TeraWulf (WULF) 10-Q 14 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 04, 2017
Document and Entity Information
Entity Registrant Name	IKONICS CORP
Entity Central Index Key	1,083,301
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,017,053
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($)	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 1,240,086	$ 1,048,713
Short-term investments	2,895,000	3,246,000
Trade receivables, less allowance of $52,000 in 2017 and $54,000 in 2016	2,066,736	2,336,501
Inventories	2,276,601	1,986,172
Prepaid expenses and other assets	146,772	361,905
Income taxes receivable	273,973	66,181
Total current assets	8,899,168	9,045,472
PROPERTY, PLANT, AND EQUIPMENT, at cost:
Land and building	9,201,846	9,189,743
Machinery and equipment	4,950,091	4,884,814
Office equipment	1,600,760	1,566,856
Vehicles	269,941	272,144
Gross property, plant, and equipment, at cost	16,022,638	15,913,557
Less accumulated depreciation	(7,397,569)	(7,001,162)
Net property, plant, and equipment, at cost	8,625,069	8,912,395
INTANGIBLE ASSETS, less accumulated amortization of $162,032 in 2017 and $149,072 in 2016	340,211	338,127
Total assets	17,864,448	18,295,994
CURRENT LIABILITIES:
Current portion of long-term debt, net	129,086	127,303
Accounts payable	874,795	730,386
Accrued compensation	337,394	388,600
Other accrued liabilities	91,398	67,088
Total current liabilities	1,432,673	1,313,377
LONG-TERM LIABILITIES
Long-term debt, less current portion, net	3,012,299	3,077,457
Deferred income taxes	446,000	446,000
Total long-term liabilities	3,458,299	3,523,457
Total liabilities	4,890,972	4,836,834
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, par value $.10 per share; authorized 250,000 shares: none issued
Common stock, par value $.10 per share; authorized 4,750,000 shares; issued and outstanding 2,017,053 shares in 2017 and 2,018,753 shares in 2016	201,705	201,875
Additional paid-in capital	2,742,659	2,732,006
Retained earnings	10,029,112	10,525,279
Total stockholders' equity	12,973,476	13,459,160
Total liabilities and stockholders' equity	$ 17,864,448	$ 18,295,994

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
CONDENSED BALANCE SHEETS
Trade receivables, allowance	$ 52,000	$ 54,000
INTANGIBLE ASSETS, accumulated amortization	$ 162,032	$ 149,072
Preferred stock, par value (in dollars per share)	$ 0.10	$ 0.10
Preferred stock, shares authorized	250,000	250,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized	4,750,000	4,750,000
Common stock, shares issued	2,017,053	2,018,753
Common stock, shares outstanding	2,017,053	2,018,753

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CONDENSED STATEMENTS OF OPERATIONS
NET SALES	$ 4,685,361	$ 4,196,578	$ 8,314,353	$ 8,209,788
COST OF GOODS SOLD	3,242,097	2,674,367	5,780,861	5,390,903
GROSS PROFIT	1,443,264	1,522,211	2,533,492	2,818,885
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	1,393,636	1,325,170	2,904,250	2,764,286
RESEARCH AND DEVELOPMENT EXPENSES	184,704	147,125	350,474	324,989
INCOME (LOSS) FROM OPERATIONS	(135,076)	49,916	(721,232)	(270,390)
INTEREST EXPENSE	(20,826)	(14,999)	(41,643)	(14,999)
OTHER	5,902	2,048	11,055	2,162
INCOME (LOSS) BEFORE INCOME TAXES	(150,000)	36,965	(751,820)	(283,227)
INCOME TAX BENEFIT	(44,934)	(2,260)	(267,857)	(129,640)
NET INCOME (LOSS)	$ (105,066)	$ 39,225	$ (483,963)	$ (153,587)
INCOME (LOSS) PER COMMON SHARE:
Basic (in dollars per share)	$ (0.05)	$ 0.02	$ (0.24)	$ (0.08)
Diluted (in dollars per share)	$ (0.05)	$ 0.02	$ (0.24)	$ (0.08)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic (in shares)	2,018,466	2,018,753	2,018,609	2,018,544
Diluted (in shares)	2,018,466	2,018,833	2,018,609	2,018,544

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (483,963)	$ (153,587)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	421,412	352,000
Amortization	19,149	14,385
Stock based compensation	11,494	11,763
Net gain on sale and disposal of property, plant and equipment	(21,707)	(5,750)
Changes in working capital components:
Trade receivables	269,765	353,963
Inventories	(290,429)	(95,743)
Prepaid expenses and other assets	215,133	(55,625)
Income tax receivable	(207,854)	(28,882)
Accounts payable	144,409	90,470
Accrued expenses	(26,896)	45,214
Net cash provided by operating activities	50,513	528,208
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, equipment and construction in progress	(134,086)	(1,843,879)
Proceeds from sale of property, plant and equipment	21,707	21,000
Purchases of intangibles	(15,044)	(22,395)
Purchases of short-term investments	(1,915,000)	(3,399,000)
Proceeds on sale of short-term investments	2,266,000
Net cash provided by (used in) investing activities	223,577	(5,244,274)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt		3,415,000
Payment of debt issuance costs		(139,418)
Payments on long-term debt	(69,564)	(10,858)
Repurchase of common stock	(15,038)
Proceeds from exercise of stock options	1,885	3,765
Net cash provided by (used in) financing activities	(82,717)	3,268,489
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	191,373	(1,447,577)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	1,048,713
CASH AND CASH EQUIVALENTS AT END OF PERIOD	1,240,086	800,889
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Construction in progress included in accounts payable		60,166
Cash paid for interest	35,776	6,699
Cash received for income taxes, net	$ (60,003)	$ (100,758)

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Basis of Presentation
Basis of Presentation	1. The condensed balance sheet of IKONICS Corporation (the “Company”) as of June 30, 2017, and the related condensed statements of operations for the three and six months ended June 30, 2017 and 2016, and cash flows for the six months ended June 30, 2017 and 2016, have been prepared without being audited. In the opinion of management, these statements reflect all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position of IKONICS Corporation as of June 30, 2017, and the results of operations and cash flows for all periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted. Therefore, these statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The results of operations for interim periods are not necessarily indicative of results that will be realized for the full fiscal year.

Short-Term Investments

Short-Term Investments	6 Months Ended
	Jun. 30, 2017
Short-Term Investments
Short-Term Investments	2. The Company’s $2.9 million of short-term investments at June 30, 2017 is comprised of twelve fully insured certificates of deposit with original maturities ranging from six to twelve months and interest rates ranging from 0.65% to 1.25%.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2017
Inventories
Inventories	3. The major components of inventories are as follows: Jun 30, 2017 Dec 31, 2016 Raw materials $ 1,634,801 $ 1,438,471 Work-in-progress 381,212 355,208 Finished goods 1,396,987 1,319,856 Reduction to LIFO cost (1,136,399) (1,127,363) Total Inventories $ $ 1,986,172

Earnings Per Common Share (EPS)

Earnings Per Common Share (EPS)	6 Months Ended
	Jun. 30, 2017
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS)	4. Basic EPS is calculated using net income (loss) divided by the weighted average of common shares outstanding. Diluted EPS is similar to Basic EPS except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if the potential dilutive common shares, such as those shares subject to options, had been issued. Shares used in the calculation of diluted EPS are summarized below: Three Months Ended Jun 30, 2017 Jun 30, 2016 Weighted average common shares outstanding 2,018,466 2,018,753 Dilutive effect of stock options — 80 Weighted average common and common equivalent shares outstanding 2,018,466 2,018,833 Six Months Ended Jun 30, 2017 Jun 30, 2016 Weighted average common shares outstanding 2,018,609 2,018,544 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 2,018,609 2,018,544 Options to purchase 11,418 shares of common stock with a weighted average price of $15.99 were outstanding during the three months ended June 30, 2016, but were excluded from the computation of common share equivalents because they were anti-dilutive. If the Company was in a net income position for the three months ended June 30, 2017, all 18,168 options outstanding with a weighted average exercise price of $13.81 would have remained excluded from the computation of common share equivalents as the options were anti-dilutive. If the Company was in a net income position for the first six months of 2017, 2,250 options outstanding with a weighted average exercise price of $8.91 would have been included as part of the weighted average common and common equivalent shares outstanding as the options would have been dilutive while 15,918 options outstanding with a weighted average exercise price of $14.51 would have remained excluded as the options were anti-dilutive . If the Company was in a net income position for the first six months of 2016, 4,750 options outstanding with a weighted average exercise price of $10.59 would have been included as part of the weighted average common and common equivalent shares outstanding as the options would have been dilutive while 11,418 options outstanding with a weighted average exercise price of $15.99 would have remained excluded as the options were anti-dilutive .

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2017
Stock-Based Compensation
Stock-Based Compensation	5. The Company maintains a stock incentive plan which authorizes the issuance of up to 442,750 shares of common stock. Of those shares, 18,168 were subject to outstanding options and 101,989 were reserved for future grants at June 30, 2017. The plan provides for granting eligible participants stock options or other stock awards, as described by the plan, at option prices ranging from 85% to 110% of fair market value at the date of grant. Options granted expire up to seven years after the date of grant. Such options generally become exercisable over a one- to three-year period. The Company charged compensation cost of approximately $6,000 against income for the three months ended June 30, 2017 and approximately $6,500 for the three months ended June 30, 2016. For the first six months of 2017, the Company charged compensation cost of approximately $11,500 and approximately $11,800 for the same period in 2016. As of June 30, 2017, there was approximately $29,100 of unrecognized compensation cost related to unvested share-based compensation awards. That cost is expected to be recognized over the next three years. The Company receives a tax deduction for certain stock option exercises during the period in which the options are exercised, generally for the excess of the market price at the time the stock options are exercised over the exercise price of the options. Proceeds from the exercise of 250 stock options were approximately $2,000 for the six months ended June 30, 2017 while proceeds from the exercise of 500 stock options were approximately $4,000 for the six months ended June 30, 2016. The fair value of options granted during the six months ended June 30, 2017 and 2016 was estimated using the Black-Scholes option pricing model with the following assumptions: 2017 2016 Dividend yield 0% 0% Expected volatility 41.3% 42.4% Expected life of option Five Years Five Years Risk-free interest rate 1.8% 1.3% Fair value of each option on grant date $ 3.43 $ 4.02 There were 2,250 and 4,500 options granted during each of the six months ended June 30, 2017 and 2016, respectively. Stock option activity during the six months ended June 30, 2017 was as follows: Weighted Average Exercise Shares Price Outstanding at January 1, 2017 16,168 $ 14.40 Granted 2,250 8.91 Exercised (250) 7.54 Outstanding at June 30, 2017 18,168 $ 13.81 Exercisable at June 30, 2017 10,499 $ 15.41 The aggregate intrinsic value of all options outstanding and for those exercisable at June 30, 2017 was approximately $1,000 and $0, respectively.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2017
Segment Information
Segment Information	6. The Company’s reportable segments are strategic business units that offer different products and have varied customer bases. There are five reportable segments: Domestic, Export, IKONICS Imaging, Digital Texturing (DTX) and Advanced Material Solutions (AMS). Domestic sells screen printing film, emulsions, and inkjet receptive film to distributors located in the United States and Canada. IKONICS Imaging sells photo resistant film, art supplies, glass, metal medium and related abrasive etching equipment to end user customers located in the United States and Canada. AMS provides sound deadening and weight reduction technology to the aerospace industry along with products and services for etched composites, ceramics, glass and silicon wafers. DTX includes products and customers related to patented and proprietary inkjet technology used for mold texturing and prototyping. Export sells primarily the same products as Domestic and the IKONICS Imaging products not related to AMS or DTX. The accounting policies applied to determine the segment information are the same as those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Management evaluates the performance of each segment based on the components of divisional income. Assets and liabilities are not allocated to segments, except for trade receivables which are allocated based on the previous segmentation. Financial information with respect to the reportable segments follows: For the three months ended June 30, 2017: IKONICS IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ 1,816,956 $ 1,372,092 $ 943,055 $ 471,244 $ 82,014 $ — $ 4,685,361 Cost of goods sold 1,034,059 1,096,279 453,213 358,937 299,609 — 3,242,097 Gross profit (loss) 782,897 275,813 489,842 112,307 (217,595) — 1,443,264 Selling, general and administrative* 334,071 189,741 253,746 50,861 104,325 460,892 1,393,636 Research and development* — — — — — 184,704 184,704 Income (loss) from operations $ 448,826 $ 86,072 $ 236,096 $ 61,446 $ (321,920) $ (645,596) $ (135,076) For the three months ended June 30, 2016: IKONICS IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ 1,943,516 $ 953,585 $ 999,596 $ 33,476 $ 266,405 $ — $ 4,196,578 Cost of goods sold 1,105,206 735,169 425,120 35,062 373,810 — 2,674,367 Gross profit (loss) 838,310 218,416 574,476 (1,586) (107,405) — 1,522,211 Selling, general and administrative* 345,000 159,621 247,682 39,630 123,286 409,951 1,325,170 Research and development* — — — — — 147,125 147,125 Income (loss) from operations $ 493,310 $ 58,795 $ 326,794 $ (41,216) $ (230,691) $ (557,076) $ 49,916 For the six months ended June 30, 2017: IKONICS IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ 3,120,525 $ 2,427,097 $ 1,933,041 $ 586,475 $ 247,215 $ — $ 8,314,353 Cost of goods sold 1,860,800 1,935,643 976,793 394,419 613,206 — 5,780,861 Gross profit (loss) 1,259,725 491,454 956,248 192,056 (365,991) — 2,533,492 Selling, general and administrative* 685,493 385,858 537,605 85,496 201,120 1,008,678 2,904,250 Research and development* — — — — — 350,474 350,474 Income (loss) from operations $ 574,232 $ 105,596 $ 418,643 $ 106,560 $ (567,111) $ (1,359,152) $ (721,232) For the six months ended June 30, 2016: IKONICS IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ 3,297,244 $ 2,196,770 $ 2,117,294 $ 110,356 $ 488,124 $ — $ 8,209,788 Cost of goods sold 1,951,605 1,697,658 964,902 70,486 706,252 — 5,390,903 Gross profit (loss) 1,345,639 499,112 1,152,392 39,870 (218,128) — 2,818,885 Selling, general and administrative* 704,397 302,652 499,053 74,373 227,189 956,622 2,764,286 Research and development* — — — — — 324,989 324,989 Income (loss) from operations $ 641,242 $ 196,460 $ 653,339 $ (34,503) $ (445,317) $ (1,281,611) $ (270,390) * Trade receivables by segment as of June 30, 2017 and December 31, 2016 were as follows: Jun 30, 2017 Dec 31, 2016 Domestic $ $ 1,206,866 Export 551,803 IKONICS Imaging 363,602 DTX 52,935 AMS 177,374 Unallocated (16,079) Total $ $ 2,336,501

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Taxes
Income Taxes	7. The Company reports a liability for unrecognized tax benefits taken or expected to be taken when they are uncertain. As of June 30, 2017 and June 30, 2016, there was no liability for unrecognized tax benefits. The Company is subject to taxation in the United States and various states. The material jurisdictions that are subject to examination by tax authorities primarily include Minnesota and the United States, in each case for tax years 2014, 2015, and 2016.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2017
Subsequent Event
Subsequent Event	8. On August 3, 2017, the Company’s board of directors approved a new repurchase authorization for 100,000 shares of the Company’s common stock, which replaces all prior authorizations. The new share repurchase authorization does not have an expiration date.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2017
Inventories
Schedule of major components of inventories	Jun 30, 2017 Dec 31, 2016 Raw materials $ 1,634,801 $ 1,438,471 Work-in-progress 381,212 355,208 Finished goods 1,396,987 1,319,856 Reduction to LIFO cost (1,136,399) (1,127,363) Total Inventories $ $ 1,986,172

Earnings Per Common Share (EP15

Earnings Per Common Share (EPS) (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Common Share (EPS)
Summary of shares used in the calculation of diluted EPS	Three Months Ended Jun 30, 2017 Jun 30, 2016 Weighted average common shares outstanding 2,018,466 2,018,753 Dilutive effect of stock options — 80 Weighted average common and common equivalent shares outstanding 2,018,466 2,018,833 Six Months Ended Jun 30, 2017 Jun 30, 2016 Weighted average common shares outstanding 2,018,609 2,018,544 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 2,018,609 2,018,544

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2017
Stock-Based Compensation
Assumptions used in estimating fair value of stock options	2017 2016 Dividend yield 0% 0% Expected volatility 41.3% 42.4% Expected life of option Five Years Five Years Risk-free interest rate 1.8% 1.3% Fair value of each option on grant date $ 3.43 $ 4.02
Stock option activity	Weighted Average Exercise Shares Price Outstanding at January 1, 2017 16,168 $ 14.40 Granted 2,250 8.91 Exercised (250) 7.54 Outstanding at June 30, 2017 18,168 $ 13.81 Exercisable at June 30, 2017 10,499 $ 15.41

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Information
Schedule of financial information with respect to the reportable segments	IKONICS IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ 1,816,956 $ 1,372,092 $ 943,055 $ 471,244 $ 82,014 $ — $ 4,685,361 Cost of goods sold 1,034,059 1,096,279 453,213 358,937 299,609 — 3,242,097 Gross profit (loss) 782,897 275,813 489,842 112,307 (217,595) — 1,443,264 Selling, general and administrative* 334,071 189,741 253,746 50,861 104,325 460,892 1,393,636 Research and development* — — — — — 184,704 184,704 Income (loss) from operations $ 448,826 $ 86,072 $ 236,096 $ 61,446 $ (321,920) $ (645,596) $ (135,076) For the three months ended June 30, 2016: IKONICS IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ 1,943,516 $ 953,585 $ 999,596 $ 33,476 $ 266,405 $ — $ 4,196,578 Cost of goods sold 1,105,206 735,169 425,120 35,062 373,810 — 2,674,367 Gross profit (loss) 838,310 218,416 574,476 (1,586) (107,405) — 1,522,211 Selling, general and administrative* 345,000 159,621 247,682 39,630 123,286 409,951 1,325,170 Research and development* — — — — — 147,125 147,125 Income (loss) from operations $ 493,310 $ 58,795 $ 326,794 $ (41,216) $ (230,691) $ (557,076) $ 49,916 For the six months ended June 30, 2017: IKONICS IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ 3,120,525 $ 2,427,097 $ 1,933,041 $ 586,475 $ 247,215 $ — $ 8,314,353 Cost of goods sold 1,860,800 1,935,643 976,793 394,419 613,206 — 5,780,861 Gross profit (loss) 1,259,725 491,454 956,248 192,056 (365,991) — 2,533,492 Selling, general and administrative* 685,493 385,858 537,605 85,496 201,120 1,008,678 2,904,250 Research and development* — — — — — 350,474 350,474 Income (loss) from operations $ 574,232 $ 105,596 $ 418,643 $ 106,560 $ (567,111) $ (1,359,152) $ (721,232) For the six months ended June 30, 2016: IKONICS IKONICS Domestic Export Imaging DTX AMS Unalloc. Total Net sales $ 3,297,244 $ 2,196,770 $ 2,117,294 $ 110,356 $ 488,124 $ — $ 8,209,788 Cost of goods sold 1,951,605 1,697,658 964,902 70,486 706,252 — 5,390,903 Gross profit (loss) 1,345,639 499,112 1,152,392 39,870 (218,128) — 2,818,885 Selling, general and administrative* 704,397 302,652 499,053 74,373 227,189 956,622 2,764,286 Research and development* — — — — — 324,989 324,989 Income (loss) from operations $ 641,242 $ 196,460 $ 653,339 $ (34,503) $ (445,317) $ (1,281,611) $ (270,390) *
Schedule of trade receivables by segment	Jun 30, 2017 Dec 31, 2016 Domestic $ $ 1,206,866 Export 551,803 IKONICS Imaging 363,602 DTX 52,935 AMS 177,374 Unallocated (16,079) Total $ $ 2,336,501

Short-Term Investments (Details

Short-Term Investments (Details)	6 Months Ended
	Jun. 30, 2017USD ($)item	Dec. 31, 2016USD ($)
Short-term investments
Short-term Investments.	$ 2,895,000	$ 3,246,000
Certificates of Deposit
Short-term investments
Number of fully insured certificates of deposit | item	12
Fully insured certificates of deposit	$ 2,900,000
Certificates of Deposit | Minimum
Short-term investments
Maturity period	6 months
Interest rate (as a percent)	0.65%
Certificates of Deposit | Maximum
Short-term investments
Maturity period	12 months
Interest rate (as a percent)	1.25%

Inventories (Details)

Inventories (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Inventories
Raw materials	$ 1,634,801	$ 1,438,471
Work-in-progress	381,212	355,208
Finished goods	1,396,987	1,319,856
Reduction to LIFO cost	(1,136,399)	(1,127,363)
Total inventories	$ 2,276,601	$ 1,986,172

Earnings Per Common Share (EP20

Earnings Per Common Share (EPS) (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Shares used in calculation of diluted EPS
Weighted average common shares outstanding	2,018,466	2,018,753	2,018,609	2,018,544
Dilutive effect of stock options		80
Weighted average common and common equivalent shares outstanding	2,018,466	2,018,833	2,018,609	2,018,544
Dilutive effect
Based on the Company's net income position, dilutive effect of stock options (in shares)	18,168		2,250	4,750
Based on the Company's net income position, dilutive effect of stock options, weighted average exercise price (in dollars per share)	$ 13.81		$ 8.91	$ 10.59
Stock Options.
Dilutive effect
Anti-dilutive securities (in shares)		11,418
Weighted average exercise price of options, anti-dilutive (in dollars per share)		$ 15.99
Based on the Company's net income position, anti-dilutive securities (in shares)			15,918	11,418
Based on the Company's net income position, anti-dilutive securities, weighted average exercise price (in dollars per share)			$ 14.51	$ 15.99

Stock-Based Compensation - Plan

Stock-Based Compensation - Plan and Expense Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Stock-Based Compensation
Common stock reserved for future grants (in shares)	101,989		101,989
Compensation cost recognized	$ 6,000	$ 6,500	$ 11,500	$ 11,800
Unrecognized compensation cost	$ 29,100		$ 29,100
Period during which compensation cost is expected to be recognized			3 years
Proceeds from exercise of stock options			$ 1,885	$ 3,765
Maximum
Stock-Based Compensation
Number of shares of common stock authorized for issuance	442,750		442,750
Stock Options.
Stock-Based Compensation
Outstanding options (in shares)	18,168		18,168		16,168
Exercise of stock options and related tax benefit (in shares)			250	500
Proceeds from exercise of stock options			$ 2,000	$ 4,000
Granted (in shares)			2,250	4,500
Stock Options. | Minimum
Stock-Based Compensation
Price range of stock award (as a percent)			85.00%
Period over which options become exercisable			1 year
Stock Options. | Maximum
Stock-Based Compensation
Price range of stock award (as a percent)			110.00%
Expiration period of options granted			7 years
Period over which options become exercisable			3 years

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions and Activity (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Weighted Average Exercise Price
Aggregate intrinsic value of all options outstanding	$ 1,000
Aggregate intrinsic value of all options exercisable	$ 0
Stock Options.
Assumptions used to determine fair value of stock options granted
Dividend yield (as a percent)	0.00%	0.00%
Expected volatility (as a percent)	41.30%	42.40%
Expected life of option	5 years	5 years
Risk-free interest rate (as a percent)	1.80%	1.30%
Fair value of each option on grant date (in dollars per share)	$ 3.43	$ 4.02
Shares
Outstanding at beginning of period (in shares)	16,168
Granted (in shares)	2,250	4,500
Exercised (in shares)	(250)	(500)
Outstanding at end of period (in shares)	18,168
Exercisable at end of period (in shares)	10,499
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per shares)	$ 14.40
Granted (in dollars per share)	8.91
Exercised (in dollars per share)	7.54
Outstanding at end of period (in dollars per share)	13.81
Exercisable at end of period (in dollars per share)	$ 15.41

Segment Information (Details)

Segment Information (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)segment	Dec. 31, 2016USD ($)
Segment Reporting Information
Number of reportable segments | segment				5
Financial information with respect to the reportable segments
Net sales	$ 4,685,361	$ 4,196,578	$ 8,314,353	$ 8,209,788
Cost of goods sold	3,242,097	2,674,367	5,780,861	5,390,903
GROSS PROFIT	1,443,264	1,522,211	2,533,492	2,818,885
Selling general and administrative	1,393,636	1,325,170	2,904,250	2,764,286
Research and development	184,704	147,125	350,474	324,989
Income (loss) from operations	(135,076)	49,916	(721,232)	(270,390)
Trade receivables by segment
Trade receivables	2,066,736		2,066,736		$ 2,336,501
Unalloc.
Financial information with respect to the reportable segments
Selling general and administrative	460,892	409,951	1,008,678	956,622
Research and development	184,704	147,125	350,474	324,989
Income (loss) from operations	(645,596)	(557,076)	(1,359,152)	(1,281,611)
Trade receivables by segment
Trade receivables	(16,771)		(16,771)		(16,079)
Domestic
Financial information with respect to the reportable segments
Net sales	1,816,956	1,943,516	3,120,525	3,297,244
Cost of goods sold	1,034,059	1,105,206	1,860,800	1,951,605
GROSS PROFIT	782,897	838,310	1,259,725	1,345,639
Selling general and administrative	334,071	345,000	685,493	704,397
Income (loss) from operations	448,826	493,310	574,232	641,242
Trade receivables by segment
Trade receivables	863,407		863,407		1,206,866
Export
Financial information with respect to the reportable segments
Net sales	1,372,092	953,585	2,427,097	2,196,770
Cost of goods sold	1,096,279	735,169	1,935,643	1,697,658
GROSS PROFIT	275,813	218,416	491,454	499,112
Selling general and administrative	189,741	159,621	385,858	302,652
Income (loss) from operations	86,072	58,795	105,596	196,460
Trade receivables by segment
Trade receivables	773,376		773,376		551,803
IKONICS Imaging
Financial information with respect to the reportable segments
Net sales	943,055	999,596	1,933,041	2,117,294
Cost of goods sold	453,213	425,120	976,793	964,902
GROSS PROFIT	489,842	574,476	956,248	1,152,392
Selling general and administrative	253,746	247,682	537,605	499,053
Income (loss) from operations	236,096	326,794	418,643	653,339
Trade receivables by segment
Trade receivables	268,345		268,345		363,602
DTX
Financial information with respect to the reportable segments
Net sales	471,244	33,476	586,475	110,356
Cost of goods sold	358,937	35,062	394,419	70,486
GROSS PROFIT	112,307	(1,586)	192,056	39,870
Selling general and administrative	50,861	39,630	85,496	74,373
Income (loss) from operations	61,446	(41,216)	106,560	(34,503)
Trade receivables by segment
Trade receivables	142,013		142,013		52,935
Micro-Machining
Financial information with respect to the reportable segments
Net sales	82,014	266,405	247,215	488,124
Cost of goods sold	299,609	373,810	613,206	706,252
GROSS PROFIT	(217,595)	(107,405)	(365,991)	(218,128)
Selling general and administrative	104,325	123,286	201,120	227,189
Income (loss) from operations	(321,920)	$ (230,691)	(567,111)	$ (445,317)
Trade receivables by segment
Trade receivables	$ 36,366		$ 36,366		$ 177,374

Income Taxes (Details)

Income Taxes (Details) - USD ($)	Jun. 30, 2017	Jun. 30, 2016
Deferred tax amounts included in balance sheet
Unrecognized tax benefits	$ 0	$ 0

Subsequent Event (Details)

Subsequent Event (Details)	Aug. 03, 2017shares
Subsequent Event.
Share authorized for repurchase	100,000