Note 5 - Segment Information

12 Months Ended

Dec. 31, 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 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