[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 ...

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, 2019 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, 2019 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (218) 628-2217 (Registrant's telephone number, including area code) Not Applicable (Former name, former address and former fiscal year, if changed since last report) Minnesota 41-0730027 (State or ot ...

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, 2019 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 FORM 10-K (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, 2018 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 ...