IKONICS Corporation

2015 IKONICS Annual Report

Through processes based in photochemistry, abrasive etching, chemical etching and other technologies, IKONICS participates in a diverse spectrum of markets. From traditional and high-tech screen printing, to decorative and industrial etching.

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32 ERP System: During 2015, the Company committed to the purchase and implementation of a new Enterprise Resource Planning (ERP) system. The new ERP system will better support and accommodate IKONICS' operations and replace the Company's existing ERP system. The total ERP system project is expected to cost approximately $400,000, and is expected to be completed by the second quarter of 2016. Through December 31, 2015, the Company had incurred costs of $208,000, of which $18,000 was included in construction accounts payable. Costs incurred to date are reflected in construction in progress on the Balance Sheet. Line of Credit: The Company has a bank line of credit providing for borrowings of up to $2,050,000 and expiring on May 31, 2017. The line of credit is collateralized by the Company's assets and bears interest at 1.8 percentage points over the 30-day LIBOR rate. The Company did not utilize this line of credit during 2015 or 2014 and there were no borrowings outstanding as of December 31, 2015 and 2014. There are no financial covenants related to the line of credit.

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