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, 2013

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, 2013, IKONICS Corporation (the “Company”) reported its financial results for the quarter and fiscal year ended December 31, 2012.  See the Company’s press release dated February 19, 2013, 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.

99Press Release dated February 19, 2013

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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 20, 2013	/s/ Jon Gerlach
	Jon Gerlach
	Chief Financial Officer
	and Vice President of Finance

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EXHIBIT INDEX

Exhibit	Description	Method of Filing
99	Press Release dated February 19, 2013	Filed Electronically

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EX-99

Exhibit 99

4832 Grand Avenue
Duluth, MN 55807 USA
Phone: (218) 628-2217
Fax: (218 628-3245
Email: info@ikonics.com
Website: www.ikonics.com

News Contact: Bill Ulland	For Immediate Release
Chairman, President & CEO	February 19, 2013
(218) 628-2217

STRONG FOURTH QUARTER LIFTS IKONICS

IKONICS Corporation (NASDAQ: IKNX), a Duluth-based imaging technology company, reported a strong 2012 fourth quarter. Sales were up 8% and earnings, at $0.14 per share, were 109% higher than the fourth quarter of 2011 The Company ended 2012 with record sales of $17,312,000 — a 3% increase over 2011. Earnings for the year ended up at $0.35 per share — essentially the same as 2011.

Bill Ulland, IKONICS CEO said: “Our patient investment in DTX and Micro-Machining technologies continues to depress earnings, but I believe we now are beginning to see the payoff, particularly with our Micro-Machining customers in the aerospace industry.

“In addition to ongoing business related to the Boeing 747-8, we have received a blanket order associated with the Airbus A350, which we expect to grow as the A350 is placed into production. We also have orders beginning early in 2013 for acoustic liners from a major jet engine manufacturer; I anticipate that this product line will grow during the year,” he said. “Consequently, we are expanding our manufacturing capability, adding both equipment and people. I believe that these exciting developments not only portend a profitable business for Ikonics but also are a validation of our unique technology by a very sophisticated industry.”

“During the year we also invested significantly in strengthening our patent position for both Micro-Machining and DTX,” he continued.  “Our domestic screen print market was a star performer in 2012, with sales up 7% over last year while competing in a difficult market.”

Ulland noted: “During the fourth quarter of 2012 we paid a $1.00 per share, one-time special cash dividend, amounting to approximately $2,000,000.  We currently have cash and short-term investment of $2.4 million versus $3.9 million at the end of the third quarter of 2012, and we continue to generate a strong cash flow. I believe our current cash and its projected growth is more than sufficient to meet our growth plans. We have no long-term debt.”

This press release contains forward-looking statements regarding sales, gross profits, net earnings, balance sheet position, new products and new business initiatives that involve risks and uncertainties. The Company’s actual results could differ materially as a result of domestic and global economic conditions, downturns in the aerospace industry, unexpected production delays by customers using the Company’s products, competitive market conditions, changes in consumer preferences, inability to commercialize technologies the Company is developing on the anticipated timeline or at all, acceptance of new products the Company offers, introduction of new products or technologies by competitors, unexpected capital expenditure requirements, the ability to control operating 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.

ISO 9001 Certified

NASDAQ Listed: IKNX

IKONICS Corporation

CONDENSED STATEMENTS OF INCOME

For the Three Months and Twelve Months Ended December 31, 2012 and 2011

	Three Months Ended				Twelve Months Ended
	12/31/12		12/31/11		12/31/12		12/31/11
Net sales	$	4,524,468	$	4,178,419	$	17,312,407	$	16,780,262
Cost of goods sold	2,641,347		2,469,645		10,367,563		10,070,852
Gross profit	1,883,121		1,708,774		6,944,844		6,709,410
Operating expenses	1,456,944		1,451,114		5,911,963		5,683,406
Income from operations	426,177		257,660		1,032,881		1,026,004
Interest income	2,673		3,882		12,050		17,253
Income before income taxes	428,850		261,542		1,044,931		1,043,257
Income tax expense	143,708		124,850		351,000		345,000
Net income	$	285,142	$	136,692	$	693,931	$	698,257
Earnings per common share-diluted	$	0.14	$	0.07	$	0.35	$	0.35
Average shares outstanding-diluted	1,994,802		1,989,106		1,990,847		1,986,041

CONDENSED BALANCE SHEETS

As of December 31, 2012 and 2011

	12/31/12		12/31/11
Assets
Current assets	$	7,417,041	$	8,404,194
Property, plant and equipment, net	5,461,878		5,436,902
Intangible assets	305,357		326,362
	$	13,184,276	$	14,167,458
Liabilities and Stockholders’ Equity
Current liabilities	$	1,023,531	$	838,915
Deferred income taxes	366,000		338,000
Long term debt	—		—
Stockholders’ equity	11,794,745		12,990,543
	$	13,184,276	$	14,167,458

CONDENSED STATEMENTS OF CASH FLOWS

For the Twelve Months Ended December 31, 2012 and 2011

	12/31/12			12/31/11
Net cash provided by operating activities	$	1,181,950		$	793,532
Net cash used in investing activities	(171,725		)	(288,881		)
Net cash provided by (used in) financing activities	(1,909,447		)	71,131
Net increase (decrease) in cash and cash equivalents	(899,222		)	575,782
Cash and cash equivalents at beginning of period	1,867,165			1,291,383
Cash and cash equivalents at end of period	$	967,943		$	1,867,165