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) February 14, 2011

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 February 14, 2011, IKONICS Corporation (the “Company”) reported its financial results for the quarter and fiscal year ended December 31, 2010. See the Company’s press release dated February 14, 2011, 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 February 14, 2011

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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: February 15, 2011	/s/ Jon Gerlach
	Jon Gerlach
	Chief Financial Officer and Vice President of Finance

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EXHIBIT INDEX

Exhibit		Description	Method of Filing
	99	Press Release dated February 14, 2011.	Filed Electronically

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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	February 14, 2011
	(218) 628-2217

IKONICS REPORTS 2010 RECORD SALES

DULUTH, MN — IKONICS Corporation (NASDAQ:IKNX), a Duluth based imaging technology company, announced record sales for 2010 of $16,517,000, a 9% increase over 2009 and earnings of $1,114,000 or $0.56 per share compared to a loss of $0.16 per share in 2009. The 2009 loss was caused by the write-off of an investment in Imaging Technologies International in the third quarter of 2009.

According to Bill Ulland, Ikonics CEO, the fourth quarter of 2010 was particularly gratifying with sales up 15% and net income up 66% over the fourth quarter of 2009. Commenting further, Ulland said:

“Our fourth quarter was enhanced by the sale of a Digital Texturing (DTX) V-Jet printer, sales of DTX consumables, Micro-Machining prototypes sold to a major electronics company, and Export shipments. This is the first quarter where our new business initiatives have had a significant impact on sales and earnings. We expect that trend to continue.”

“However,” Ulland cautioned, “in the future we anticipate many of the big ticket printer sales will be made directly by our strategic partner, Colour Scanner Technology GmbH (CST), and we will make the sales of consumables.”

The arrangement with CST provides that CST manufactures, sells and services printers, which is their core strength, while IKONICS provides its proprietary consumables to the printer customers. “I believe this arrangement will facilitate the commercialization of our DTX technology and let us focus on our core competencies of fluid and substrate development. The timing of these consumables sales will be dependent on the delivery schedule of CST printers to the market,” Ulland said. Ikonics is also offering another printer model to the DTX market manufactured by ITW Transtech.

This press release contains forward-looking statements regarding sales, gross profits, net earnings, balance sheet position, and new products and businesses initiatives 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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NASDAQ Listed: IKNX

IKONICS Corporation

CONDENSED STATEMENTS OF OPERATIONS

For the Three Months and Twelve Months Ended December 31, 2010 and 2009

	Three Months Ended				Twelve Months Ended
	12/31/10		12/31/09		12/31/10		12/31/09
Net sales	$	4,443,614	$	3,851,241	$	16,517,338	$	15,121,617
Cost of goods sold		2,619,788		2,229,117		9,713,054		9,054,771
Gross profit		1,823,826		1,622,124		6,804,284		6,066,846
Operating expenses		1,331,982		1,290,223		5,270,045		5,197,195
Income from operations		491,844		331,901		1,534,239		869,651
Gain on sale of investment		—		—		—		29,762
Loss on investment		—		—		—		(918,951	)
Interest income		6,009		2,988		19,681		8,178
Income (loss) before income taxes		497,853		334,889		1,553,920		(11,360	)
Income tax expense		162,889		132,747		440,000		296,000
Net income (loss)	$	334,964	$	202,142	$	1,113,920	$	(307,360	)
Earnings (loss) per common share-diluted	$	0.17	$	0.10	$	0.56	$	(0.16	)
Average shares outstanding-diluted		1,976,618		1,969,420		1,973,447		1,973,739

CONDENSED BALANCE SHEETS
As of December 31, 2010 and 2009

	12/31/10		12/31/09
Assets
Current assets	$	7,811,839	$	6,417,488
Property, plant and equipment, net		5,012,933		5,234,244
Intangible assets		317,162		345,540
	$	13,141,931	$	11,997,272
Liabilities and Stockholders’ Equity
Current liabilities	$	777,984	$	809,186
Deferred income taxes		171,000		162,000
Long term debt		—		—
Stockholders’ equity		12,192,947		11,026,086
	$	13,141,931	$	11,997,272

CONDENSED STATEMENTS OF CASH FLOW
For the Twelve Months Ended December 31, 2010 and 2009

	12/31/10			12/31/09
Net cash provided by operating activities	$	1,601,369		$	1,374,112
Net cash used in investing activities		(1,637,182	)		(847,420	)
Net cash provided by (used in) financing activities		22,610			(123,844	)
Net increase (decrease) in cash		(13,203	)		402,848
Cash at beginning of period		1,304,586			901,738
Cash at end of period	$	1,291,383		$	1,304,586