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 |