Terawulf Inc 8-K, filed Oct 29, 2020
Terawulf Inc. (WULF)
About this 8-K
Terawulf Inc filed this 8-K on October 29, 2020.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 29, 2020
| IKONICS CORPORATION |
| (Exact name of registrant as specified in its charter) |
|
Minnesota |
000-25727 |
41-0730027 |
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
|
4832 Grand Avenue Duluth, Minnesota |
55807 |
|
|
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code (218) 628-2217
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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Common Stock, par value $.10 per share |
IKNX |
Nasdaq Capital Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 2.02. |
Results of Operations and Financial Condition. |
On October 29, 2020, IKONICS Corporation (the “Company”) reported its financial results for the quarter ended September 30, 2020. See the Company’s press release dated October 29, 2020, which is furnished as Exhibit 99 hereto and incorporated by reference in this Item 2.02.
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Item 9.01. |
Financial Statements and Exhibits. |
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(d) |
Exhibit. |
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Exhibit Number |
Description |
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99 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| IKONICS CORPORATION | |||
| Date: October 29, 2020 | /s/ Jon Gerlach | ||
| Jon Gerlach | |||
| Chief Financial Officer | |||
| and Vice President of Finance | |||
Exhibit 99
 |
4832 Grand Avenue Duluth, MN 55807 USA Phone: (218) 628-2217 Fax: (218) 628-3245 Email: info@ikonics.com Website: www.ikonics.com |
| News Contact: | Glenn Sandgren | For Immediate Release |
| Chief Executive Officer | October 29, 2020 | |
| (218) 628-2217 |
IKONICS ANNOUNCES THIRD QUARTER 2020 RESULTS
DULUTH, MN - IKONICS Corporation (the “Company” or “IKONICS”) (Nasdaq:IKNX), a Duluth-based imaging technology company, announced third quarter 2020 earnings. IKONICS recorded third quarter 2020 revenue of $3,135,000 compared to $4,530,000 in 2019, a decline of 31%. IKONICS posted a third quarter 2020 loss of $274,000, or $0.14 per diluted share, compared to a loss of $163,000, or $0.08 per diluted share, for the same period in 2019. For the nine months ending September 30, 2020, the Company realized a net loss of $0.96 per diluted share compared to a net loss of $0.37 per diluted share for the same period in 2019.
Glenn Sandgren, IKONICS President and CEO, commenting on the third quarter noted, “We believe the Company has turned a corner and is exiting this very challenging environment. Sales continue to improve month over month, and we are seeing strong order patterns in our core legacy businesses so far in the fourth quarter. The sustainability actions taken earlier this year have had a favorable impact on our ability to achieve cash-flow break-even on lower than normal revenue levels as demonstrated in year over year third quarter performance.”
Key points:
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Efforts to maintain a safe, COVID-19 free workplace have been successful to date. Our team is doing a remarkable job. |
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- |
IKONICS core legacy businesses are experiencing sales momentum increases in the fourth quarter. |
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As of September 30, 2020, cash and cash equivalents were $3,500,000, well above second quarter levels. |
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The AMS business unit whose largest customers are aircraft subcontractors has experienced an amplified negative impact from the aerospace slowdown, after a solid start to the year. Improvement in aerospace market conditions is not expected until at least mid-2021. |
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The IKONART® crafting product line continues to exceed sales expectations, and our custom stencil kit is now available on Amazon. |
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IKONICS Inkjet Solutions received favorable feedback during beta testing of our new DTX Dual-Print™ technology at multiple texturing facilities. Based on the beta testing, the DTX Dual-Print system cuts the time in half for application of multiple-layer patterns resulting in significant labor savings for customers, as well as ensuring precise layer-to-layer registration. DTX Dual-Print is expected to be widely available in early 2021. |
Sandgren continued, “Barring unforeseen COVID-19 related restrictions and market impact, we expect the business climate for all our non-aerospace served markets to continue to improve in 4th quarter 2020 and through 2021. The improvement in business conditions, in conjunction with new product initiatives, is expected to yield a marked improvement in 2021 financial performance.”
This press release contains forward-looking statements regarding sales, gross profits, net earnings, balance sheet position, new products, new business initiatives, customer behavior, market trends, and the impacts of the COVID-19 pandemic and efforts to mitigate the same that involve risks and uncertainties. The Company's actual results could differ materially as a result of domestic and global economic conditions, downturns in the aerospace or automotive industries, unexpected production delays by customers using the Company’s products, competitive market conditions, changes in consumer preferences, inability to commercialize technologies the Company is developing on the anticipated timeline or at all, acceptance of new products the Company offers, introduction of new products or technologies by competitors, unexpected capital expenditure requirements, delays in completing planned expansions, the ability to control operating costs without impacting growth as well as the factors described in the Company's Forms 10-K, and 10-Q, and other reports on file with the SEC.
IKONICS Corporation
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
For the Three and NIne Months Ended September 30, 2020 and 2019
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Three Months Ended |
Nine Months Ended |
|||||||||||||||
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9/30/20 |
9/30/19 |
9/30/20 |
9/30/19 |
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Net sales |
$ | 3,134,984 | $ | 4,530,361 | $ | 9,204,615 | $ | 12,655,463 | ||||||||
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Cost of goods sold |
2,261,205 | 3,118,299 | 6,792,709 | 8,805,853 | ||||||||||||
|
Gross profit |
873,779 | 1,412,062 | 2,411,906 | 3,849,610 | ||||||||||||
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Operating expenses |
1,116,293 | 1,565,871 | 4,484,434 | 4,736,004 | ||||||||||||
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Loss from operations |
(242,514 | ) | (153,809 | ) | (2,072,528 | ) | (886,394 | ) | ||||||||
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Interest expense |
(24,592 | ) | (22,799 | ) | (70,699 | ) | (67,589 | ) | ||||||||
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Other Income |
39 | 16,225 | 8,722 | 49,722 | ||||||||||||
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Loss before income taxes |
(267,067 | ) | (160,383 | ) | (2,134,505 | ) | (904,261 | ) | ||||||||
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Income tax expense (benefit) |
6,929 | 2,361 | (232,000 | ) | (170,775 | ) | ||||||||||
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Net loss |
$ | (273,996 | ) | $ | (162,744 | ) | $ | (1,902,505 | ) | $ | (733,486 | ) | ||||
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Loss per common share-basic and diluted |
$ | (0.14 | ) | $ | (0.08 | ) | $ | (0.96 | ) | $ | (0.37 | ) | ||||
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Average diluted shares outstanding |
1,976,354 | 1,978,926 | 1,976,354 | 1,981,568 | ||||||||||||
CONDENSED BALANCE SHEETS
As of September 30, 2020 and December 31, 2019
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9/30/2020 |
12/31/2019 |
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Assets |
(unaudited) |
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Current assets |
$ | 7,476,064 | $ | 8,692,188 | ||||
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Property, plant, and equipment, net |
7,550,029 | 7,915,984 | ||||||
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Intangible assets, net |
247,983 | 271,369 | ||||||
| $ | 15,274,076 | $ | 16,879,541 | |||||
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Liabilities and Stockholders' Equity |
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Current liabilities |
$ | 4,431,685 | $ | 1,934,486 | ||||
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Long-term debt |
478,060 | 2,688,357 | ||||||
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Stockholders' equity |
10,364,331 | 12,256,698 | ||||||
| $ | 15,274,076 | $ | 16,879,541 | |||||
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
For the Nine Months Ended September 30, 2020 and 2019
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9/30/2020 |
9/30/2019 |
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Net cash used in operating activities |
$ | (630,117 | ) | $ | (619,563 | ) | ||
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Net cash provided by (used in) investing activities |
2,060,405 | (90,467 | ) | |||||
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Net cash provided by (used in) financing activities |
1,106,946 | (154,368 | ) | |||||
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Net increase (decrease) in cash and cash equivalents |
2,537,234 | (864,398 | ) | |||||
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Cash and cash equivalents at beginning of period |
963,649 | 1,623,137 | ||||||
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Cash and cash equivalents at end of period |
$ | 3,500,883 | $ | 758,739 | ||||