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) August 7, 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

Press Release

Item 2.02. Results of Operations and Financial Condition.

     On August 7, 2007, IKONICS Corporation (the “Company”) reported its financial results for the quarter and six months ended June 30, 2007. See the Company’s press release dated August 7, 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 August 7, 2007

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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: August 10, 2007	/s/ Jon Gerlach
	Jon Gerlach
	Chief Financial Officer       and Vice President of Finance

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EXHIBIT INDEX

		Method
Exhibit	Description	of Filing
99	Press Release August 7, 2007	Filed Electronically

EX-99

Exhibit 99

NEWS RELEASE

News Contact:	Bill Ulland	For Immediate Release
	Chairman, President & CEO	August 7, 2007
	(218) 628-2217

IKONICS EARNS $0.16 PER SHARE ON RECORD SALES and WILL RESUME SHARE REPURCHASE PROGRAM

DULUTH, MN — IKONICS Corporation, a Duluth based imaging technology company, announced today earnings for the second quarter of 2007 of $331,000 or $0.16 per share compared to $0.17 per share for the second quarter of 2006. Sales were a record $4,375,000, a 7% increase over the same period in 2006 and a 25% increase over the first quarter of 2007. Sales growth in 2007 is mainly attributable to image mate™ shipments. The image mate™ brand was acquired in December 2006.

IKONICS CEO, Bill Ulland, said, “I’m pleased with the 25% sales increase from the first quarter of 2007. Earnings for the second quarter of 2007 lagged the record sales primarily due to rising raw material prices, costs associated with our new growth initiatives, a new rented warehouse necessitated by the image mate™ acquisition and expenses related to a bi-annual international screen print trade show.”

“We are taking action on pricing to offset our increased manufacturing costs, but fixed and development costs need to be offset through growth,” he added – “Toward that end, we continue to push our digital texturing and photo-machining projects. During the quarter, we ordered a prototype production machine for digital texturing, acquired high volume production equipment for photo-machining and are adding staff.”

IKONICS also announced today that it is resuming its previously-announced share repurchase program. The company has a current board authorization to repurchase up to 150,000 shares of which a total of 99,993 have previously been purchased. Shares may be purchased in the open market or directly from shareholders who contact the company in privately negotiated transactions.

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 Six Months Ended June 30, 2007 and 2006

	Three Months Ended				Six Months Ended
	6/30/07		6/30/06		6/30/07		6/30/06
Net Sales	$	4,374,677	$	4,099,674	$	7,882,444	$	7,471,474
Costs and expenses		3,934,716		3,625,112		7,446,150		6,874,909
Income from operations		439,961		474,563		436,294		596,565
Gain on sale of investment		—		—		55,159		—
Interest income		36,724		26,359		69,631		50,147
Income before income taxes		476,685		500,922		561,084		646,712
Federal and state Income tax expense		145,283		153,453		90,585		200,941
Net income	$	331,402	$	347,469	$	470,499	$	445,771
Earnings per common share-diluted	$	0.16	$	0.17	$	0.23	$	0.22
Average shares outstanding-diluted		2,064,698		2,048,958		2,056,762		2,030,068

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

	6/30/07		12/31/06
	(unaudited)
Assets
Current assets	$	8,631,849	$	8,229,210
Property, plant and equipment, net		1,289,568		991,920
Investment in non-marketable equity securities		855,201		988,910
Intangible assets		486,144		485,421
Deferred income taxes		48,000		48,000
	$	11,310,762	$	10,743,461
Liabilities and Stockholders’ Equity
Current liabilities	$	995,481	$	879,362
Long term debt		—		—
Stockholders’ equity		10,315,281		9,864,099
	$	11,310,762	$	10,743,461

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

	6/30/07			6/30/06
Net cash provided by operating activities	$	857,280		$	472,969
Net cash used in investing activities		(263,454	)		(325,405	)
Net cash provided by financing activities		95,719			223,047
Net increase in cash and cash equivalents		689,545			370,611
Cash and cash equivalents at beginning of period		3,428,186			3,412,072
Cash and cash equivalents at end of period	$	4,117,731		$	3,782,683