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, 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

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,

2018:

					IKONICS
	Domestic		Export		Imaging		DTX		AMS			Unalloc.			Total
Net sales	$	7,288,433	$	4,877,718	$	3,842,089	$	420,714	$	1,784,699		$	—		$	18,213,653
Cost of goods sold		4,397,353		3,841,712		2,034,254		137,039		1,549,268			—			11,959,626
Gross profit		2,891,080		1,036,006		1,807,835		283,675		235,431			—			6,254,027
Selling, general, and administrative*		1,289,923		509,549		1,001,147		150,698		367,533			2,032,116			5,350,966
Research and development*		—		—		—		—		—			677,242			677,242
Income (loss) from operations	$	1,601,157	$	526,457	$	806,688	$	132,977	$	(132,102	)	$	(2,709,358	)	$	225,819

For the year ended

December

31,

2017:

					IKONICS
	Domestic		Export		Imaging		DTX		AMS			Unalloc.			Total
Net sales	$	6,934,433	$	4,722,950	$	4,021,970	$	817,640	$	746,251		$	—		$	17,243,244
Cost of goods sold		4,100,497		3,721,800		1,915,390		487,509		1,287,503			—			11,512,699
Gross profit (loss)		2,833,936		1,001,150		2,106,580		330,131		(541,252	)		—			5,730,545
Selling, general, and administrative*		1,345,427		645,973		1,065,957		168,553		376,498			1,904,058			5,506,466
Research and development*		—		—		—		—		—			688,688			688,688
Income (loss) from operations	$	1,488,509	$	355,177	$	1,040,623	$	161,578	$	(917,750	)	$	(2,592,746	)	$	(464,609	)

*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,

2018

and

December

31,

2017

were as follows:

	Dec 31, 2018			Dec 31, 2017

Domestic	$	1,019,689		$	1,119,228
Export		610,334			558,872
IKONICS Imaging		280,939			238,813
DTX		15,692			64,278
AMS		331,708			238,848
Unallocated		(43,147	)		(29,779	)

Total	$	2,215,215		$	2,190,260

Subsequent to year-end, the Company revised its composition of reportable segments to eliminate the Export segment which contains both screen printing and photo resist related financial information and allocated the related activity to the respective Domestic and IKONICS Imaging segments. Organizationally, the Company began focusing less on geography and more on the similarity of products sold when managing its product lines. To reflect how the Company and chief operating decision maker reviews and manages the businesses, the Company

longer captures discrete financial information for Export segment.