Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 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 | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, par value $.10 per share |
Condensed Balance Sheets (Curre
Condensed Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,605,440 | $ 963,649 |
Short-term investments | 980,000 | 2,205,000 |
Trade receivables, less allowance of $115,000 in 2020 and $58,000 in 2019 | 1,760,166 | 2,434,718 |
Inventories | 2,588,769 | 2,180,536 |
Prepaid expenses and other assets | 328,437 | 906,916 |
Income taxes receivable | 245,623 | 1,369 |
Total current assets | 7,508,435 | 8,692,188 |
PROPERTY, PLANT, AND EQUIPMENT, at cost: | ||
Land and building | 9,556,586 | 9,556,984 |
Machinery and equipment | 5,270,711 | 5,198,784 |
Office equipment | 1,440,964 | 1,402,369 |
Vehicles | 245,674 | 245,674 |
Property, plant, and equipment, Gross | 16,513,935 | 16,403,811 |
Less accumulated depreciation | (8,646,422) | (8,487,827) |
Total property, plant and equipment at cost, net | 7,867,513 | 7,915,984 |
INTANGIBLE ASSETS, less accumulated amortization of $188,397 in 2020 and $181,609 in 2019 | 268,004 | 271,369 |
Total assets | 15,643,952 | 16,879,541 |
CURRENT LIABILITIES | ||
Current portion of long-term debt | 134,592 | 133,287 |
Accounts payable | 763,216 | 761,641 |
Accrued compensation | 289,330 | 382,303 |
Other accrued liabilities | 129,398 | 657,255 |
Total current liabilities | 1,316,536 | 1,934,486 |
LONG-TERM LIABILITIES | ||
Long-term debt, less current portion | 2,654,036 | 2,688,357 |
Total liabilities | 3,970,572 | 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 | 2,725,650 | 2,721,962 |
Retained earnings | 8,750,095 | 9,337,101 |
Total stockholders' equity | 11,673,380 | 12,256,698 |
Total liabilities and stockholders' equity | $ 15,643,952 | $ 16,879,541 |
Condensed Balance Sheets (Cur_2
Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Trade receivables, allowances | $ 115,000 | $ 58,000 |
Intangible assets, accumulated amortization | $ 188,397 | $ 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 | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Net sales | $ 3,497,192 | $ 3,528,691 | |
Cost of goods sold | 2,343,960 | 2,519,572 | |
GROSS PROFIT | 1,153,232 | 1,009,119 | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | [1] | 1,781,020 | 1,381,965 |
RESEARCH AND DEVELOPMENT EXPENSES | [1] | 183,580 | 178,842 |
LOSS FROM OPERATIONS | (811,368) | (551,688) | |
INTEREST EXPENSE | (21,484) | (22,275) | |
OTHER INCOME | 6,917 | 16,194 | |
LOSS BEFORE INCOME TAXES | (825,935) | (557,769) | |
INCOME TAX BENEFIT | (238,929) | (102,738) | |
NET LOSS | $ (587,006) | $ (455,031) | |
LOSS PER COMMON SHARE | |||
Basic (in dollars per share) | $ (0.30) | $ (0.23) | |
Diluted (in dollars per share) | $ (0.30) | $ (0.23) | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||
Basic (in shares) | 1,976,354 | 1,983,553 | |
Diluted (in shares) | 1,976,354 | 1,983,553 | |
[1] | The Company does not allocate all general and administrative expenses or any research and development expenses to its operating segments for internal reporting. |
Statements of Stockholders' Equ
Statements of Stockholders' Equity (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 | (455,031) | (455,031) | ||
Stock based compensation | 1,920 | 1,920 | ||
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 |
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 | (587,006) | (587,006) | ||
Stock based compensation | 3,688 | $ 3,688 | ||
BALANCE (in shares) at Mar. 31, 2020 | 1,976,354 | 1,976,354 | ||
BALANCE at Mar. 31, 2020 | $ 197,635 | $ 2,725,650 | $ 8,750,095 | $ 11,673,380 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (587,006) | $ (455,031) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 167,623 | 162,033 |
Amortization | 9,454 | 8,932 |
Stock based compensation | 3,688 | 1,920 |
Net gain on sale and disposal of equipment | (2,324) | (7,487) |
Loss on intangible asset abandonment | 343 | |
Changes in working capital components: | ||
Trade receivables | 674,552 | 394,101 |
Inventories | (408,233) | (793,588) |
Prepaid expenses and other assets | 578,479 | 115,523 |
Income tax receivable | (244,254) | (110,553) |
Accounts payable | 1,575 | 212,578 |
Accrued expenses | (620,830) | (146,767) |
Net cash used in operating activities | (427,276) | (617,996) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (135,125) | (117,075) |
Proceeds from sales of equipment | 18,297 | 12,396 |
Purchases of intangible assets | (3,423) | (2,797) |
Purchases of short-term investments | (1,715,000) | |
Proceeds on sale of short-term investments | 1,225,000 | 1,470,000 |
Net cash provided by (used in) investing activities | 1,104,749 | (352,476) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment on long-term debt | (35,682) | (35,419) |
Net cash used in financing activities | (35,682) | (35,419) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 641,791 | (1,005,891) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 963,649 | 1,623,137 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 1,605,440 | 617,246 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for interest | 19,105 | 19,367 |
Cash paid for income taxes, net | $ 5,325 | $ 7,815 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Mar. 31, 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 March 31, 2020, three March 31, 2020 2019, three March 31, 2020 2019, three March 31, 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 March 31, 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 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 - Short-term Investments
Note 2 - Short-term Investments | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Cash, Cash Equivalents, and Short-term Investments [Text Block] | 2. Short-Term Investments The Company’s $980,000 March 31, 2020 4 five 1.60% 1.70%. |
Note 3 - Inventories
Note 3 - Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 3. Inventories The major components of inventories as of March 31, 2020 December 31, 2019 Mar 31, 2020 Dec 31, 2019 Raw materials $ 1,436,769 $ 1,667,154 Work-in-progress 459,370 419,906 Finished goods 2,023,640 1,449,854 Reduction to LIFO cost (1,331,010 ) (1,356,378 ) Total Inventories $ 2,588,769 $ 2,180,536 |
Note 4 - Earnings Per Common Sh
Note 4 - Earnings Per Common Share (EPS) | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 4. 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 Mar 31, 2020 Mar 31, 2019 Weighted average common shares outstanding 1,976,354 1,983,553 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,976,354 1,983,553 If the Company was in a net income position for the first three 2020, 23,750 $8.01 If the Company was in a net income position for the first three 2019, 18,000 $13.22 |
Note 5 - Stock-based Compensati
Note 5 - Stock-based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 5. Stock-Based Compensation The Company maintains the 2019 “2019 2019 1995 "1995 April 2019. 1995 442,750 10,500 March 31, 2020. 1995 2019 102,157 1995 no Under the terms of the 2019 may 2019 102,157. 2019 6,250 1995 2019 2019 2019 108,407. March 31, 2020, 13,250 2019 The Company charged compensation cost of approximately $3,700 three March 31, 2020 $2,000 three March 31, 2019. March 31, 2020, $37,400 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 three March 31, 2020 March 31, 2019. There were 10,000 three March 31, 2020 no three March 31, 2019. three March 31, 2020 2020 Dividend yield 0 Expected volatility 40.3 % Expected life of option (years) 10 Risk-free interest rate 1.4 % Fair value of each option on grant date $ 2.90 Stock option activity during the three March 31, 2020 Weighted Average Exercise Shares Price Outstanding at January 1, 2020 19,250 $ 11.32 Granted 10,000 5.67 Exercised — — Expired and forfeited (5,500 ) 15.33 Outstanding at March 31, 2020 23,750 $ 8.01 Exercisable at March 31, 2020 7,915 $ 11.09 The aggregate intrinsic value of all options outstanding and exercisable at March 31, 2020 $0. |
Note 6 - Segment Information
Note 6 - Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
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 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 March 31, 2020: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 1,964,340 $ 970,099 $ 112,529 $ 450,224 $ — $ 3,497,192 Cost of goods sold 1,418,269 477,723 51,746 396,222 — 2,343,960 Gross profit 546,071 492,376 60,783 54,002 — 1,153,232 Selling general and administrative* 426,219 278,862 34,373 103,109 938,457 1,781,020 Research and development* — — — — 183,580 183,580 Income (loss) from operations $ 119,852 $ 213,514 $ 26,410 $ (49,107 ) $ (1,122,037 ) $ (811,368 ) For the three March 31, 2019: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 2,029,341 $ 1,088,806 $ 92,760 $ 317,784 $ — $ 3,528,691 Cost of goods sold 1,553,610 585,504 34,046 346,412 — 2,519,572 Gross profit 475,731 503,302 58,714 (28,628 ) — 1,009,119 Selling general and administrative* 445,003 322,453 34,605 88,148 491,756 1,381,965 Research and development* — — — — 178,842 178,842 Income (loss) from operations $ 30,728 $ 180,849 $ 24,109 $ (116,776 ) $ (670,598 ) $ (551,688 ) *The Company does not Trade receivables by segment as of March 31, 2020 December 31, 2019 Mar 31, 2020 Dec 31, 2019 Chromaline $ 1,114,214 $ 1,916,066 IKONICS Imaging 282,082 304,791 DTX 60,764 13,919 AMS 416,284 252,363 Unallocated (113,178 ) (52,421 ) Total $ 1,760,166 $ 2,434,718 |
Note 7 - Income Taxes
Note 7 - Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 7. 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 March 31, 2020. On the basis of this evaluation, as of March 31, 2020, $214,000 not may no On March 27, 2020, 19 2018, 2019, 2020 five The effective tax rate for the three March 31, 2020 28.9%, 18.4% three March 31, 2019. $239,000 $103,000 three March 31, 2020 2019, The Company recognized the financial statement benefit of a tax position only after determining that the relevant tax authority is more-likely -than- not not 50% March 31, 2020, no This Company is not |
Note 8 - Long-term Debt
Note 8 - Long-term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. Long-Term Debt 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 as of the end of each calendar quarter of not 1.25 1.00 four December 31, 2019, not no February 2020 March 31, 2020. $2.6 $2.0 March 31 2020. 19 In addition to the $3,415,000 $2,050,000 August 30, 2021 1.8 30 not first three 2020 2019 no March 31, 2020 December 31, 2019. no Both the $3,415,000 |
Note 9 - Subsequent Events
Note 9 - Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 9. Subsequent Event The Company evaluated its March 31, 2020 19 March 27, 2020, $1.2 eight may |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | Mar 31, 2020 Dec 31, 2019 Raw materials $ 1,436,769 $ 1,667,154 Work-in-progress 459,370 419,906 Finished goods 2,023,640 1,449,854 Reduction to LIFO cost (1,331,010 ) (1,356,378 ) Total Inventories $ 2,588,769 $ 2,180,536 |
Note 4 - Earnings Per Common _2
Note 4 - Earnings Per Common Share (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Three Months Ended Mar 31, 2020 Mar 31, 2019 Weighted average common shares outstanding 1,976,354 1,983,553 Dilutive effect of stock options — — Weighted average common and common equivalent shares outstanding 1,976,354 1,983,553 |
Note 5 - Stock-based Compensa_2
Note 5 - Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2020 Dividend yield 0 Expected volatility 40.3 % Expected life of option (years) 10 Risk-free interest rate 1.4 % Fair value of each option on grant date $ 2.90 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Average Exercise Shares Price Outstanding at January 1, 2020 19,250 $ 11.32 Granted 10,000 5.67 Exercised — — Expired and forfeited (5,500 ) 15.33 Outstanding at March 31, 2020 23,750 $ 8.01 Exercisable at March 31, 2020 7,915 $ 11.09 |
Note 6 - Segment Information (T
Note 6 - Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 1,964,340 $ 970,099 $ 112,529 $ 450,224 $ — $ 3,497,192 Cost of goods sold 1,418,269 477,723 51,746 396,222 — 2,343,960 Gross profit 546,071 492,376 60,783 54,002 — 1,153,232 Selling general and administrative* 426,219 278,862 34,373 103,109 938,457 1,781,020 Research and development* — — — — 183,580 183,580 Income (loss) from operations $ 119,852 $ 213,514 $ 26,410 $ (49,107 ) $ (1,122,037 ) $ (811,368 ) IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 2,029,341 $ 1,088,806 $ 92,760 $ 317,784 $ — $ 3,528,691 Cost of goods sold 1,553,610 585,504 34,046 346,412 — 2,519,572 Gross profit 475,731 503,302 58,714 (28,628 ) — 1,009,119 Selling general and administrative* 445,003 322,453 34,605 88,148 491,756 1,381,965 Research and development* — — — — 178,842 178,842 Income (loss) from operations $ 30,728 $ 180,849 $ 24,109 $ (116,776 ) $ (670,598 ) $ (551,688 ) Mar 31, 2020 Dec 31, 2019 Chromaline $ 1,114,214 $ 1,916,066 IKONICS Imaging 282,082 304,791 DTX 60,764 13,919 AMS 416,284 252,363 Unallocated (113,178 ) (52,421 ) Total $ 1,760,166 $ 2,434,718 |
Note 2 - Short-term Investmen_2
Note 2 - Short-term Investments (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Short-term Investments, Total | $ 980,000 | $ 2,205,000 |
Certificates of Deposit [Member] | ||
Certificate of Deposit Maturity Period (Month) | 150 days | |
Certificates of Deposit [Member] | Minimum [Member] | ||
Certificate of Deposit Interest Rate | 1.60% | |
Certificates of Deposit [Member] | Maximum [Member] | ||
Certificate of Deposit Interest Rate | 1.70% |
Note 3 - Inventories - Major Co
Note 3 - Inventories - Major Components of Inventories (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Raw materials | $ 1,436,769 | $ 1,667,154 |
Work-in-progress | 459,370 | 419,906 |
Finished goods | 2,023,640 | 1,449,854 |
Reduction to LIFO cost | (1,331,010) | (1,356,378) |
Total Inventories | $ 2,588,769 | $ 2,180,536 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation Of Earnings Per Share Amount Based on Net Income Position (in shares) | 23,750 | 18,000 |
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) | $ 8.01 | $ 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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Weighted average common shares outstanding (in shares) | 1,976,354 | 1,983,553 |
Dilutive effect of stock options (in shares) | ||
Weighted average common and common equivalent shares outstanding (in shares) | 1,976,354 | 1,983,553 |
Note 5 - Stock-based Compensa_3
Note 5 - Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 23,750 | 19,250 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 10,000 | 0 | |
Share-based Payment Arrangement, Expense | $ 3,700 | $ 2,000 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 37,400 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 3 years | ||
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) | 10,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period (in shares) | 6,250 | ||
The 1995 Incentive Stock Option Plan [Member] | Share-based Payment Arrangement, Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 102,157 | ||
The 2019 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 108,407 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 13,250 |
Note 5 - Stock-based Compensa_4
Note 5 - Stock-based Compensation - Assumptions (Details) - Share-based Payment Arrangement, Option [Member] | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Dividend yield | 0.00% |
Expected volatility | 40.30% |
Expected life of option (years) (Year) | 10 years |
Risk-free interest rate | 1.40% |
Fair value of each option on grant date (in dollars per share) | $ 2.90 |
Note 5 - Stock-based Compensa_5
Note 5 - Stock-based Compensation - Stock Option Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Outstanding, Shares (in shares) | 19,250 | |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 11.32 | |
Granted, Shares (in shares) | 10,000 | 0 |
Granted, Weighted Average Exercise Price (in dollars per share) | $ 5.67 | |
Exercised, Shares (in shares) | 0 | 0 |
Exercised, Weighted Average Exercise Price (in dollars per share) | ||
Expired and forfeited, Shares (in shares) | (5,500) | |
Expired and forfeited, Weighted Average Exercise Price (in dollars per share) | $ 15.33 | |
Outstanding, Shares (in shares) | 23,750 | |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 8.01 | |
Exercisable, Shares (in shares) | 7,915 | |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 11.09 |
Note 6 - Segment Information (D
Note 6 - Segment Information (Details Textual) | 3 Months Ended |
Mar. 31, 2020 | |
Number of Reportable Segments | 4 |
Note 6 - Segment Information -
Note 6 - Segment Information - Reportable Segments (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | ||
Net sales | $ 3,497,192 | $ 3,528,691 | ||
Cost of goods sold | 2,343,960 | 2,519,572 | ||
Gross profit | 1,153,232 | 1,009,119 | ||
Selling general and administrative* | [1] | 1,781,020 | 1,381,965 | |
Research and development* | [1] | 183,580 | 178,842 | |
Income (loss) from operations | (811,368) | (551,688) | ||
Trade receivables | 1,760,166 | $ 2,434,718 | ||
Segment Reconciling Items [Member] | ||||
Net sales | ||||
Cost of goods sold | ||||
Gross profit | ||||
Selling general and administrative* | [1] | 938,457 | 491,756 | |
Research and development* | [1] | 183,580 | 178,842 | |
Income (loss) from operations | (1,122,037) | (670,598) | ||
Trade receivables | (113,178) | (52,421) | ||
Chromaline [Member] | Operating Segments [Member] | ||||
Net sales | 1,964,340 | 2,029,341 | ||
Cost of goods sold | 1,418,269 | 1,553,610 | ||
Gross profit | 546,071 | 475,731 | ||
Selling general and administrative* | [1] | 426,219 | 445,003 | |
Research and development* | [1] | |||
Income (loss) from operations | 119,852 | 30,728 | ||
Trade receivables | 1,114,214 | 1,916,066 | ||
Ikonics Imaging [Member] | Operating Segments [Member] | ||||
Net sales | 970,099 | 1,088,806 | ||
Cost of goods sold | 477,723 | 585,504 | ||
Gross profit | 492,376 | 503,302 | ||
Selling general and administrative* | [1] | 278,862 | 322,453 | |
Research and development* | [1] | |||
Income (loss) from operations | 213,514 | 180,849 | ||
Trade receivables | 282,082 | 304,791 | ||
DTX [Member] | Operating Segments [Member] | ||||
Net sales | 112,529 | 92,760 | ||
Cost of goods sold | 51,746 | 34,046 | ||
Gross profit | 60,783 | 58,714 | ||
Selling general and administrative* | [1] | 34,373 | 34,605 | |
Research and development* | [1] | |||
Income (loss) from operations | 26,410 | 24,109 | ||
Trade receivables | 60,764 | 13,919 | ||
AMS [Member] | Operating Segments [Member] | ||||
Net sales | 450,224 | 317,784 | ||
Cost of goods sold | 396,222 | 346,412 | ||
Gross profit | 54,002 | (28,628) | ||
Selling general and administrative* | [1] | 103,109 | 88,148 | |
Research and development* | [1] | |||
Income (loss) from operations | (49,107) | $ (116,776) | ||
Trade receivables | $ 416,284 | $ 252,363 | ||
[1] | The Company does not allocate all general and administrative expenses or any research and development expenses to its operating segments for internal reporting. |
Note 7 - Income Taxes (Details
Note 7 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Deferred Tax Assets, Valuation Allowance, Total | $ 214,000 | |
Effective Income Tax Rate Reconciliation, Percent, Total | (28.90%) | (18.40%) |
Income Tax Expense (Benefit), Total | $ (238,929) | $ (102,738) |
Unrecognized Tax Benefits, Ending Balance | $ 0 |
Note 8 - Long-term Debt (Detail
Note 8 - Long-term Debt (Details Textual) | Apr. 29, 2016 | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Apr. 01, 2016USD ($) |
Investments and Cash, Total | $ 2,600,000 | |||
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 | |||
Duluth Economic Development Authority [Member] | ||||
Tax Exempt Industrial Revenue Bonds Amount Sold to Bank | $ 3,415,000 |
Note 9 - Subsequent Events (Det
Note 9 - Subsequent Events (Details Textual) $ in Millions | Mar. 27, 2020USD ($) |
Proceeds from Paycheck Protection Program Under CARES Act | $ 1.2 |