Item 2.06. Material Impairments.
On September 30, 2009, an authorized officer of IKONICS Corporation (the "Company") concluded that a material charge for impairment to the Company's equity investment in imaging Technology international ("iTi") is required under generally accepted accounting principles applicable to the Company due to iTi's recent financial results. The Company's equity investment in iTi is currently carried on the Company's books at its cost of $919,000. The impairment will not require an additional cash outlay by the Company. The amount of the impairment will be determined at a later date and reflected in the Company's 2009 third quarter financial results to be filed on its upcoming Quarterly Report on Form 10-Q.

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