8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) February 19, 2010

IKONICS CORPORATION

(Exact name of registrant as specified in its charter)

Minnesota	000-25727	41-0730027
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

4832 Grand Avenue Duluth, Minnesota	55807
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (218) 628-2217

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

     On February 19, 2010, IKONICS Corporation (the “Company”) reported its financial results for the quarter and fiscal year ended December 31, 2009. See the Company’s press release dated February 19, 2010, which is furnished as Exhibit 99 hereto and incorporated by reference in this Item 2.02.

Item 9.01. Financial Statements and Exhibits.

     (d) Exhibit.

     99 Press Release dated February 19, 2010

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SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	IKONICS CORPORATION
Date: February 19, 2010	/s/ Jon Gerlach
	Jon Gerlach
	Chief Financial Officer and Vice President of Finance

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EXHIBIT INDEX

		Method
Exhibit	Description	of Filing
		Filed
99	Press Release dated February 19, 2010	Electronically

EX-99

Exhibit 99

News Contact:	Bill Ulland	For Immediate Release
	Chairman, President & CEO	February 19, 2010
	(218) 628-2217

IKONICS REPORTS FOURTH QUARTER AND FULL YEAR RESULTS

DULUTH, MN — IKONICS Corporation (NASDAQ:IKNX), a Duluth based imaging technology company, reported sales for 2009 of $15,122,000, a 4.6% decrease compared to 2008. Income from operations declined by 10% for the year to $870,000. Cash provided by operations grew by 22% to $1,374,000 over 2008. Reported income for the year was adversely affected by the $919,000 write off of the Company’s investment in Imaging Technology International (iTi). After the write off, the loss for the year was $307,000 or $0.16 per share compared to income of $814,000 or $0.40 per share for 2008. The iTi write off was a non-cash event, and cash and cash equivalents grew by 45% during the year to $1,305,000.

Sales for the fourth quarter declined by 1.5% to $3,851,000, while earnings increased by 80% to $202,000 or $0.10 per share.

Bill Ulland, IKONICS CEO said, “Between the recession and the iTi failure, 2009 was a turbulent year for the Company. However, we remain financially very strong with no long term debt and a very healthy balance sheet. We made progress during the year on our new initiatives; we have now placed a digital texturing printer at a beta site where it is operating above expectation and is generating ongoing sales for us in ink jet fluids and substrates. We have found a replacement supplier for the digital texturing printer that is a much stronger and more experienced manufacturer. Recoveries in the aerospace and electronics industries are helping our other new initiatives. Our screen-print stencil business remains steady while the awards and recognition sector continues to be soft. On balance, I believe 2010 will be a good year for IKONICS, and that we have come out of 2009 a better company and a stronger competitor in our various markets.”

This press release contains forward-looking statements regarding sales, gross profits, net earnings, and new products and businesses that involve risks and uncertainties. The Company’s actual results could differ materially as a result of domestic and global economic conditions, competitive market conditions, acceptance of new products, the ability to identify and make suitable acquisitions, the ability to control costs without impacting growth as well as the factors described in the Company’s Form s 10-K, and 10-Q, and other reports on file with the SEC.

IKONICS Corporation

CONDENSED STATEMENTS OF OPERATIONS
For the Three Months and Twelve Months Ended December 31, 2009 and 2008

	Three Months Ended				Twelve Months Ended
	12/31/09		12/31/08		12/31/09			12/31/08
Net sales	$	3,851,241	$	3,910,794	$	15,121,617		$	15,854,484
Cost of goods sold		2,229,117		2,429,329		9,054,771			9,228,187
Gross profit		1,622,124		1,481,465		6,066,846			6,626,297
Operating expenses		1,290,223		1,344,302		5,197,195			5,655,925
Income from operations		331,901		137,163		869,651			970,372
Gain on sale of investment		—		—		29,762			24,550
Loss on investment		—		—		(918,951	)		—
Interest income		2,988		2,950		8,178			90,212
Income (loss) before income taxes		334,889		140,113		(11,360	)		1,085,134
Income tax expense		132,747		27,887		296,000			271,000
Net income (loss)	$	202,142	$	112,226	$	(307,360	)	$	814,134
Earnings (loss) per common share-diluted	$	0.10	$	0.06	$	(0.16	)	$	0.40
Average shares outstanding-diluted		1,969,420		2,005,053		1,973,739			2,053,733

CONDENSED BALANCE SHEETS
As of December 31, 2009 and 2008

	12/31/09		12/31/08
Assets
Current assets	$	6,417,488	$	5,562,130
Property, plant and equipment, net		5,234,244		5,602,063
Investment in non-marketable equity securities		—		918,951
Intangible assets		345,540		403,285
	$	11,997,272	$	12,486,429
Liabilities and Stockholders’ Equity
Current liabilities	$	809,186	$	909,789
Deferred income taxes		162,000		143,000
Long term debt		—		—
Stockholders’ equity		11,026,086		11,433,640
	$	11,997,272	$	12,486,429

CONDENSED STATEMENTS OF CASH FLOW
For the Twelve Months Ended December 31, 2009 and 2008

	12/31/09			12/31/08
Net cash provided by operating activities	$	1,374,112		$	1,125,668
Net cash used in investing activities		(847,420	)		(1,003,504	)
Net cash used in financing activities		(123,844	)		(450,446	)
Net increase (decrease) in cash		402,848			(328,282	)
Cash at beginning of period		901,738			1,230,020
Cash at end of period	$	1,304,586		$	901,738