COMMITMENTS	12 Months Ended
Dec. 31, 2015
Commitments
COMMITMENTS	8. COMMITMENTS Building: During 2015, the Company committed to proceed with a 27,300 square-foot building expansion project. The new structure will contain a 20,500 square-foot production floor in addition to offices and ancillary facilities and is expected to cost $3.5 million. The expansion will be in addition to the current 35,000 square-foot IKONICS building on its Morgan Park site in western Duluth, which houses AMS production, warehousing, shipping and film conversion for all IKONICS business units. All AMS activities will relocate to the new facility, with an expected project completion date during the second quarter of 2016. Through December 31, 2015, the Company had incurred costs of $2.3 million of which $315,000 was included in construction accounts payable. Costs incurred to date are reflected in construction in progress on the Balance Sheet. ERP System: During 2015, the Company committed to the purchase and implementation of a new Enterprise Resource Planning (ERP) system. The new ERP system will better support and accommodate IKONICS’ operations and replace the Company’s existing ERP system. The total ERP system project is expected to cost approximately $400,000, and is expected to be completed by the second quarter of 2016. Through December 31, 2015, the Company had incurred costs of $208,000, of which $18,000 was included in construction accounts payable. Costs incurred to date are reflected in construction in progress on the Balance Sheet. Line of Credit: The Company has a bank line of credit providing for borrowings of up to $2,050,000 and expiring on May 31, 2017. The line of credit is collateralized by the Company’s assets and bears interest at 1.8 percentage points over the 30‑day LIBOR rate. The Company did not utilize this line of credit during 2015 or 2014 and there were no borrowings outstanding as of December 31, 2015 and 2014. There are no financial covenants related to the line of credit.

8. COMMITMENTS

Building:

During 2015, the Company committed to proceed with a 27,300 square-foot building expansion project. The new structure will contain a 20,500 square-foot production floor in addition to offices and ancillary facilities and is expected to cost $3.5 million. The expansion will be in addition to the current 35,000 square-foot IKONICS building on its Morgan Park site in western Duluth, which houses AMS production, warehousing, shipping and film conversion for all IKONICS business units. All AMS activities will relocate to the new facility, with an expected project completion date during the second quarter of 2016. Through December 31, 2015, the Company had incurred costs of $2.3 million of which $315,000 was included in construction accounts payable. Costs incurred to date are reflected in construction in progress on the Balance Sheet.

ERP System:

During 2015, the Company committed to the purchase and implementation of a new Enterprise Resource Planning (ERP) system. The new ERP system will better support and accommodate IKONICS’ operations and replace the Company’s existing ERP system. The total ERP system project is expected to cost approximately $400,000, and is expected to be completed by the second quarter of 2016. Through December 31, 2015, the Company had incurred costs of $208,000, of which $18,000 was included in construction accounts payable. Costs incurred to date are reflected in construction in progress on the Balance Sheet.

Line of Credit:

The Company has a bank line of credit providing for borrowings of up to $2,050,000 and expiring on May 31, 2017. The line of credit is collateralized by the Company’s assets and bears interest at 1.8 percentage points over the 30‑day LIBOR rate. The Company did not utilize this line of credit during 2015 or 2014 and there were no borrowings outstanding as of December 31, 2015 and 2014. There are no financial covenants related to the line of credit.