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Segment Information
 3 Months Ended
Mar. 31, 2014
Segment Information  
Segment Information

6.                                      Segment Information

 

The Company’s reportable segments are strategic business units that offer different products or have varied customer bases.  There are five reportable segments:  Domestic, Export, IKONICS Imaging, Digital Texturing (DTX) and Micro-Machining.  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.  Micro-Machining provides sound deadening 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.  Export sells primarily the same products as Domestic and the IKONICS Imaging products not related to Micro-Machining or DTX.  In previous periods, the segment designated as Other included both Micro-Machining and DTX.  Beginning in 2013, the Company began to report DTX and Micro-Machining as separate segments.  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, 2013.

 

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 trade receivables which are allocated based on the previous segmentation.  Financial information with respect to the reportable segments follows:

 

For the three months ended March 31, 2014:

 

 

 

 

 

 

 

IKONICS

 

 

 

Micro-

 

 

 

 

 

 

 

Domestic

 

Export

 

Imaging

 

DTX

 

Machining

 

Unalloc.

 

Total

 

Net sales

 

$

1,510,164

 

$

1,186,713

 

$

1,561,804

 

$

112,517

 

$

93,379 

 

$

—

 

$

4,464,577

 

Cost of goods sold

 

883,104

 

874,901

 

655,999

 

79,763

 

211,657

 

—

 

2,705,424

 

Gross profit (loss)

 

627,060

 

311,812

 

905,805

 

32,754

 

(118,278

)

—

 

1,759,153

 

Selling general and adminstrative*

 

296,351

 

124,128

 

244,348

 

35,209

 

112,255

 

488,359

 

1,300,650

 

Research and development*

 

—

 

—

 

—

 

—

 

—

 

143,330

 

143,330

 

Income (loss) from operations

 

$

330,709

 

$

187,684

 

$

661,457

 

$

(2,455

)

$

(230,533

)

$

(631,689

)

$

315,173

 

 

For the three months ended March 31, 2013:

 

 

 

 

 

 

 

IKONICS

 

 

 

Micro-

 

 

 

 

 

 

 

Domestic

 

Export

 

Imaging

 

DTX

 

Machining

 

Unalloc.

 

Total

 

Net sales

 

$

1,516,271

 

$

1,441,459

 

$

843,471

 

$

101,258

 

$

119,813

 

—

 

$

4,022,272

 

Cost of goods sold

 

905,158

 

1,105,090

 

413,749

 

14,762

 

119,254

 

—

 

2,558,013

 

Gross profit (loss)

 

611,113

 

336,369

 

429,722

 

86,496

 

559

 

—

 

1,464,259

 

Selling general and adminstrative*

 

342,637

 

153,746

 

281,438

 

104,097

 

101,621

 

482,007

 

1,465,546

 

Research and development*

 

—

 

—

 

—

 

—

 

—

 

172,515

 

172,515

 

Income (loss) from operations

 

$

268,476

 

$

182,623

 

$

148,284

 

$

(17,601

)

$

(101,062

)

(654,522

)

$

(173,802

)

 

*  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 by segment as of March 31, 2014 and December 31, 2013 were as follows:

 

 

 

Mar 31, 2014

 

Dec 31, 2013

 

 

 

 

 

 

 

Domestic

 

$

867,803

 

$

1,012,057

 

Export

 

734,440

 

667,343

 

IKONICS Imaging

 

524,719

 

339,537

 

DTX

 

52,693

 

26,910

 

Micro-Machining

 

46,000

 

40,222

 

Unallocated

 

(12,582

)

(35,216

)

 

 

 

 

 

 

Total

 

$

2,213,073

 

$

2,050,853