financial information with respect to the reportable segments
Net sales	2,111,510	2,089,767	3,489,299	3,599,931
Cost of goods sold	1,207,376	1,220,452	2,048,332	2,103,556
GROSS PROFIT	904,134	869,315	1,440,967	1,496,375
Selling general and administrative	323,730	332,442	639,897	628,793
INCOME (LOSS) FROM OPERATIONS	580,404	536,873	801,070	867,582
Trade receivables by segment
Trade receivables	1,005,847		1,005,847		1,068,170
Export
Financial information with respect to the reportable segments
Net sales	1,337,121	1,626,682	2,455,415	2,813,394
Cost of goods sold	1,018,025	1,194,219	1,902,353	2,069,119
GROSS PROFIT	319,096	432,463	553,062	744,275
Selling general and administrative	137,271	142,716	291,991	266,844
INCOME (LOSS) FROM OPERATIONS	181,825	289,747	261,071	477,431
Trade receivables by segment
Trade receivables	750,167		750,167		640,464
IKONICS Imaging
Financial information with respect to the reportable segments
Net sales	991,108	1,046,592	1,884,873	2,608,396
Cost of goods sold	449,116	510,508	909,487	1,166,507
GROSS PROFIT	541,992	536,084	975,386	1,441,889
Selling general and administrative	237,167	227,816	498,423	472,164
INCOME (LOSS) FROM OPERATIONS	304,825	308,268	476,963	969,725
Trade receivables by segment
Trade receivables	272,551		272,551		254,483
DTX
Financial information with respect to the reportable segments
Net sales	101,662	94,612	197,056	207,129
Cost of goods sold	69,003	84,705	142,094	164,468
GROSS PROFIT	32,659	9,907	54,962	42,661
Selling general and administrative	54,711	50,657	90,243	85,866
INCOME (LOSS) FROM OPERATIONS	(22,052)	(40,750)	(35,281)	(43,205)
Trade receivables by segment
Trade receivables	62,285		62,285		86,507
Micro-Machining
Financial information with respect to the reportable segments
Net sales	112,147	67,094	224,794	160,473
Cost of goods sold	270,286	203,991	508,754	415,648
GROSS PROFIT	(158,139)	(136,897)	(283,960)	(255,175)
Selling general and administrative	75,557	95,334	177,659	207,589
INCOME (LOSS) FROM OPERATIONS	(233,696)	$ (232,231)	(461,619)	$ (462,764)
Trade receivables by segment
Trade receivables	$ 86,743		$ 86,743		$ 85,170

Income Taxes (Details)

Income Taxes (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Deferred tax amounts included in balance sheet
Unrecognized tax benefits	$ 0	$ 0