7.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, Digital Texturing (DTX) and Advanced Material Solutions (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 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. Export sells primarily the same products as Domestic and the IKONICS Imaging products not related to AMS or DTX. 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, 2017.

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 which are allocated based on the previous segmentation. Financial information with respect to the reportable segments follows:

For the three months ended March 31, 2018:


	IKONICS
						IKONICS
	Domestic		Export		Imaging		DTX		AMS		Unalloc.		Total
Net sales	$	1,344,480	$	1,158,340	$	1,057,338	$	88,666	$	422,654	$	—	$	4,071,478
Cost of goods sold		834,341		897,060		557,088		25,392		395,178		—		2,709,059
Gross profit		510,139		261,280		500,250		63,274		27,476		—		1,362,419
Selling, general and administrative*		309,134		121,628		279,593		34,852		84,784		518,992		1,348,983
Research and development*		—		—		—		—		—		154,076		154,076
Income (loss) from operations	$	201,005	$	139,652	$	220,657	$	28,422	$	(57,308)	$	(673,068)	$	(140,640)

For the three months ended March 31, 2017:


	IKONICS
						IKONICS
	Domestic		Export		Imaging		DTX		AMS		Unalloc.		Total
Net sales	$	1,303,569	$	1,055,005	$	989,986	$	115,231	$	165,201	$	—	$	3,628,992
Cost of goods sold		826,741		839,364		523,580		35,482		313,597		—		2,538,764
Gross profit (loss)		476,828		215,641		466,406		79,749		(148,396)		—		1,090,228
Selling, general and administrative*		351,422		196,117		283,859		34,635		96,795		547,786		1,510,614
Research and development*		—		—		—		—		—		165,770		165,770
Income (loss) from operations	$	125,406	$	19,524	$	182,547	$	45,114	$	(245,191)	$	(713,556)	$	(586,156)

*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 March 31, 2018 and December 31, 2017 were as follows:


	Mar 31, 2018		Dec 31, 2017

Domestic	$	778,030	$	1,119,228
Export		501,673		558,872
IKONICS Imaging		333,096		238,813
DTX		45,107		64,278
AMS		366,185		238,848
Unallocated		7,816		(29,779)

Total	$	2,031,907	$	2,190,260