Commitments	3 Months Ended
Mar. 31, 2016
Commitments
COMMITMENTS	5.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 March 31, 2016, the Company had incurred costs of $2.8 million, of which, $82,000 was included in construction accounts payable. Costs incurred to date are reflected in construction in progress on the balance sheet as of March 31, 2016. 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 third quarter of 2016. Through March 31, 2016, the Company had incurred costs of $271,000, of which, $14,000 was included in construction accounts payable. Costs incurred to date are reflected in construction in progress on the balance sheet as of March 31, 2016. Line of Credit: The Company has a bank line of credit providing for borrowings of up to $2,050,000, 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 the first three months of 2016 or 2015 and there were no borrowings outstanding as of March 31, 2016 and December 31, 2015. There are no financial covenants related to the line of credit.

5.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 March 31, 2016, the Company had incurred costs of $2.8 million, of which, $82,000 was included in construction accounts payable. Costs incurred to date are reflected in construction in progress on the balance sheet as of March 31, 2016.

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 third quarter of 2016. Through March 31, 2016, the Company had incurred costs of $271,000, of which, $14,000 was included in construction accounts payable. Costs incurred to date are reflected in construction in progress on the balance sheet as of March 31, 2016.

Line of Credit:

The Company has a bank line of credit providing for borrowings of up to $2,050,000, 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 the first three months of 2016 or 2015 and there were no borrowings outstanding as of March 31, 2016 and December 31, 2015. There are no financial covenants related to the line of credit.