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) July 31, 2014

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 July 31, 2014, IKONICS Corporation (the “Company”) reported its financial results for the quarter and six months ended June 30, 2014.  See the Company’s press release dated July 31, 2014, 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 July 31, 2014

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:  August 5, 2014	/s/ Jon Gerlach
	Jon Gerlach
	Chief Financial Officer and Vice President of Finance

3

EXHIBIT INDEX

Exhibit	Description	Method of Filing
99	Press Release dated July 31, 2014	Filed Electronically

4

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	July 31, 2014
	(218) 628-2217

IKONICS REPORTS RECORD SALES AND DISCUSSES POSSIBLE EXPANSION PLANS

DULUTH, MN - IKONICS Corporation (NASDAQ:IKNX), a Duluth-based imaging technology company, reported all-time record quarter sales for the second quarter of 2014 at $4,924,000, and the third consecutive record sales on a quarter-to-quarter comparison.  Sales increased by 6% over the second quarter of 2013, and on a year-to-date basis are up 8%.  Earnings declined by 32% compared to the second quarter of 2013 to $198,000, or $0.10 per diluted share, but on an annual basis, earnings are up 96% over the first half of 2013 to $0.20 per diluted share.

Bill Ulland, IKONICS CEO, said that the earnings decline for the quarter primarily reflected increased costs related to the company’s Micro-Machining division, which is  gearing up for anticipated sales growth  as commercial aerospace customers are expected to begin introducing a next generation of aircraft  beginning  in the second half of this year and accelerating in 2015.  Ulland also stated that there has been a delay in the ramp up of a portion of this business because one of the new jet engines for which IKONICS has provided sound deadening components has experienced a delay in certification due to certain mechanical problems unrelated to IKONICS’ technology.  Ulland indicated that he anticipates an early resolution of this problem and resumed demand for IKONICS’ product.

“We just received an order for machining vents in the carbon fiber fuselage of a new generation helicopter,” Ulland said.  “To date our focus has been on sound deadening for aft liners and intake cowls, so fuselage machining represents an important new opportunity for our technology.”

“We are in the process of evaluating an expansion to accommodate this anticipated growth in business,” he added.  “If the business case justifies the investment, we anticipate beginning construction in the spring of 2015 with manufacturing operations beginning that fall. We are seeking government assistance to help us with what would be a large investment for the company and one that entails some risk.”

“Our traditional business units performed well during the quarter with Domestic Chromaline and Export setting all-time quarterly sales records and IKONICS Imaging posting a 13% growth in sales over the second quarter of 2013,” Ulland said.

“DTX also has made some recent progress with new ink and substrate products that meet stringent customer demands and allow us to ship printed images and prototype parts to customers worldwide.  I anticipate that DTX will be profitable by the end of year and will be a strong contributor to sales and profits in 2015,” he said.

This press release contains forward-looking statements regarding sales, gross profits, net earnings, balance sheet position, industry trends and new products, technologies and businesses initiatives that involve risks and uncertainties. The Company’s actual results could differ materially as a result of downturns in the aerospace industry, unexpected production delays by the Company’s customers, lack of acceptance of new products and technologies, introduction of new products or technologies by competitors, the effects of federal budget sequestration, domestic and global economic conditions, inherent risk and uncertainty in the protection of intellectual property rights, the ability to control operating costs without impacting growth as well as the factors described in the Company’s Forms 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 (unaudited)

For the Three Months and Six Months Ended June 30, 2014 and 2013

	Three Months Ended				Six Months Ended
	6/30/14		6/30/13		6/30/14		6/30/13
Net sales	$	4,924,747	$	4,654,745	$	9,389,323	$	8,677,017
Cost of goods sold	3,213,875		2,770,787		5,919,298		5,328,800
Gross profit	1,710,872		1,883,958		3,470,025		3,348,217
Operating expenses	1,417,892		1,482,468		2,861,872		3,120,529
Income from operations	292,980		401,490		608,153		227,688
Interest income	1,552		1,744		3,510		3,959
Income before income taxes	294,532		403,234		611,663		231,647
Income tax expense	96,100		110,122		208,316		26,285
Net income	$	198,432	$	293,112	$	403,347	$	205,362
Earnings per common share-diluted	$	0.10	$	0.15	$	0.20	$	0.10
Average shares outstanding-diluted	2,019,721		2,012,552		2,016,774		2,007,724

Condensed Balance Sheets

As of June 30, 2014 and December 31, 2013

	6/30/14		12/31/13
	(unaudited)
Assets
Current assets	$	8,379,175	$	8,045,060
Property, plant and equipment, net	5,704,903		5,634,096
Intangible assets, net	348,350		322,647
	$	14,432,428	$	14,001,803
Liabilities and Stockholders’ Equity
Current liabilities	$	822,995	$	874,985
Deferred income taxes	527,000		527,000
Long term debt	—		—
Stockholders’ equity	13,082,433		12,599,818
	$	14,432,428	$	14,001,803

CONDENSED STATEMENTS OF CASH FLOWS (unaudited)

For the Six Months Ended June 30, 2014 and 2013

	6/30/14			6/30/13
Net cash provided by operating activities	$	364,377		$	18,108
Net cash provided by (used in) investing activities	(983,691		)	219,933
Net cash provided by financing activities	44,730			63,492
Net increase (decrease) in cash and cash equivalents	(574,584		)	301,533
Cash and cash equivalents at beginning of period	1,704,300			967,943
Cash and cash equivalents at end of period	$	1,129,716		$	1,269,476