8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 29, 2010

IKONICS CORPORATION

(Exact name of registrant as specified in its charter)

Minnesota	000-25727	41-0730027
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

4832 Grand Avenue Duluth, Minnesota	55807
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (218) 628-2217

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

     On July 29, 2010, IKONICS Corporation (the “Company”) reported its financial results for the quarter and six-months ended June 30, 2010. See the Company’s press release dated July 29, 2010, which is furnished as Exhibit 99 hereto and incorporated by reference in this Item 2.02.

Item 9.01. Financial Statements and Exhibits.

     (d) Exhibit.

     99 Press Release dated July 29, 2010

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SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	IKONICS CORPORATION
Date: July 29, 2010	/s/ Jon Gerlach
	Jon Gerlach
	Chief Financial Officer and Vice President of Finance

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EXHIBIT INDEX

		Method
Exhibit	Description	of Filing
99	Press Release dated July 29, 2010	Filed Electronically

EX-99

Exhibit 99

4832 Grand Avenue
Duluth, MN 55807 USA
Phone: (218) 628-2217
Fax: (218 628-3245
Email: info@ikonics.com
Website: www.ikonics.com

News Contact:	Bill Ulland	For Immediate Release
	Chairman, President & CEO	July 29, 2010
	(218) 628-2217

IKONICS REPORTS STRONG SECOND QUARTER AND SIX MONTHS RESULTS

DULUTH, MN — IKONICS Corporation (NASDAQ:IKNX), a Duluth based imaging technology company, announced today that second quarter 2010 sales increased by 12% over the second quarter of 2009 and that earnings increased by 134% to $0.17 per share. For the six months ended June 30, 2010, sales were up 8% and net income increased by 146% to $0.25 per share. The company’s cash and short term investment balance increased to $2,678,000.

Bill Ulland, IKONICS CEO, said, “I’m pleased to report a continuation of our strong recovery from last year’s recession. All segments of the company contributed to these improved quarterly results, with the export business and our new business initiatives being particularly key to the improved financial results.

“I am optimistic that our new business initiatives will continue to generate sales increases for some time. As demonstrated by the second quarter results, our cost structure allows sales increases to have a very positive impact on profits.”

This press release contains forward-looking statements regarding sales, gross profits, net earnings, and new products and businesses that involve risks and uncertainties. The Company’s actual results could differ materially as a result of domestic and global economic conditions, competitive market conditions, acceptance of new products, the ability to identify and make suitable acquisitions, the ability to control costs without impacting growth as well as the factors described in the Company’s Form s 10-K, and 10-Q, and other reports on file with the SEC.

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NASDAQ Listed: IKNX

IKONICS Corporation
CONDENSED STATEMENTS OF OPERATIONS
For the Three Months and Six Months Ended June 30, 2010 and 2009

	Three Months Ended				Six Months Ended
	06/30/10		06/30/09		06/30/10		06/30/09
Net sales	$	4,248,055	$	3,786,501	$	7,932,632	$	7,349,713
Cost of goods sold		2,418,296		2,329,999		4,619,078		4,487,897
Gross profit		1,829,759		1,456,502		3,313,554		2,861,816
Operating expenses		1,326,973		1,251,832		2,688,066		2,640,696
Income from operations		502,786		204,670		625,488		221,120
Gain on sale of investment		—		9,631		—		29,762
Interest income		3,886		2,050		7,405		2,120
Income before income taxes		506,672		216,351		632,893		253,002
Income tax expense		163,400		69,603		141,280		53,119
Net income	$	343,272	$	146,748	$	491,613	$	199,883
Earnings per common share-diluted	$	0.17	$	0.07	$	0.25	$	0.10
Average shares outstanding-diluted		1,974,158		1,973,514		1,970,587		1,981,677

Condensed Balance Sheets
As of June 30, 2010 and December 31, 2009

	6/30/10		12/31/09
	(unaudited)
Assets
Current assets	$	7,140,776	$	6,417,488
Property, plant and equipment, net		5,144,978		5,234,244
Intangible assets, net		310,656		345,540
	$	12,596,410	$	11,997,272
Liabilities and Stockholders’ Equity
Current liabilities	$	867,676	$	809,186
Deferred income taxes		162,000		162,000
Long term debt		—		—
Stockholders’ equity		11,566,734		11,026,086
	$	12,596,410	$	11,997,272

CONDENSED STATEMENTS OF CASH FLOW
For the Six Months Ended June 30, 2010 and 2009

	6/30/10			6/30/09
Net cash provided by operating activities	$	662,122		$	733,433
Net cash used in investing activities		(932,518	)		(629,304	)
Net cash provided by (used in) financing activities		33,990			(123,844	)
Net decrease in cash		(236,406	)		(19,715	)
Cash at beginning of period		1,304,586			901,738
Cash at end of period	$	1,068,180		$	882,023