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Segment Information
 12 Months Ended
Dec. 31, 2011
Segment Information [Abstract]  
Segment Information
5. SEGMENT INFORMATION

The Company’s reportable segments are strategic business units that offer different products and have varied customer bases. In previous years, there were three reportable segments: Domestic, Export and IKONICS Imaging. Domestic sells screen printing film, emulsions and inkjet receptive film to distributors located in the United States and Canada. IKONICS Imaging sells photo resistant film, art supplies, glass, metal medium and related abrasive etching equipment to end user customers located in the United States and Canada. The IKONICS Imaging segment also included products and customers for etched composites, ceramics, glass and silicon wafers along with sound deadening technology to the aerospace industry, which beginning in 2011 the Company now defines as Micro-Machining. In addition, IKONICS Imaging included products and customers related to proprietary inkjet technology used for mold texturing and referred to by the Company as Digital Texturing (DTX). Export sells primarily the same products as Domestic and the IKONICS Imaging products not related to Micro-Machining or DTX. Beginning in 2011, the Company no longer includes Micro-Machining and DTX financial information under the IKONICS Imaging segment. The financial information for Micro-Machining and DTX are combined into a new segment called “Other.” As the Company is unable to provide comparable 2010 financial information for the newly defined segments, the Company will disclose in 2011 both the new basis and previous basis of segment reporting. The accounting policies applied to determine the segment information are the same as those described in the summary of significant accounting policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

Management evaluates the performance of each segment based on the components of divisional income, and does not allocate assets and liabilities to segments except for accounts receivables which is allocated based on the previous segmentation. Financial information with respect to the reportable segments follows:

For the year ended December 31, 2011 (previous segment method):

 

                                         
    Domestic     Export     IKONICS
Imaging		     Unallocated.*     Total  

Net sales

   $ 6,680,562     $ 5,556,455     $ 4,543,245     $ —       $ 16,780,262  

Cost of goods sold

     3,824,866       4,123,833       2,122,153       —         10,070,852  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

     2,855,696       1,432,622       2,421,092       —         6,709,410  

Selling, general and administrative*

     1,241,502       581,517       1,888,043       1,460,085       5,171,147  

Research and development*

     —         —         —         512,259       512,259  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from operations

   $ 1,614,194     $ 851,105     $ 533,049     $ (1,972,344 )    $ 1,026,004  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

For the year ended December 31, 2010 (previous segment method):

 

                                         
    Domestic     Export     IKONICS
Imaging		     Unallocated.*     Total  

Net sales

   $ 6,653,723     $ 5,420,601     $ 4,443,014     $ —       $ 16,517,338  

Cost of goods sold

     3,497,971       3,792,335       2,422,748       —         9,713,054  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

     3,155,752       1,628,266       2,020,266       —         6,804,284  

Selling, general and Administrative*

     973,623       571,826       1,128,508       1,900,495       4,574,452  

Research and Development*

     —         —         —         695,593       695,593  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from Operations

   $ 2,182,129     $ 1,056,440     $ 891,758     $ (2,596,088 )    $ 1,534,239  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

For the year ended December 31, 2011 (new segment method):

 

                                                 
    Domestic     Export     IKONICS
Imaging		     Other     Unallocated*     Total  

Net sales

   $ 6,680,562     $ 5,556,455     $ 3,582,268     $ 960,977     $ —       $ 16,780,262  

Cost of goods sold

     3,824,866       4,123,833       1,718,846       403,307       —         10,070,852  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

     2,855,696       1,432,622       1,863,422       557,670       —         6,709,410  

Selling general and administrative*

     1,241,502       581,517       1,136,907       751,136       1,460,085       5,171,147  

Research and development*

     —         —         —         —         512,259       512,259  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from operations

   $ 1,614,194     $ 851,105     $ 726,515     $ (193,466 )    $ (1,972,344 )    $ 1,026,004  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

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

Accounts receivable related to the “Other” segment are included in IKONICS Imaging. Accounts receivable by segment as of December 31, 2011 and December 31, 2010 were as follows:

 

                 
    Dec 31, 2011     Dec 31, 2010  

Domestic

   $ 997,937     $ 874,535  

Export

     783,788       725,007  

IKONICS Imaging

     427,252       325,334  

Other, net of allowances

     (28,030 )      (41,448 ) 
   

 

 

    

 

 

  

Total

   $ 2,180,947     $ 1,883,428