Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 9 Federal Street 21601 Easton MD (Address of principal executive offices) (State) (Zip Code) (410) 770-9500 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ TRANSITION ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-41163 TERAWULF INC. (Exact name of registrant as specified in its charter) DE 87-1909475 (State or other jurisdiction of (I.R.S. ...

U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to . Commission file number 000-25727 IKONICS CORPORATION (Exact name of registrant as specified in its charter) Minnesota 41-0730027 (State or other jurisdiction ...

U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2021 For the Transition Period From to . Commission file number 000-25727 IKONICS CORPORATION (Exact name of registrant as specified in its charter) Minnesota 41-0730027 (State or other jurisdiction of incorporation or organization) 4832 Grand Avenue Duluth, Minnesota 55807 (Address of principal e ...

PART I. FINANCIAL INFORMATION [Item 1. Condensed Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Financial%20Statements) Unaudited Q1 2021 condensed financial statements reflect a reduced net loss, positive operating cash flow, and slightly increased total assets [Condensed Balance Sheets](index=4&type=section&id=Condensed%20Balance%20Sheets) Condensed Balance Sheet Highlights (Unaudited) | Account | March 31, 2021 ($) | December 31, 2020 ($) | | :--- | :--- | :--- | | **Assets** | | | | Cash | 4,428,269 | 3,693,845 | | Total current assets | 8,164,356 | 7,803,453 | | Total assets | 15,635,977 | 15,435,399 | | **Liabilities & Equity** | | | | Total current liabilities | 4,074,392 | 3,596,053 | | Total stockholders' equity | 11,561,585 | 11,839,346 | | Total liabilities and stockholders' equity | 15,635,977 | 15,435,399 | [Condensed Statements of Operations](index=5&type=section&id=Condensed%20Statements%20of%20Operations) Condensed Statements of Operations (Unaudited, for the three months ended March 31) | Metric | 2021 ($) | 2020 ($) | | :--- | :--- | :--- | | Net Sales | 3,073,408 | 3,497,192 | | Gross Profit | 996,332 | 1,153,232 | | Loss from Operations | (322,181) | (811,368) | | Net Loss | (321,639) | (587,006) | | Basic & Diluted Loss Per Share | (0.16) | (0.30) | [Condensed Statements of Cash Flows](index=7&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Condensed Statements of Cash Flows (Unaudited, for the three months ended March 31) | Cash Flow Activity | 2021 ($) | 2020 ($) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | 771,355 | (427,276) | | Net cash (used in) provided by investing activities | (6,787) | 1,104,749 | | Net cash used in financing activities | (30,144) | (35,682) | | **Net Increase in Cash** | **734,424** | **641,791** | | **Cash at End of Period** | **4,428,269** | **1,605,440** | [Notes to Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) - The financial statements are unaudited and management believes they include all necessary recurring adjustments for a fair presentation, noting the COVID-19 pandemic could continue to have a material adverse impact on operations, financial condition, and cash flows[19](index=19&type=chunk)[22](index=22&type=chunk) Segment Net Sales (for the three months ended March 31) | Segment | 2021 ($) | 2020 ($) | | :--- | :--- | :--- | | Chromaline | 1,698,681 | 1,964,340 | | IKONICS Imaging | 1,086,601 | 970,099 | | DTX | 76,311 | 112,529 | | AMS | 211,815 | 450,224 | - On April 1, 2021, the Company repaid its entire **$2.7 million** Duluth Economic Development Authority loan, plus interest, using existing cash on hand, with the loan classified as a current liability as of March 31, 2021[52](index=52&type=chunk) - The company maintains a **$2.05 million** bank line of credit, which was unused during the first three months of 2021 and 2020[53](index=53&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2021 sales decreased by **12.1%** to **$3.1 million** due to pandemic impacts, yet net loss significantly narrowed [Impact of the COVID-19 Pandemic](index=16&type=section&id=Impact%20of%20the%20COVID-19%20Pandemic) - The COVID-19 pandemic has caused decreased demand for the company's products and is expected to have a significant adverse effect on business, operating results, and financial condition throughout 2021[59](index=59&type=chunk) - To mitigate negative impacts, the company implemented cost reduction efforts in 2020, including workforce reduction, decreased 401(k) contributions, and elimination of non-essential expenditures[59](index=59&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Q1 Sales Comparison by Segment (2021 vs. 2020) | Segment | Q1 2021 Sales ($) | Q1 2020 Sales ($) | % Change | | :--- | :--- | :--- | :--- | | Chromaline | 1.7M | 2.0M | -13.5% | | AMS | 212k | 450k | -53.0% | | DTX | 76k | 113k | -32.2% | | IKONICS Imaging | 1.1M | 970k | +12.0% | - The sales increase in the IKONICS Imaging segment is attributed to improving sales of its IKONART® product[76](index=76&type=chunk) - Gross margin decreased slightly from **33.0%** to **32.4%** due to lower sales and production volume, particularly in the AMS segment which has a high fixed cost structure[77](index=77&type=chunk) - Selling, general and administrative (SG&A) expenses decreased significantly to **$1.2 million** from **$1.8 million**, primarily due to reductions in personnel and travel expenses, and the absence of **$365,000** in one-time CEO transition costs incurred in Q1 2020[78](index=78&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) - Cash increased to **$4.4 million** at March 31, 2021, from **$3.7 million** at December 31, 2020[84](index=84&type=chunk) - Operating activities provided **$771,000** in cash during Q1 2021, a significant improvement from a **$427,000** use of cash in Q1 2020[84](index=84&type=chunk) - On April 1, 2021, the company repaid a **$2.7 million** loan with existing cash on hand after being notified by the bank that the loan would be recalled per the agreement[91](index=91&type=chunk) - The company has an available and unused bank line of credit of **$2.05 million**, which expires in August 2021[92](index=92&type=chunk) - Planned capital expenditures for 2021 are approximately **$220,000**, to be funded with existing cash and cash from operations[94](index=94&type=chunk) [Future Outlook](index=24&type=section&id=Future%20Outlook) - AMS Business: The company has three long-term sales agreements with major aerospace companies but anticipates reduced order volume for 2021 due to the COVID-19 pandemic[101](index=101&type=chunk) - DTX Business: The company is pursuing initiatives for its inkjet technology and working on production improvements with its German partner, AKK[100](index=100&type=chunk) - IKONICS Imaging: The new IKONART® product, which provides a novel way to make custom reusable stencils, has been positively received and is generating sales growth[102](index=102&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section is not applicable for the reporting period - Not applicable[106](index=106&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Based on an evaluation as of the end of the period, the principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures are effective[106](index=106&type=chunk) - There were no changes to the Company's internal control over financial reporting during the first quarter of 2021 that materially affected, or are reasonably likely to materially affect, these controls[107](index=107&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - None[110](index=110&type=chunk) [Item 1A. Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred to the risk factors previously disclosed in the company's 2020 Annual Report on Form 10-K - There have been no material changes or additions to the Company's risk factors as discussed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2020[110](index=110&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section is not applicable for the reporting period - Not applicable[112](index=112&type=chunk) [Item 6. Exhibits](index=27&type=section&id=Item%206.%20Exhibits) The report lists filed exhibits, including CEO and CFO certifications and Interactive Data Files - Exhibits filed with the report include CEO and CFO certifications (31.1, 31.2, 32) and Interactive Data Files (101)[112](index=112&type=chunk)

PART I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) IKONICS develops photosensitive liquids and films across four business units: Chromaline, IKONICS Imaging, AMS, and DTX, leveraging core UV chemistry and inkjet technologies globally [General Business Overview](index=4&type=section&id=General%20Business%20Overview) IKONICS operates traditional Chromaline and IKONICS Imaging businesses, alongside industrial AMS (aerospace/electronics) and DTX (automotive mold texturing) units - IKONICS operates **four main business units**: Chromaline (screen printing), IKONICS Imaging (awards/recognition), Advanced Material Solutions (AMS) for aerospace/electronics, and Digital Texturing (DTX) for automotive mold texturing[12](index=12&type=chunk) [Products and Technology](index=4&type=section&id=Products%20and%20Technology) The company's products are built upon four core technology platforms: UV chemistry, film coating, abrasive etching, and industrial inkjet printing - Core technology platforms include **UV chemistry, film coating, technical abrasive etching, and industrial inkjet printing**, which are combined across its product lines[13](index=13&type=chunk) [Distribution, Customers, and Sales](index=4&type=section&id=Distribution%2C%20Customers%2C%20and%20Sales) IKONICS distributes screen printing products via 200 distributors, sells industrial products directly, with international sales significant and no single customer exceeding 10% of net sales International Sales (% of Total) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | International Sales (% of Total) | 29.7% | 29.4% | - The company has a diverse customer base with no single customer representing more than **10% of net sales** in 2020 or 2019[15](index=15&type=chunk) [Research and Development and Intellectual Property](index=4&type=section&id=Research%20and%20Development%20and%20Intellectual%20Property) The company invested 5.0% of sales in R&D in 2020, focusing on UV chemistry and inkjet technologies, protecting innovations through patents and trademarks R&D Expense | Year | R&D Expense | % of Sales | | :--- | :--- | :--- | | 2020 | $671,000 | 5.0% | | 2019 | $870,000 | 4.9% | - The company holds numerous patents and trademarks, including **"IKONICS®," "Chromaline®," "DTX®," and "IKONART®"**[19](index=19&type=chunk) [Competition](index=6&type=section&id=Competition) IKONICS faces competition from larger entities in screen printing, leads in abrasive etching for awards, and competes with established and new technologies for AMS and DTX - The company competes with larger entities in the screen printing market but considers itself the **leader in the abrasive etching market** for awards and recognition[22](index=22&type=chunk) - Competition for AMS is primarily from other established machining methods, while DTX competes with traditional wax/screen printing and newer laser technologies[22](index=22&type=chunk) [Employees](index=6&type=section&id=Employees) As of February 28, 2021, the company employed 58 full-time employees in Duluth, Minnesota, none of whom are unionized - The company employed **58 full-time employees** as of February 28, 2021[26](index=26&type=chunk) [Item 1A. Risk Factors](index=6&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from COVID-19 impacts, potential PPP loan review, new technology market acceptance, intense competition, regulatory compliance, intellectual property disputes, and reliance on key industries and suppliers [Covid-19 Related Risks](index=6&type=section&id=Covid-19%20Related%20Risks) The COVID-19 pandemic continues to adversely affect operations, supply chain, and demand, with a risk of PPP loan forgiveness reversal - The COVID-19 pandemic is expected to continue to have a material adverse impact on the company's financial condition, results of operations, and cash flows due to business disruptions and decreased demand[27](index=27&type=chunk)[28](index=28&type=chunk) - The company received a **$1,214,500 PPP loan** which was fully forgiven in 2020, but this forgiveness could be subject to further examination and potential reversal[29](index=29&type=chunk)[30](index=30&type=chunk) [Strategic and Competitive Related Risks](index=7&type=section&id=Strategic%20and%20Competitive%20Related%20Risks) New DTX and AMS technologies may fail to achieve market acceptance, and the company faces intense competition from larger, better-capitalized firms - The DTX and AMS initiatives involve new technologies that might not be successfully executed or achieve market acceptance, posing a risk to the company's investment in these areas[31](index=31&type=chunk)[32](index=32&type=chunk) - The company faces significant competition from larger, better-capitalized firms, particularly in its AMS and DTX businesses, which could cause operating results to suffer[34](index=34&type=chunk) [General Economic and Operational Risks](index=10&type=section&id=General%20Economic%20and%20Operational%20Risks) The company is vulnerable to global economic downturns, especially in aerospace and automotive sectors, and faces risks from international operations, raw material prices, and single-source supplier dependency - The company's AMS and DTX segments are highly dependent on the aerospace and automotive industries, respectively, making them vulnerable to industry-specific volatility[44](index=44&type=chunk) - Reliance on a **single manufacturer for DTX printers** creates a significant operational risk; if this manufacturer ceases production or fails to meet quality standards, the DTX business would be adversely affected[51](index=51&type=chunk)[52](index=52&type=chunk) - The company is exposed to risks from price increases and availability declines of raw materials, many of which are petroleum-based and sourced from a limited number of suppliers[48](index=48&type=chunk)[49](index=49&type=chunk) [Risks Related to Our Common Stock](index=13&type=section&id=Risks%20Related%20to%20Our%20Common%20Stock) The company's common stock faces limited trading volume and price volatility, with directors and officers holding significant influence due to their 14.2% ownership - The company's common stock has historically had **limited trading volume**, which may negatively impact its price and liquidity[57](index=57&type=chunk) - As of December 31, 2020, directors and officers beneficially owned approximately **14.2% of the company's common stock**, giving them significant influence over shareholder votes[58](index=58&type=chunk) [Item 2. Property](index=13&type=section&id=Item%202.%20Property) The company owns two primary facilities in Duluth, Minnesota: a 60,000 sq-ft administrative/manufacturing building and a 62,300 sq-ft manufacturing/warehouse facility collateralizing a $3.4 million loan - The company owns two main facilities in Duluth, Minnesota: a **60,000 sq-ft primary building** and a **62,300 sq-ft manufacturing/warehouse facility** on an 11-acre property[60](index=60&type=chunk) - The 62,300 sq-ft facility serves as collateral on the company's **$3.4 million loan**[60](index=60&type=chunk) PART II [Item 5. Market for Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=15&type=section&id=Item%205.%20Market%20for%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under "IKNX," with 54 record holders as of February 26, 2021, and no cash dividends paid or planned - The company's common stock is traded on the **Nasdaq Capital Market** under the symbol **"IKNX"**[65](index=65&type=chunk) - No cash dividends have been declared in the past two years, and there are no current plans to pay any in the future[65](index=65&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2020, sales decreased by 23.8% to $13.4 million due to COVID-19, resulting in a $439,000 net loss, mitigated by a $1.2 million PPP loan forgiveness and improved liquidity to $3.7 million cash [Impact of the COVID-19 Pandemic](index=15&type=section&id=Impact%20of%20the%20COVID-19%20Pandemic) The COVID-19 pandemic caused decreased product demand in 2020, expected to continue, prompting a 30% workforce reduction and other cost-cutting measures - The company experienced decreased demand for its products and services during 2020 due to the COVID-19 pandemic and anticipates this trend will continue in 2021[69](index=69&type=chunk) - Cost reduction measures included reducing the workforce by approximately **30%**, temporary cuts in board and officer compensation, and suspending the company's 401(k) contribution[69](index=69&type=chunk) [Results of Operations](index=18&type=section&id=Results%20of%20Operations) In 2020, net sales decreased by 23.8% to $13.4 million, leading to a gross profit decline, but a net loss of $439,000 was mitigated by a $1.2 million PPP loan forgiveness Financial Performance Comparison (2020 vs. 2019) | Metric | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $13.4M | $17.6M | -23.8% | | Gross Profit | $3.9M | $5.4M | -27.8% | | Gross Margin | 29.1% | 30.6% | -1.5 p.p. | | SG&A Expenses | $5.0M | $5.5M | -9.1% | | R&D Expenses | $0.67M | $0.87M | -22.9% | | Other Income | $1.2M | $61k | +1899% | | Net Loss | ($439k) | ($814k) | +46.0% | - The significant increase in 'Other Income' for 2020 is attributed to the **$1.2 million forgiveness** of the company's Paycheck Protection Program (PPP) loan[90](index=90&type=chunk) - SG&A expenses decreased in 2020 due to cost reduction initiatives, but were partially offset by a one-time expense of **$365,000** related to the CEO transition[88](index=88&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents increased to $3.7 million in 2020, driven by financing and investing activities, despite a $2.7 million loan recall due April 2021, which management believes is manageable Cash and Liquidity Position (Year-End) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Cash and cash equivalents | $3.7 million | $964,000 | | Short-term investments | $0 | $2.2 million | | Working Capital Changes | Decrease in receivables and inventories | Increase in receivables and inventories | - The company received a **$1,214,500 PPP loan** in April 2020, which was fully forgiven by the SBA and the lender in the fourth quarter of 2020[100](index=100&type=chunk)[101](index=101&type=chunk) - The bank will recall the company's outstanding loan on April 1, 2021. The company believes its **$3.7 million in cash** and **$2.0 million available line of credit** mitigate the adverse effect of this recall[103](index=103&type=chunk) [Future Outlook](index=21&type=section&id=Future%20Outlook) The company plans continued R&D, DTX development, and international expansion, while anticipating reduced AMS orders in 2021 due to the pandemic - The company continues to pursue DTX-related initiatives, including a joint development agreement with German printer manufacturer AKK and expansion into the prototyping market[113](index=113&type=chunk) - While the AMS business has three long-term sales agreements with major aerospace companies, it anticipates reduced order volume in 2021 due to the COVID-19 pandemic[114](index=114&type=chunk) - The company's traditional business units are developing new products, like **IKONART®**, to drive growth in mature markets and will continue efforts to expand internationally[115](index=115&type=chunk) [Item 8. Financial Statements](index=23&type=section&id=Item%208.%20Financial%20Statements) This section presents the audited financial statements for 2020 and 2019, including the auditor's report, core statements, and detailed notes explaining accounting policies and financial items [Report of Independent Registered Public Accounting Firm](index=23&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The auditor issued a clean opinion on the financial statements but identified liquidity as a Critical Audit Matter due to COVID-19 impacts and management's subjective assumptions - The auditor's report expresses a **clean opinion** on the financial statements[121](index=121&type=chunk) - Liquidity was identified as a **Critical Audit Matter** due to the impact of COVID-19 and the significant management assumptions involved in projecting future sales, margins, and expenses[126](index=126&type=chunk)[127](index=127&type=chunk) [Financial Statements Data](index=25&type=section&id=Financial%20Statements%20Data) Total assets decreased to $15.4 million in 2020, liabilities to $3.6 million, and stockholders' equity to $11.8 million, with a net loss of $439,000 and operating cash outflow of $399,000 Key Balance Sheet Items (As of Dec 31) | Account | 2020 | 2019 | | :--- | :--- | :--- | | Total Assets | $15,435,399 | $16,879,541 | | Total Liabilities | $3,596,053 | $4,622,843 | | Total Stockholders' Equity | $11,839,346 | $12,256,698 | Key Income Statement Items (Year Ended Dec 31) | Account | 2020 | 2019 | | :--- | :--- | :--- | | Net Sales | $13,432,220 | $17,618,559 | | Gross Profit | $3,905,077 | $5,397,189 | | Loss from Operations | ($1,786,020) | ($956,676) | | Net Loss | ($439,320) | ($813,558) | | Loss Per Share (Basic) | ($0.22) | ($0.41) | Key Cash Flow Items (Year Ended Dec 31) | Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($398,828) | ($477,031) | | Net Cash Provided by Investing Activities | $2,058,471 | $7,578 | | Net Cash Provided by (Used in) Financing Activities | $1,070,553 | ($190,035) | [Notes to Financial Statements](index=29&type=section&id=Notes%20to%20Financial%20Statements) The notes detail accounting policies, income taxes, segment performance, debt agreements, stock-based compensation, the $1.2 million PPP loan forgiveness, and the $2.7 million DEDA loan reclassification - Inventories are valued using the **last-in, first-out (LIFO) method**. A LIFO decrement of approximately **$116,000** occurred in 2020 due to reduced inventory quantities[141](index=141&type=chunk) - The company's **$2.7 million loan** from the Duluth Economic Development Authority was reclassified from long-term to a current liability as of Dec 31, 2020, because the bank will recall the loan on April 1, 2021[188](index=188&type=chunk) - The company's **$1,214,500 PPP loan** was fully forgiven in the fourth quarter of 2020, and the amount was recorded as a gain on extinguishment of debt[191](index=191&type=chunk)[192](index=192&type=chunk) PART III [Items 10, 11, 12, 13, and 14](index=44&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%2C%20and%2014) Information for Items 10-14, covering directors, executive compensation, security ownership, related transactions, and accountant fees, is incorporated by reference from the 2021 proxy statement - Information regarding directors, executive officers, compensation, security ownership, and accountant fees is incorporated by reference from the **2021 Annual Meeting of Shareholders proxy statement**[206](index=206&type=chunk)[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk) - The company has adopted a **code of ethics** applicable to its CEO, CFO, and other senior financial officers, which is available on its website[207](index=207&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=45&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements and exhibits filed with the Form 10-K, including the auditor's report, core financial statements, and various organizational and contractual documents - This section provides a list of all financial statements and exhibits filed with the annual report, including organizational documents, material contracts, and required certifications[215](index=215&type=chunk)[216](index=216&type=chunk)

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed financial statements and related notes for IKONICS Corporation, along with management's discussion and analysis [Item 1. Condensed Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Financial%20Statements) This section presents IKONICS Corporation's unaudited condensed financial statements, including balance sheets, statements of operations, stockholders' equity, and cash flows, with accompanying notes [Condensed Balance Sheets](index=4&type=section&id=Condensed%20Balance%20Sheets) Total assets decreased to **$15.3 million** from **$16.9 million**, while total liabilities increased to **$4.9 million** from **$4.6 million**, leading to a decline in stockholders' equity to **$10.4 million** from **$12.3 million** Condensed Balance Sheet Highlights (as of Sept 30, 2020 vs. Dec 31, 2019) | Account | Sep 30, 2020 (unaudited) ($) | Dec 31, 2019 ($) | | :--- | :--- | :--- | | Cash and cash equivalents | $3,500,883 | $963,649 | | Trade receivables, net | $1,417,217 | $2,434,718 | | Total current assets | $7,476,064 | $8,692,188 | | Total assets | $15,274,076 | $16,879,541 | | Total current liabilities | $4,431,685 | $1,934,486 | | Total liabilities | $4,909,745 | $4,622,843 | | Total stockholders' equity | $10,364,331 | $12,256,698 | [Condensed Statements of Operations](index=6&type=section&id=Condensed%20Statements%20of%20Operations) The company reported a net loss of **$274 thousand** for Q3 2020 and a **$1.9 million** net loss for the nine months ended September 30, primarily due to significant declines in net sales Statement of Operations Summary (Unaudited) | Metric | Three Months Ended Sep 30, 2020 ($) | Three Months Ended Sep 30, 2019 ($) | Nine Months Ended Sep 30, 2020 ($) | Nine Months Ended Sep 30, 2019 ($) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $3,134,984 | $4,530,361 | $9,204,615 | $12,655,463 | | Gross Profit | $873,779 | $1,412,062 | $2,411,906 | $3,849,610 | | Loss from Operations | ($242,514) | ($153,809) | ($2,072,528) | ($886,394) | | Net Loss | ($273,996) | ($162,744) | ($1,902,505) | ($733,486) | | Loss Per Share (Basic & Diluted) | ($0.14) | ($0.08) | ($0.96) | ($0.37) | [Statements of Stockholders' Equity](index=7&type=section&id=Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased from **$12.3 million** at year-end 2019 to **$10.4 million** as of September 30, 2020, primarily due to the **$1.9 million** net loss - For the nine months ended September 30, 2020, the company's retained earnings decreased by **$1,902,505** due to the net loss, which was the primary driver for the reduction in total stockholders' equity[17](index=17&type=chunk) [Condensed Statements of Cash Flows](index=9&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$630 thousand**, while investing activities provided **$2.1 million** and financing activities provided **$1.1 million**, resulting in a **$2.5 million** increase in cash Cash Flow Summary for the Nine Months Ended September 30 | Cash Flow Activity | 2020 ($) | 2019 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | ($630,117) | ($619,563) | | Net cash provided by (used in) investing activities | $2,060,405 | ($90,467) | | Net cash provided by (used in) financing activities | $1,106,946 | ($154,368) | | Net increase (decrease) in cash | $2,537,234 | ($864,398) | | Cash at end of period | $3,500,883 | $758,739 | [Notes to Condensed Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) Notes detail the impact of COVID-19, showing sales declines across all segments, and disclose long-term debt, including a **$1.2 million** PPP loan and a reclassified **$3.4 million** industrial revenue bond loan - The company acknowledges that the COVID-19 pandemic has caused a significant decline in business which is expected to continue, and has implemented cost reduction plans to mitigate the impact[28](index=28&type=chunk)[30](index=30&type=chunk) - The company entered into a **$1,214,500** loan under the Paycheck Protection Program (PPP) on April 18, 2020, and subsequently applied for **100% forgiveness** of this loan[61](index=61&type=chunk)[63](index=63&type=chunk) - Due to a potential violation of its debt service coverage ratio covenant and the bondholders' ability to redeem, the company reclassified its entire **$3.4 million** industrial revenue bond loan from long-term to a short-term liability as of September 30, 2020[60](index=60&type=chunk) Net Sales by Segment (Nine Months Ended Sep 30) | Segment | 2020 ($) | 2019 ($) | | :--- | :--- | :--- | | Chromaline | $5,635,373 | $8,006,121 | | IKONICS Imaging | $2,488,963 | $3,164,143 | | DTX | $223,606 | $290,022 | | AMS | $856,673 | $1,195,177 | | **Total** | **$9,204,615** | **$12,655,463** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant adverse impact of the COVID-19 pandemic on financial results, leading to sales declines, cost-cutting measures, and a bolstered liquidity position from a **$1.2 million** PPP loan [Impact of the COVID-19 Pandemic](index=19&type=section&id=Impact%20of%20the%20COVID-19%20Pandemic) The COVID-19 pandemic severely impacted demand, leading to significant cost reduction efforts, including furloughing **40%** of the workforce and reducing executive compensation - The company began to experience decreased demand during the first nine months of 2020 and anticipates a significant decrease in global demand for its products and services during Q4 2020 and beyond[70](index=70&type=chunk) - To mitigate the negative impact, the company implemented cost reductions including furloughing about **40%** of its workforce, reducing board and officer compensation, and suspending its 401(k) contribution[70](index=70&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Q3 2020 sales fell **30.8%** to **$3.1 million**, and nine-month sales fell **27.3%** to **$9.2 million**, with all segments declining due to the pandemic, partially offset by reduced SG&A expenses Q3 Sales Comparison by Segment (2020 vs. 2019) | Segment | Q3 2020 Sales ($) | Q3 2019 Sales ($) | % Change | | :--- | :--- | :--- | :--- | | Chromaline | $2.1M | $2.9M | -28.5% | | IKONICS Imaging | $893k | $1.1M | -20.1% | | AMS | $129k | $459k | -71.9% | | DTX | $62k | $85k | -27.1% | | **Total** | **$3.1M** | **$4.5M** | **-30.8%** | - For the first nine months of 2020, SG&A expenses included a one-time cost of **$365,000** related to the Chief Executive Officer transition, which partially offset other cost savings[96](index=96&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Cash increased to **$3.5 million** from **$960 thousand** due to a **$1.2 million** PPP loan and maturing investments, though liquidity risks persist from potential debt covenant violations - Cash and cash equivalents increased to **$3.5 million** at September 30, 2020, from **$960,000** at December 31, 2019[101](index=101&type=chunk) - The company received a **$1,214,500** PPP loan on April 22, 2020, and subsequently submitted an application for **100% forgiveness**[108](index=108&type=chunk)[110](index=110&type=chunk) - The company was not in compliance with its debt service coverage ratio covenant as of December 31, 2019, and although a waiver was obtained, there is no certainty future waivers will be granted for expected future violations[112](index=112&type=chunk) [Future Outlook](index=29&type=section&id=Future%20Outlook) The company anticipates reduced order volume for its AMS aerospace business due to the pandemic, while focusing on new product development like IKONART® and production improvements in DTX - The company anticipates reduced order volume for its AMS business for the remainder of 2020 and into 2021 due to the COVID-19 pandemic's impact on the aerospace industry[126](index=126&type=chunk) - The company is continuing to pursue DTX-related business initiatives and is working on production improvements through a joint development agreement with German printer manufacturer AKK[125](index=125&type=chunk) - The new IKONART® product, which provides a new way to make custom reusable stencils for creative arts markets, was introduced in early 2019 and is generating sales[127](index=127&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section is not applicable to the company - Not applicable[131](index=131&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2020, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures are effective[131](index=131&type=chunk) - No changes to the Company's internal control over financial reporting occurred during the first nine months of 2020 that materially affected, or are reasonably likely to materially affect, internal controls[132](index=132&type=chunk) [PART II. OTHER INFORMATION](index=31&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, updated risk factors related to COVID-19 and the PPP loan, and other required disclosures [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - None[135](index=135&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor addresses the negative effects of the COVID-19 pandemic on operations and supply chain, alongside risks related to the PPP loan's forgiveness uncertainty and potential penalties - A new risk factor was added to address the negative effects of the COVID-19 pandemic on the company's operations, supply chain, workforce, and financial condition[135](index=135&type=chunk)[136](index=136&type=chunk) - The company highlights risks associated with its PPP loan, noting there is no guarantee of forgiveness and that it could be subject to significant penalties if found ineligible for the loan[137](index=137&type=chunk)[139](index=139&type=chunk)[141](index=141&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section is not applicable to the company - Not applicable[142](index=142&type=chunk) [Item 3. Defaults upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) This section is not applicable to the company - Not applicable[142](index=142&type=chunk) [Item 4. Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[142](index=142&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) The company reported no other information - None[142](index=142&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the quarterly report, including corporate governance documents and required certifications - The report includes exhibits such as the CEO and CFO certifications under Rule 13a-14(a)/15d-14(a) and Section 1350[142](index=142&type=chunk)

U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2020 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to . Commission file number 000-25727 IKONICS CORPORATION (Exact name of registrant as specified in its charter) Minnesota 41-0730027 (State or other jurisdiction of in ...

U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended March 31, 2020 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to . Commission file number 000-25727 IKONICS CORPORATION (Exact name of registrant as specified in its charter) Minnesota 41-0730027 (State or other jurisdiction of i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Commission file number 000-25727 FORM 10-K IKONICS CORPORATION (Exact name of registrant as specified in its charter) (Mark One) ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2019 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From to . Indicate by check mark whether the Registrant is a ...