Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 09, 2021 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001083301 | |
Entity Registrant Name | IKONICS CORP | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-25727 | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-0730027 | |
Entity Address, Address Line One | 4832 Grand Avenue | |
Entity Address, City or Town | Duluth | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55807 | |
City Area Code | 218 | |
Local Phone Number | 628-2217 | |
Title of 12(b) Security | Common Stock, par value $.10 per share | |
Trading Symbol | IKNX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,981,194 |
Condensed Balance Sheets (Curre
Condensed Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash | $ 2,260,855 | $ 3,693,845 |
Trade receivables, less allowance of $54,000 in 2021 and $55,000 in 2020 | 1,651,035 | 2,119,213 |
Inventories | 1,607,828 | 1,644,975 |
Prepaid expenses and other assets | 162,786 | 125,969 |
Income taxes receivable | 30,412 | 219,451 |
Total current assets | 5,712,916 | 7,803,453 |
PROPERTY, PLANT, AND EQUIPMENT, at cost: | ||
Land and building | 9,556,586 | 9,556,586 |
Machinery and equipment | 5,271,367 | 5,263,586 |
Office equipment | 1,420,494 | 1,417,219 |
Vehicles | 245,674 | 245,674 |
Property, plant, and equipment, Gross | 16,494,121 | 16,483,065 |
Less accumulated depreciation | (9,410,087) | (9,094,702) |
Total property, plant and equipment at cost, net | 7,084,034 | 7,388,363 |
INTANGIBLE ASSETS, less accumulated amortization of $205,697 in 2021 and $207,399 in 2020 | 245,832 | 243,583 |
Total assets | 13,042,782 | 15,435,399 |
CURRENT LIABILITIES | ||
Current portion of long-term debt | 0 | 2,688,396 |
Accounts payable | 1,521,736 | 459,836 |
Accrued compensation | 466,547 | 279,755 |
Other accrued liabilities | 99,774 | 168,066 |
Total current liabilities | 2,088,057 | 3,596,053 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value $.10 per share; authorized 250,000 shares; issued none | 0 | 0 |
Common stock, par value $.10 per share; authorized 4,750,000 shares; issued and outstanding 1,980,694 shares in 2021 and 1,976,354 in 2020 | 198,069 | 197,635 |
Additional paid-in-capital | 2,902,790 | 2,743,930 |
Retained earnings | 7,853,866 | 8,897,781 |
Total stockholders' equity | 10,954,725 | 11,839,346 |
Total liabilities and stockholders' equity | $ 13,042,782 | $ 15,435,399 |
Condensed Balance Sheets (Cur_2
Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Trade receivables, allowances | $ 54,000 | $ 55,000 |
Intangible assets, accumulated amortization | $ 205,697 | $ 207,399 |
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) | 1,980,694 | 1,976,354 |
Common stock, share outstanding (in shares) | 1,980,694 | 1,976,354 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Net sales | $ 4,251,348 | $ 2,572,439 | $ 7,324,756 | $ 6,069,631 | |
Cost of goods sold | 2,822,044 | 2,187,544 | 4,899,120 | 4,531,504 | |
GROSS PROFIT | 1,429,304 | 384,895 | 2,425,636 | 1,538,127 | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | [1] | 1,944,502 | 1,202,307 | 3,128,093 | 2,983,327 |
RESEARCH AND DEVELOPMENT EXPENSES | [1] | 128,895 | 201,234 | 263,817 | 384,814 |
LOSS FROM OPERATIONS | (644,093) | (1,018,646) | (966,274) | (1,830,014) | |
INTEREST EXPENSE | (82,498) | (24,623) | (102,340) | (46,107) | |
OTHER INCOME | 5,138 | 1,766 | 5,175 | 8,683 | |
LOSS BEFORE INCOME TAXES | (721,453) | (1,041,503) | (1,063,439) | (1,867,438) | |
INCOME TAX EXPENSE (BENEFIT) | 823 | 0 | (19,524) | (238,929) | |
NET LOSS | $ (722,276) | $ (1,041,503) | $ (1,043,915) | $ (1,628,509) | |
LOSS PER COMMON SHARE | |||||
Basic (in dollars per share) | $ (0.37) | $ (0.53) | $ (0.53) | $ (0.82) | |
Diluted (in dollars per share) | $ (0.37) | $ (0.53) | $ (0.53) | $ (0.82) | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||||
Basic (in shares) | 1,977,959 | 1,976,354 | 1,977,368 | 1,976,354 | |
Diluted (in shares) | 1,977,959 | 1,976,354 | 1,977,368 | 1,976,354 | |
[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, 2019 | 1,976,354 | |||
BALANCE at Dec. 31, 2019 | $ 197,635 | $ 2,721,962 | $ 9,337,101 | $ 12,256,698 |
Net loss | 0 | 0 | (1,628,509) | $ (1,628,509) |
Exercise of stock options (in shares) | 0 | |||
Stock based compensation | $ 0 | 7,376 | 0 | $ 7,376 |
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 |
BALANCE (in shares) at Mar. 31, 2020 | 1,976,354 | |||
BALANCE at Mar. 31, 2020 | $ 197,635 | 2,725,650 | 8,750,095 | 11,673,380 |
Net loss | 0 | 0 | (1,041,503) | (1,041,503) |
Stock based compensation | $ 0 | 3,688 | 0 | 3,688 |
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 |
BALANCE (in shares) at Dec. 31, 2020 | 1,976,354 | 1,976,354 | ||
BALANCE at Dec. 31, 2020 | $ 197,635 | 2,743,930 | 8,897,781 | $ 11,839,346 |
Net loss | $ 0 | 0 | (1,043,915) | $ (1,043,915) |
Exercise of stock options (in shares) | 3,000 | 3,000 | ||
Exercise of stock options | $ 300 | 27,390 | 0 | $ 27,690 |
Restricted stock vested (in shares) | 1,340 | |||
Restricted stock vested | $ 134 | (134) | 0 | 0 |
Stock based compensation | $ 0 | 131,604 | 0 | $ 131,604 |
BALANCE (in shares) at Jun. 30, 2021 | 1,980,694 | 1,980,694 | ||
BALANCE at Jun. 30, 2021 | $ 198,069 | 2,902,790 | 7,853,866 | $ 10,954,725 |
BALANCE (in shares) at Mar. 31, 2021 | 1,977,104 | |||
BALANCE at Mar. 31, 2021 | $ 197,710 | 2,787,733 | 8,576,142 | 11,561,585 |
Net loss | $ 0 | 0 | (722,276) | (722,276) |
Exercise of stock options (in shares) | 2,250 | |||
Exercise of stock options | $ 225 | 21,074 | 0 | 21,299 |
Restricted stock vested (in shares) | 1,340 | |||
Restricted stock vested | $ 134 | (134) | 0 | 0 |
Stock based compensation | $ 0 | 94,117 | 0 | $ 94,117 |
BALANCE (in shares) at Jun. 30, 2021 | 1,980,694 | 1,980,694 | ||
BALANCE at Jun. 30, 2021 | $ 198,069 | $ 2,902,790 | $ 7,853,866 | $ 10,954,725 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,043,915) | $ (1,628,509) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 315,385 | 335,435 |
Amortization | 98,548 | 18,452 |
Stock based compensation | 131,604 | 7,376 |
Net gain on sale and disposal of equipment | 0 | (2,324) |
Loss on intangible asset abandonment | 0 | 16,906 |
Changes in working capital components: | ||
Trade receivables | 468,178 | 1,020,699 |
Inventories | 37,147 | (501,404) |
Prepaid expenses and other assets | (36,817) | 749,076 |
Income tax receivable | 189,039 | (247,011) |
Accounts payable | 1,061,900 | (446,417) |
Accrued expenses | 118,500 | (511,614) |
Net cash provided by (used in) operating activities | 1,339,569 | (1,189,335) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property equipment | (11,056) | (149,916) |
Proceeds from sales of equipment | 0 | 18,297 |
Purchases of intangible assets | (15,958) | (12,483) |
Proceeds on sale of short-term investments | 0 | 2,205,000 |
Net cash (used in) provided by investing activities | (27,014) | 2,060,898 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from paycheck protection program loan | 0 | 1,214,500 |
Payment on long-term debt | (2,773,235) | (71,603) |
Proceeds from exercise of stock options | 27,690 | 0 |
Net cash (used in) provided by financing activities | (2,745,545) | 1,142,897 |
NET (DECREASE) INCREASE IN CASH | (1,432,990) | 2,014,460 |
CASH AT BEGINNING OF PERIOD | 3,693,845 | 963,649 |
CASH AT END OF PERIOD | 2,260,855 | 2,978,109 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for interest | 24,089 | 37,998 |
Net cash received (paid for) income taxes, net | $ 208,562 | $ (8,082) |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021, three six June 30, 2021 2020, three six June 30, 2021 2020, six June 30, 2021 2020, 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, 2021, 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, 2020. 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 ability to continue to renew the maturity date of the bank line of credit. The global, regional and local spread of COVID- 19 19 may not 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 Definitive Transaction Agreement with TeraWulf, Inc. On June 25, 2021, Upon consummation of the Transaction, each outstanding share of the Company’s common stock will receive $5.00 not 18 18 not Following consummation of the Transaction, the legacy business of IKONICS will be operated consistent with past practices but will be positioned for sale on terms that are acceptable to the board of directors of the combined company. The Transaction is expected to close in the second 2021, The Agreement contains certain termination rights for both IKONICS and TeraWulf, including if the Transaction is not December 31, 2021. The Agreement provides that the Company will be obligated to pay TeraWulf a termination fee of $1.2 million, and TeraWulf will be obligated to pay the Company a termination fee of $10.0 million, if the Agreement is terminated under certain circumstances. The Agreement does not In the second 2021, On August 3, 2021, one Stein v. Ikonics Corporation, et al. No. 1:21 6550 August 11, 2021, No. 1:21 04514. 14 20 1934 4 July 30, 2021 not no may |
Note 2 - Inventories
Note 2 - Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 2. Inventories The major components of inventories as of June 30, 2021 December 31, 2020 Jun 30, 2021 Dec 31, 2020 Raw materials $ 1,286,151 $ 1,323,655 Work-in-progress 399,738 428,753 Finished goods 1,140,543 1,065,458 Reduction to LIFO cost (1,218,604 ) (1,172,891 ) Total Inventories $ 1,607,828 $ 1,644,975 |
Note 3 - Earnings Per Common Sh
Note 3 - Earnings Per Common Share (EPS) | 6 Months Ended |
Jun. 30, 2021 | |
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 and restricted stock units disclosed in Note 4 Shares used in the calculation of diluted EPS are summarized below: Three Months Ended Jun 30, 2021 Jun 30, 2020 Weighted average common shares outstanding 1,977,959 1,976,354 Dilutive effect of stock options and restricted stock units — — Weighted average common and common equivalent shares outstanding 1,977,959 1,976,354 Six Months Ended Jun 30, 2021 Jun 30, 2020 Weighted average common shares outstanding 1,977,368 1,976,354 Dilutive effect of stock options and restricted stock units — — Weighted average common and common equivalent shares outstanding 1,977,368 1,976,354 If the Company was in a net income position for the three six June 30, 2021, If the Company was in a net income position for the three six June 30, 2021, If the Company was in a net income position for the three six June 30, 2020, |
Note 4 - Stock-based Compensati
Note 4 - Stock-based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021. 1995 2019 1995 no Under the terms of the 2019 may 2019 102,157. 2019 1995 2019 2019 June 30, 2021, 2019 2019 The Company charged compensation cost of approximately $131,600 against the loss for the six June 30, 2021 six June 30, 2020. June 30, 2021, four 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. Proceeds from the exercise of 3,000 stock options with an intrinsic value of approximately $24,000 were approximately $27,700 for the six June 30, 2021. six June 30, 2020. There were 10,000 options granted during the six June 30, 2021 2020. six June 30, 2021 2020 2021 2020 Dividend yield — — Expected volatility 51.6 % 40.3 % Expected life of option (years) 10 10 Risk-free interest rate 0.5 % 1.4 % Fair value of each option on grant date $ 6.84 $ 2.90 Stock option activity during the six June 30, 2021 Weighted Average Exercise Shares Price Outstanding at January 1, 2021 17,500 $ 6.97 Granted 10,000 11.50 Exercised (3,000 ) 9.23 Expired and forfeited (1,000 ) 10.75 Outstanding at June 30, 2021 23,500 $ 8.45 Exercisable at June 30, 2021 5,165 $ 6.54 The aggregate intrinsic value of all options outstanding and for those exercisable at June 30, 2021 There were 36,550 RSUs granted during the six June 30, 2021. four six June 30, 2020. RSU activity during the six June 30, 2021 Weighted Average Number of Grant Date Shares Fair Value Unvested shares at January 1, 2021 54,300 $ 6.11 Granted 36,550 11.01 Vested (1,340 ) 11.30 Forfeited or surrendered (2,400 ) 6.11 Unvested shares at June 30, 2021 87,110 8.09 |
Note 5 - Segment Information
Note 5 - Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
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 reportable segments: Chromaline, IKONICS Imaging, Digital Texturing (DTX) and Advanced Material Solutions (AMS). Chromaline sells screen printing film, emulsions, and inkjet receptive film primarily to distributors and some end users. IKONICS Imaging sells photo resistant film, art supplies, glass, and related abrasive etching equipment to both end users and distributors. 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. The accounting policies applied to determine the segment information are the same as those described in the Company’s Annual Report on Form 10 December 31, 2020. 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, 2021: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 2,653,733 $ 1,264,855 $ 85,444 $ 247,316 $ — $ 4,251,348 Cost of goods sold 1,905,738 644,071 34,260 237,975 — 2,822,044 Gross profit 747,995 620,784 51,184 9,341 — 1,429,304 Selling general and administrative* 289,928 259,219 32,001 58,869 1,304,485 1,944,502 Research and development* — — — — 128,895 128,895 Income (loss) from operations $ 458,067 $ 361,565 $ 19,183 $ (49,528 ) $ (1,433,380 ) $ (644,093 ) For the three June 30, 2020: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 1,619,986 $ 625,800 $ 49,053 $ 277,600 $ — $ 2,572,439 Cost of goods sold 1,407,362 419,985 24,346 335,851 — 2,187,544 Gross profit (loss) 212,624 205,815 24,707 (58,251 ) — 384,895 Selling general and administrative* 366,136 224,573 30,059 57,035 524,504 1,202,307 Research and development* — — — — 201,234 201,234 Loss from operations $ (153,512 ) $ (18,758 ) $ (5,352 ) $ (115,286 ) $ (725,738 ) $ (1,018,646 ) For the six June 30, 2021: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 4,352,414 $ 2,351,456 $ 161,755 $ 459,131 $ — $ 7,324,756 Cost of goods sold 3,140,523 1,193,726 77,052 487,819 — 4,899,120 Gross profit (loss) 1,211,891 1,157,730 84,703 (28,688 ) — 2,425,636 Selling general and administrative* 547,930 475,755 62,040 117,490 1,924,878 3,128,093 Research and development* — — — — 263,817 263,817 Income (loss) from operations $ 663,961 $ 681,975 $ 22,663 $ (146,178 ) $ (2,188,695 ) $ (966,274 ) For the six June 30, 2020: IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 3,584,326 $ 1,595,899 $ 161,582 $ 727,824 $ — $ 6,069,631 Cost of goods sold 2,825,631 897,708 76,092 732,073 — 4,531,504 Gross profit (loss) 758,695 698,191 85,490 (4,249 ) — 1,538,127 Selling general and administrative* 792,355 503,435 64,432 160,144 1,462,961 2,983,327 Research and development* — — — — 384,814 384,814 Income (loss) from operations $ (33,660 ) $ 194,756 $ 21,058 $ (164,393 ) $ (1,847,775 ) $ (1,830,014 ) *The Company does not Trade receivables by segment as of June 30, 2021 December 31, 2020 Jun 30, 2021 Dec 31, 2020 Chromaline $ 1,150,630 $ 1,676,592 IKONICS Imaging 356,216 396,116 DTX 26,759 35,983 AMS 155,409 57,676 Unallocated (37,979 ) (47,154 ) Total $ 1,651,035 $ 2,119,213 |
Note 6 - Income Taxes
Note 6 - Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6. Income Taxes The Company records its interim provision for income taxes by applying its estimated annual effective tax rate to the year-to-date pre-tax income and adjusting for discrete tax items recorded in the period. Deferred income taxes result from temporary differences between the reporting of amounts for financial statement purposes and income tax purposes. These differences relate primarily to different methods used for income tax reporting purposes, including for depreciation and amortization, warranty and vacation accruals, and deductions related to allowances for doubtful accounts receivable and inventory reserves. The provision for income taxes included current federal and state income tax expense, as well as deferred federal and state income tax expense. Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three June 30, 2021. On the basis of this evaluation, as of June 30, 2021, not may no The effective tax rate for the three June 30, 2021 three June 30, 2020. three June 30, 2021 2020, The effective tax rate for the six June 30, 2021 six June 30, 2020. six June 30, 2021 2020, 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, 2021, This Company is not |
Note 7 - Long-term Debt
Note 7 - Long-term Debt | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 7. Long-Term Debt Duluth Economic Development Authority Loan On April 1, 2016, 2016 April 29, 2016. During the first six 2021, April 1, 2021. April 1, 2021, Line of Credit The Company also has a bank line of credit providing for borrowings of up to $2,050,000 which expires on August 30, 2021 30 not first six 2021 2020 June 30, 2021 December 31, 2020. no eralized by the Company's assets. |
Note 2 - Inventories (Tables)
Note 2 - Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | Jun 30, 2021 Dec 31, 2020 Raw materials $ 1,286,151 $ 1,323,655 Work-in-progress 399,738 428,753 Finished goods 1,140,543 1,065,458 Reduction to LIFO cost (1,218,604 ) (1,172,891 ) Total Inventories $ 1,607,828 $ 1,644,975 |
Note 3 - Earnings Per Common _2
Note 3 - Earnings Per Common Share (EPS) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Three Months Ended Jun 30, 2021 Jun 30, 2020 Weighted average common shares outstanding 1,977,959 1,976,354 Dilutive effect of stock options and restricted stock units — — Weighted average common and common equivalent shares outstanding 1,977,959 1,976,354 Six Months Ended Jun 30, 2021 Jun 30, 2020 Weighted average common shares outstanding 1,977,368 1,976,354 Dilutive effect of stock options and restricted stock units — — Weighted average common and common equivalent shares outstanding 1,977,368 1,976,354 |
Note 4 - Stock-based Compensa_2
Note 4 - Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2021 2020 Dividend yield — — Expected volatility 51.6 % 40.3 % Expected life of option (years) 10 10 Risk-free interest rate 0.5 % 1.4 % Fair value of each option on grant date $ 6.84 $ 2.90 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Average Exercise Shares Price Outstanding at January 1, 2021 17,500 $ 6.97 Granted 10,000 11.50 Exercised (3,000 ) 9.23 Expired and forfeited (1,000 ) 10.75 Outstanding at June 30, 2021 23,500 $ 8.45 Exercisable at June 30, 2021 5,165 $ 6.54 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Weighted Average Number of Grant Date Shares Fair Value Unvested shares at January 1, 2021 54,300 $ 6.11 Granted 36,550 11.01 Vested (1,340 ) 11.30 Forfeited or surrendered (2,400 ) 6.11 Unvested shares at June 30, 2021 87,110 8.09 |
Note 5 - Segment Information (T
Note 5 - Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 2,653,733 $ 1,264,855 $ 85,444 $ 247,316 $ — $ 4,251,348 Cost of goods sold 1,905,738 644,071 34,260 237,975 — 2,822,044 Gross profit 747,995 620,784 51,184 9,341 — 1,429,304 Selling general and administrative* 289,928 259,219 32,001 58,869 1,304,485 1,944,502 Research and development* — — — — 128,895 128,895 Income (loss) from operations $ 458,067 $ 361,565 $ 19,183 $ (49,528 ) $ (1,433,380 ) $ (644,093 ) IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 1,619,986 $ 625,800 $ 49,053 $ 277,600 $ — $ 2,572,439 Cost of goods sold 1,407,362 419,985 24,346 335,851 — 2,187,544 Gross profit (loss) 212,624 205,815 24,707 (58,251 ) — 384,895 Selling general and administrative* 366,136 224,573 30,059 57,035 524,504 1,202,307 Research and development* — — — — 201,234 201,234 Loss from operations $ (153,512 ) $ (18,758 ) $ (5,352 ) $ (115,286 ) $ (725,738 ) $ (1,018,646 ) IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 4,352,414 $ 2,351,456 $ 161,755 $ 459,131 $ — $ 7,324,756 Cost of goods sold 3,140,523 1,193,726 77,052 487,819 — 4,899,120 Gross profit (loss) 1,211,891 1,157,730 84,703 (28,688 ) — 2,425,636 Selling general and administrative* 547,930 475,755 62,040 117,490 1,924,878 3,128,093 Research and development* — — — — 263,817 263,817 Income (loss) from operations $ 663,961 $ 681,975 $ 22,663 $ (146,178 ) $ (2,188,695 ) $ (966,274 ) IKONICS IKONICS Chromaline Imaging DTX AMS Unalloc. Total Net sales $ 3,584,326 $ 1,595,899 $ 161,582 $ 727,824 $ — $ 6,069,631 Cost of goods sold 2,825,631 897,708 76,092 732,073 — 4,531,504 Gross profit (loss) 758,695 698,191 85,490 (4,249 ) — 1,538,127 Selling general and administrative* 792,355 503,435 64,432 160,144 1,462,961 2,983,327 Research and development* — — — — 384,814 384,814 Income (loss) from operations $ (33,660 ) $ 194,756 $ 21,058 $ (164,393 ) $ (1,847,775 ) $ (1,830,014 ) Jun 30, 2021 Dec 31, 2020 Chromaline $ 1,150,630 $ 1,676,592 IKONICS Imaging 356,216 396,116 DTX 26,759 35,983 AMS 155,409 57,676 Unallocated (37,979 ) (47,154 ) Total $ 1,651,035 $ 2,119,213 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) - USD ($) | 3 Months Ended | |
Jun. 30, 2021 | Jun. 25, 2021 | |
TeraWulf [Member] | Ikonics [Member] | ||
Business Acquisition, Termination Fee | $ 10,000,000 | |
TeraWulf [Member] | ||
Business Acquisition, Share Price (in dollars per share) | $ 5 | |
Business Acquisition, Contingent Value Right Received, Per Share (in shares) | 1 | |
Business Acquisition, Shares Received, Per Share (in shares) | 1 | |
Business Acquisition, Net Proceeds Received Rights, Percent | 95.00% | |
Business Acquisition, Combined Pro Forma Equity Ownership, Percent | 2.00% | |
Business Acquisition, Termination Fee | $ 1,200,000 | |
TeraWulf [Member] | Selling, General and Administrative Expenses [Member] | ||
Business Combination, Acquisition Related Costs | $ 703,000 |
Note 2 - Inventories - Major Co
Note 2 - Inventories - Major Components of Inventories (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Raw materials | $ 1,286,151 | $ 1,323,655 |
Work-in-progress | 399,738 | 428,753 |
Finished goods | 1,140,543 | 1,065,458 |
Reduction to LIFO cost | (1,218,604) | (1,172,891) |
Total Inventories | $ 1,607,828 | $ 1,644,975 |
Note 3 - Earnings Per Common _3
Note 3 - Earnings Per Common Share (EPS) (Details Textual) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement, Option [Member] | ||||
Number of Option Shares Excluded from Weighted Average Common Shares Outstanding (in shares) | 13,500 | 13,500 | ||
Weighted Average Exercise Price Options Excluded From Weighted Average Common Share Outstanding (in dollars per share) | $ 6.18 | $ 6.18 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 10,000 | 21,500 | 10,000 | 21,500 |
Antidilutive Securities Excluded from Computation of Net Income, Per Outstanding Unit, Amount (in dollars per share) | $ 11.50 | $ 7.38 | $ 11.50 | $ 7.38 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 87,110 | 87,110 |
Note 3 - Earnings Per Common _4
Note 3 - Earnings Per Common Share (EPS) - Summary of Calculation of Diluted EPS (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Weighted average common shares outstanding (in shares) | 1,977,959 | 1,976,354 | 1,977,368 | 1,976,354 |
Dilutive effect of stock options and restricted stock units (in shares) | 0 | 0 | 0 | 0 |
Weighted average common and common equivalent shares outstanding (in shares) | 1,977,959 | 1,976,354 | 1,977,368 | 1,976,354 |
Note 4 - Stock-based Compensa_3
Note 4 - Stock-based Compensation (Details Textual) - USD ($) | 6 Months Ended | 18 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 23,500 | 23,500 | 17,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 10,000 | 10,000 | |||
Share-based Payment Arrangement, Expense | $ 131,600 | $ 7,400 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 674,000 | $ 674,000 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 4 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares) | 3,000 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 24,000 | ||||
Proceeds from Stock Options Exercised | 27,690 | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 58,700 | 58,700 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 20,700 | $ 20,700 | |||
Approximation [Member] | |||||
Proceeds from Stock Options Exercised | $ 27,700 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 36,550 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares) | 2,400 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 11.01 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | ||||
The 1995 Incentive Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 442,750 | 442,750 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 1,000 | 1,000 | |||
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) | 3,957 | 3,957 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period (in shares) | 12,750 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 23,250 | ||||
The 2019 Equity Incentive Plan [Member] | Share-based Payment Arrangement, Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period (in shares) | 750 | ||||
The 2019 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 90,850 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares) | 2,400 |
Note 4 - Stock-based Compensa_4
Note 4 - Stock-based Compensation - Assumptions (Details) - Share-based Payment Arrangement, Option [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 51.60% | 40.30% |
Expected life of option (years) (Year) | 10 years | 10 years |
Risk-free interest rate | 0.50% | 1.40% |
Fair value of each option on grant date (in dollars per share) | $ 6.84 | $ 2.90 |
Note 4 - Stock-based Compensa_5
Note 4 - Stock-based Compensation - Stock Option Activity (Details) | 6 Months Ended | |
Jun. 30, 2021$ / sharesshares | Jun. 30, 2020shares | |
Outstanding, Shares (in shares) | shares | 17,500 | |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 6.97 | |
Granted, Shares (in shares) | shares | 10,000 | 10,000 |
Granted, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 11.50 | |
Exercised, Shares (in shares) | shares | (3,000) | 0 |
Exercised, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 9.23 | |
Expired and forfeited, Shares (in shares) | shares | (1,000) | |
Expired and forfeited, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 10.75 | |
Outstanding, Shares (in shares) | shares | 23,500 | |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 8.45 | |
Exercisable, Shares (in shares) | shares | 5,165 | |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 6.54 |
Note 4 - Stock-based Compensa_6
Note 4 - Stock-based Compensation - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Unvested, shares (in shares) | 54,300 | |
Unvested, weighted average grant date fair value (in dollars per share) | $ 6.11 | |
Granted, shares (in shares) | 36,550 | 0 |
Granted, weighted average grant date fair value (in dollars per share) | $ 11.01 | |
Vested, shares (in shares) | (1,340) | |
Vested, weighted average grant date fair value (in dollars per share) | $ 11.30 | |
Forfeited or surrendered, shares (in shares) | (2,400) | |
Forfeited or surrendered, weighted average grant date fair value (in dollars per share) | $ 6.11 | |
Unvested, shares (in shares) | 87,110 | |
Unvested, weighted average grant date fair value (in dollars per share) | $ 8.09 |
Note 5 - Segment Information (D
Note 5 - Segment Information (Details Textual) | 6 Months Ended |
Jun. 30, 2021 | |
Number of Reportable Segments | 4 |
Note 5 - Segment Information -
Note 5 - Segment Information - Reportable Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||
Net sales | $ 4,251,348 | $ 2,572,439 | $ 7,324,756 | $ 6,069,631 | ||
Cost of goods sold | 2,822,044 | 2,187,544 | 4,899,120 | 4,531,504 | ||
Gross profit | 1,429,304 | 384,895 | 2,425,636 | 1,538,127 | ||
Selling general and administrative* | [1] | 1,944,502 | 1,202,307 | 3,128,093 | 2,983,327 | |
Research and development* | [1] | 128,895 | 201,234 | 263,817 | 384,814 | |
Income (loss) from operations | (644,093) | (1,018,646) | (966,274) | (1,830,014) | ||
Trade receivables | 1,651,035 | 1,651,035 | $ 2,119,213 | |||
Segment Reconciling Items [Member] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Cost of goods sold | 0 | 0 | 0 | 0 | ||
Gross profit | 0 | 0 | 0 | 0 | ||
Selling general and administrative* | [1] | 1,304,485 | 524,504 | 1,924,878 | 1,462,961 | |
Research and development* | [1] | 128,895 | 201,234 | 263,817 | 384,814 | |
Income (loss) from operations | (1,433,380) | (725,738) | (2,188,695) | (1,847,775) | ||
Trade receivables | (37,979) | (37,979) | (47,154) | |||
Chromaline [Member] | Operating Segments [Member] | ||||||
Net sales | 2,653,733 | 1,619,986 | 4,352,414 | 3,584,326 | ||
Cost of goods sold | 1,905,738 | 1,407,362 | 3,140,523 | 2,825,631 | ||
Gross profit | 747,995 | 212,624 | 1,211,891 | 758,695 | ||
Selling general and administrative* | [1] | 289,928 | 366,136 | 547,930 | 792,355 | |
Research and development* | [1] | 0 | 0 | 0 | 0 | |
Income (loss) from operations | 458,067 | (153,512) | 663,961 | (33,660) | ||
Trade receivables | 1,150,630 | 1,150,630 | 1,676,592 | |||
Ikonics Imaging [Member] | Operating Segments [Member] | ||||||
Net sales | 1,264,855 | 625,800 | 2,351,456 | 1,595,899 | ||
Cost of goods sold | 644,071 | 419,985 | 1,193,726 | 897,708 | ||
Gross profit | 620,784 | 205,815 | 1,157,730 | 698,191 | ||
Selling general and administrative* | [1] | 259,219 | 224,573 | 475,755 | 503,435 | |
Research and development* | [1] | 0 | 0 | 0 | 0 | |
Income (loss) from operations | 361,565 | (18,758) | 681,975 | 194,756 | ||
Trade receivables | 356,216 | 356,216 | 396,116 | |||
DTX [Member] | Operating Segments [Member] | ||||||
Net sales | 85,444 | 49,053 | 161,755 | 161,582 | ||
Cost of goods sold | 34,260 | 24,346 | 77,052 | 76,092 | ||
Gross profit | 51,184 | 24,707 | 84,703 | 85,490 | ||
Selling general and administrative* | [1] | 32,001 | 30,059 | 62,040 | 64,432 | |
Research and development* | [1] | 0 | 0 | 0 | 0 | |
Income (loss) from operations | 19,183 | (5,352) | 22,663 | 21,058 | ||
Trade receivables | 26,759 | 26,759 | 35,983 | |||
AMS [Member] | Operating Segments [Member] | ||||||
Net sales | 247,316 | 277,600 | 459,131 | 727,824 | ||
Cost of goods sold | 237,975 | 335,851 | 487,819 | 732,073 | ||
Gross profit | 9,341 | (58,251) | (28,688) | (4,249) | ||
Selling general and administrative* | [1] | 58,869 | 57,035 | 117,490 | 160,144 | |
Research and development* | [1] | 0 | 0 | 0 | 0 | |
Income (loss) from operations | (49,528) | $ (115,286) | (146,178) | $ (164,393) | ||
Trade receivables | $ 155,409 | $ 155,409 | $ 57,676 | |||
[1] | The Company does not allocate all selling, general and administrative expenses or any research and development expenses to its operating segments for internal reporting. |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Effective Income Tax Rate Reconciliation, Percent, Total | (0.10%) | (0.00%) | (1.80%) | (12.80%) |
Income Tax Expense (Benefit), Total | $ 823 | $ 0 | $ (19,524) | $ (238,929) |
Unrecognized Tax Benefits, Ending Balance | 0 | 0 | ||
Approximation [Member] | ||||
Income Tax Expense (Benefit), Total | $ (1,000) | $ 0 | $ (19,000) | $ (239,000) |
Note 7 - Long-term Debt (Detail
Note 7 - Long-term Debt (Details Textual) | Apr. 01, 2021USD ($) | Apr. 29, 2016USD ($)ft² | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Apr. 01, 2016USD ($) |
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 Instrument, Periodic Payment, Total | $ 18,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | ||||
Debt Issuance Costs, Gross | $ 139,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.23% | ||||
Repayments of Debt | $ 2,700,000 | ||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities, Total | 6,100 | ||||
Write off of Deferred Debt Issuance Cost | $ 82,000 | ||||
Loan [Member] | Building [Member] | |||||
Area of Real Estate Property (Square Foot) | ft² | 27,300 | ||||
Duluth Economic Development Authority [Member] | |||||
Tax Exempt Industrial Revenue Bonds Amount Sold to Bank | $ 3,415,000 |