TeraWulf (WULF) 10-Q 12 Aug 20 2020 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 07, 2020
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 Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding (in shares)		1,976,354
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false
Title of 12(b) Security	Common Stock, par value $.10 per share

Condensed Balance Sheets (Curre

Condensed Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 2,978,109	$ 963,649
Short-term investments		2,205,000
Trade receivables, less allowance of $129,000 in 2020 and $58,000 in 2019	1,414,019	2,434,718
Inventories	2,681,940	2,180,536
Prepaid expenses and other assets	157,840	906,916
Income taxes receivable	248,380	1,369
Total current assets	7,480,288	8,692,188
PROPERTY, PLANT, AND EQUIPMENT, at cost:
Land and building	9,556,585	9,556,984
Machinery and equipment	5,285,503	5,198,784
Office equipment	1,440,964	1,402,369
Vehicles	245,674	245,674
Property, plant, and equipment, Gross	16,528,726	16,403,811
Less accumulated depreciation	(8,814,234)	(8,487,827)
Total property, plant and equipment at cost, net	7,714,492	7,915,984
INTANGIBLE ASSETS, less accumulated amortization of $194,731 in 2020 and $181,609 in 2019	253,824	271,369
Total assets	15,448,604	16,879,541
CURRENT LIABILITIES
Current portion of long-term debt	3,288,361	133,287
Accounts payable	315,224	761,641
Accrued compensation	414,638	382,303
Other accrued liabilities	113,306	657,255
Total current liabilities	4,131,529	1,934,486
LONG-TERM LIABILITIES
Long-term debt, less current portion	681,510	2,688,357
Total liabilities	4,813,039	4,622,843
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 2020 and 2019.	197,635	197,635
Additional paid-in-capital	2,729,338	2,721,962
Retained earnings	7,708,592	9,337,101
Total stockholders' equity	10,635,565	12,256,698
Total liabilities and stockholders' equity	$ 15,448,604	$ 16,879,541

Condensed Balance Sheets (Cur_2

Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Trade receivables, allowances	$ 129,000	$ 58,000
Intangible assets, accumulated amortization	$ 194,731	$ 181,609
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	1,976,354
Common stock, share outstanding (in shares)	1,976,354	1,976,354

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net sales		$ 2,572,439	$ 4,596,411	$ 6,069,631	$ 8,125,102
Cost of goods sold		2,187,544	3,167,982	4,531,504	5,687,554
GROSS PROFIT		384,895	1,428,429	1,538,127	2,437,548
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	[1]	1,202,307	1,338,861	2,983,327	2,720,826
RESEARCH AND DEVELOPMENT EXPENSES	[1]	201,234	270,465	384,814	449,307
LOSS FROM OPERATIONS		(1,018,646)	(180,897)	(1,830,014)	(732,585)
INTEREST EXPENSE		(24,623)	(22,515)	(46,107)	(44,790)
OTHER INCOME		1,766	17,303	8,683	33,497
LOSS BEFORE INCOME TAXES		(1,041,503)	(186,109)	(1,867,438)	(743,878)
INCOME TAX BENEFIT		0	(70,398)	(238,929)	(173,136)
NET LOSS		$ (1,041,503)	$ (115,711)	$ (1,628,509)	$ (570,742)
LOSS PER COMMON SHARE
Basic (in dollars per share)		$ (0.53)	$ (0.06)	$ (0.82)	$ (0.29)
Diluted (in dollars per share)		$ (0.53)	$ (0.06)	$ (0.82)	$ (0.29)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (in shares)		1,976,354	1,982,275	1,976,354	1,982,910
Diluted (in shares)		1,976,354	1,982,275	1,976,354	1,982,910
[1]	The Company does not allocate all selling, 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 (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
BALANCE (in shares) at Dec. 31, 2018	1,983,553
BALANCE at Dec. 31, 2018	$ 198,355	$ 2,723,024	$ 10,189,651	$ 13,111,030
Net loss			(570,742)	(570,742)
Stock based compensation		3,840		3,840
Common stock repurchased (in shares)	(2,742)
Common stock repurchased	$ (274)	(3,765)	(16,930)	(20,969)
BALANCE (in shares) at Jun. 30, 2019	1,980,811
BALANCE at Jun. 30, 2019	$ 198,081	2,723,099	9,601,979	12,523,159
BALANCE (in shares) at Mar. 31, 2019	1,983,553
BALANCE at Mar. 31, 2019	$ 198,355	2,724,944	9,734,620	12,657,919
Net loss			(115,711)	(115,711)
Stock based compensation		1,920		1,920
Common stock repurchased (in shares)	(2,742)
Common stock repurchased	$ (274)	(3,765)	(16,930)	(20,969)
BALANCE (in shares) at Jun. 30, 2019	1,980,811
BALANCE at Jun. 30, 2019	$ 198,081	2,723,099	9,601,979	$ 12,523,159
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
Net loss			(1,628,509)	(1,628,509)
Stock based compensation		7,376		$ 7,376
BALANCE (in shares) at Jun. 30, 2020	1,976,354			1,976,354
BALANCE at Jun. 30, 2020	$ 197,635	2,729,338	7,708,592	$ 10,635,565
BALANCE (in shares) at Mar. 31, 2020	1,976,354
BALANCE at Mar. 31, 2020	$ 197,635	2,725,650	8,750,095	11,673,380
Net loss			(1,041,503)	(1,041,503)
Stock based compensation		3,688		$ 3,688
BALANCE (in shares) at Jun. 30, 2020	1,976,354			1,976,354
BALANCE at Jun. 30, 2020	$ 197,635	$ 2,729,338	$ 7,708,592	$ 10,635,565

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,628,509)	$ (570,742)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	335,435	321,062
Amortization	18,452	24,308
Stock based compensation	7,376	3,840
Net gain on sale and disposal of equipment	(2,324)	(8,481)
Loss on intangible asset abandonment	16,906	71,600
Changes in working capital components:
Trade receivables	1,020,699	(8,230)
Inventories	(501,404)	(465,661)
Prepaid expenses and other assets	749,076	113,037
Income tax receivable	(247,011)	(182,451)
Accounts payable	(446,417)	(114,104)
Accrued expenses	(511,614)	46,897
Net cash used in operating activities	(1,189,335)	(768,925)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(149,916)	(230,570)
Proceeds from sales of equipment	18,297	15,596
Purchases of intangible assets	(12,483)	(6,322)
Purchases of short-term investments		(3,185,000)
Proceeds on sale of short-term investments	2,205,000	2,940,000
Net cash provided by (used in) investing activities	2,060,898	(466,296)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from debt	1,214,500
Payment on long-term debt	(71,603)	(69,761)
Repurchase of common stock		(20,969)
Net cash provided by (used in) financing activities	1,142,897	(90,730)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	2,014,460	(1,325,951)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	963,649	1,623,137
CASH AND CASH EQUIVALENTS AT END OF PERIOD	2,978,109	297,186
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest	37,998	39,812
Cash paid for income taxes, net	$ 8,082	$ 9,315

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	6 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. Basis of Presentation The condensed balance sheet of IKONICS Corporation (the “Company”) as of June 30, 2020, three six June 30, 2020 2019, three six June 30, 2020 2019, six June 30, 2020 2019, 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, 2020, 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 December 31, 2019. The results of operations for interim periods are not The Company relies on cash flow generated from operations and available borrowings under its bank line of credit to fund its working capital and other operating and investing needs. The Company's ability to borrow under the bank line of credit is based on its continued compliance with its debt service coverage ratio covenant, as defined. The full extent of the effect of the COVID- 19 2020 19 19 Based on the Company's current cash position, and expected future cash flows, the Company believes it will have sufficient cash to funds its operations beyond twelve The Company has evaluated subsequent events occurring after the date of the financial statements for events requiring recording or disclosure in the financial statements. As a result of the novel strain of COVID- 19

Note 2 - Inventories

Note 2 - Inventories	6 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Inventory Disclosure [Text Block]	2. Inventories The major components of inventories as of June 30, 2020 December 31, 2019 Jun 30, 2020 Dec 31, 2019 Raw materials $ 1,511,629 $ 1,667,154 Work-in-progress 475,194 419,906 Finished goods 2,013,510 1,449,854 Reduction to LIFO cost (1,318,393 ) (1,356,378 ) Total Inventories $ 2,681,940 $ 2,180,536

Note 3 - Earnings Per Common Sh

Note 3 - Earnings Per Common Share (EPS)	6 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Earnings Per Share [Text Block]	3. Earnings Per Common Share (EPS) Basic EPS is calculated using net loss divided by the weighted average of common shares outstanding. Diluted EPS is calculated similarly 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. The options disclosed in Note 5 Shares used in the calculation of diluted EPS are summarized below: Three Months Ended Jun 30, 2020 Jun 30, 2019 Weighted average common shares outstanding 1,976,354 1,982,275 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,976,354 1,982,275 Six Months Ended Jun 30, 2020 Jun 30, 2019 Weighted average common shares outstanding 1,976,354 1,982,910 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,976,354 1,982,910 If the Company was in a net income position for the three six June 30, 2020, 21,500 $7.38 If the Company was in a net income position for the three six June 30, 2019, 16,000 $12.17

Note 4 - Stock-based Compensati

Note 4 - Stock-based Compensation	6 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Share-based Payment Arrangement [Text Block]	4. Stock-Based Compensation The Company maintains the 2019 “2019 2019 1995 "1995 April 2019. 1995 442,750 8,250 June 30, 2020. 1995 2019 102,157 1995 no Under the terms of the 2019 may 2019 102,157. 2019 8,500 1995 2019 2019 2019 110,657. June 30, 2020, 13,250 2019 The Company charged compensation cost of approximately $7,400 six June 30, 2020 $3,800 six June 30, 2019. June 30, 2020, $33,700 three 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. No six June 30, 2020 June 30, 2019. There were 10,000 six June 30, 2020 no six June 30, 2019. six June 30, 2020 2020 Dividend yield 0 Expected volatility 40.3 % Expected life of option (years) 10 Risk-free interest rate 1.4 % Fair value of each option on grant date $ 2.90 Stock option activity during the six June 30, 2020 Weighted Average Exercise Shares Price Outstanding at January 1, 2020 19,250 $ 11.32 Granted 10,000 5.67 Exercised — — Expired and forfeited (7,750 ) 14.96 Outstanding at June 30, 2020 21,500 $ 7.38 Exercisable at June 30, 2020 7,333 $ 9.66 There was not June 30, 2020.

Note 5 - Segment Information

Note 5 - Segment Information	6 Months Ended
	Jun. 30, 2020
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 10 December 31, 2019. Management evaluates the performance of each segment based on the components of divisional income (loss). Assets and liabilities are not For the three June 30, 2020: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 1,619,986 $ 625,800 $ 49,053 $ 277,600 $ — $ 2,572,439 Cost of goods sold 1,407,362 419,985 24,346 335,851 — 2,187,544 Gross profit (loss) 212,624 205,815 24,707 (58,251 ) — 384,895 Selling general and administrative* 366,136 224,573 30,059 57,035 524,504 1,202,307 Research and development* — — — — 201,234 201,234 Loss from operations $ (153,512 ) $ (18,758 ) $ (5,352 ) $ (115,286 ) $ (725,738 ) $ (1,018,646 ) For the three June 30, 2019: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 3,107,116 $ 958,128 $ 112,601 $ 418,566 $ — $ 4,596,411 Cost of goods sold 2,280,224 501,006 51,547 335,205 — 3,167,982 Gross profit 826,892 457,122 61,054 83,361 — 1,428,429 Selling general and administrative* 467,091 248,050 34,761 88,362 500,597 1,338,861 Research and development* — — — — 270,465 270,465 Income (loss) from operations $ 359,801 $ 209,072 $ 26,293 $ (5,001 ) $ (771,062 ) $ (180,897 ) For the six June 30, 2020: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 3,584,326 $ 1,595,899 $ 161,582 $ 727,824 $ — $ 6,069,631 Cost of goods sold 2,825,631 897,708 76,092 732,073 — 4,531,504 Gross profit (loss) 758,695 698,191 85,490 (4,249 ) — 1,538,127 Selling general and administrative* 792,355 503,435 64,432 160,144 1,462,961 2,983,327 Research and development* — — — — 384,814 384,814 Income (loss) from operations $ (33,660 ) $ 194,756 $ 21,058 $ (164,393 ) $ (1,847,775 ) $ (1,830,014 ) For the six June 30, 2019: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 5,136,457 $ 2,046,934 $ 205,361 $ 736,350 $ — $ 8,125,102 Cost of goods sold 3,833,834 1,086,510 85,593 681,617 — 5,687,554 Gross profit 1,302,623 960,424 119,768 54,733 — 2,437,548 Selling general and administrative* 912,094 570,503 69,366 176,510 992,353 2,720,826 Research and development* — — — — 449,307 449,307 Income (loss) from operations $ 390,529 $ 389,921 $ 50,402 $ (121,777 ) $ (1,441,660 ) $ (732,585 ) *The Company does not Trade receivables by segment as of June 30, 2020 December 31, 2019 Jun 30, 2020 Dec 31, 2019 Chromaline $ 1,097,348 $ 1,916,066 IKONICS Imaging 193,653 304,791 DTX 38,912 13,919 AMS 182,333 252,363 Unallocated (98,227 ) (52,421 ) Total $ 1,414,019 $ 2,434,718

Note 6 - Income Taxes

Note 6 - Income Taxes	6 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Income Tax Disclosure [Text Block]	6. Income Taxes The Company records its interim provision for income taxes by applying its estimated annual effective tax rate to the year-to-date pre-tax income and adjusting for discrete tax items recorded in the period. Deferred income taxes result from temporary differences between the reporting of amounts for financial statement purposes and income tax purposes. These differences relate primarily to different methods used for income tax reporting purposes, including for depreciation and amortization, warranty and vacation accruals, and deductions related to allowances for doubtful accounts receivable and inventory reserves. The provision for income taxes included current federal and state income tax expense, as well as deferred federal and state income tax expense. 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 June 30, 2020. On the basis of this evaluation, as of June 30, 2020, not may no On March 27, 2020, 19 2018, 2019, 2020 five The effective tax rate for the three June 30, 2020 0.0%, 37.8% three June 30, 2019. third 2019. $0 $70,000 three June 30, 2020 2019, The effective tax rate for the six June 30, 2020 12.8%, 23.3% six June 30, 2019. $239,000 $173,000 six June 30, 2020 2019, The Company recognized the financial statement benefit of a tax position only after determining that the relevant tax authority is more-likely -than- not not 50% June 30, 2020, no This Company is not

Note 7 - Long-term Debt

Note 7 - Long-term Debt	6 Months Ended
	Jun. 30, 2020
Notes to Financial Statements
Debt Disclosure [Text Block]	7. Long-Term Debt Duluth Economic Development Authority Loan On April 1, 2016, $3,415,000 2016 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 of not 1.25 1.00. December 31, 2019, not February 2020 March 31, 2020. no 2016 April 2020. June 30, 2020 Paycheck Protection Program Loan On April 18, 2020, $1,214,500 April 22, 2020, The PPP Loan matures on the two 1.00% six not may All or a portion of the PPP Loan may eight $100,000, Not 40% may $100,000 25%. The Company accounts for the PPP Loan as debt in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 470, 835 30. Line of Credit The Company also has a bank line of credit providing for borrowings of up to $2,050,000 August 30, 2021 1.8 30 not first six 2020 2019 no June 30, 2020 December 31, 2019. no Both the $3,415,000

Note 2 - Inventories (Tables)

Note 2 - Inventories (Tables)	6 Months Ended
	Jun. 30, 2020
Notes Tables
Schedule of Inventory, Current [Table Text Block]	Jun 30, 2020 Dec 31, 2019 Raw materials $ 1,511,629 $ 1,667,154 Work-in-progress 475,194 419,906 Finished goods 2,013,510 1,449,854 Reduction to LIFO cost (1,318,393 ) (1,356,378 ) Total Inventories $ 2,681,940 $ 2,180,536

Note 3 - Earnings Per Common _2

Note 3 - Earnings Per Common Share (EPS) (Tables)	6 Months Ended
	Jun. 30, 2020
Notes Tables
Schedule of Weighted Average Number of Shares [Table Text Block]	Three Months Ended Jun 30, 2020 Jun 30, 2019 Weighted average common shares outstanding 1,976,354 1,982,275 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,976,354 1,982,275 Six Months Ended Jun 30, 2020 Jun 30, 2019 Weighted average common shares outstanding 1,976,354 1,982,910 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,976,354 1,982,910

Note 4 - Stock-based Compensa_2

Note 4 - Stock-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2020
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	2020 Dividend yield 0 Expected volatility 40.3 % Expected life of option (years) 10 Risk-free interest rate 1.4 % Fair value of each option on grant date $ 2.90
Share-based Payment Arrangement, Option, Activity [Table Text Block]	Weighted Average Exercise Shares Price Outstanding at January 1, 2020 19,250 $ 11.32 Granted 10,000 5.67 Exercised — — Expired and forfeited (7,750 ) 14.96 Outstanding at June 30, 2020 21,500 $ 7.38 Exercisable at June 30, 2020 7,333 $ 9.66

Note 5 - Segment Information (T

Note 5 - Segment Information (Tables)	6 Months Ended
	Jun. 30, 2020
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 1,619,986 $ 625,800 $ 49,053 $ 277,600 $ — $ 2,572,439 Cost of goods sold 1,407,362 419,985 24,346 335,851 — 2,187,544 Gross profit (loss) 212,624 205,815 24,707 (58,251 ) — 384,895 Selling general and administrative* 366,136 224,573 30,059 57,035 524,504 1,202,307 Research and development* — — — — 201,234 201,234 Loss from operations $ (153,512 ) $ (18,758 ) $ (5,352 ) $ (115,286 ) $ (725,738 ) $ (1,018,646 ) IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 3,107,116 $ 958,128 $ 112,601 $ 418,566 $ — $ 4,596,411 Cost of goods sold 2,280,224 501,006 51,547 335,205 — 3,167,982 Gross profit 826,892 457,122 61,054 83,361 — 1,428,429 Selling general and administrative* 467,091 248,050 34,761 88,362 500,597 1,338,861 Research and development* — — — — 270,465 270,465 Income (loss) from operations $ 359,801 $ 209,072 $ 26,293 $ (5,001 ) $ (771,062 ) $ (180,897 ) IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 3,584,326 $ 1,595,899 $ 161,582 $ 727,824 $ — $ 6,069,631 Cost of goods sold 2,825,631 897,708 76,092 732,073 — 4,531,504 Gross profit (loss) 758,695 698,191 85,490 (4,249 ) — 1,538,127 Selling general and administrative* 792,355 503,435 64,432 160,144 1,462,961 2,983,327 Research and development* — — — — 384,814 384,814 Income (loss) from operations $ (33,660 ) $ 194,756 $ 21,058 $ (164,393 ) $ (1,847,775 ) $ (1,830,014 ) IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 5,136,457 $ 2,046,934 $ 205,361 $ 736,350 $ — $ 8,125,102 Cost of goods sold 3,833,834 1,086,510 85,593 681,617 — 5,687,554 Gross profit 1,302,623 960,424 119,768 54,733 — 2,437,548 Selling general and administrative* 912,094 570,503 69,366 176,510 992,353 2,720,826 Research and development* — — — — 449,307 449,307 Income (loss) from operations $ 390,529 $ 389,921 $ 50,402 $ (121,777 ) $ (1,441,660 ) $ (732,585 ) Jun 30, 2020 Dec 31, 2019 Chromaline $ 1,097,348 $ 1,916,066 IKONICS Imaging 193,653 304,791 DTX 38,912 13,919 AMS 182,333 252,363 Unallocated (98,227 ) (52,421 ) Total $ 1,414,019 $ 2,434,718

Note 2 - Inventories - Major Co

Note 2 - Inventories - Major Components of Inventories (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Raw materials	$ 1,511,629	$ 1,667,154
Work-in-progress	475,194	419,906
Finished goods	2,013,510	1,449,854
Reduction to LIFO cost	(1,318,393)	(1,356,378)
Total Inventories	$ 2,681,940	$ 2,180,536

Note 3 - Earnings Per Common _3

Note 3 - Earnings Per Common Share (EPS) (Details Textual) - Share-based Payment Arrangement, Option [Member] - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Antidilutive Securities Excluded from Computation Of Earnings Per Share Amount Based on Net Income Position (in shares)	21,500	16,000	21,500	16,000
Share Based Compensation Arrangement by Share Based Payment Award Options With AntiDilutive Effect Weighted Average Exercise Price Based on Net Income Position (in dollars per share)	$ 7.38	$ 12.17	$ 7.38	$ 12.17

Note 3 - Earnings Per Common _4

Note 3 - Earnings Per Common Share (EPS) - Summary of Calculation of Diluted EPS (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Weighted average common shares outstanding (in shares)	1,976,354	1,982,275	1,976,354	1,982,910
Dilutive effect of stock options (in shares)
Weighted average common and common equivalent shares outstanding (in shares)	1,976,354	1,982,275	1,976,354	1,982,910

Note 4 - Stock-based Compensa_3

Note 4 - Stock-based Compensation (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares)	21,500		19,250
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)	10,000	0
Share-based Payment Arrangement, Expense	$ 7,400	$ 3,800
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 33,700
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares)	0	0
The 1995 Incentive Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)	442,750
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares)	8,250
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 (in shares)			102,157
The 2019 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)	110,657
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period (in shares)	8,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)	13,250

Note 4 - Stock-based Compensa_4

Note 4 - Stock-based Compensation - Assumptions (Details) - Share-based Payment Arrangement, Option [Member]	6 Months Ended
	Jun. 30, 2020$ / shares
Dividend yield	0.00%
Expected volatility	40.30%
Expected life of option (years) (Year)	10 years
Risk-free interest rate	1.40%
Fair value of each option on grant date (in dollars per share)	$ 2.90

Note 4 - Stock-based Compensa_5

Note 4 - Stock-based Compensation - Stock Option Activity (Details) - $ / shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Outstanding, Shares (in shares)	19,250
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 11.32
Granted, Shares (in shares)	10,000	0
Granted, Weighted Average Exercise Price (in dollars per share)	$ 5.67
Exercised, Shares (in shares)	0	0
Exercised, Weighted Average Exercise Price (in dollars per share)
Expired and forfeited, Shares (in shares)	(7,750)
Expired and forfeited, Weighted Average Exercise Price (in dollars per share)	$ 14.96
Outstanding, Shares (in shares)	21,500
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 7.38
Exercisable, Shares (in shares)	7,333
Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 9.66

Note 5 - Segment Information (D

Note 5 - Segment Information (Details Textual)	6 Months Ended
	Jun. 30, 2020
Number of Reportable Segments	4

Note 5 - Segment Information -

Note 5 - Segment Information - Reportable Segments (Details) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Net sales		$ 2,572,439	$ 4,596,411	$ 6,069,631	$ 8,125,102
Cost of goods sold		2,187,544	3,167,982	4,531,504	5,687,554
Gross profit (loss)		384,895	1,428,429	1,538,127	2,437,548
Selling general and administrative*	[1]	1,202,307	1,338,861	2,983,327	2,720,826
Research and development*	[1]	201,234	270,465	384,814	449,307
Loss from operations		(1,018,646)	(180,897)	(1,830,014)	(732,585)
Trade receivables		1,414,019		1,414,019		$ 2,434,718
Operating Segments [Member] | Chromaline [Member]
Net sales		1,619,986	3,107,116	3,584,326	5,136,457
Cost of goods sold		1,407,362	2,280,224	2,825,631	3,833,834
Gross profit (loss)		212,624	826,892	758,695	1,302,623
Selling general and administrative*	[1]	366,136	467,091	792,355	912,094
Research and development*	[1]
Loss from operations		(153,512)	359,801	(33,660)	390,529
Trade receivables		1,097,348		1,097,348		1,916,066
Operating Segments [Member] | Ikonics Imaging [Member]
Net sales		625,800	958,128	1,595,899	2,046,934
Cost of goods sold		419,985	501,006	897,708	1,086,510
Gross profit (loss)		205,815	457,122	698,191	960,424
Selling general and administrative*	[1]	224,573	248,050	503,435	570,503
Research and development*	[1]
Loss from operations		(18,758)	209,072	194,756	389,921
Trade receivables		193,653		193,653		304,791
Operating Segments [Member] | DTX [Member]
Net sales		49,053	112,601	161,582	205,361
Cost of goods sold		24,346	51,547	76,092	85,593
Gross profit (loss)		24,707	61,054	85,490	119,768
Selling general and administrative*	[1]	30,059	34,761	64,432	69,366
Research and development*	[1]
Loss from operations		(5,352)	26,293	21,058	50,402
Trade receivables		38,912		38,912		13,919
Operating Segments [Member] | AMS [Member]
Net sales		277,600	418,566	727,824	736,350
Cost of goods sold		335,851	335,205	732,073	681,617
Gross profit (loss)		(58,251)	83,361	(4,249)	54,733
Selling general and administrative*	[1]	57,035	88,362	160,144	176,510
Research and development*	[1]
Loss from operations		(115,286)	(5,001)	(164,393)	(121,777)
Trade receivables		182,333		182,333		252,363
Segment Reconciling Items [Member]
Net sales
Cost of goods sold
Gross profit (loss)
Selling general and administrative*	[1]	524,504	500,597	1,462,961	992,353
Research and development*	[1]	201,234	270,465	384,814	449,307
Loss from operations		(725,738)	$ (771,062)	(1,847,775)	$ (1,441,660)
Trade receivables		$ (98,227)		$ (98,227)		$ (52,421)
[1]	The Company does not allocate all selling, general and administrative expenses or any research and development expenses to its operating segments for internal reporting.

Note 6 - Income Taxes (Details

Note 6 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Effective Income Tax Rate Reconciliation, Percent, Total	0.00%	37.80%	12.80%	23.30%
Income Tax Expense (Benefit), Total	$ 0	$ (70,398)	$ (238,929)	$ (173,136)
Unrecognized Tax Benefits, Ending Balance	$ 0		$ 0

Note 7 - Long-term Debt (Detail

Note 7 - Long-term Debt (Details Textual)	Apr. 18, 2020USD ($)	Apr. 29, 2016	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)	Apr. 01, 2016USD ($)
Proceeds from Issuance of Long-term Debt, Total			$ 1,214,500
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 Service Coverage Ratio		1.25
SBA CARES Act Paycheck Protection Program [Member]
Proceeds from Issuance of Long-term Debt, Total	$ 1,214,500
Duluth Economic Development Authority [Member]
Tax Exempt Industrial Revenue Bonds Amount Sold to Bank						$ 3,415,000