Commitments	6 Months Ended
Jun. 30, 2015
Commitments
Commitments	6.Commitments Building: In July 2015, the Company committed to proceed with a 27,300 square-foot building expansion project. The new, 27,300 square-foot structure will contain a 20,500 square-foot production floor in addition to offices and ancillary facilities and is expected to cost $3.5 million. The building will be an addition to IKONICS 37,000 square-foot building on its Morgan Park site in western Duluth, which currently houses AMS production, warehousing, shipping and film conversion for all IKONICS business units. All AMS activities will relocate to the new facility with an expected project completion date in second quarter of 2016. ERP System: During the second quarter of 2015, the Company committed to purchase $140,000 of software related to the implementation of a new Enterprise Resource Planning (ERP) system. The new ERP system will better support and accommodate IKONICS’ operations and replacing the Company’s existing ERP system. The total ERP system project is expected to cost approximately $400,000 and is expected to be completed by the second quarter of 2016. Line of Credit: A bank line of credit exists providing for borrowings of up to $1,250,000 and expires on May 31, 2017. The line of credit is collateralized by the Company’s assets and bears interest at 2.5 percentage points over the 30-day LIBOR rate. The Company did not utilize this line of credit during the first six months of 2015 or 2014 and there were no borrowings outstanding as of June 30, 2015 and 2014. There are no financial covenants related to the line of credit. In July 2015, the bank line of credit was increased to $2,050,000 and the interest rate was decreased to 1.8 percentage points over the 30-day LIBOR rate. The bank line of credit expiration date did not change from May 31, 2017.

Commitments

6 Months Ended

Jun. 30, 2015

6.Commitments

Building:

In July 2015, the Company committed to proceed with a 27,300 square-foot building expansion project. The new, 27,300 square-foot structure will contain a 20,500 square-foot production floor in addition to offices and ancillary facilities and is expected to cost $3.5 million. The building will be an addition to IKONICS 37,000 square-foot building on its Morgan Park site in western Duluth, which currently houses AMS production, warehousing, shipping and film conversion for all IKONICS business units. All AMS activities will relocate to the new facility with an expected project completion date in second quarter of 2016.

ERP System:

During the second quarter of 2015, the Company committed to purchase $140,000 of software related to the implementation of a new Enterprise Resource Planning (ERP) system. The new ERP system will better support and accommodate IKONICS’ operations and replacing the Company’s existing ERP system. The total ERP system project is expected to cost approximately $400,000 and is expected to be completed by the second quarter of 2016.

Line of Credit:

A bank line of credit exists providing for borrowings of up to $1,250,000 and expires on May 31, 2017. The line of credit is collateralized by the Company’s assets and bears interest at 2.5 percentage points over the 30-day LIBOR rate. The Company did not utilize this line of credit during the first six months of 2015 or 2014 and there were no borrowings outstanding as of June 30, 2015 and 2014. There are no financial covenants related to the line of credit. In July 2015, the bank line of credit was increased to $2,050,000 and the interest rate was decreased to 1.8 percentage points over the 30-day LIBOR rate. The bank line of credit expiration date did not change from May 31, 2017.