SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2014

SEGMENT INFORMATION

SEGMENT INFORMATION

5. SEGMENT INFORMATION

The Company’s reportable segments are strategic business units that offer different products and have varied customer bases.  There are five reportable segments:  Domestic, Export, IKONICS Imaging, Digital Texturing (DTX) and AMS.  Domestic sells screen printing film, emulsions, and inkjet receptive film to distributors located in the United States and Canada.  IKONICS Imaging sells photo resistant film, art supplies, glass, metal medium and related abrasive etching equipment to end user customers located in the United States and Canada.  AMS provides sound deadening 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.  Export sells primarily the same products as Domestic and the IKONICS Imaging products not related to AMS or DTX.  The accounting policies of the segments are the same as those described in the summary of significant accounting policies included in Note 1.

Management evaluates the performance of each segment based on the components of divisional income, and does not allocate assets and liabilities to segments except for trade receivables.  Financial information with respect to the reportable segments follows:

For the year ended December 31, 2014:

					IKONICS
	Domestic		Export		Imaging		DTX			AMS			Unalloc.			Total
Net sales	$	7,846,457	$	5,249,843	$	4,644,082	$	422,646		$	326,809		$	—		$	18,489,837
Cost of goods sold	4,571,505		3,840,948		2,167,870		365,828			840,457			—			11,786,608
Gross profit (loss)	3,274,952		1,408,895		2,476,212		56,818			(513,648		)	—			6,703,229
Selling general and adminstrative*	1,353,509		549,254		918,337		166,724			425,087			1,711,853			5,124,764
Research and development*	—		—		—		—			—			664,999			664,999
Income (loss) from operations	$	1,921,443	$	859,641	$	1,557,875	$	(109,906	)	$	(938,735	)	$	(2,376,852	)	$	913,466

For the year ended December 31, 2013:

					IKONICS
	Domestic		Export		Imaging		DTX			AMS			Unalloc.			Total
Net sales	$	7,260,934	$	5,641,544	$	3,836,762	$	407,193		$	344,975		$	—		$	17,491,408
Cost of goods sold	4,062,141		4,057,111		1,831,047		70,343			532,911			—			10,553,553
Gross profit (loss)	3,198,793		1,584,433		2,005,715		336,850			(187,936		)	—			6,937,855
Selling general and adminstrative*	1,307,154		578,084		977,574		474,782			446,803			1,584,003			5,368,400
Research and development*	—		—		—		—			—			649,325			649,325
Income (loss) from operations	$	1,891,639	$	1,006,349	$	1,028,141	$	(137,932	)	$	(634,739	)	$	(2,233,328	)	$	920,130

* The Company does not allocate all general and administrative expenses or any research and development expenses to its operating segments for internal reporting.

Trade receivables by segment as of December 31, 2014 and December 31, 2013 were as follows:

	Dec 31, 2014			Dec 31, 2013
Domestic	$	1,068,170		$	1,012,057
Export	640,464			667,343
IKONICS Imaging	254,483			339,537
DTX	86,507			26,910
AMS	85,170			40,222
Unallocated	(38,466		)	(35,216		)
Total	$	2,096,328		$	2,050,853