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) October 28, 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 October 28, 2010, IKONICS Corporation (the “Company”) reported its financial results for the quarter ended September 30, 2010. See the Company’s press release dated October 28, 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 October 28, 2010

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: October 28, 2010	/s/ Jon Gerlach
	Jon Gerlach
	Chief Financial Officer and Vice President of Finance

EXHIBIT INDEX

Exhibit		Description	Method of Filing
	99	Press Release dated October 28, 2010	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	October 28, 2010
	(218) 628-2217

IKONICS REPORTS RECORD SALES FOR THIRD QUARTER AND NINE MONTH PERIODS

DULUTH, MN — IKONICS Corporation (NASDAQ:IKNX), a Duluth based imaging technology company, reported record sales for the quarter ending September 30, 2010 of $4,141,000, a 6% increase over the third quarter of 2009. Earnings were $287,000 or $0.15 per share compared to a 2009 third quarter loss of $709,000 due to the write off of the Company’s $919,00 investment in Imaging Technology International (iTi). The first nine months of 2010 produced record sales of $12,074,000, a 7% increase over the same period of 2009, and near record earnings of $0.39 per share.

Bill Ulland, IKONICS CEO stated, “We have rebounded from the poorest quarterly earnings in our company’s history—third quarter 2009—and a sluggish world economy to set a new sales record and near record earnings for this current nine month period. Not only have we recovered financially from the failure of iTi, but we have established stronger new sources for the digital printers that iTi was supplying to our Digital Texturing (DTX) program. DTX is now a growing product line, and we have been awarded a European patent on the process and have applied for a U.S. patent.”

Ulland added, “The sales growth for both the quarter and nine month periods was primarily driven by increased export sales and our new business initiatives—namely DTX.”

Concluding, Ulland said, “Over the past two years we have experienced both increased capital expenditures and operating costs associated with the start up of our new business initiatives. These include increased expenditures for patent applications, as we add to our intellectual property portfolio; an additional chemist hired to advance our DTX program; increased depreciation related to the new facility that houses our new business initiatives as well as shipping for the company. However, sales are growing, profits are at near record levels, and we have a cash and short term investments position at the end the quarter of $2,670,000, with no long term debt. I believe these trends will continue through 2011.”

This press release contains forward-looking statements regarding sales, gross profits, net earnings, balance sheet position, 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, capital expenditure requirements, the ability to control operating 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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IKONICS Corporation
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
For the Three Months and Nine Months Ended September 30, 2010 and 2009

	Three Months Ended					Nine Months Ended
	09/30/10		09/30/09			09/30/10		09/30/09
Net sales	$	4,141,092	$	3,920,663		$	12,073,724	$	11,270,376
Cost of goods sold		2,474,188		2,337,757			7,093,266		6,825,654
Gross profit		1,666,904		1,582,906			4,980,458		4,444,722
Operating expenses		1,249,997		1,266,276			3,938,063		3,906,972
Income from operations		416,907		316,630			1,042,395		537,750
Gain on sale of investment		—		—			—		29,762
Loss on investment		—		(918,951	)		—		(918,951	)
Interest income		6,267		3,070			13,672		5,190
Income (loss) before income taxes		423,174		(599,251	)		1,056,067		(346,249	)
Income tax expense		135,831		110,134			277,111		163,253
Net income (loss)	$	287,343	$	(709,385	)	$	778,956	$	(509,502	)
Earnings (loss) per common share-diluted	$	0.15	$	(0.36	)	$	0.39	$	(0.26	)
Average shares outstanding-diluted		1,975,882		1,967,057			1,972,351		1,975,911

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

	9/30/10		12/31/09
	(unaudited)
Assets
Current assets	$	7,452,140	$	6,417,488
Property, plant and equipment, net		5,077,144		5,234,244
Intangible assets, net		311,829		345,540
	$	12,841,113	$	11,997,272
Liabilities and Stockholders’ Equity
Current liabilities	$	831,383	$	809,186
Deferred income taxes		162,000		162,000
Long term debt		—		—
Stockholders’ equity		11,847,730		11,026,086
	$	12,841,113	$	11,997,272

CONDENSED STATEMENTS OF CASH FLOW (Unaudited)
For the Nine Months Ended September 30, 2010 and 2009

	9/30/10			9/30/09
Net cash provided by operating activities	$	715,416		$	857,258
Net cash used in investing activities		(1,580,950	)		(657,289	)
Net cash provided by (used in) financing activities		20,110			(123,844	)
Net increase (decrease) in cash		(845,424	)		76,125
Cash at beginning of period		1,304,586			901,738
Cash at end of period	$	459,162		$	977,863