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)                     October 31, 2007                     

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))

TABLE OF CONTENTS

	Item 2.02. Results of Operations and Financial Condition.
	Item 9.01. Financial Statements and Exhibits.
SIGNATURES
EXHIBIT INDEX
Press Release

Item 2.02. Results of Operations and Financial Condition.

     On October 31, 2007, IKONICS Corporation (the “Company”) reported its financial results for the quarter and nine months ended September 30, 2007. See the Company’s press release dated October 31, 2007, 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 October 31, 2007

2

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: November 1, 2007	/s/ Jon Gerlach
	Jon Gerlach
	Chief Financial Officer and Vice President of Finance

3

EXHIBIT INDEX

		Method
Exhibit	Description	of Filing
99	Press Release October 31, 2007	Filed Electronically

EX-99

Exhibit 99

News Contact:	Bill Ulland	For Immediate Release
	Chairman, President & CEO	October 31, 2007
	(218) 628-2217

IKONICS ANNOUNCES 24% EARNINGS INCREASE ON RECORD THIRD
QUARTER SALES

DULUTH, MN — IKONICS Corporation, a Duluth based imaging technology company, announced today third quarter 2007 earnings of $354,000, or $0.17 per share, a 24% increase over the third quarter of 2006. Sales were up 9% over the comparable quarter to $4,017,000. Both figures are third quarter records.

Bill Ulland, Ikonics CEO, said, “Our core screen print photochemical business performed particularly well during the quarter, aided by the December of 2006 image mate^® acquisition. We also began to see sales contributions from two of our new business ventures which are expected to increase in the fourth quarter.”

During the quarter, the Company entered into an option agreement to buy a 15 acre brownfield site from the city of Duluth, Minnesota to accommodate business growth.

This press release contains forward-looking statements regarding sales, net earnings, and new products 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, as well as the factors described in the Company’s Form 10-KSB, Forms 10-QSB and other reports on file with the SEC.

IKONICS Corporation

Condensed STATEMENTS OF OPERATIONS (unaudited)
For the Three Months and Nine Months Ended September 30, 2007 and 2006

	Three Months Ended				Nine Months Ended
	9/30/07		9/30/06		9/30/07		9/30/06
Net Sales	$	4,016,923	$	3,673,830	$	11,899,367	$	11,145,304
Costs and expenses		3,531,922		3,294,559		10,978,072		10,169,468
Income from operations		485,001		379,271		921,295		975,836
Gain on sale of investment		—		—		55,159		—
Interest income		40,616		32,492		110,247		82,639
Income before income taxes		525,617		411,763		1,086,701		1,058,475
Federal and state Income tax expense		171,692		126,810		262,277		327,751
Net income	$	353,925	$	284,953	$	824,424	$	730,724
Earnings per common share-diluted	$	0.17	$	0.14	$	0.40	$	0.36
Average shares outstanding-diluted		2,074,569		2,043,981		2,061,400		2,029,732

Condensed Balance Sheets
As of September 30, 2007 and December 31, 2006

	9/30/07		12/31/06
	(unaudited)
Assets
Current assets	$	8,910,277	$	8,229,210
Property, plant and equipment, net		1,329,280		991,920
Investment in non-marketable equity securities		855,201		988,910
Intangible assets		485,074		485,421
Deferred income taxes		48,000		48,000
	$	11,627,832	$	10,743,461
Liabilities and Stockholders’ Equity
Current liabilities	$	945,897	$	879,362
Long term debt		—		—
Stockholders’ equity		10,681,935		9,864,099
	$	11,627,832	$	10,743,461

CONDENSED STATEMENTS OF CASH FLOW (unaudited)
For Nine Months Ended September 30, 2007 and 2006

	9/30/07			9/30/06
Net cash provided by operating activities	$	1,384,262		$	797,419
Net cash used in investing activities		(385,067	)		(446,247	)
Net cash provided by financing activities		103,719			223,047
Net increase in cash and cash equivalents		1,102,914			574,219
Cash and cash equivalents at beginning of period		3,428,186			3,412,072
Cash and cash equivalents at end of period	$	4,531,100		$	3,986,291