Segment Information

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

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 four reportable segments: Chromaline, IKONICS Imaging, Digital Texturing (DTX) and Advanced Material Solutions (AMS). Chromaline sells screen printing film, emulsions, and inkjet receptive film primarily to distributors and some end users. IKONICS Imaging sells photo resistant film, art supplies, glass, and related abrasive etching equipment to both end users and distributors. AMS provides sound deadening and weight reduction 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. The accounting policies applied to determine the segment information are the same as those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Management evaluates the performance of each segment based on the components of divisional income (loss). Assets and liabilities are not allocated to segments, except for trade receivables. Financial information with respect to the reportable segments follows:

For the three months ended June 30, 2021:

	IKONICS
			IKONICS
	Chromaline		Imaging		DTX		AMS		Unalloc.		Total
Net sales	$	2,653,733	$	1,264,855	$	85,444	$	247,316	$	—	$	4,251,348
Cost of goods sold		1,905,738		644,071		34,260		237,975		—		2,822,044
Gross profit		747,995		620,784		51,184		9,341		—		1,429,304
Selling general and administrative*		289,928		259,219		32,001		58,869		1,304,485		1,944,502
Research and development*		—		—		—		—		128,895		128,895
Income (loss) from operations	$	458,067	$	361,565	$	19,183	$	(49,528)	$	(1,433,380)	$	(644,093)

For the three months ended June 30, 2020:

	IKONICS
			IKONICS
	Chromaline		Imaging		DTX		AMS		Unalloc.		Total
Net sales	$	1,619,986	$	625,800	$	49,053	$	277,600	$	—	$	2,572,439
Cost of goods sold		1,407,362		419,985		24,346		335,851		—		2,187,544
Gross profit (loss)		212,624		205,815		24,707		(58,251)		—		384,895
Selling general and administrative *		366,136		224,573		30,059		57,035		524,504		1,202,307
Research and development*		—		—		—		—		201,234		201,234
Loss from operations	$	(153,512)	$	(18,758)	$	(5,352)	$	(115,286)	$	(725,738)	$	(1,018,646)

For the six months ended June 30, 2021:

	IKONICS
			IKONICS
	Chromaline		Imaging		DTX		AMS		Unalloc.		Total
Net sales	$	4,352,414	$	2,351,456	$	161,755	$	459,131	$	—	$	7,324,756
Cost of goods sold		3,140,523		1,193,726		77,052		487,819		—		4,899,120
Gross profit (loss)		1,211,891		1,157,730		84,703		(28,688)		—		2,425,636
Selling general and administrative*		547,930		475,755		62,040		117,490		1,924,878		3,128,093
Research and development*		—		—		—		—		263,817		263,817
Income (loss) from operations	$	663,961	$	681,975	$	22,663	$	(146,178)	$	(2,188,695)	$	(966,274)

For the six months ended June 30, 2020:

	IKONICS
			IKONICS
	Chromaline		Imaging		DTX		AMS		Unalloc.		Total
Net sales	$	3,584,326	$	1,595,899	$	161,582	$	727,824	$	—	$	6,069,631
Cost of goods sold		2,825,631		897,708		76,092		732,073		—		4,531,504
Gross profit (loss)		758,695		698,191		85,490		(4,249)		—		1,538,127
Selling general and administrative*		792,355		503,435		64,432		160,144		1,462,961		2,983,327
Research and development*		—		—		—		—		384,814		384,814
Income (loss) from operations	$	(33,660)	$	194,756	$	21,058	$	(164,393)	$	(1,847,775)	$	(1,830,014)

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

Trade receivables by segment as of June 30, 2021 and December 31, 2020 were as follows:

	Jun 30, 2021		Dec 31, 2020
Chromaline	$	1,150,630	$	1,676,592
IKONICS Imaging		356,216		396,116
DTX		26,759		35,983
AMS		155,409		57,676
Unallocated		(37,979)		(47,154)
Total	$	1,651,035	$	2,119,213

5.           SEGMENT INFORMATION

The Company’s reportable segments are strategic business units that offer different products and have varied customer bases. There are four reportable segments: Chromaline, IKONICS Imaging, Digital Texturing (DTX) and Advanced Material Solutions (AMS). Chromaline sells screen printing film, emulsions, and inkjet receptive film primarily to distributors and some end users. IKONICS Imaging sells photo resistant film, art supplies, glass, and related abrasive etching equipment to both end users and distributors. AMS provides sound deadening and weight reduction 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.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, 2020:

			IKONICS
	Chromaline		Imaging		DTX		AMS		Unalloc.		Total
Net sales	$	8,475,743	$	3,709,318	$	294,929	$	952,230	$	—	$	13,432,220
Cost of goods sold		6,222,902		1,972,076		140,866		1,191,299		—		9,527,143
Gross profit (loss)		2,252,841		1,737,242		154,063		(239,069)		—		3,905,077
Selling, general, and administrative*		1,297,045		880,404		125,752		275,147		2,441,256		5,019,604
Research and development*		—		—		—		—		671,493		671,493
Income (loss) from operations	$	955,796	$	856,838	$	28,311	$	(514,216)	$	(3,112,749)	$	(1,786,020)

For the year ended December 31, 2019:

			IKONICS
	Chromaline		Imaging		DTX		AMS		Unalloc.		Total
Net sales	$	11,472,111	$	4,191,175	$	393,804	$	1,561,469	$	—	$	17,618,559
Cost of goods sold		8,389,404		2,273,641		157,650		1,400,675		—		12,221,370
Gross profit		3,082,707		1,917,534		236,154		160,794		—		5,397,189
Selling, general, and administrative*		1,832,473		1,081,847		149,924		361,342		2,058,000		5,483,586
Research and development*		—		—		—		—		870,279		870,279
Income (loss) from operations	$	1,250,234	$	835,687	$	86,230	$	(200,548)	$	(2,928,279)	$	(956,676)

* 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 were as follows:

	Dec 31, 2020		Dec 31, 2019
Chromaline	$	1,676,592	$	1,916,066
IKONICS Imaging		396,116		304,791
DTX		35,983		13,919
AMS		57,676		252,363
Unallocated		(47,154)		(52,421)
Total	$	2,119,213	$	2,434,718