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. 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 called 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 either the Chromaline or IKONICS Imaging segments. Both the

2019

and

2018

financial information reflect the new reportable segments. 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,

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	)

For the year ended

December

31,

2018:

			IKONICS
	Chromaline		Imaging		DTX		AMS			Unalloc.			Total
Net sales	$	11,610,414	$	4,397,826	$	420,714	$	1,784,699		$	—		$	18,213,653
Cost of goods sold		7,949,894		2,323,425		137,039		1,549,268			—			11,959,626
Gross profit		3,660,520		2,074,401		283,675		235,431			—			6,254,027
Selling, general, and administrative*		1,777,197		1,023,422		150,698		367,533			2,032,116			5,350,966
Research and development*		—		—		—		—			677,242			677,242
Income (loss) from operations	$	1,883,323	$	1,050,979	$	132,977	$	(132,102	)	$	(2,709,358	)	$	225,819

*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,

2019

and

December

31,

2018

were as follows:

	Dec 31, 2019			Dec 31, 2018

Chromaline	$	1,916,066		$	1,550,411
IKONICS Imaging		304,791			360,551
DTX		13,919			15,692
AMS		252,363			331,708
Unallocated		(52,421	)		(43,147	)

Total	$	2,434,718		$	2,215,215