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, 2009     

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

EX-99

Item 2.02. Results of Operations and Financial Condition.

     On February 19, 2009, IKONICS Corporation (the “Company”) reported its financial results for the fiscal year ended December 31, 2008. See the Company’s press release dated February 19, 2009, which is furnished as Exhibit 99 hereto and incorporated by reference in this Item 2.02.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers.

     On February 19, 2009, the Company’s board of directors increased the size of the board by one member and selected Lockwood Carlson as a director. Dr. Carlson was appointed to serve on the nominating and compensation committees of the board.

     There are no arrangements or understandings between Dr. Carlson and any other person pursuant to which he was selected as a director. Since the beginning of the Company’s last fiscal year, Dr. Carlson has not been a party to any transaction, and there is no currently proposed transaction, required to be disclosed pursuant to Item 404 of Regulation S-K. Dr. Carlson will participate in the Company’s non-employee director compensation program on the same basis as the Company’s other non-employee directors.

Item 9.01.	Financial Statements and Exhibits.
(d)	Exhibit.
99	Press Release dated February 19, 2009

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 24, 2009	/s/ Jon Gerlach
	Jon Gerlach
	Chief Financial Officer and Vice President of Finance

EXHIBIT INDEX

		Method
Exhibit	Description	of Filing
99	Press Release dated February 19, 2009	Filed Electronically

EX-99

Exhibit 99

4842 Grand Ave., Duluth, MN 55807
Phone: 218-628-2217      Fax: 218-628-3245
www.ikonics.com      info@ikonics.com NEWS RELEASE

News Contact: Bill Ulland
Chairman, President & CEO
(218) 628-2217 For Immediate Release
February 19, 2009

IKONICS REPORTS FOURTH QUARTER AND FULL YEAR RESULTS

DULUTH, MN — IKONICS Corporation (NASDAQ:IKNX), a Duluth based imaging technology company, reported 2008 earnings of $814,000, or $0.40 per share, on sales of $15,854,000. Sales were up slightly over 2007, while earnings were down from $1,170,000, or $0.57 per share, in 2007. The earnings decline was primarily due to non-cash charges in 2008, principally an increase in the LIFO inventory reserve and the write off of patent application expenses.

Bill Ulland, IKONICS CEO said, “Worldwide recession made 2008 a challenging year for IKONICS. In spite of contractions in our core markets, we were able to hold sales equal to last year, gross profit fell by only 4%, and we continued to generate healthy cash flow. The only area of our business where sales did not grow was the awards and recognition market, which is highly vulnerable to recession.

I believe that in 2009 our core businesses of photochemical stencils for screen printing and decorative abrasive etching will remain under pressure in the domestic market. We still see good opportunity in the export market and have taken steps to increase our presence in India and Latin America.

The most promising developments for 2009 are our new business initiatives described below, which achieved commercial acceptance in 2008; I believe they will generate significant revenue and profits in 2009.

Our Photo Machining Process has gained acceptance by large customers, and we anticipate ramped up production in 2009, primarily to the defense industry.

IKONICS Acoustics has also gained industry acceptance. In 2008 our technology was used for sound deadening on GE, Pratt & Whitney and Rolls Royce jet engines. Although temporarily impacted by the Boeing strike and the slow down in orders for some aircraft models, we anticipate good sales in the second half of 2009. We are bringing an improved product to this market which will expand our potential customer base. I believe the time saving and quality improvements we bring to the customer are compelling.

Digital Texturing has gained customer acceptance as we have continually improved our equipment and print quality. We hope to start selling our next generation DTX™ printer in the second quarter of 2009. Equipment sales bring significant ongoing sales of our proprietary substrates and inkjettable fluids. Although the initial market is automotive, we believe that the revolutionary nature of our technology will bring us sales even in this depressed industry.

IKONICS Industrial Solutions is a new venture of creating custom products to meet the needs of specific users. We both design and manufacture the product. We currently have two such products in production and anticipate others in 2009.

All of our (non-defense) new businesses are subject to the world economy. However, I believe that our new technologies are important enough that we will see them contributing 10-20% of our sales in the next 12 months, with growth accelerating in future years.”

Ulland also added that the Company completed construction on its new $4.4 million facility in December 2008.

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 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, 2008 and 2007

	Three Months Ended				Twelve Months Ended
	12/31/08		12/31/07		12/31/08		12/31/07
Net Sales	$	3,910,794	$	3,925,358	$	15,854,484	$	15,824,725
Cost of Goods Sold		2,429,329		2,093,175		9,228,187		8,887,612
Gross Profit		1,481,465		1,832,183		6,626,297		6,937,113
Operating expenses		1,344,302		1,326,833		5,655,925		5,510,468
Income from operations		137,163		505,350		970,372		1,426,645
Gain on sale of investment		—		—		24,550		55,159
Interest income		2,950		43,724		90,212		153,971
Income before income taxes		140,113		549,074		1,085,134		1,635,775
Income tax expense		27,887		203,723		271,000		466,000
Net income	$	112,226	$	345,351	$	814,134	$	1,169,775
Earnings per common share-diluted	$	0.06	$	0.17	$	0.40	$	0.57
Average shares outstanding-diluted		2,005,053		2,075,580		2,053,733		2,063,380

Condensed Balance Sheets
As of December 31 2008 and 2007

	12/31/08		12/31/07
Assets
Current assets	$	5,562,130	$	9,315,737
Property, plant and equipment, net		5,602,063		1,320,591
Investment in non-marketable equity securities		918,951		855,201
Intangible assets		403,285		479,888
Deferred income taxes		—		11,000
	$	12,486,429	$	11,982,417
Liabilities and Stockholders’ Equity
Current liabilities	$	909,789	$	936,703
Deferred income taxes		143,000		—
Long term debt		—		—
Stockholders’ equity		11,433,640		11,045,714
	$	12,486,429	$	11,982,417