TeraWulf (WULF) 10-K 3 Mar 20 2019 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	Feb. 26, 2020	Jun. 30, 2019
Document Information [Line Items]
Entity Registrant Name	IKONICS CORP
Entity Central Index Key	0001083301
Trading Symbol	iknx
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding (in shares)		1,976,354
Entity Public Float			$ 9,620,472
Entity Shell Company	false
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Title of 12(b) Security	Common Stock, par value $.10 per share

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 963,649	$ 1,623,137
Short-term investments	2,205,000	2,695,000
Trade receivables, less allowance of $58,000 in 2019 and $53,000 in 2018	2,434,718	2,215,215
Inventories	2,180,536	2,046,588
Prepaid expenses and other assets	906,916	375,362
Income taxes receivable	1,369	2,768
Total current assets	8,692,188	8,958,070
PROPERTY, PLANT, AND EQUIPMENT, at cost:
Land and building	9,556,984	9,500,429
Machinery and equipment	5,198,784	4,964,816
Office equipment	1,402,369	1,559,728
Vehicles	245,674	245,679
Property, plant, and equipment, Gross	16,403,811	16,270,652
Less accumulated depreciation	(8,487,827)	(8,185,910)
Total property, plant and equipment at cost, net	7,915,984	8,084,742
INTANGIBLE ASSETS, less accumulated amortization of $181,609 in 2019 and $149,740 in 2018	271,369	376,406
Total assets	16,879,541	17,419,218
CURRENT LIABILITIES
Current portion of long-term debt	133,287	129,282
Accounts payable	761,641	647,528
Accrued compensation	382,303	366,900
Other accrued liabilities	657,255	159,821
Total current liabilities	1,934,486	1,303,531
LONG-TERM LIABILITIES
Long-term debt, less current portion	2,688,357	2,821,657
Deferred income taxes		183,000
Total long-term liabilities	2,688,357	3,004,657
Total liabilities	4,622,843	4,308,188
COMMITMENTS AND CONTINGENCIES
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 1,976,354 shares in 2019 and 1,983,553 in 2018.	197,635	198,355
Additional paid-in-capital	2,721,962	2,723,024
Retained earnings	9,337,101	10,189,651
Total stockholders' equity	12,256,698	13,111,030
Total liabilities and stockholders' equity	$ 16,879,541	$ 17,419,218

Balance Sheets (Parentheticals)

Balance Sheets (Parentheticals) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Trade receivables, allowances	$ 58,000	$ 53,000
Intangible assets, accumulated amortization	$ 181,609	$ 149,740
Preferred stock, par value (in dollars per share)	$ 0.10	$ 0.10
Preferred stock, authorized (in shares)	250,000	250,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	4,750,000	4,750,000
Common stock, share issued (in shares)	1,976,354	1,983,553
Common stock, share outstanding (in shares)	1,976,354	1,983,553

Statements of Operations

Statements of Operations - USD ($)		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Net sales		$ 17,618,559	$ 18,213,653
Cost of goods sold		12,221,370	11,959,626
GROSS PROFIT		5,397,189	6,254,027
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	[1]	5,483,586	5,350,966
RESEARCH AND DEVELOPMENT EXPENSES	[1]	870,279	677,242
(LOSS) INCOME FROM OPERATIONS		(956,676)	225,819
INTEREST EXPENSE		(90,058)	(90,583)
OTHER INCOME		61,176	50,229
(LOSS) INCOME BEFORE INCOME TAXES		(985,558)	185,465
INCOME TAX (BENEFIT) EXPENSE		(172,000)	46,000
NET (LOSS) INCOME		$ (813,558)	$ 139,465
(LOSS) INCOME PER COMMON SHARE
Basic (in dollars per share)		$ (0.41)	$ 0.07
Diluted (in dollars per share)		$ (0.41)	$ 0.07
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (in shares)		1,980,253	1,983,553
Diluted (in shares)		1,980,253	1,983,553
[1]	The Company does not allocate all general and administrative expenses or any research and development expenses to its operating segments for internal reporting.

Statements of Stockholders' Equ

Statements of Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
BALANCE (in shares) at Dec. 31, 2017	1,983,553
BALANCE at Dec. 31, 2017	$ 198,355	$ 2,709,390	$ 10,050,186	$ 12,957,931
Net (loss) income			139,465	139,465
Stock based compensation		13,634		$ 13,634
BALANCE (in shares) at Dec. 31, 2018	1,983,553			1,983,553
BALANCE at Dec. 31, 2018	$ 198,355	2,723,024	10,189,651	$ 13,111,030
Net (loss) income			(813,558)	(813,558)
Stock based compensation		8,821		$ 8,821
Common stock repurchased (in shares)	(7,199)			(7,199)
Common stock repurchased	$ (720)	(9,883)	(38,992)	$ (49,595)
BALANCE (in shares) at Dec. 31, 2019	1,976,354			1,976,354
BALANCE at Dec. 31, 2019	$ 197,635	$ 2,721,962	$ 9,337,101	$ 12,256,698

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (813,558)	$ 139,465
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation	639,997	758,834
Amortization	43,014	36,485
Stock based compensation	8,821	13,634
Net (gain) loss on sale and disposal of equipment	(8,482)	1,230
Deferred income taxes	(183,000)	39,000
Loss on intangible asset abandonment	92,833	0
Changes in working capital components:
Trade receivables	(219,503)	(24,955)
Inventories	(133,948)	39,477
Prepaid expenses and other assets	(531,554)	(207,120)
Income tax receivable	1,399	(652)
Accounts payable	114,113	325,668
Accrued expenses	512,837	103,699
Net cash (used in) provided by operating activities	(477,031)	1,224,765
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(478,353)	(543,145)
Proceeds from sales of equipment	15,596
Purchases of intangibles assets	(19,665)	(49,970)
Purchases of short-term investments	(5,635,000)	(5,615,000)
Proceeds on sale of short-term investments	6,125,000	5,815,000
Net cash provided by (used in) investing activities	7,578	(393,115)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment on long-term debt	(140,440)	(138,213)
Repurchase of common stock	(49,595)
Net cash used in financing activities	(190,035)	(138,213)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(659,488)	693,437
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	1,623,137	929,700
CASH AND CASH EQUIVALENTS AT END OF PERIOD	963,649	1,623,137
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest	79,008	78,112
Cash paid for income taxes, net	$ 9,457	$ 7,652

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business and Foreign Export Sales Foreign sales approximated 29.4% 2019 2018. 30 90 No 10% 2019 2018. 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 three Short-Term Investments three six December 31, 2019 2018. Trade Receivables no not 2019 2018. Inventories first first first $1,356,000 $1,287,000 December 31, 2019 2018, $12,000 $9,000 December 31, 2019 2018, Dec 31, 2019 Dec 31, 2018 Raw materials $ 1,667,154 $ 1,767,458 Work-in-progress 419,906 370,075 Finished goods 1,449,854 1,196,516 Reduction to LIFO cost (1,356,378 ) (1,287,461 ) Total Inventories $ 2,180,536 $ 2,046,588 Property, Plant and Equipment Years Buildings 15-40 Machinery and equipment 5-10 Office equipment 3-10 Vehicles 3 Intangible Assets — As of December 31, 2019, 10.3 Impairment of Long-lived Assets — no Fair Value of Financial Instruments Revenue recognition one Individually promised goods and services in a contract are considered a distinct performance obligation and accounted for separately if the customer can benefit from the individual good or service on its own or with other resources that are readily available to the customer and the good or service is separately identifiable from other promises in the arrangement. When an arrangement includes multiple performance obligations, the consideration is allocated between the performance obligations in proportion to their estimated standalone selling price. Costs related to products delivered are recognized in the period incurred, unless criteria for capitalization of costs are met. Costs of revenues consist primarily of direct labor, manufacturing overhead, materials and components. The Company does not The Company excludes from revenue governmental assessed and imposed taxes on revenue transactions that are invoiced to customers. The Company includes freight billed to customers in revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold. The timing of revenue recognition, billings and cash collections results in accounts receivable on the balance sheet. Performance obligations The Company sells its products to both distributors and end-users. Each unit of product delivered under a customer order represents a distinct and separate performance obligation as the customer can benefit from each unit on its own or with other resources that are readily available to the customer and each unit of product is separately identifiable from other products in the arrangement. The transaction price for the Company’s products is the invoiced amount. The Company does not not not one no one Revenue is recognized when transfer of control occurs as defined by the terms in the customer agreement. The Company immediately recognizes incidental items that are immaterial in the context of the contract. The Company does not thirty ninety The Company estimates returns based on an analysis of historical experience if the right to return products is granted to its customers. The Company does not not not no Trade receivables. not not Sales commissions. not 340 40 25 4 one Product warranties. not not may International revenue. 29% 2019 2018. Deferred Taxes not not 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 not 50 Earnings Per Common Share (EPS) Shares used in the calculation of diluted EPS are summarized below: Dec 31, 2019 Dec 31, 2018 Weighted average common shares outstanding 1,980,253 1,983,553 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,980,253 1,983,553 If the Company was in a net income position at December 31, 2019, 19,250 $11.32 At December 31, 2018, 18,000 $13.22 Employee Stock Plan - 718, Recent Accounting Pronouncements - February 2016, No. 2016 02, No. 2016 02 12 No. 2016 02 December 15, 2018, No. 2016 02 January 1, 2019. not In June 2016, No. 2016 13, November 2018, No. 2018 19 April 2019, No. 2019 04 May 2019, No. 2019 05, November 2019, No. 2019 11, December 15, 2022, first Use of Estimates

Note 2 - Income Taxes

Note 2 - Income Taxes	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Income Tax Disclosure [Text Block]	2. INCOME TAXES Income tax (benefit) expense for the years ended December 31, 2019 2018 2019 2018 Current: Federal $ — $ — State 11,000 7,000 11,000 7,000 Deferred - Federal (183,000 ) 39,000 $ (172,000 ) $ 46,000 The expected (benefit) provision for income taxes, computed by applying the U.S. federal income tax rate of 21% 2019 2018 Expected income tax (benefit) provision for federal income taxes $ (207,000 ) $ 39,000 State income taxes, net of federal benefit (7,000 ) 7,000 Non-deductible meals, entertainment, and life insurance 11,000 12,000 Research and development credit (29,000 ) (43,000 ) Change in valuation allowance 51,000 18,000 Prior year true-ups and other 9,000 13,000 $ (172,000 ) $ 46,000 Net deferred tax liabilities consist of the following as of December 31, 2019 2018: 2019 2018 Deferred tax liabilities: Accrued vacation $ 21,000 $ 18,000 Inventories reserve 42,000 46,000 Allowance for doubtful accounts 3,000 2,000 Allowance for sales returns 10,000 9,000 Research and development credit carryforward 245,000 161,000 Accrued self-insured medical 3,000 4,000 Property and equipment (295,000 ) (282,000 ) Intangible assets (53,000 ) (73,000 ) Net operating loss 230,000 33,000 Other 8,000 8,000 Valuation allowance (214,000 ) (109,000 ) Net deferred tax liabilities $ — $ (183,000 ) The Company’s federal net operating loss carryforward and research and development credit carryover as of December 31, 2019 $1,042,000 $114,000, 2037. December 31, 2019 $171,000 2026. December 31, 2019 $163,000. Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three December 31, 2019. On the basis of this evaluation, as of December 31, 2019, $214,000 not may no 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, 2019 2018, no The Company is subject to federal and state taxation. As of December 31, 2019, no 2016.

Note 3 - Intangible Assets

Note 3 - Intangible Assets	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	3. INTANGIBLE ASSETS Intangible assets consist of patents, patent applications, and licenses. 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. The Company wrote off costs related to abandoned patent applications of $93,000 2019. no December 31, 2018. Intangible assets at December 31, 2019 2018 December 31, 2019 December 31, 2018 Gross Carrying Accumulated Gross Carrying Accumulated Amount Amortization Amount Amortization Amortized intangible assets: Patents $ 452,978 $ (181,609 ) $ 526,146 $ (149,740 ) 2019 2018 Aggregate amortization expense: For the years ended December 31 $ 31,869 $ 24,749 Estimated amortization expense for the years ending December 31: 2020 $ 26,000 2021 25,000 2022 25,000 2023 25,000 2024 24,000 In connection with the license agreement, the Company has agreed to pay royalties ranging from 3% 5% $10,000 $13,000 2019 2018,

Note 4 - Retirement Plan

Note 4 - Retirement Plan	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Compensation and Employee Benefit Plans [Text Block]	4. RETIREMENT PLAN The Company has established a salary deferral plan under Section 401 5% December 31, 2019 2018 $241,000 $239,000,

Note 5 - Segment Information

Note 5 - Segment Information	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	5. SEGMENT INFORMATION The Company’s reportable segments are strategic business units that offer different products and have varied customer bases. There are four 2019, one 2019 2019, 2019 2018 1. Management evaluates the performance of each segment based on the components of divisional income, and does not For the year ended December 31, 2019: IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 11,472,111 $ 4,191,175 $ 393,804 $ 1,561,469 $ — $ 17,618,559 Cost of goods sold 8,389,404 2,273,641 157,650 1,400,675 — 12,221,370 Gross profit 3,082,707 1,917,534 236,154 160,794 — 5,397,189 Selling, general, and administrative* 1,832,473 1,081,847 149,924 361,342 2,058,000 5,483,586 Research and development* — — — — 870,279 870,279 Income (loss) from operations $ 1,250,234 $ 835,687 $ 86,230 $ (200,548 ) $ (2,928,279 ) $ (956,676 ) For the year ended December 31, 2018: IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 11,610,414 $ 4,397,826 $ 420,714 $ 1,784,699 $ — $ 18,213,653 Cost of goods sold 7,949,894 2,323,425 137,039 1,549,268 — 11,959,626 Gross profit 3,660,520 2,074,401 283,675 235,431 — 6,254,027 Selling, general, and administrative* 1,777,197 1,023,422 150,698 367,533 2,032,116 5,350,966 Research and development* — — — — 677,242 677,242 Income (loss) from operations $ 1,883,323 $ 1,050,979 $ 132,977 $ (132,102 ) $ (2,709,358 ) $ 225,819 *The Company does not Trade receivables by segment as of December 31, 2019 December 31, 2018 Dec 31, 2019 Dec 31, 2018 Chromaline $ 1,916,066 $ 1,550,411 IKONICS Imaging 304,791 360,551 DTX 13,919 15,692 AMS 252,363 331,708 Unallocated (52,421 ) (43,147 ) Total $ 2,434,718 $ 2,215,215

Note 6 - Stockholders' Equity

Note 6 - Stockholders' Equity	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Share-based Payment Arrangement [Text Block]	6. STOCKHOLDERS’ EQUITY The Company maintains the 2019 “2019 2019 1995 "1995 April 2019. 1995 442,750 16,000 December 31, 2019. 1995 2019 102,157 1995 no Under the terms of the 2019 may 2019 102,157. 2019 750 1995 2019 2019 2019 102,907. December 31, 2019, 3,250 2019 The Company charged compensation expense of $8,821 $13,634 2019 2018, As of December 31, 2019, $12,000 three No 2019 2018. The fair value of options granted during 2019 2018 2019 2018 Dividend yield — — Expected volatility 37.5 % 40.0 % Expected life of option (years) 5 5 Risk-free interest rate 1.7 % 2.8 % Fair value of each option on grant date $2.53 $3.38 There were 3,250 2,750 2019 2018, A summary of the status of the Company’s stock option plan as of December 31, 2019 Weighted Average Exercise Shares Price Outstanding at January 1, 2019 18,000 $ 13.22 Granted 3,250 7.15 Exercised — — Expired and forfeited (2,000 ) 21.69 Outstanding at December 31, 2019 19,250 $ 11.32 Exercisable at December 31, 2019 13,415 $ 12.83 In 2017, 100,000 33,500 April 29, 2019 33,500 100,000 40,699 7,199 2019. 92,801 not

Note 7 - Concentration of Credi

Note 7 - Concentration of Credit Risk	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	7. CONCENTRATION OF CREDIT RISK The Company maintains its cash balances primarily in two December 31, 2019, one 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.

Note 8 - Long-term Debt

Note 8 - Long-term Debt	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Debt Disclosure [Text Block]	8. LONG-TERM DEBT On April 1, 2016, $3,415,000 2016 The closing of the sale of the Bonds occurred on April 29, 2016. 27,300 The Loan requires monthly payments of approximately $18,000, 2.60% April 1, 2041. $139,000, 3.23% December 31, 2019. The Loan is subject to mandatory purchase provisions, under which any owners of the Bonds (the “Owners”) may April 1, 2021, not April 1, 2021, Subject to limitations in the associated covenant agreement, the Company may The Company is subject to certain customary covenants set forth in the associated covenant agreement, including a requirement that the Company maintain a debt service coverage ratio as of the end of each calendar quarter of not 1.25 1.00 four December 31, 2019 not , but has obtained a waiver for the non-compliance. There is no February 2020 December 31, 2020. $3.2 $2.0 December 31 2019. The remaining principal payments required under the agreement for years ended December 31, 2020 144,000 2021 148,000 2022 151,000 2023 156,000 2024 160,000 Thereafter 2,158,000 Total Principal 2,917,000 Less: Unamortized debt issuance costs 96,000 Less: Current portion 133,000 Long-term portion $ 2,688,000 In connection with the agreement, the Company incurred debt issuance costs of approximately $139,000 2016, $11,000 2019 $12,000 2018 $85,000 $11,000 December 31, 2019. $10,000 five In addition to the $3,415,000 $2,050,000, August 30, 2021 1.8 30 not 2019 2018 no December 31, 2019 2018. no Both the $3,415,000

Note 9 - Chief Executive Office

Note 9 - Chief Executive Officer Transition	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Officer Transition [Text Block]	9. CHIEF EXECUTIVE OFFICER TRANSITION On January 7, 2020, February 10, 2020. January 7, 2020, February 10, 2020. February 10, 2020. one $375,000 first 2020

Significant Accounting Policies

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash Equivalents three
Investment, Policy [Policy Text Block]	Short-Term Investments three six December 31, 2019 2018.
Accounts Receivable [Policy Text Block]	Trade Receivables no not 2019 2018.
Inventory, Policy [Policy Text Block]	Inventories first first first $1,356,000 $1,287,000 December 31, 2019 2018, $12,000 $9,000 December 31, 2019 2018, Dec 31, 2019 Dec 31, 2018 Raw materials $ 1,667,154 $ 1,767,458 Work-in-progress 419,906 370,075 Finished goods 1,449,854 1,196,516 Reduction to LIFO cost (1,356,378 ) (1,287,461 ) Total Inventories $ 2,180,536 $ 2,046,588
Property, Plant and Equipment, Policy [Policy Text Block]	Property, Plant and Equipment Years Buildings 15-40 Machinery and equipment 5-10 Office equipment 3-10 Vehicles 3
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]	Intangible Assets — As of December 31, 2019, 10.3
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	Impairment of Long-lived Assets — no
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments
Revenue [Policy Text Block]	Revenue recognition one Individually promised goods and services in a contract are considered a distinct performance obligation and accounted for separately if the customer can benefit from the individual good or service on its own or with other resources that are readily available to the customer and the good or service is separately identifiable from other promises in the arrangement. When an arrangement includes multiple performance obligations, the consideration is allocated between the performance obligations in proportion to their estimated standalone selling price. Costs related to products delivered are recognized in the period incurred, unless criteria for capitalization of costs are met. Costs of revenues consist primarily of direct labor, manufacturing overhead, materials and components. The Company does not The Company excludes from revenue governmental assessed and imposed taxes on revenue transactions that are invoiced to customers. The Company includes freight billed to customers in revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold. The timing of revenue recognition, billings and cash collections results in accounts receivable on the balance sheet. Performance obligations The Company sells its products to both distributors and end-users. Each unit of product delivered under a customer order represents a distinct and separate performance obligation as the customer can benefit from each unit on its own or with other resources that are readily available to the customer and each unit of product is separately identifiable from other products in the arrangement. The transaction price for the Company’s products is the invoiced amount. The Company does not not not one no one Revenue is recognized when transfer of control occurs as defined by the terms in the customer agreement. The Company immediately recognizes incidental items that are immaterial in the context of the contract. The Company does not thirty ninety The Company estimates returns based on an analysis of historical experience if the right to return products is granted to its customers. The Company does not not not no Trade receivables. not not Sales commissions. not 340 40 25 4 one Product warranties. not not may International revenue. 29% 2019 2018.
Income Tax, Policy [Policy Text Block]	Deferred Taxes not not 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 not 50
Earnings Per Share, Policy [Policy Text Block]	Earnings Per Common Share (EPS) Shares used in the calculation of diluted EPS are summarized below: Dec 31, 2019 Dec 31, 2018 Weighted average common shares outstanding 1,980,253 1,983,553 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,980,253 1,983,553 If the Company was in a net income position at December 31, 2019, 19,250 $11.32 At December 31, 2018, 18,000 $13.22
Share-based Payment Arrangement [Policy Text Block]	Employee Stock Plan - 718,
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements - February 2016, No. 2016 02, No. 2016 02 12 No. 2016 02 December 15, 2018, No. 2016 02 January 1, 2019. not In June 2016, No. 2016 13, November 2018, No. 2018 19 April 2019, No. 2019 04 May 2019, No. 2019 05, November 2019, No. 2019 11, December 15, 2022, first
Use of Estimates, Policy [Policy Text Block]	Use of Estimates

Note 1 - Summary of Significa_2

Note 1 - Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2019
Notes Tables
Schedule of Inventory, Current [Table Text Block]	Dec 31, 2019 Dec 31, 2018 Raw materials $ 1,667,154 $ 1,767,458 Work-in-progress 419,906 370,075 Finished goods 1,449,854 1,196,516 Reduction to LIFO cost (1,356,378 ) (1,287,461 ) Total Inventories $ 2,180,536 $ 2,046,588
Property, Plant and Equipment [Table Text Block]	Years Buildings 15-40 Machinery and equipment 5-10 Office equipment 3-10 Vehicles 3
Schedule of Weighted Average Number of Shares [Table Text Block]	Dec 31, 2019 Dec 31, 2018 Weighted average common shares outstanding 1,980,253 1,983,553 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,980,253 1,983,553

Note 2 - Income Taxes (Tables)

Note 2 - Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Notes Tables
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	2019 2018 Current: Federal $ — $ — State 11,000 7,000 11,000 7,000 Deferred - Federal (183,000 ) 39,000 $ (172,000 ) $ 46,000
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	2019 2018 Expected income tax (benefit) provision for federal income taxes $ (207,000 ) $ 39,000 State income taxes, net of federal benefit (7,000 ) 7,000 Non-deductible meals, entertainment, and life insurance 11,000 12,000 Research and development credit (29,000 ) (43,000 ) Change in valuation allowance 51,000 18,000 Prior year true-ups and other 9,000 13,000 $ (172,000 ) $ 46,000
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	2019 2018 Deferred tax liabilities: Accrued vacation $ 21,000 $ 18,000 Inventories reserve 42,000 46,000 Allowance for doubtful accounts 3,000 2,000 Allowance for sales returns 10,000 9,000 Research and development credit carryforward 245,000 161,000 Accrued self-insured medical 3,000 4,000 Property and equipment (295,000 ) (282,000 ) Intangible assets (53,000 ) (73,000 ) Net operating loss 230,000 33,000 Other 8,000 8,000 Valuation allowance (214,000 ) (109,000 ) Net deferred tax liabilities $ — $ (183,000 )

Note 3 - Intangible Assets (Tab

Note 3 - Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2019
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	December 31, 2019 December 31, 2018 Gross Carrying Accumulated Gross Carrying Accumulated Amount Amortization Amount Amortization Amortized intangible assets: Patents $ 452,978 $ (181,609 ) $ 526,146 $ (149,740 ) 2019 2018 Aggregate amortization expense: For the years ended December 31 $ 31,869 $ 24,749
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	2020 $ 26,000 2021 25,000 2022 25,000 2023 25,000 2024 24,000

Note 5 - Segment Information (T

Note 5 - Segment Information (Tables)	12 Months Ended
	Dec. 31, 2019
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 11,472,111 $ 4,191,175 $ 393,804 $ 1,561,469 $ — $ 17,618,559 Cost of goods sold 8,389,404 2,273,641 157,650 1,400,675 — 12,221,370 Gross profit 3,082,707 1,917,534 236,154 160,794 — 5,397,189 Selling, general, and administrative* 1,832,473 1,081,847 149,924 361,342 2,058,000 5,483,586 Research and development* — — — — 870,279 870,279 Income (loss) from operations $ 1,250,234 $ 835,687 $ 86,230 $ (200,548 ) $ (2,928,279 ) $ (956,676 ) IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 11,610,414 $ 4,397,826 $ 420,714 $ 1,784,699 $ — $ 18,213,653 Cost of goods sold 7,949,894 2,323,425 137,039 1,549,268 — 11,959,626 Gross profit 3,660,520 2,074,401 283,675 235,431 — 6,254,027 Selling, general, and administrative* 1,777,197 1,023,422 150,698 367,533 2,032,116 5,350,966 Research and development* — — — — 677,242 677,242 Income (loss) from operations $ 1,883,323 $ 1,050,979 $ 132,977 $ (132,102 ) $ (2,709,358 ) $ 225,819 Dec 31, 2019 Dec 31, 2018 Chromaline $ 1,916,066 $ 1,550,411 IKONICS Imaging 304,791 360,551 DTX 13,919 15,692 AMS 252,363 331,708 Unallocated (52,421 ) (43,147 ) Total $ 2,434,718 $ 2,215,215

Note 6 - Stockholders' Equity (

Note 6 - Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2019
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	2019 2018 Dividend yield — — Expected volatility 37.5 % 40.0 % Expected life of option (years) 5 5 Risk-free interest rate 1.7 % 2.8 % Fair value of each option on grant date $2.53 $3.38
Share-based Payment Arrangement, Option, Activity [Table Text Block]	Weighted Average Exercise Shares Price Outstanding at January 1, 2019 18,000 $ 13.22 Granted 3,250 7.15 Exercised — — Expired and forfeited (2,000 ) 21.69 Outstanding at December 31, 2019 19,250 $ 11.32 Exercisable at December 31, 2019 13,415 $ 12.83

Note 8 - Long-term Debt (Tables

Note 8 - Long-term Debt (Tables)	12 Months Ended
	Dec. 31, 2019
Notes Tables
Schedule of Maturities of Long-term Debt [Table Text Block]	2020 144,000 2021 148,000 2022 151,000 2023 156,000 2024 160,000 Thereafter 2,158,000 Total Principal 2,917,000 Less: Unamortized debt issuance costs 96,000 Less: Current portion 133,000 Long-term portion $ 2,688,000

Note 1 - Summary of Significa_3

Note 1 - Summary of Significant Accounting Policies (Details Textual)	12 Months Ended
	Dec. 31, 2019USD ($)$ / sharesshares	Dec. 31, 2018USD ($)$ / sharesshares
FIFO Inventory Amount	$ 1,356,000	$ 1,287,000
Inventory Valuation Reserves, Ending Balance	$ 12,000	$ 9,000
Finite-Lived Intangible Asset, Useful Life	10 years 109 days
Impairment of Long-Lived Assets Held-for-use	$ 0
Share-based Payment Arrangement, Option [Member]
Number of Option Shares Excluded from Weighted Average Common Shares Outstanding | shares	19,250	18,000
Weighted Average Exercise Price Options Excluded From Weighted Average Common Share Outstanding | $ / shares	$ 11.32	$ 13.22
Export [Member] | Minimum [Member]
Accounts Receivable Credit Term	30 days
Export [Member] | Maximum [Member]
Accounts Receivable Credit Term	90 days
Revenue, Segment Benchmark [Member] | Customer Concentration Risk [Member] | Export [Member]
Concentration Risk, Percentage	29.40%	29.40%
Revenue Benchmark [Member] | Customer Concentration Risk [Member]
Number of Major Customers	0	0
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | Geographic Distribution, Foreign [Member]
Concentration Risk, Percentage	29.00%	29.00%

Note 1 - Summary of Significa_4

Note 1 - Summary of Significant Accounting Policies - Major Components of Inventories (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Raw materials	$ 1,667,154	$ 1,767,458
Work-in-progress	419,906	370,075
Finished goods	1,449,854	1,196,516
Reduction to LIFO cost	(1,356,378)	(1,287,461)
Total Inventories	$ 2,180,536	$ 2,046,588

Note 1 - Summary of Significa_5

Note 1 - Summary of Significant Accounting Policies - Property, Plant and Equipment, Estimate Useful Lives (Details)	12 Months Ended
	Dec. 31, 2019
Building [Member] | Minimum [Member]
Estimated useful lives (Year)	15 years
Building [Member] | Maximum [Member]
Estimated useful lives (Year)	40 years
Machinery and Equipment [Member] | Minimum [Member]
Estimated useful lives (Year)	5 years
Machinery and Equipment [Member] | Maximum [Member]
Estimated useful lives (Year)	10 years
Office Equipment [Member] | Minimum [Member]
Estimated useful lives (Year)	3 years
Office Equipment [Member] | Maximum [Member]
Estimated useful lives (Year)	10 years
Vehicles [Member]
Estimated useful lives (Year)	3 years

Note 1 - Summary of Significa_6

Note 1 - Summary of Significant Accounting Policies - Summary of Calculation of Diluted EPS (Details) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Weighted average common shares outstanding (in shares)	1,980,253	1,983,553
Dilutive effect of stock options (in shares)
Weighted average common and common equivalent shares outstanding (in shares)	1,980,253	1,983,553

Note 2 - Income Taxes (Details

Note 2 - Income Taxes (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%
Deferred Tax Assets, Valuation Allowance, Total	$ 214,000	$ 109,000
Domestic Tax Authority [Member]
Operating Loss Carryforwards, Total	1,042,000
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member]
Tax Credit Carryforward, Amount	114,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards, Total	171,000
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member]
Tax Credit Carryforward, Amount	$ 163,000

Note 2 - Income Taxes - Income

Note 2 - Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Current:
Federal
State	11,000	7,000
	11,000	7,000
Deferred - Federal	(183,000)	39,000
	$ (172,000)	$ 46,000

Note 2 - Income Taxes - Incom_2

Note 2 - Income Taxes - Income Taxes Reconciliation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Expected income tax (benefit) provision for federal income taxes	$ (207,000)	$ 39,000
State income taxes, net of federal benefit	(7,000)	7,000
Non-deductible meals, entertainment, and life insurance	11,000	12,000
Research and development credit	(29,000)	(43,000)
Change in valuation allowance	51,000	18,000
Prior year true-ups and other	9,000	13,000
	$ (172,000)	$ 46,000

Note 2 - Income Taxes - Net Def

Note 2 - Income Taxes - Net Deferred Tax Liabilities (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Deferred tax liabilities:
Accrued vacation	$ 21,000	$ 18,000
Inventories reserve	42,000	46,000
Allowance for doubtful accounts	3,000	2,000
Allowance for sales returns	10,000	9,000
Research and development credit carryforward	245,000	161,000
Accrued self-insured medical	3,000	4,000
Property and equipment	(295,000)	(282,000)
Intangible assets	(53,000)	(73,000)
Net operating loss	230,000	33,000
Other	8,000	8,000
Valuation allowance	(214,000)	(109,000)
Net deferred tax liabilities		$ (183,000)

Note 3 - Intangible Assets (Det

Note 3 - Intangible Assets (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Impairment of Intangible Assets, Finite-lived	$ 92,833	$ 0
Licensing Agreements [Member]
Royalty Expense	$ 10,000	$ 13,000
Licensing Agreements [Member] | Minimum [Member]
Payment of Royalty in Percentage	3.00%
Licensing Agreements [Member] | Maximum [Member]
Payment of Royalty in Percentage	5.00%

Note 3 - Intangible Assets - Su

Note 3 - Intangible Assets - Summary of Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accumulated amortization	$ (181,609)	$ (149,740)
For the years ended December 31	31,869	24,749
Patents [Member]
Gross carrying amount	452,978	526,146
Accumulated amortization	$ (181,609)	$ (149,740)

Note 3 - Intangible Assets - Es

Note 3 - Intangible Assets - Estimated Amortization Expense (Details)	Dec. 31, 2019USD ($)
2020	$ 26,000
2021	25,000
2022	25,000
2023	25,000
2024	$ 24,000

Note 4 - Retirement Plan (Detai

Note 4 - Retirement Plan (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	5.00%
Defined Contribution Plan, Cost	$ 241,000	$ 239,000

Note 5 - Segment Information (D

Note 5 - Segment Information (Details Textual)	12 Months Ended
	Dec. 31, 2019
Number of Reportable Segments	4

Note 5 - Segment Information -

Note 5 - Segment Information - Reportable Segments (Details) - USD ($)		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Net sales		$ 17,618,559	$ 18,213,653
Cost of goods sold		12,221,370	11,959,626
Gross profit		5,397,189	6,254,027
Selling, general, and administrative*	[1]	5,483,586	5,350,966
Research and development*	[1]	870,279	677,242
Income (loss) from operations		(956,676)	225,819
Trade receivables		2,434,718	2,215,215
Segment Reconciling Items [Member]
Net sales
Cost of goods sold
Gross profit
Selling, general, and administrative*	[1]	2,058,000	2,032,116
Research and development*	[1]	870,279	677,242
Income (loss) from operations		(2,928,279)	(2,709,358)
Trade receivables		(52,421)	(43,147)
Chromaline [Member] | Operating Segments [Member]
Net sales		11,472,111	11,610,414
Cost of goods sold		8,389,404	7,949,894
Gross profit		3,082,707	3,660,520
Selling, general, and administrative*	[1]	1,832,473	1,777,197
Research and development*	[1]
Income (loss) from operations		1,250,234	1,883,323
Trade receivables		1,916,066	1,550,411
Ikonics Imaging [Member] | Operating Segments [Member]
Net sales		4,191,175	4,397,826
Cost of goods sold		2,273,641	2,323,425
Gross profit		1,917,534	2,074,401
Selling, general, and administrative*	[1]	1,081,847	1,023,422
Research and development*	[1]
Income (loss) from operations		835,687	1,050,979
Trade receivables		304,791	360,551
DTX [Member] | Operating Segments [Member]
Net sales		393,804	420,714
Cost of goods sold		157,650	137,039
Gross profit		236,154	283,675
Selling, general, and administrative*	[1]	149,924	150,698
Research and development*	[1]
Income (loss) from operations		86,230	132,977
Trade receivables		13,919	15,692
AMS [Member] | Operating Segments [Member]
Net sales		1,561,469	1,784,699
Cost of goods sold		1,400,675	1,549,268
Gross profit		160,794	235,431
Selling, general, and administrative*	[1]	361,342	367,533
Research and development*	[1]
Income (loss) from operations		(200,548)	(132,102)
Trade receivables		$ 252,363	$ 331,708
[1]	The Company does not allocate all general and administrative expenses or any research and development expenses to its operating segments for internal reporting.

Note 6 - Stockholders' Equity_2

Note 6 - Stockholders' Equity (Details Textual) - USD ($)	12 Months Ended			36 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Apr. 29, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	19,250	18,000		19,250
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	3,250	2,750
Share-based Payment Arrangement, Expense	$ 8,821	$ 13,634
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 12,000			$ 12,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	0
Stock Repurchase Program, Number of Shares Authorized to be Repurchased			100,000		100,000
Stock Repurchased During Period, Shares	7,199		33,500	40,699
Stock Repurchase Program, Number of Additional Shares Authorized to be Repurchased					33,500
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	92,801			92,801
The 1995 Incentive Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	442,750			442,750
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	16,000			16,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	750
The 1995 Incentive Stock Option Plan [Member] | Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	102,157			102,157
The 2019 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	102,907			102,907
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	3,250

Note 6 - Stockholders' Equity -

Note 6 - Stockholders' Equity - Assumptions (Details) - Share-based Payment Arrangement, Option [Member] - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Dividend yield
Expected volatility	37.50%	40.00%
Expected life of option (years) (Year)	5 years	5 years
Risk-free interest rate	1.70%	2.80%
Fair value of each option on grant date (in dollars per share)	$ 2.53	$ 3.38

Note 6 - Stockholders' Equity_3

Note 6 - Stockholders' Equity - Stock Option Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Outstanding, Shares (in shares)	18,000
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 13.22
Granted, Shares (in shares)	3,250	2,750
Granted, Weighted Average Exercise Price (in dollars per share)	$ 7.15
Exercised, Shares (in shares)	0	0
Exercised, Weighted Average Exercise Price (in dollars per share)
Expired and forfeited, Shares (in shares)	(2,000)
Expired and forfeited, Weighted Average Exercise Price (in dollars per share)	$ 21.69
Outstanding, Shares (in shares)	19,250	18,000
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 11.32	$ 13.22
Exercisable, Shares (in shares)	13,415
Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 12.83

Note 8 - Long-term Debt (Detail

Note 8 - Long-term Debt (Details Textual)	Apr. 29, 2016USD ($)ft²	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Apr. 01, 2016USD ($)
Line of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 2,050,000
Long-term Line of Credit, Total		$ 0	$ 0
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate		1.80%
Loan [Member]
Debt Instrument, Periodic Payment, Total	$ 18,000
Debt Instrument, Interest Rate, Stated Percentage	2.60%
Debt Issuance Costs, Gross	$ 139,000
Debt Instrument, Interest Rate, Effective Percentage	3.23%
Debt Service Coverage Ratio	1.25
Investments and Cash, Total		$ 3,200,000
Amortization of Debt Issuance Costs		11,000	12,000
Debt Issuance Costs, Noncurrent, Net, Total		85,000	$ 11,000
Amortization of Debt Issuance Costs Annual Expected Amount Over Remainder of Debt Term		$ 10,000
Loan [Member] | Building [Member]
Area of Real Estate Property | ft²	27,300
Duluth Economic Development Authority [Member]
Tax Exempt Industrial Revenue Bonds Amount Sold to Bank				$ 3,415,000

Note 8 - Long-term Debt - Remai

Note 8 - Long-term Debt - Remaining Principal Payments and the Current and Long-term Portion of Principal (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
2020	$ 144,000
2021	148,000
2022	151,000
2023	156,000
2024	160,000
Thereafter	2,158,000
Total Principal	2,917,000
Less: Unamortized debt issuance costs	96,000
Less: Current portion	133,287	$ 129,282
Long-term portion	$ 2,688,357	$ 2,821,657

Note 9 - Chief Executive Offi_2

Note 9 - Chief Executive Officer Transition (Details Textual)	3 Months Ended
	Mar. 31, 2020USD ($)
Forecast [Member]
Officer Transition Expense	$ 375,000