Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 01, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | IKONICS CORP | |
Entity Central Index Key | 0001083301 | |
Trading Symbol | iknx | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 1,980,811 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Condensed Balance Sheets (Curre
Condensed Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 297,186 | $ 1,623,137 |
Short-term investments | 2,940,000 | 2,695,000 |
Trade receivables, less allowance of $53,000 in 2019 and 2018 | 2,223,445 | 2,215,215 |
Inventories | 2,512,249 | 2,046,588 |
Prepaid expenses and other assets | 262,325 | 375,362 |
Income taxes receivable | 185,219 | 2,768 |
Total current assets | 8,420,424 | 8,958,070 |
PROPERTY, PLANT, AND EQUIPMENT, at cost: | ||
Land and building | 9,500,429 | 9,500,429 |
Machinery and equipment | 5,132,719 | 4,964,816 |
Office equipment | 1,565,456 | 1,559,728 |
Vehicles | 245,674 | 245,679 |
Property, plant, and equipment, Gross | 16,444,278 | 16,270,652 |
Less accumulated depreciation | (8,457,143) | (8,185,910) |
Total property, plant and equipment at cost, net | 7,987,135 | 8,084,742 |
INTANGIBLE ASSETS, less accumulated amortization of $168,488 in 2019 and $149,740 in 2018 | 292,380 | 376,406 |
Total assets | 16,699,939 | 17,419,218 |
CURRENT LIABILITIES | ||
Current portion of long-term debt | 131,385 | 129,282 |
Accounts payable | 533,424 | 647,528 |
Accrued compensation | 331,334 | 366,900 |
Other accrued liabilities | 242,284 | 159,821 |
Total current liabilities | 1,238,427 | 1,303,531 |
LONG-TERM LIABILITIES | ||
Long-term debt, less current portion | 2,755,353 | 2,821,657 |
Deferred income taxes | 183,000 | 183,000 |
Total long-term liabilities | 2,938,353 | 3,004,657 |
Total liabilities | 4,176,780 | 4,308,188 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value $.10 per share; authorized 250,000 shares; issued none | ||
Common stock, par value $.10 per share; authorized 4,750,000 shares; issued and outstanding 1,980,811 shares in 2019 and 1,983,553 in 2018. | 198,081 | 198,355 |
Additional paid-in-capital | 2,723,099 | 2,723,024 |
Retained earnings | 9,601,979 | 10,189,651 |
Total stockholders' equity | 12,523,159 | 13,111,030 |
Total liabilities and stockholders' equity | $ 16,699,939 | $ 17,419,218 |
Condensed Balance Sheets (Cur_2
Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Trade receivables, allowances | $ 53,000 | $ 53,000 |
Intangible assets, accumulated amortization | $ 168,488 | $ 149,740 |
Preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, authorized (in shares) | 250,000 | 250,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 4,750,000 | 4,750,000 |
Common stock, share issued (in shares) | 1,980,811 | 1,983,553 |
Common stock, share outstanding (in shares) | 1,980,811 | 1,983,553 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Net sales | $ 4,596,411 | $ 4,634,177 | $ 8,125,102 | $ 8,705,655 | |
Cost of goods sold | 3,167,982 | 2,971,862 | 5,687,554 | 5,680,921 | |
GROSS PROFIT | 1,428,429 | 1,662,315 | 2,437,548 | 3,024,734 | |
Selling general and administrative* | [1] | 1,338,861 | 1,308,963 | 2,720,826 | 2,657,946 |
Research and development* | [1] | 270,465 | 156,472 | 449,307 | 310,548 |
(LOSS) INCOME FROM OPERATIONS | (180,897) | 196,880 | (732,585) | 56,240 | |
INTEREST EXPENSE | (22,515) | (23,807) | (44,790) | (43,742) | |
OTHER | 17,303 | 11,805 | 33,497 | 21,226 | |
(LOSS) INCOME BEFORE INCOME TAXES | (186,109) | 184,878 | (743,878) | 33,724 | |
INCOME TAX (BENEFIT) EXPENSE | (70,398) | 39,542 | (173,136) | 19,126 | |
NET (LOSS) INCOME | $ (115,711) | $ 145,336 | $ (570,742) | $ 14,598 | |
(LOSS) INCOME PER COMMON SHARE | |||||
Basic (in dollars per share) | $ (0.06) | $ 0.07 | $ (0.29) | $ 0.01 | |
Diluted (in dollars per share) | $ (0.06) | $ 0.07 | $ (0.29) | $ 0.01 | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||||
Weighted average common shares outstanding (in shares) | 1,982,275 | 1,983,553 | 1,982,910 | 1,983,553 | |
Diluted (in shares) | 1,982,275 | 1,983,553 | 1,982,910 | 1,983,553 | |
[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, 2017 | 1,983,553 | |||
BALANCE at Dec. 31, 2017 | $ 198,355 | $ 2,709,390 | $ 10,050,186 | $ 12,957,931 |
Net (loss) income | 14,598 | 14,598 | ||
Stock based compensation | 6,473 | 6,473 | ||
BALANCE (in shares) at Jun. 30, 2018 | 1,983,553 | |||
BALANCE at Jun. 30, 2018 | $ 198,355 | 2,715,863 | 10,064,784 | 12,979,002 |
BALANCE (in shares) at Mar. 31, 2018 | 1,983,553 | |||
BALANCE at Mar. 31, 2018 | $ 198,355 | 2,712,283 | 9,919,448 | 12,830,086 |
Net (loss) income | 145,336 | 145,336 | ||
Stock based compensation | 3,580 | 3,580 | ||
BALANCE (in shares) at Jun. 30, 2018 | 1,983,553 | |||
BALANCE at Jun. 30, 2018 | $ 198,355 | 2,715,863 | 10,064,784 | $ 12,979,002 |
BALANCE (in shares) at Dec. 31, 2018 | 1,983,553 | 1,983,553 | ||
BALANCE at Dec. 31, 2018 | $ 198,355 | 2,723,024 | 10,189,651 | $ 13,111,030 |
Net (loss) income | (570,742) | (570,742) | ||
Common stock repurchased (in shares) | (2,742) | |||
Common stock repurchased | $ (274) | (3,765) | (16,930) | (20,969) |
Stock based compensation | 3,840 | $ 3,840 | ||
BALANCE (in shares) at Jun. 30, 2019 | 1,980,811 | 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) income | (115,711) | (115,711) | ||
Common stock repurchased (in shares) | (2,742) | |||
Common stock repurchased | $ (274) | (3,765) | (16,930) | (20,969) |
Stock based compensation | 1,920 | $ 1,920 | ||
BALANCE (in shares) at Jun. 30, 2019 | 1,980,811 | 1,980,811 | ||
BALANCE at Jun. 30, 2019 | $ 198,081 | $ 2,723,099 | $ 9,601,979 | $ 12,523,159 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (570,742) | $ 14,598 |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation | 321,062 | 395,787 |
Amortization | 24,308 | 18,615 |
Stock based compensation | 3,840 | 6,473 |
Net gain on sale and disposal of property and equipment | (8,481) | |
Deferred income taxes | 12,839 | |
Loss on intangible asset abandonment | 71,600 | |
Changes in working capital components: | ||
Trade receivables | (8,230) | 321,347 |
Inventories | (465,661) | (385,481) |
Prepaid expenses and other assets | 113,037 | (16,184) |
Income tax receivable | (182,451) | (1,365) |
Accounts payable | (114,104) | 508,323 |
Accrued expenses | 46,897 | 2,962 |
Net cash (used in) provided by operating activities | (768,925) | 877,914 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (230,570) | (324,392) |
Proceeds from sales of property and equipment | 15,596 | |
Purchases of intangibles assets | (6,322) | (32,354) |
Purchases of short-term investments | (3,185,000) | (2,920,000) |
Proceeds on sale of short-term investments | 2,940,000 | 2,895,000 |
Net cash used in investing activities | (466,296) | (381,746) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment on long-term debt | (69,761) | (70,040) |
Repurchase of common stock | (20,969) | |
Net cash used in financing activities | (90,730) | (70,040) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (1,325,951) | 426,128 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 1,623,137 | 929,700 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 297,186 | 1,355,828 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for interest | 39,812 | 36,711 |
Cash paid for income taxes, net | $ 9,315 | $ 7,652 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019, three six June 30, 2019 2018, three six June 30, 2019 2018, six June 30, 2019 2018, 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, 2019, 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, 2018. The results of operations for interim periods are not |
Note 2 - Short-term Investments
Note 2 - Short-term Investments | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Cash, Cash Equivalents, and Short-term Investments [Text Block] | 2. Short-Term Investments The Company’s $2.9 June 30, 2019 12 five six 2.25% 2.40% |
Note 3 - Inventories
Note 3 - Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 3. Inventories The major components of inventories are as follows: Jun 30, 2019 Dec 31, 2018 Raw materials $ 1,794,771 $ 1,767,458 Work-in-progress 449,081 370,075 Finished goods 1,596,497 1,196,516 Reduction to LIFO cost (1,328,100 ) (1,287,461 ) Total Inventories $ 2,512,249 $ 2,046,588 |
Note 4 - Earnings Per Common Sh
Note 4 - Earnings Per Common Share (EPS) | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 4. Earnings Per Common Share (EPS) Basic EPS is calculated using net income (loss) divided by the weighted average of common shares outstanding. Diluted EPS is 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, 2019 Jun 30, 2018 Weighted average common shares outstanding 1,982,275 1,983,553 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,982,275 1,983,553 Six Months Ended Jun 30, 2019 Jun 30, 2018 Weighted average common shares outstanding 1,982,910 1,983,553 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,982,910 1,983,553 If the Company was in a net income position for the three six June 30, 2019, 16,000 $12.17 For the three six June 30, 2018, 18,000 $13.22 |
Note 5 - Stock-based Compensati
Note 5 - Stock-based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 5. Stock-Based Compensation The Company maintains a 2019 “2019 2019 1995 "1995 April 2019. 1995 442,750 16,000 June 30, 2019. 1995 2019 102,157 1995 no Under the terms of the 2019 may 2019 102,157. 2019 750 1995 2019 2019 2019 102,907. June 30, 2019 no 2019 The Company charged compensation cost of approximately $1,900 three June 30, 2019 $3,600 three June 30, 2018. first six 2019, $3,800 $6,500 2018. June 30, 2019, $8,800 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, 2019 June 30, 2018. There were no six June 30, 2019. six June 30, 2018, 2,750 six June 30, 2018 2018 Dividend yield 0 Expected volatility 40.0% Expected life of option (years) 5 Risk-free interest rate 2.8% Fair value of each option on grant date $3.38 Stock option activity during the six June 30, 2019 Weighted Average Exercise Shares Price Outstanding at January 1, 2019 18,000 $ 13.22 Granted — — Exercised — — Expired and forfeited (2,000 ) 21.69 Outstanding at June 30, 2019 16,000 $ 12.17 Exercisable at June 30, 2019 13,415 $ 12.83 The aggregate intrinsic value of all options outstanding and exercisable at June 30, 2019 $0. |
Note 6 - Segment Information
Note 6 - Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 6. Segment Information The Company’s reportable segments are strategic business units that offer different products and have varied customer bases. There are four 2019, one 2019 2019, 2019 2018 10 December 31, 2018. 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, 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 three June 30, 2018: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 3,099,892 $ 968,933 $ 94,322 $ 471,030 $ — $ 4,634,177 Cost of goods sold 2,037,949 509,613 33,612 390,688 — 2,971,862 Gross profit 1,061,943 459,320 60,710 80,342 — 1,662,315 Selling general and administrative* 441,393 244,633 32,596 97,477 492,864 1,308,963 Research and development* — — — — 156,472 156,472 Income (loss) from operations $ 620,550 $ 214,687 $ 28,114 $ (17,135 ) $ (649,336 ) $ 196,880 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 ) For the six June 30, 2018: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 5,440,702 $ 2,188,281 $ 182,988 $ 893,684 $ — $ 8,705,655 Cost of goods sold 3,702,827 1,133,224 59,004 785,866 — 5,680,921 Gross profit 1,737,875 1,055,057 123,984 107,818 — 3,024,734 Selling general and administrative* 866,722 529,658 67,448 182,260 1,011,858 2,657,946 Research and development* — — — — 310,548 310,548 Income (loss) from operations $ 871,153 $ 525,399 $ 56,536 $ (74,442 ) $ (1,322,406 ) $ 56,240 *The Company does not Trade receivables by segment as of June 30, 2019 December 31, 2018 Jun 30, 2019 Dec 31, 2018 Chromaline $ 1,568,512 $ 1,550,411 IKONICS Imaging 323,741 360,551 DTX 26,559 15,692 AMS 298,714 331,708 Unallocated 5,919 (43,147 ) Total $ 2,223,445 $ 2,215,215 |
Note 7 - Income Taxes
Note 7 - Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 7. Income Taxes The Company recorded its interim provision for income taxes by applying the estimated annual effective tax rate to the year-to-date pre-tax income (loss) 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, amortization, and vacation accruals, and deductions related to allowances for doubtful accounts receivable and inventory reserves. The provision for income taxes (benefits) included current federal and state income tax expense (benefit), as well as deferred federal and state income tax expense. The effective tax rate for the three June 30, 2019 37.8%, 21.4% three June 30, 2018. $70,000 $40,000 three June 30, 2019 2018, The effective tax rate for the six June 30, 2019 23.3%, 56.7% six June 30, 2018. $173,000 $19,000 six June 30, 2019 2018, The income tax provision for the 2019 2018 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% June 30, 2019 no The Company is not 2017 December 22, 2017. January 1, 2018, 35% 21% |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | Jun 30, 2019 Dec 31, 2018 Raw materials $ 1,794,771 $ 1,767,458 Work-in-progress 449,081 370,075 Finished goods 1,596,497 1,196,516 Reduction to LIFO cost (1,328,100 ) (1,287,461 ) Total Inventories $ 2,512,249 $ 2,046,588 |
Note 4 - Earnings Per Common _2
Note 4 - Earnings Per Common Share (EPS) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Three Months Ended Jun 30, 2019 Jun 30, 2018 Weighted average common shares outstanding 1,982,275 1,983,553 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,982,275 1,983,553 Six Months Ended Jun 30, 2019 Jun 30, 2018 Weighted average common shares outstanding 1,982,910 1,983,553 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,982,910 1,983,553 |
Note 5 - Stock-based Compensa_2
Note 5 - Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2018 Dividend yield 0 Expected volatility 40.0% Expected life of option (years) 5 Risk-free interest rate 2.8% Fair value of each option on grant date $3.38 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Average Exercise Shares Price Outstanding at January 1, 2019 18,000 $ 13.22 Granted — — Exercised — — Expired and forfeited (2,000 ) 21.69 Outstanding at June 30, 2019 16,000 $ 12.17 Exercisable at June 30, 2019 13,415 $ 12.83 |
Note 6 - Segment Information (T
Note 6 - Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 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 $ 3,099,892 $ 968,933 $ 94,322 $ 471,030 $ — $ 4,634,177 Cost of goods sold 2,037,949 509,613 33,612 390,688 — 2,971,862 Gross profit 1,061,943 459,320 60,710 80,342 — 1,662,315 Selling general and administrative* 441,393 244,633 32,596 97,477 492,864 1,308,963 Research and development* — — — — 156,472 156,472 Income (loss) from operations $ 620,550 $ 214,687 $ 28,114 $ (17,135 ) $ (649,336 ) $ 196,880 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 ) IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 5,440,702 $ 2,188,281 $ 182,988 $ 893,684 $ — $ 8,705,655 Cost of goods sold 3,702,827 1,133,224 59,004 785,866 — 5,680,921 Gross profit 1,737,875 1,055,057 123,984 107,818 — 3,024,734 Selling general and administrative* 866,722 529,658 67,448 182,260 1,011,858 2,657,946 Research and development* — — — — 310,548 310,548 Income (loss) from operations $ 871,153 $ 525,399 $ 56,536 $ (74,442 ) $ (1,322,406 ) $ 56,240 Jun 30, 2019 Dec 31, 2018 Chromaline $ 1,568,512 $ 1,550,411 IKONICS Imaging 323,741 360,551 DTX 26,559 15,692 AMS 298,714 331,708 Unallocated 5,919 (43,147 ) Total $ 2,223,445 $ 2,215,215 |
Note 2 - Short-term Investmen_2
Note 2 - Short-term Investments (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Short-term Investments, Total | $ 2,940,000 | $ 2,695,000 |
Certificates of Deposit [Member] | Minimum [Member] | ||
Certificate of Deposit Maturity Period | 150 days | |
Certificate of Deposit Interest Rate | 2.25% | |
Certificates of Deposit [Member] | Maximum [Member] | ||
Certificate of Deposit Maturity Period | 180 days | |
Certificate of Deposit Interest Rate | 2.40% |
Note 3 - Inventories - Major Co
Note 3 - Inventories - Major Components of Inventories (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Raw materials | $ 1,794,771 | $ 1,767,458 |
Work-in-progress | 449,081 | 370,075 |
Finished goods | 1,596,497 | 1,196,516 |
Reduction to LIFO cost | (1,328,100) | (1,287,461) |
Total Inventories | $ 2,512,249 | $ 2,046,588 |
Note 4 - Earnings Per Common _3
Note 4 - Earnings Per Common Share (EPS) (Details Textual) - Share-based Payment Arrangement, Option [Member] - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation Of Earnings Per Share Amount Based on Net Income Position | 16,000 | 18,000 | 16,000 | 18,000 |
Share Based Compensation Arrangement by Share Based Payment Award Options With AntiDilutive Effect Weighted Average Exercise Price Based on Net Income Position | $ 12.17 | $ 13.22 | $ 12.17 | $ 13.22 |
Note 4 - Earnings Per Common _4
Note 4 - Earnings Per Common Share (EPS) - Summary of Calculation of Diluted EPS (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Weighted average common shares outstanding (in shares) | 1,982,275 | 1,983,553 | 1,982,910 | 1,983,553 |
Dilutive effect of stock options (in shares) | ||||
Weighted average common and common equivalent shares outstanding (in shares) | 1,982,275 | 1,983,553 | 1,982,910 | 1,983,553 |
Note 5 - Stock-based Compensa_3
Note 5 - Stock-based Compensation (Details Textual) - USD ($) | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Apr. 30, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 16,000 | 16,000 | 16,000 | 18,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 2,750 | |||||
Share-based Payment Arrangement, Expense | $ 1,900 | $ 3,600 | $ 3,800 | $ 6,500 | |||
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 8,800 | 8,800 | $ 8,800 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | $ 0 | $ 0 | ||||
The 1995 Incentive Stock Option Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 16,000 | 16,000 | 16,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 102,157 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 750 | ||||||
The 2019 Equity Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 102,907 | 102,907 | 102,907 | 102,157 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ||||||
Maximum [Member] | The 1995 Incentive Stock Option Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 442,750 | 442,750 | 442,750 |
Note 5 - Stock-based Compensa_4
Note 5 - Stock-based Compensation - Assumptions (Details) - Share-based Payment Arrangement, Option [Member] | 6 Months Ended |
Jun. 30, 2018$ / shares | |
Dividend yield | 0.00% |
Expected volatility | 40.00% |
Expected life of option (years) (Year) | 5 years |
Risk-free interest rate | 2.80% |
Fair value of each option on grant date (in dollars per share) | $ 3.38 |
Note 5 - Stock-based Compensa_5
Note 5 - Stock-based Compensation - Stock Option Activity (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Outstanding, Shares (in shares) | 18,000 | |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 13.22 | |
Granted, Shares (in shares) | 0 | 2,750 |
Granted, Weighted Average Exercise Price (in dollars per share) | ||
Exercised, Shares (in shares) | 0 | 0 |
Exercised, Weighted Average Exercise Price (in dollars per share) | ||
Expired and forfeited, Shares (in shares) | (2,000) | |
Expired and forfeited, Weighted Average Exercise Price (in dollars per share) | $ 21.69 | |
Outstanding, Shares (in shares) | 16,000 | |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 12.17 | |
Exercisable, Shares (in shares) | 13,415 | |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 12.83 |
Note 6 - Segment Information (D
Note 6 - Segment Information (Details Textual) | 6 Months Ended |
Jun. 30, 2019 | |
Number of Reportable Segments | 4 |
Note 6 - Segment Information -
Note 6 - Segment Information - Reportable Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | ||
Net sales | $ 4,596,411 | $ 4,634,177 | $ 8,125,102 | $ 8,705,655 | ||
Cost of goods sold | 3,167,982 | 2,971,862 | 5,687,554 | 5,680,921 | ||
Gross profit | 1,428,429 | 1,662,315 | 2,437,548 | 3,024,734 | ||
Selling general and administrative* | [1] | 1,338,861 | 1,308,963 | 2,720,826 | 2,657,946 | |
Research and development* | [1] | 270,465 | 156,472 | 449,307 | 310,548 | |
Income (loss) from operations | (180,897) | 196,880 | (732,585) | 56,240 | ||
Trade receivables | 2,223,445 | 2,223,445 | $ 2,215,215 | |||
Segment Reconciling Items [Member] | ||||||
Net sales | ||||||
Cost of goods sold | ||||||
Gross profit | ||||||
Selling general and administrative* | [1] | 500,597 | 492,864 | 992,353 | 1,011,858 | |
Research and development* | [1] | 270,465 | 156,472 | 449,307 | 310,548 | |
Income (loss) from operations | (771,062) | (649,336) | (1,441,660) | (1,322,406) | ||
Trade receivables | 5,919 | 5,919 | (43,147) | |||
Chromaline [Member] | Operating Segments [Member] | ||||||
Net sales | 3,107,116 | 3,099,892 | 5,136,457 | 5,440,702 | ||
Cost of goods sold | 2,280,224 | 2,037,949 | 3,833,834 | 3,702,827 | ||
Gross profit | 826,892 | 1,061,943 | 1,302,623 | 1,737,875 | ||
Selling general and administrative* | [1] | 467,091 | 441,393 | 912,094 | 866,722 | |
Research and development* | [1] | |||||
Income (loss) from operations | 359,801 | 620,550 | 390,529 | 871,153 | ||
Trade receivables | 1,568,512 | 1,568,512 | 1,550,411 | |||
Ikonics Imaging [Member] | Operating Segments [Member] | ||||||
Net sales | 958,128 | 968,933 | 2,046,934 | 2,188,281 | ||
Cost of goods sold | 501,006 | 509,613 | 1,086,510 | 1,133,224 | ||
Gross profit | 457,122 | 459,320 | 960,424 | 1,055,057 | ||
Selling general and administrative* | [1] | 248,050 | 244,633 | 570,503 | 529,658 | |
Research and development* | [1] | |||||
Income (loss) from operations | 209,072 | 214,687 | 389,921 | 525,399 | ||
Trade receivables | 323,741 | 323,741 | 360,551 | |||
DTX [Member] | Operating Segments [Member] | ||||||
Net sales | 112,601 | 94,322 | 205,361 | 182,988 | ||
Cost of goods sold | 51,547 | 33,612 | 85,593 | 59,004 | ||
Gross profit | 61,054 | 60,710 | 119,768 | 123,984 | ||
Selling general and administrative* | [1] | 34,761 | 32,596 | 69,366 | 67,448 | |
Research and development* | [1] | |||||
Income (loss) from operations | 26,293 | 28,114 | 50,402 | 56,536 | ||
Trade receivables | 26,559 | 26,559 | 15,692 | |||
AMS [Member] | Operating Segments [Member] | ||||||
Net sales | 418,566 | 471,030 | 736,350 | 893,684 | ||
Cost of goods sold | 335,205 | 390,688 | 681,617 | 785,866 | ||
Gross profit | 83,361 | 80,342 | 54,733 | 107,818 | ||
Selling general and administrative* | [1] | 88,362 | 97,477 | 176,510 | 182,260 | |
Research and development* | [1] | |||||
Income (loss) from operations | (5,001) | $ (17,135) | (121,777) | $ (74,442) | ||
Trade receivables | $ 298,714 | $ 298,714 | $ 331,708 | |||
[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 7 - Income Taxes (Details
Note 7 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 37.80% | (21.40%) | 23.30% | (56.70%) | 21.00% | 35.00% |
Income Tax Expense (Benefit), Total | $ (70,398) | $ 39,542 | $ (173,136) | $ 19,126 | ||
Unrecognized Tax Benefits, Ending Balance | $ 0 | $ 0 |