Note 5 - Segment Information

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

5. Segment Information

The Company’s reportable segments are strategic business units that offer different products and have varied customer bases.  There are four reportable segments:  Chromaline, IKONICS Imaging, Digital Texturing (DTX) and Advanced Material Solutions (AMS).  Chromaline sells screen printing film, emulsions, and inkjet receptive film primarily to distributors and some end users.  IKONICS Imaging sells photo resistant film, art supplies, glass, and related abrasive etching equipment to both end users and distributors.  AMS provides sound deadening and weight reduction technology to the aerospace industry along with products and services for etched composites, ceramics, glass and silicon wafers.  DTX includes products and customers related to patented and proprietary inkjet technology used for mold texturing and prototyping.   The accounting policies applied to determine the segment information are the same as those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Management evaluates the performance of each segment based on the components of divisional income (loss).  Assets and liabilities are not allocated to segments, except for trade receivables.  Financial information with respect to the reportable segments follows:

For the three months ended June 30, 2021: 

	IKONICS
			IKONICS
	Chromaline		Imaging		DTX		AMS			Unalloc.			Total
Net sales	$	2,653,733	$	1,264,855	$	85,444	$	247,316		$	—		$	4,251,348
Cost of goods sold		1,905,738		644,071		34,260		237,975			—			2,822,044
Gross profit		747,995		620,784		51,184		9,341			—			1,429,304
Selling general and administrative*		289,928		259,219		32,001		58,869			1,304,485			1,944,502
Research and development*		—		—		—		—			128,895			128,895
Income (loss) from operations	$	458,067	$	361,565	$	19,183	$	(49,528	)	$	(1,433,380	)	$	(644,093	)

For the three months ended June 30, 2020: 

	IKONICS
				IKONICS
	Chromaline			Imaging			DTX			AMS			Unalloc.			Total
Net sales	$	1,619,986		$	625,800		$	49,053		$	277,600		$	—		$	2,572,439
Cost of goods sold		1,407,362			419,985			24,346			335,851			—			2,187,544
Gross profit (loss)		212,624			205,815			24,707			(58,251	)		—			384,895
Selling general and administrative*		366,136			224,573			30,059			57,035			524,504			1,202,307
Research and development*		—			—			—			—			201,234			201,234
Loss from operations	$	(153,512	)	$	(18,758	)	$	(5,352	)	$	(115,286	)	$	(725,738	)	$	(1,018,646	)

For the six months ended June 30, 2021: 

	IKONICS
			IKONICS
	Chromaline		Imaging		DTX		AMS			Unalloc.			Total
Net sales	$	4,352,414	$	2,351,456	$	161,755	$	459,131		$	—		$	7,324,756
Cost of goods sold		3,140,523		1,193,726		77,052		487,819			—			4,899,120
Gross profit (loss)		1,211,891		1,157,730		84,703		(28,688	)		—			2,425,636
Selling general and administrative*		547,930		475,755		62,040		117,490			1,924,878			3,128,093
Research and development*		—		—		—		—			263,817			263,817
Income (loss) from operations	$	663,961	$	681,975	$	22,663	$	(146,178	)	$	(2,188,695	)	$	(966,274	)

For the six months ended June 30, 2020: 

	IKONICS
				IKONICS
	Chromaline			Imaging		DTX		AMS			Unalloc.			Total
Net sales	$	3,584,326		$	1,595,899	$	161,582	$	727,824		$	—		$	6,069,631
Cost of goods sold		2,825,631			897,708		76,092		732,073			—			4,531,504
Gross profit (loss)		758,695			698,191		85,490		(4,249	)		—			1,538,127
Selling general and administrative*		792,355			503,435		64,432		160,144			1,462,961			2,983,327
Research and development*		—			—		—		—			384,814			384,814
Income (loss) from operations	$	(33,660	)	$	194,756	$	21,058	$	(164,393	)	$	(1,847,775	)	$	(1,830,014	)

*The Company does not allocate all selling, general and administrative expenses or any research and development expenses to its operating segments for internal reporting.

Trade receivables by segment as of June 30, 2021 and December 31, 2020 were as follows:

	Jun 30, 2021			Dec 31, 2020
Chromaline	$	1,150,630		$	1,676,592
IKONICS Imaging		356,216			396,116
DTX		26,759			35,983
AMS		155,409			57,676
Unallocated		(37,979	)		(47,154	)
Total	$	1,651,035		$	2,119,213