6.	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, metal medium 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. Prior to

2019,

the Company had

one

additional business segment called Export. Export was primarily responsible for both Chromaline and IKONICS Imaging sales outside of the United States and Canada. Chromaline products sold within the United States and Canada prior to

2019

were included in a segment call Domestic. To better reflect how the Company manages these businesses, beginning in

2019,

the Export segment was eliminated. Sales previously recorded in the Export segment are now included in the Chromaline and IKONICS Imaging segments. Both the

2019

and

2018

financial information reflect the new reportable segments. The accounting policies applied to determine the segment information are the same as those described in the Company’s Annual Report on Form

-K for the year ended

December 31, 2018.

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 which are allocated based on the previous segmentation. Financial information with respect to the reportable segments follows:

For the

three

months ended

March 31, 2019:

	IKONICS
			IKONICS
	Chromaline		Imaging		DTX		AMS			Unalloc.			Total
Net sales	$	2,029,341	$	1,088,806	$	92,760	$	317,784		$	—		$	3,528,691
Cost of goods sold		1,553,610		585,504		34,046		346,412			—			2,519,572
Gross profit (loss)		475,731		503,302		58,714		(28,628	)		—			1,009,119
Selling general and adminstrative*		445,003		322,453		34,605		88,148			491,756			1,381,965
Research and development*		—		—		—		—			178,842			178,842
Income (loss) from operations	$	30,728	$	180,849	$	24,109	$	(116,776	)	$	(670,598	)	$	(551,688	)

For the

three

months ended

March 31, 2018:

	IKONICS
			IKONICS
	Chromaline		Imaging		DTX		AMS			Unalloc.			Total
Net sales	$	2,340,810	$	1,219,348	$	88,666	$	422,654		$	—		$	4,071,478
Cost of goods sold		1,664,878		623,611		25,392		395,178			—			2,709,059
Gross profit		675,932		595,737		63,274		27,476			—			1,362,419
Selling general and adminstrative*		425,329		285,025		34,852		84,783			518,994			1,348,983
Research and development*		—		—		—		—			154,076			154,076
Income (loss) from operations	$	250,603	$	310,712	$	28,422	$	(57,307	)	$	(673,070	)	$	(140,640	)

*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

March 31, 2019

and

December 31, 2018

were as follows:

	Mar 31, 2019			Dec 31, 2018

Chromaline	$	1,200,281		$	1,550,411
IKONICS Imaging		416,230			360,551
DTX		40,775			15,692
AMS		238,700			331,708
Unallocated		(74,872	)		(43,147	)

Total	$	1,821,114		$	2,215,215