SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2015

Segment Information

SEGMENT INFORMATION

5.SEGMENT INFORMATION

The Company’s reportable segments are strategic business units that offer different products and have varied customer bases.  There are five reportable segments:  Domestic, Export, IKONICS Imaging, DTX and AMS.  Domestic sells screen printing film, emulsions, and inkjet receptive film to distributors located in the United States and Canada.  IKONICS Imaging sells photo resistant film, art supplies, glass, metal medium and related abrasive etching equipment to end user customers located in the United States and Canada.  AMS provides sound deadening 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.  Export sells primarily the same products as Domestic and the IKONICS Imaging products not related to AMS or DTX.  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, 2015:

					IKONICS
	Domestic		Export		Imaging		DTX		AMS		Unalloc.		Total
Net sales	$	7,607,832	$	4,896,736	$	3,952,929	$	476,286	$	628,283	$	—	$	17,562,066
Cost of goods sold		4,402,356		3,767,589		1,854,519		254,863		1,138,147		—		11,417,474
Gross profit (loss)		3,205,476		1,129,147		2,098,410		221,423		(509,864)		—		6,144,592
Selling, general, and administrative*		1,337,069		580,173		988,823		174,525		347,298		1,835,484		5,263,372
Research and development*		—		—		—		—		—		660,402		660,402
Income (loss) from operations	$	1,868,407	$	548,974	$	1,109,587	$	46,898	$	(857,162)	$	(2,495,886)	$	220,818

For the year ended December 31, 2014:

					IKONICS
	Domestic		Export		Imaging		DTX		AMS		Unalloc.		Total
Net sales	$	7,846,457	$	5,249,843	$	4,644,082	$	422,646	$	326,809	$	—	$	18,489,837
Cost of goods sold		4,571,505		3,840,948		2,167,870		365,828		840,457		—		11,786,608
Gross profit (loss)		3,274,952		1,408,895		2,476,212		56,818		(513,648)		—		6,703,229
Selling, general, and administrative*		1,353,509		549,254		918,337		166,724		425,087		1,711,853		5,124,764
Research and development*		—		—		—		—		—		664,999		664,999
Income (loss) from operations	$	1,921,443	$	859,641	$	1,557,875	$	(109,906)	$	(938,735)	$	(2,376,852)	$	913,466

*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, 2015 and December 31, 2014 were as follows:

	Dec 31 2015		Dec 31 2014
Domestic	$	1,206,077	$	1,068,170
Export		528,372		640,464
IKONICS Imaging		341,980		254,483
DTX		26,314		86,507
AMS		164,639		85,170
Unallocated		(102,188)		(38,466)
Total	$	2,165,194	$	2,096,328