EX-99 2 c15358exv99.htm PRESS RELEASE exv99
 

EXHIBIT 99
(IKONICS CORPORATION LOGO)
         
News Contact:
  Bill Ulland   For Immediate Release
 
  Chairman, President & CEO   May 15, 2007
 
  (218) 628-2217    
IKONICS Revises First Quarter Earnings Release
DULUTH, MN — IKONICS Corporation, a Duluth based imaging technology company, announced today a revision to its 2007 first quarter press release. For the period, the income tax benefit was increased by $45,000 resulting in a similar increase in earnings, and retained earnings was reduced by $137,000 as compared to the numbers previously reported on April 26, 2007.
The changes were the result of the first quarter adoption of a recent Financial Accounting Standards Board pronouncement regarding income taxes.
Compared to the same period last year, sales for the first quarter of 2007 increased by 4% to $3,508,000, and earnings increased by 42% to $139,000 or $0.07 per share. IKONICS earnings for the first quarter of 2007 were aided by the tax adjustment and a $55,000 gain on the sale of its interest in Apprise Technology Inc.
This press release contains forward-looking statements regarding sales, earnings, new products and acquisitions 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, complete and integrate suitable acquisitions, as well as the factors described in the company’s Form 10-KSB, Forms 10-QSB and other reports on file with the SEC.

 

 

IKONICS Corporation
Condensed Statements of Operations (Unaudited)
For the Three Months Ended March 31, 2007 and 2006
                 
    Three Months Ended  
    03/31/07     03/31/06  
 
                
Sales
   $ 3,507,767     $ 3,371,800  
Costs and expenses
     3,511,434       3,249,798  
 
            
Income (Loss) from Operations
     (3,667 )     122,002  
Gain on sale of investment
     55,159       —  
Interest Income
     32,907       23,788  
 
            
Income before income taxes
   $ 84,399     $ 145,790  
Federal and state income tax (expense) benefit
     54,698       (47,488 )
 
            
Net income
     139,097       98,302  
 
            
Earnings per common share-diluted
   $ 0.07     $ 0.05  
 
            
Average shares outstanding-diluted
     2,064,511       2,019,238  
Condensed Balance Sheets
As of March 31, 2007 and December 31, 2006
                 
    3/31/07     12/31/06  
    (Unaudited)          
Assets
                
Current assets
   $ 8,327,872     $ 8,229,210  
Property, plant and equipment, net
     1, 008,418       991,920  
Investment in non-marketable equity securities
     791,451       988,910  
Intangible assets
     496,155       485,421  
Deferred income taxes
     48,000       48,000  
 
            
 
   $ 10,671,896     $ 10,743,461  
 
            
 
                
Liabilities and Equity
                
Current liabilities
   $ 761,795     $ 879,362  
Long term debt
     —       —  
Stockholders’ equity
     9,910,101       9,864,099  
 
            
 
   $ 10,671,896     $ 10,743,461  
 
            
Condensed Statements of Cash Flow (Unaudited)
For the Three Months Ending March 31, 2007 and 2006
                 
    3/31/07     3/31/06  
Net cash provided by operating activities
     193,372       18,363  
Net cash provided by (used in) investing activities
     153,120       (217,178 )
Net cash provided by financing activities
     28,384       121,221  
 
            
Net increase (decrease) in cash and cash equivalents
     374,876       (77,594 )
Cash and cash equivalents at beginning of period
     3,428,186       3,412,072  
 
            
Cash and cash equivalents at end of period
   $ 3,803,062     $ 3,334,478