Note 5 - Segment Information

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

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, 2019.

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, 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

three

months ended

June 30, 2019:

 

	IKONICS
			IKONICS
	Chromaline		Imaging		DTX		AMS			Unalloc.			Total
Net sales	$	3,107,116	$	958,128	$	112,601	$	418,566		$	—		$	4,596,411
Cost of goods sold		2,280,224		501,006		51,547		335,205			—			3,167,982
Gross profit		826,892		457,122		61,054		83,361			—			1,428,429
Selling general and administrative*		467,091		248,050		34,761		88,362			500,597			1,338,861
Research and development*		—		—		—		—			270,465			270,465
Income (loss) from operations	$	359,801	$	209,072	$	26,293	$	(5,001	)	$	(771,062	)	$	(180,897	)

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	)

For the

six

months ended

June 30, 2019:

 

	IKONICS
			IKONICS
	Chromaline		Imaging		DTX		AMS			Unalloc.			Total
Net sales	$	5,136,457	$	2,046,934	$	205,361	$	736,350		$	—		$	8,125,102
Cost of goods sold		3,833,834		1,086,510		85,593		681,617			—			5,687,554
Gross profit		1,302,623		960,424		119,768		54,733			—			2,437,548
Selling general and administrative*		912,094		570,503		69,366		176,510			992,353			2,720,826
Research and development*		—		—		—		—			449,307			449,307
Income (loss) from operations	$	390,529	$	389,921	$	50,402	$	(121,777	)	$	(1,441,660	)	$	(732,585	)

*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, 2020 

and

December 31, 2019

were as follows:

	Jun 30, 2020			Dec 31, 2019
Chromaline	$	1,097,348		$	1,916,066
IKONICS Imaging		193,653			304,791
DTX		38,912			13,919
AMS		182,333			252,363
Unallocated		(98,227	)		(52,421	)
Total	$	1,414,019		$	2,434,718