Note 5 - Segment Information

9 Months Ended

Sep. 30, 2021

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, 2020.

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 September 30, 2021: 

	IKONICS
			IKONICS
	Chromaline		Imaging		DTX		AMS			Unalloc.			Total
Net sales	$	2,954,569	$	1,445,926	$	81,925	$	261,032		$	—		$	4,743,452
Cost of goods sold		2,076,840		759,955		36,762		287,805			—			3,161,362
Gross profit (loss)		877,729		685,971		45,163		(26,773	)		—			1,582,090
Selling general and administrative*		331,134		316,535		31,811		37,153			1,557,421			2,274,054
Research and development*		—		—		—		—			134,608			134,608
Income (loss) from operations	$	546,595	$	369,436	$	13,352	$	(63,926	)	$	(1,692,029	)	$	(826,572	)

For the three months ended September 30, 2020: 

	IKONICS
			IKONICS
	Chromaline		Imaging		DTX		AMS			Unalloc.			Total
Net sales	$	2,051,047	$	893,064	$	62,024	$	128,849		$	—		$	3,134,984
Cost of goods sold		1,474,881		499,750		33,143		253,431			—			2,261,205
Gross profit (loss)		576,166		393,314		28,881		(124,582	)		—			873,779
Selling general and administrative*		234,884		180,285		27,567		51,644			485,393			979,773
Research and development*		—		—		—		—			136,520			136,520
Income (loss) from operations	$	341,282	$	213,029	$	1,314	$	(176,226	)	$	(621,913	)	$	(242,514	)

For the nine months ended September 30, 2021: 

	IKONICS
			IKONICS
	Chromaline		Imaging		DTX		AMS			Unalloc.			Total
Net sales	$	7,306,983	$	3,797,382	$	243,680	$	720,163		$	—		$	12,068,208
Cost of goods sold		5,217,363		1,953,681		113,814		775,624			—			8,060,482
Gross profit (loss)		2,089,620		1,843,701		129,866		(55,461	)		—			4,007,726
Selling general and administrative*		879,064		792,290		93,851		154,643			3,482,299			5,402,147
Research and development*		—		—		—		—			398,425			398,425
Income (loss) from operations	$	1,210,556	$	1,051,411	$	36,015	$	(210,104	)	$	(3,880,724	)	$	(1,792,846	)

For the nine months ended September 30, 2020: 

	IKONICS
			IKONICS
	Chromaline		Imaging		DTX		AMS			Unalloc.			Total
Net sales	$	5,635,373	$	2,488,963	$	223,606	$	856,673		$	—		$	9,204,615
Cost of goods sold		4,300,512		1,397,458		109,235		985,504			—			6,792,709
Gross profit (loss)		1,334,861		1,091,505		114,371		(128,831	)		—			2,411,906
Selling general and administrative*		1,027,239		683,720		91,999		211,788			1,948,354			3,963,100
Research and development*		—		—		—		—			521,334			521,334
Income (loss) from operations	$	307,622	$	407,785	$	22,372	$	(340,619	)	$	(2,469,688	)	$	(2,072,528	)

*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  September 30, 2021 and December 31, 2020 were as follows:

	Sep 30, 2021			Dec 31, 2020
Chromaline	$	1,266,482		$	1,676,592
IKONICS Imaging		482,691			396,116
DTX		19,908			35,983
AMS		155,643			57,676
Unallocated		(49,547	)		(47,154	)
Total	$	1,875,177		$	2,119,213