TeraWulf (WULF) 10-Q 12 Nov 20 2020 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 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	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
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 ($)	Sep. 30, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 3,500,883	$ 963,649
Short-term investments		2,205,000
Trade receivables, less allowance of $81,000 in 2020 and $58,000 in 2019	1,417,217	2,434,718
Inventories	2,155,813	2,180,536
Prepaid expenses and other assets	160,700	906,916
Income taxes receivable	241,451	1,369
Total current assets	7,476,064	8,692,188
PROPERTY, PLANT, AND EQUIPMENT, at cost:
Land and building	9,556,586	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	16,528,727	16,403,811
Less accumulated depreciation	(8,978,698)	(8,487,827)
Total property, plant and equipment at cost, net	7,550,029	7,915,984
INTANGIBLE ASSETS, less accumulated amortization of $201,065 in 2020 and $181,609 in 2019	247,983	271,369
Total assets	15,274,076	16,879,541
CURRENT LIABILITIES
Current portion of long-term debt	3,458,519	133,287
Accounts payable	459,129	761,641
Accrued compensation	355,305	382,303
Other accrued liabilities	158,732	657,255
Total current liabilities	4,431,685	1,934,486
LONG-TERM LIABILITIES
Long-term debt, less current portion	478,060	2,688,357
Total liabilities	4,909,745	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	2,732,100	2,721,962
Retained earnings	7,434,596	9,337,101
Total stockholders' equity	10,364,331	12,256,698
Total liabilities and stockholders' equity	$ 15,274,076	$ 16,879,541

Condensed Balance Sheets (Cur_2

Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Trade receivables, allowances	$ 81,000	$ 58,000
Intangible assets, accumulated amortization	$ 201,065	$ 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		9 Months Ended
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net sales		$ 3,134,984	$ 4,530,361	$ 9,204,615	$ 12,655,463
Cost of goods sold		2,261,205	3,118,299	6,792,709	8,805,853
GROSS PROFIT		873,779	1,412,062	2,411,906	3,849,610
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	[1]	979,773	1,347,404	3,963,100	4,068,230
RESEARCH AND DEVELOPMENT EXPENSES	[1]	136,520	218,467	521,334	667,774
LOSS FROM OPERATIONS		(242,514)	(153,809)	(2,072,528)	(886,394)
INTEREST EXPENSE		(24,592)	(22,799)	(70,699)	(67,589)
OTHER INCOME		39	16,225	8,722	49,722
LOSS BEFORE INCOME TAXES		(267,067)	(160,383)	(2,134,505)	(904,261)
INCOME TAX EXPENSE (BENEFIT)		6,929	2,361	(232,000)	(170,775)
NET LOSS		$ (273,996)	$ (162,744)	$ (1,902,505)	$ (733,486)
LOSS PER COMMON SHARE
Basic (in dollars per share)		$ (0.14)	$ (0.08)	$ (0.96)	$ (0.37)
Diluted (in dollars per share)		$ (0.14)	$ (0.08)	$ (0.96)	$ (0.37)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic (in shares)		1,976,354	1,978,926	1,976,354	1,981,568
Diluted (in shares)		1,976,354	1,978,926	1,976,354	1,981,568
[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			(733,486)	(733,486)
Stock based compensation		6,330		6,330
Common stock repurchased (in shares)	(7,199)
Common stock repurchased	$ (720)	(9,883)	(38,993)	(49,596)
BALANCE (in shares) at Sep. 30, 2019	1,976,354
BALANCE at Sep. 30, 2019	$ 197,635	2,719,471	9,417,172	12,334,278
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
Net loss			(162,744)	(162,744)
Stock based compensation		2,490		2,490
Common stock repurchased (in shares)	(4,457)
Common stock repurchased	$ (446)	(6,118)	(22,063)	(28,627)
BALANCE (in shares) at Sep. 30, 2019	1,976,354
BALANCE at Sep. 30, 2019	$ 197,635	2,719,471	9,417,172	$ 12,334,278
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			(1,902,505)	(1,902,505)
Stock based compensation		10,138		$ 10,138
BALANCE (in shares) at Sep. 30, 2020	1,976,354			1,976,354
BALANCE at Sep. 30, 2020	$ 197,635	2,732,100	7,434,596	$ 10,364,331
BALANCE (in shares) at Jun. 30, 2020	1,976,354
BALANCE at Jun. 30, 2020	$ 197,635	2,729,338	7,708,592	10,635,565
Net loss			(273,996)	(273,996)
Stock based compensation		2,762		$ 2,762
BALANCE (in shares) at Sep. 30, 2020	1,976,354			1,976,354
BALANCE at Sep. 30, 2020	$ 197,635	$ 2,732,100	$ 7,434,596	$ 10,364,331

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,902,505)	$ (733,486)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	499,899	476,906
Amortization	27,445	33,662
Stock based compensation	10,138	6,330
Net gain on sale and disposal of equipment	(2,325)	(8,481)
Deferred income taxes		(183,000)
Loss on intangible asset abandonment	16,906	87,122
Changes in working capital components:
Trade receivables	1,017,501	3,775
Inventories	24,723	(526,853)
Prepaid expenses and other assets	746,216	(577,492)
Income tax receivable	(240,082)	2,768
Accounts payable	(302,512)	124,992
Accrued expenses	(525,521)	674,194
Net cash used in operating activities	(630,117)	(619,563)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(149,916)	(333,535)
Proceeds from sales of equipment	18,297	15,596
Purchases of intangible assets	(12,976)	(17,528)
Purchases of short-term investments		(4,165,000)
Proceeds on sale of short-term investments	2,205,000	4,410,000
Net cash provided by (used in) investing activities	2,060,405	(90,467)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from debt	1,214,500
Payment on long-term debt	(107,554)	(104,772)
Repurchase of common stock		(49,596)
Net cash provided by (used in) financing activities	1,106,946	(154,368)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	2,537,234	(864,398)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	963,649	1,623,137
CASH AND CASH EQUIVALENTS AT END OF PERIOD	3,500,883	758,739
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest	56,834	59,889
Cash paid for income taxes, net	$ 8,082	$ 9,457

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	9 Months Ended
	Sep. 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 September 30, 2020, three nine September 30, 2020 2019, three nine September 30, 2020 2019, nine September 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 September 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, and its ability to continue to renew the maturity date of the bank line of credit. 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 fund 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	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
Inventory Disclosure [Text Block]	2. Inventories The major components of inventories as of September 30, 2020 December 31, 2019 Sep 30, 2020 Dec 31, 2019 Raw materials $ 1,477,132 $ 1,667,154 Work-in-progress 449,592 419,906 Finished goods 1,517,561 1,449,854 Reduction to LIFO cost (1,288,472 ) (1,356,378 ) Total Inventories $ 2,155,813 $ 2,180,536

Note 3 - Earnings Per Common Sh

Note 3 - Earnings Per Common Share (EPS)	9 Months Ended
	Sep. 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 Sep 30, 2020 Sep 30, 2019 Weighted average common shares outstanding 1,976,354 1,978,926 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,976,354 1,978,926 Nine Months Ended Sep 30, 2020 Sep 30, 2019 Weighted average common shares outstanding 1,976,354 1,981,568 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,976,354 1,981,568 If the Company was in a net income position for the three nine September 30, 2020, 17,500 $6.97 If the Company was in a net income position for the three nine September 30, 2019, 16,000 $12.17

Note 4 - Stock-based Compensati

Note 4 - Stock-based Compensation	9 Months Ended
	Sep. 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 5,000 September 30, 2020. 1995 2019 102,157 1995 no Under the terms of the 2019 may 2019 102,157. 2019 11,750 1995 2019 2019 September 30, 2020, 13,250 2019 750 2019 101,407. The Company charged compensation cost of approximately $10,100 nine September 30, 2020 $6,300 nine September 30, 2019. September 30, 2020, $28,300 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 nine September 30, 2020 September 30, 2019. There were 10,000 nine September 30, 2020 3,250 nine September 30, 2019. nine September 30, 2020 2019 2020 2019 Dividend yield 0 0 Expected volatility 40.3 % 37.5 % Expected life of option (years) 10 5 Risk-free interest rate 1.4 % 1.7 % Fair value of each option on grant date $ 2.90 $ 2.53 Stock option activity during the nine September 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 (11,750 ) 12.99 Outstanding at September 30, 2020 17,500 $ 6.97 Exercisable at September 30, 2020 5,332 $ 9.19 There was no September 30, 2020.

Note 5 - Segment Information

Note 5 - Segment Information	9 Months Ended
	Sep. 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 September 30, 2020: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 2,051,047 $ 893,064 $ 62,024 $ 128,849 $ — $ 3,134,984 Cost of goods sold 1,474,881 499,750 33,143 253,431 — 2,261,205 Gross profit (loss) 576,166 393,314 28,881 (124,582 ) — 873,779 Selling general and administrative* 234,884 180,285 27,567 51,644 485,393 979,773 Research and development* — — — — 136,520 136,520 Income (loss) from operations $ 341,282 $ 213,029 $ 1,314 $ (176,226 ) $ (621,913 ) $ (242,514 ) For the three September 30, 2019: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 2,869,664 $ 1,117,209 $ 84,661 $ 458,827 $ — $ 4,530,361 Cost of goods sold 2,115,702 628,325 31,217 343,055 — 3,118,299 Gross profit 753,962 488,884 53,444 115,772 — 1,412,062 Selling general and administrative* 452,592 248,780 41,866 89,597 514,569 1,347,404 Research and development* — — — — 218,467 218,467 Income (loss) from operations $ 301,370 $ 240,104 $ 11,578 $ 26,175 $ (733,036 ) $ (153,809 ) For the nine September 30, 2020: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 5,635,373 $ 2,488,963 $ 223,606 $ 856,673 $ — $ 9,204,615 Cost of goods sold 4,300,512 1,397,458 109,235 985,504 — 6,792,709 Gross profit (loss) 1,334,861 1,091,505 114,371 (128,831 ) — 2,411,906 Selling general and administrative* 1,027,239 683,720 91,999 211,788 1,948,354 3,963,100 Research and development* — — — — 521,334 521,334 Income (loss) from operations $ 307,622 $ 407,785 $ 22,372 $ (340,619 ) $ (2,469,688 ) $ (2,072,528 ) For the nine September 30, 2019: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 8,006,121 $ 3,164,143 $ 290,022 $ 1,195,177 $ — $ 12,655,463 Cost of goods sold 5,949,536 1,714,835 116,810 1,024,672 — 8,805,853 Gross profit 2,056,585 1,449,308 173,212 170,505 — 3,849,610 Selling general and administrative* 1,364,685 819,284 111,232 266,107 1,506,922 4,068,230 Research and development* — — — — 667,774 667,774 Income (loss) from operations $ 691,900 $ 630,024 $ 61,980 $ (95,602 ) $ (2,174,696 ) $ (886,394 ) *The Company does not Trade receivables by segment as of September 30, 2020 December 31, 2019 Sep 30, 2020 Dec 31, 2019 Chromaline $ 1,082,145 $ 1,916,066 IKONICS Imaging 299,256 304,791 DTX 34,314 13,919 AMS 68,026 252,363 Unallocated (66,524 ) (52,421 ) Total $ 1,417,217 $ 2,434,718

Note 6 - Income Taxes

Note 6 - Income Taxes	9 Months Ended
	Sep. 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 September 30, 2020. On the basis of this evaluation, as of September 30, 2020, not may no On March 27, 2020, 19 2018, 2019, 2020 five The effective tax rate for the three September 30, 2020 0.5% 1.5% three September 30, 2019. fourth 2019 $7,000 $2,000 three September 30, 2020 2019, The effective tax rate for the nine September 30, 2020 10.9% 18.9% nine September 30, 2019. $232,000 $171,000 nine September 30, 2020 2019, The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority is more-likely -than- not not 50% September 30, 2020, no This Company is not

Note 7 - Long-term Debt

Note 7 - Long-term Debt	9 Months Ended
	Sep. 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 December 31, 2020. no 2016 April 2020. September 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 twenty four $100,000, Not 40% may $100,000 25%. third 2020, 100% 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 nine 2020 2019 no September 30, 2020 December 31, 2019. no Both the $3,415,000

Note 2 - Inventories (Tables)

Note 2 - Inventories (Tables)	9 Months Ended
	Sep. 30, 2020
Notes Tables
Schedule of Inventory, Current [Table Text Block]	Sep 30, 2020 Dec 31, 2019 Raw materials $ 1,477,132 $ 1,667,154 Work-in-progress 449,592 419,906 Finished goods 1,517,561 1,449,854 Reduction to LIFO cost (1,288,472 ) (1,356,378 ) Total Inventories $ 2,155,813 $ 2,180,536

Note 3 - Earnings Per Common _2

Note 3 - Earnings Per Common Share (EPS) (Tables)	9 Months Ended
	Sep. 30, 2020
Notes Tables
Schedule of Weighted Average Number of Shares [Table Text Block]	Three Months Ended Sep 30, 2020 Sep 30, 2019 Weighted average common shares outstanding 1,976,354 1,978,926 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,976,354 1,978,926 Nine Months Ended Sep 30, 2020 Sep 30, 2019 Weighted average common shares outstanding 1,976,354 1,981,568 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,976,354 1,981,568

Note 4 - Stock-based Compensa_2

Note 4 - Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	2020 2019 Dividend yield 0 0 Expected volatility 40.3 % 37.5 % Expected life of option (years) 10 5 Risk-free interest rate 1.4 % 1.7 % Fair value of each option on grant date $ 2.90 $ 2.53
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 (11,750 ) 12.99 Outstanding at September 30, 2020 17,500 $ 6.97 Exercisable at September 30, 2020 5,332 $ 9.19

Note 5 - Segment Information (T

Note 5 - Segment Information (Tables)	9 Months Ended
	Sep. 30, 2020
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 2,051,047 $ 893,064 $ 62,024 $ 128,849 $ — $ 3,134,984 Cost of goods sold 1,474,881 499,750 33,143 253,431 — 2,261,205 Gross profit (loss) 576,166 393,314 28,881 (124,582 ) — 873,779 Selling general and administrative* 234,884 180,285 27,567 51,644 485,393 979,773 Research and development* — — — — 136,520 136,520 Income (loss) from operations $ 341,282 $ 213,029 $ 1,314 $ (176,226 ) $ (621,913 ) $ (242,514 ) IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 2,869,664 $ 1,117,209 $ 84,661 $ 458,827 $ — $ 4,530,361 Cost of goods sold 2,115,702 628,325 31,217 343,055 — 3,118,299 Gross profit 753,962 488,884 53,444 115,772 — 1,412,062 Selling general and administrative* 452,592 248,780 41,866 89,597 514,569 1,347,404 Research and development* — — — — 218,467 218,467 Income (loss) from operations $ 301,370 $ 240,104 $ 11,578 $ 26,175 $ (733,036 ) $ (153,809 ) IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 5,635,373 $ 2,488,963 $ 223,606 $ 856,673 $ — $ 9,204,615 Cost of goods sold 4,300,512 1,397,458 109,235 985,504 — 6,792,709 Gross profit (loss) 1,334,861 1,091,505 114,371 (128,831 ) — 2,411,906 Selling general and administrative* 1,027,239 683,720 91,999 211,788 1,948,354 3,963,100 Research and development* — — — — 521,334 521,334 Income (loss) from operations $ 307,622 $ 407,785 $ 22,372 $ (340,619 ) $ (2,469,688 ) $ (2,072,528 ) IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 8,006,121 $ 3,164,143 $ 290,022 $ 1,195,177 $ — $ 12,655,463 Cost of goods sold 5,949,536 1,714,835 116,810 1,024,672 — 8,805,853 Gross profit 2,056,585 1,449,308 173,212 170,505 — 3,849,610 Selling general and administrative* 1,364,685 819,284 111,232 266,107 1,506,922 4,068,230 Research and development* — — — — 667,774 667,774 Income (loss) from operations $ 691,900 $ 630,024 $ 61,980 $ (95,602 ) $ (2,174,696 ) $ (886,394 ) Sep 30, 2020 Dec 31, 2019 Chromaline $ 1,082,145 $ 1,916,066 IKONICS Imaging 299,256 304,791 DTX 34,314 13,919 AMS 68,026 252,363 Unallocated (66,524 ) (52,421 ) Total $ 1,417,217 $ 2,434,718

Note 2 - Inventories - Major Co

Note 2 - Inventories - Major Components of Inventories (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Raw materials	$ 1,477,132	$ 1,667,154
Work-in-progress	449,592	419,906
Finished goods	1,517,561	1,449,854
Reduction to LIFO cost	(1,288,472)	(1,356,378)
Total Inventories	$ 2,155,813	$ 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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation Of Earnings Per Share Amount Based on Net Income Position (in shares)	17,500	16,000	17,500	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)	$ 6.97	$ 12.17	$ 6.97	$ 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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Weighted average common shares outstanding (in shares)	1,976,354	1,978,926	1,976,354	1,981,568
Dilutive effect of stock options (in shares)
Weighted average common and common equivalent shares outstanding (in shares)	1,976,354	1,978,926	1,976,354	1,981,568

Note 4 - Stock-based Compensa_3

Note 4 - Stock-based Compensation (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares)	17,500		19,250
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)	10,000	3,250
Share-based Payment Arrangement, Expense	$ 10,100	$ 6,300
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 28,300
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)	5,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period (in shares)	11,750
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 (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)	101,407
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period (in shares)	750
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] - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Dividend yield	0.00%	0.00%
Expected volatility	40.30%	37.50%
Expected life of option (years) (Year)	10 years	5 years
Risk-free interest rate	1.40%	1.70%
Fair value of each option on grant date (in dollars per share)	$ 2.90	$ 2.53

Note 4 - Stock-based Compensa_5

Note 4 - Stock-based Compensation - Stock Option Activity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 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	3,250
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)	(11,750)
Expired and forfeited, Weighted Average Exercise Price (in dollars per share)	$ 12.99
Outstanding, Shares (in shares)	17,500
Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 6.97
Exercisable, Shares (in shares)	5,332
Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 9.19

Note 5 - Segment Information (D

Note 5 - Segment Information (Details Textual)	9 Months Ended
	Sep. 30, 2020
Number of Reportable Segments	4

Note 5 - Segment Information -

Note 5 - Segment Information - Reportable Segments (Details) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Net sales		$ 3,134,984	$ 4,530,361	$ 9,204,615	$ 12,655,463
Cost of goods sold		2,261,205	3,118,299	6,792,709	8,805,853
Gross profit (loss)		873,779	1,412,062	2,411,906	3,849,610
Selling general and administrative*	[1]	979,773	1,347,404	3,963,100	4,068,230
Research and development*	[1]	136,520	218,467	521,334	667,774
Income (loss) from operations		(242,514)	(153,809)	(2,072,528)	(886,394)
Trade receivables		1,417,217		1,417,217		$ 2,434,718
Segment Reconciling Items [Member]
Net sales
Cost of goods sold
Gross profit (loss)
Selling general and administrative*	[1]	485,393	514,569	1,948,354	1,506,922
Research and development*	[1]	136,520	218,467	521,334	667,774
Income (loss) from operations		(621,913)	(733,036)	(2,469,688)	(2,174,696)
Trade receivables		(66,524)		(66,524)		(52,421)
Chromaline [Member] | Operating Segments [Member]
Net sales		2,051,047	2,869,664	5,635,373	8,006,121
Cost of goods sold		1,474,881	2,115,702	4,300,512	5,949,536
Gross profit (loss)		576,166	753,962	1,334,861	2,056,585
Selling general and administrative*	[1]	234,884	452,592	1,027,239	1,364,685
Research and development*	[1]
Income (loss) from operations		341,282	301,370	307,622	691,900
Trade receivables		1,082,145		1,082,145		1,916,066
Ikonics Imaging [Member] | Operating Segments [Member]
Net sales		893,064	1,117,209	2,488,963	3,164,143
Cost of goods sold		499,750	628,325	1,397,458	1,714,835
Gross profit (loss)		393,314	488,884	1,091,505	1,449,308
Selling general and administrative*	[1]	180,285	248,780	683,720	819,284
Research and development*	[1]
Income (loss) from operations		213,029	240,104	407,785	630,024
Trade receivables		299,256		299,256		304,791
DTX [Member] | Operating Segments [Member]
Net sales		62,024	84,661	223,606	290,022
Cost of goods sold		33,143	31,217	109,235	116,810
Gross profit (loss)		28,881	53,444	114,371	173,212
Selling general and administrative*	[1]	27,567	41,866	91,999	111,232
Research and development*	[1]
Income (loss) from operations		1,314	11,578	22,372	61,980
Trade receivables		34,314		34,314		13,919
AMS [Member] | Operating Segments [Member]
Net sales		128,849	458,827	856,673	1,195,177
Cost of goods sold		253,431	343,055	985,504	1,024,672
Gross profit (loss)		(124,582)	115,772	(128,831)	170,505
Selling general and administrative*	[1]	51,644	89,597	211,788	266,107
Research and development*	[1]
Income (loss) from operations		(176,226)	$ 26,175	(340,619)	$ (95,602)
Trade receivables		$ 68,026		$ 68,026		$ 252,363
[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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Effective Income Tax Rate Reconciliation, Percent, Total	0.50%	1.50%	(10.90%)	(18.90%)
Income Tax Expense (Benefit), Total	$ 6,929	$ 2,361	$ (232,000)	$ (170,775)
Unrecognized Tax Benefits, Ending Balance	$ 0		$ 0

Note 7 - Long-term Debt (Detail

Note 7 - Long-term Debt (Details Textual)	Apr. 18, 2020USD ($)	Apr. 01, 2016USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
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