Superior Drilling Products (SDPI) 10-Q 15 Nov 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 14, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Registrant Name	Superior Drilling Products, Inc.
Entity Central Index Key	1,600,422
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	SDPI
Entity Common Stock, Shares Outstanding		24,095,695

Consolidated Condensed Balance

Consolidated Condensed Balance Sheets - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash	$ 332,248	$ 1,297,002
Accounts receivable	1,212,456	1,861,002
Accounts receivable - stock subscription	5,297,500	0
Prepaid expenses	84,612	179,450
Inventory	1,547,783	1,410,794
Other current assets	264,819	0
Total current assets	8,739,418	4,748,248
Property, plant and equipment, net	12,713,465	14,655,502
Intangible assets, net	9,191,111	11,026,111
Note receivable	8,296,717	8,296,717
Other assets	15,954	28,321
Total assets	38,956,665	38,754,899
Current liabilities
Accounts payable	1,243,631	638,593
Accrued expenses	701,358	809,765
Warrant liability	112,024	0
Line of credit	490,607	0
Short term bridge loan (net of debt discount)	863,976	0
Income tax payable	0	2,000
Current portion of capital lease obligation	333,812	332,185
Current portion of related party debt obligation	781,921	555,393
Current portion of long-term debt, net	2,688,921	2,636,241
Total current liabilities	7,216,250	4,974,177
Other long term liability	880,032	880,032
Capital lease obligation, less current portion	0	246,090
Related party debt, less current portion	0	271,190
Long-term debt, less current portion, net	14,562,222	16,208,699
Total liabilities	22,658,504	22,580,188
Commitments and contingencies (Note 6)
Stockholders' equity
Common stock - $0.001 par value; 100,000,000 shares authorized; 18,211,631 and 17,459,605 shares issued and outstanding, respectively	18,212	17,460
Common stock subscribed	5,750	0
Additional paid-in-capital	38,011,151	31,379,520
Retained deficit	(21,736,952)	(15,222,269)
Total stockholders' equity	16,298,161	16,174,711
Total liabilities and stockholders' equity	$ 38,956,665	$ 38,754,899

Consolidated Condensed Balance3

Consolidated Condensed Balance Sheets [Parenthetical] - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	18,211,631	17,459,605
Common Stock, Shares, Outstanding	18,211,631	17,459,605

Consolidated Condensed Statemen

Consolidated Condensed Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue	$ 2,261,310	$ 3,017,720	$ 4,820,405	$ 9,973,709
Operating costs and expenses
Cost of revenue	972,400	1,521,972	3,324,975	5,026,021
Selling, general and administrative	1,319,686	1,866,791	4,149,136	5,706,431
Depreciation and amortization	932,250	1,220,548	3,379,215	3,526,028
Total operating expenses	3,224,336	4,609,311	10,853,326	14,258,480
Operating loss	(963,026)	(1,591,591)	(6,032,921)	(4,284,771)
Other income (expense)
Interest income	78,650	73,318	234,969	219,886
Interest expense	(373,335)	(421,341)	(1,101,412)	(1,463,024)
Other income	49,975	56,726	158,926	185,811
Gain (loss) on sale of assets	4,003	(10,202)	195,453	(93,088)
Unrealized gain on warrant derivative	28,301	0	28,301	0
Total other expense	(212,406)	(301,499)	(483,763)	(1,150,415)
Loss before income taxes	(1,175,432)	(1,893,090)	(6,516,684)	(5,435,186)
Income tax expense (benefit)	(2,000)	47,223	(2,000)	(216,090)
Net loss	$ (1,173,432)	$ (1,940,313)	$ (6,514,684)	$ (5,219,096)
Basic loss earnings per common share	$ (0.07)	$ (0.11)	$ (0.37)	$ (0.3)
Basic weighted average common shares outstanding	17,891,786	17,432,274	17,606,324	17,317,780
Diluted loss earnings per common share	$ (0.07)	$ (0.11)	$ (0.37)	$ (0.3)
Diluted weighted average common shares outstanding	17,891,786	17,432,274	17,606,324	17,317,780

Consolidated Condensed Stateme5

Consolidated Condensed Statements Of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows From Operating Activities
Net loss	$ (6,514,684)	$ (5,219,096)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense	3,379,215	3,526,028
Amortization of debt discount	93,172	516,646
Deferred tax benefit	(2,000)	(216,090)
Share - based compensation expense	534,051	436,652
Unrealized gain on warrant derivative	(28,301)	0
Write-off of Strider asset	361,903	0
(Gain) loss on disposition of assets	(195,453)	93,088
Changes in operating assets and liabilities:
Accounts receivable	648,546	2,467,174
Inventory	(73,733)	(238,861)
Prepaid expenses and other current assets	(169,981)	(198,433)
Other assets	(10,936)	82,638
Accounts payable and accrued expenses	496,629	(672,713)
Net Cash (Used in) Provided by Operating Activities	(1,481,572)	577,033
Cash Flows From Investing Activities
Purchases of property, plant and equipment	(315,101)	(901,627)
Disposition of property, plant and equipment	483,217	0
Net Cash (Used in) Provided by Investing Activities	168,116	(901,627)
Cash Flows From Financing Activities
Principal payments on debt	(1,226,339)	(3,004,718)
Principal payments on related party debt	(44,662)	(365,749)
Principal payments on capital lease obligations	(244,461)	(216,418)
Proceeds received from debt borrowings	1,500,000	47,298
Net proceeds received from line of credit	637,992	0
Proceeds from sale of subsidiary	50,700	0
Proceeds from payments on note receivable	22,533	0
Stock offering expenses	(193,418)	0
Debt issuance costs	(153,643)	0
Net Cash (Used in) Provided by Financing Activities	348,702	(3,539,587)
Net decrease in Cash	(964,754)	(3,864,181)
Cash at Beginning of Period	1,297,002	5,792,388
Cash at End of Period	332,248	1,928,207
Supplemental information:
Cash paid for Interest	1,194,498	755,419
Long term debt paid with stock	1,000,000	0
Accounts receivable - stock subscription	$ 5,297,500	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	We are a drilling and completion tool technology company. We design and manufacture new drill bit and horizontal drill string enhancement tools and refurbish PDC (polycrystalline diamond compact) drill bits for the oil, natural gas and mining services industry. Our customers are engaged in domestic and international exploration and production of oil and natural gas. We were incorporated on December 10, 2013 under the name SD Company, Inc. to facilitate (a) the reorganization of the entities that are now our consolidated subsidiaries and (b) the subsequent acquisition of Hard Rock Solutions, LLC, we changed our name from SD Company Inc. to Superior Drilling Products, Inc. on May 22, 2014. The closing of that reorganization occurred in conjunction with our initial public offering which was completed on May 23, 2014. Our headquarters and principal manufacturing operations are located in Vernal, Utah. The accompanying consolidated condensed financial statements of the Company include the accounts of the Company, and of its wholly-owned subsidiaries (a) Superior Drilling Solutions, LLC (previously known as Superior Drilling Products, LLC), a Utah limited liability company (“SDS”), together with its wholly owned subsidiary, Superior Design and Fabrication, LLC, a Utah limited liability company (“SDF”), (b) Extreme Technologies, LLC, a Utah limited liability company (“ET”), (c) Meier Properties Series, LLC, a Utah limited liability company (“MPS”), (d) Meier Leasing, LLC, a Utah limited liability company (“ML”), and (e) Hard Rock Solutions, LLC, a Utah limited liability company (“HR”). These consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and all significant intercompany accounts have been eliminated in consolidation. As a company with less than $ 1.0 These interim consolidated condensed financial statements for the three and nine months ended September 30, 2016 and 2015, and the related footnote disclosures included herein, are unaudited. However, in the opinion of management, these unaudited interim financial statements have been prepared on the same basis as the audited financial statements, and reflect all adjustments necessary to fairly state the results for such periods. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results of operations expected for the year ended December 31, 2016. These interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the years ended December 31, 2015 and 2014 and the notes thereto, which were included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission (the “SEC”). Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated to give effect to potentially issuable common shares, which include stock warrants. Effective with its IPO in May 2014, the Company had warrants exercisable for 714,286 4.00 four February 2018 On August 5, 2016, the Company issued warrants exercisable for 250,000 1.00 August 2021 During the month of March 2016, the Board of Directors granted options to acquire 309,133 The Company operates as a drilling and completion tool technology company that sells, rents and repairs/refurbishes drill string enhancement tools and drill bits for use by customers engaged in the oil and gas and mining industries. Revenue is classified into two groups: (1) Tool Revenue, which consists of revenue from tool sales, tool rental and other related revenue, and (2) Contract Services, which consists of drill bit manufacturing and refurbishment revenue and revenue from the sale of other machined tools. Tool sales, rentals and other related revenue. ® Tool Sales Tool Rental Other Related Revenue oyalty revenue is recognized when our customer invoices their customer for the use of our tools. Drill Bit Manufacturing and Refurbishment Other Machined Tools The Company recognizes an asset or liability for the deferred tax consequences of all temporary differences between the tax basis of assets or liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years when the reported amounts of the asset or liabilities are recovered or settled and for operating loss carry forwards. These deferred tax assets and liabilities are measured using the enacted tax rates that will be in effect when the differences are expected to reverse and the carry forwards are expected to be realized. As of September 30, 2016, the Company adjusted the current income tax payable of $ 2,000 0 The Company follows ASC 718, Compensation- Stock Compensation On March 4, 2016, the Board of Directors granted options to acquire 78,944 1.73 100 March 4, 2026 On March 18, 2016, the Board of Directors granted options to acquire 81,714 1.67 100 March 18, 2026 On March 31, 2016, the Board of Directors granted options to acquire 148,475 1.37 100 March 31, 2026 These three issuances of options issued during March 2016 were part of decreasing the base salary of employees and directors in exchange for salary for options plan, issued out of the 2015 Incentive Plan. At September 30, 2016, we had working capital of approximately $ 1.5 Public Offering: 1.00 5.1 1 500,000 . Our operational and financial strategies include lowering our operating costs and capital spending to match revenue trends, managing our working capital and managing our debt to enhance liquidity. We will continue to work to grow revenue and review additional cost cutting measures with the plan to be cash flow positive. If we are unable to do this, we may not be able to, among other things, (i) maintain our current general and administrative spending levels; (ii) fund certain obligations as they become due; and (iii) respond to competitive pressures or unanticipated capital requirements. The Company may need to raise additional capital through equity and debt financing to support its business and possible expansions thereof and for its corporate general and administrative expenses. While the Company is considering a full range of financing options, we cannot provide any assurance that financing will be available to us in the future on acceptable terms. In April 2015, FASB issued an accounting standards update for “Interest – Imputation of Interest,” which simplifies the presentation of debt issuance costs. This accounting standard update requires that debt issuance cost related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new update is effective for financial statements issued for fiscal years beginning after December 15, 2015 (and interim periods within those fiscal years). The adoption of this new accounting standard update resulted in a reclassification of debt issuance costs from Other assets to Line of Credit, net and Long term debt, net. See Note 5 - Long-Term Debt for disclosure of debt issuance costs. Adoption of this accounting standard update did not impact our statements of operations or cash flows.

INVENTORY

INVENTORY	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	NOTE 2. INVENTORY September 30, December 31, Raw material $ 949,293 $ 968,254 Work in progress 153,075 117,661 Finished goods 445,415 324,879 $ 1,547,783 $ 1,410,794 During the year, the Company entered into a distribution agreement with Drilling Tools International (“DTI”), under which DTI has a requirement to purchase our Drill-N-Ream tool for their rental tool business and achieve market share requirements in order to maintain exclusive marketing rights for the Drill-N-Ream. This agreement began the change of direction of our business from renting tools to selling tools. Due to this change in our business model, we have moved our tools from property, plant and equipment (PP&E) into inventory. As a result, inventory increased $ 218,965

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	NOTE 3. PROPERTY, PLANT AND EQUIPMENT September 30, December 31, Land $ 2,268,039 $ 2,268,039 Buildings 4,847,778 4,847,778 Buildings – Superior Auto Body 2,213,729 2,213,729 Leasehold improvements 717,232 717,232 Machinery and equipment 5,022,630 7,200,530 Machinery under capital lease 2,322,340 2,322,340 Furniture and fixtures 507,557 507,554 Transportation assets 965,281 1,317,397 18,864,586 21,394,599 Accumulated depreciation (6,151,121) (6,739,097) $ 12,713,465 $ 14,655,502 Depreciation expense related to PP&E for the three and nine months ended September 30, 2016 was $ 320,583 1,544,215 608,881 1,691,028 As noted in Note 2 – Inventory, the Company executed a distribution agreement with DTI, under which DTI purchases our Drill-N-Ream tool for their rental tool business. As a result, the tools we had manufactured for rental that had been recognized in Machinery and equipment were recategorized as inventory. Also, we sold Transportation assets that were no longer needed for our new business model. The resulting gross impact to PP&E was a reduction in Machinery and equipment of the original cost of the tools of $ 1,902,081 304,000

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	NOTE 4. INTANGIBLE ASSETS September 30, December 31, Developed technology $ 7,000,000 $ 7,000,000 Customer contracts 6,400,000 6,400,000 Trademarks 1,500,000 1,500,000 14,900,000 14,900,000 Accumulated amortization (5,708,889) (3,873,889) $ 9,191,111 $ 11,026,111 Amortization expense related to intangible assets for the three and nine months ended September 30, 2016, was $ 611,667 1,835,000 611,667 1,835,000 Annually, and more often as necessary, we will perform an evaluation of our intangible assets for indications of impairment. If indications exist, we will perform an evaluation of the fair value of the intangible assets and, if necessary, record an impairment charge. As of September 30, 2016, the Company reviewed the net balance of the intangible assets and determined no impairment was needed.

LONG-TERM DEBT

LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	NOTE 5. LONG-TERM DEBT September 30, December 31, Real estate loans (net of debt issuance costs discount of $3,873) $ 7,346,638 $ 7,590,042 Hard Rock Note (net of $172,607 and $261,493 discount, respectively) 8,327,393 9,738,521 Machinery loans 1,091,189 857,947 Transportation loans 485,923 658,430 17,251,143 18,844,940 Current portion of long-term debt (2,688,921) (2,636,241) Long term portion of long-term debt $ 14,562,222 $ 16,208,699 Hard Rock Note: 5.75 1,500,000 500,000 1,000,000 2,000,000 We made an interest payment of approximately $ 304,000 700,000 1.43 1,000,000 1,000,000 1,500,000 700,000 1,000,000 FNCC Lending Agreement: On March 8, 2016, we entered into a $ 3 500,000 2.5 85 490,608 0 Following the receipt of proceeds received on October 5, 2016 from the common stock offering, the term loan and revolver were repaid and the agreements were terminated. (see Subsequent Events – Footnote 9). Previous to its termination upon repayment, the revolving promissory note had availability of up to 85 The term loan was for a period of 60 8,333 The credit facility had also included the following debt covenants: Fixed Charge Coverage Ratio Debt-to-Tangible Net Worth Liquid Ratio Bridge Financing: 1,000,000 250,000 112,024 1.00 The warrants associated with the Bridge Financing were treated as derivatives. We used the Black Scholes model to determine the fair market value of the warrants of $ 140,325 112,024 28,301 95 0.72 5 The Bridge Financing accrued interest at the rate of 8

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	NOTE 6. COMMITMENTS AND CONTINGENCIES We are subject to litigation that arises from time to time in the ordinary course of our business activities. We are not currently involved in any litigation which management believes could have a material effect on our financial position or results of operations, except as follows: Del Rio Suit In October 2013, Del-Rio Resources, Inc. (“Del-Rio”) filed suit, on its own behalf and derivatively on behalf of Philco Exploration, LLC (“Philco”), against the following co-defendants (a) Tronco Ohio, LLC and Tronco, (b) the lender on the Tronco loan, ACF Property Management, Inc. (p.k.a. Fortuna Asset Management, LLC, ) (“ACF”), (c) Troy and Annette Meier personally, and several of their family trusts, (d) Meier Family Holding Company, LLC and Meier Management Company, LLC, and (e) SDS and MPS. That suit is currently pending in the Eighth Judicial District Court, Uintah County, Utah under Cause #130800125. Tronco and Del-Rio are the sole owners and managers of Philco. Philco served as the exploration operator. Part of the collateral for the Tronco loan is Philco’s mineral leases. Del- Rio’s suit alleges that the defendants made amendments to the Tronco loan without complying with the voting provisions of Philco’s operating agreement, and that all of the Meier-related entities somehow benefitted from the Tronco loan proceeds, in an unspecified manner. Del-Rio’s suit seeks to invalidate ACF’s deeds of trust on the Philco mineral leases, and to acquire title to those Philco mineral leases. ACF no longer has deeds of trust of any of the Philco mineral leases. Del Rio is also requesting monetary and punitive damages, disgorgement, prejudgment interest, post judgment interest, costs, and attorney fees, against all defendants, in an amount to be determined at trial. We believe that Del-Rio’s claims are without merit, and all defendants are actively defending in this matter. In particular, SDS’ and MPS’ only involvement was to grant guaranties and/or security interests in their respective separate personal and real property to ACF to additionally collateralize the Tronco loan before its purchase by us. In addition, since the Meiers’ and their personal trusts guaranty repayment of the Tronco loan, we believe that the basis of Del-Rio’s damages claims are nullified. Consequently, we do not believe that Del Rio’s purported claims against SDS and MPS will have any material adverse effect on our cash flow, business, or operations. As of September 30, 2016, there have been no updates or decisions made concerning this matter.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	NOTE 7. RELATED PARTY TRANSACTIONS On January 1, 2016, the Company completed the divestiture of our interest in Superior Auto Body and Paint (“SAB”), by selling the remaining ownership interests in the business operations to a third party. The Company hired an independent third party evaluation firm to determine the value of the operations of SAB. The Firm determined the value was $ 101,400 50,700 50,700 5,633 The Company will continue to lease certain of its facilities to SAB. We recorded rental income from the related party in the amounts of $ 49,976 149,928 Tronco Related Loans In January 2014, we entered into a Note Purchase and Sale Agreement under which we agreed to purchase a loan made to Tronco Energy Corporation (“Tronco”), a party related to us through common control, in order to take over the legal position as Tronco’s senior secured lender. That agreement provided that, upon our full repayment of the Tronco loan from the proceeds of the Offering, the lender would assign to us all of its rights under the Tronco loan, including all of the collateral documents. On May 30, 2014, we closed our purchase of the Tronco loan for a total payoff of $ 8.3 With the Tronco loan, we have the direct legal right to enforce the collateral and guaranty agreements entered into in connection with the Tronco loan and to collect Tronco’s collateral sales proceeds, in order to recover the loan purchase amount. The Tronco loan continues to be secured by the first position liens on all of Tronco assets, as well as by the guarantees of Troy and Annette Meier (the “Meier Guaranties”), which are directly payable to and legally enforceable by us. In addition, the Meiers have provided us with stock pledges in which they pledge all of their shares of our common stock held by their family entities (the ‘‘ Meier Stock Pledge 8,814,860 0.95 8.4 During July 2014, the Board of Directors agreed to restructure the Tronco loan effective May 29, 2014. As part of this restructuring the interest rate was decreased to the prime rate of JPMorgan Chase Bank plus 0.25 3.75 December 31, 2015 December 31, 2017 Other Related Party Transactions On October 5, 2016, the Company closed a public offering of 5,750,000 1.00 1,000,000

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2016
Share-based Compensation [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE 8. SHARE-BASED COMPENSATION On June 15, 2015, our stockholders approved the Superior Drilling Company, Inc. 2015 Long Term Incentive Plan (the “2015 Incentive Plan”). The purpose of the 2015 Incentive Plan is to advance the interests of the Company and its stockholders by providing an incentive to attract, retain and reward persons performing services for the Company and its affiliates and by motivating such persons to contribute to the growth and profitability of the Company and our affiliates. Subject to adjustment as provided in the 2015 Incentive Plan, the maximum aggregate number of shares of the Company’s common stock that may be issued with respect to awards under the 2015 Incentive Plan is 1,592,878 On March 4, 2016, the Board of Directors granted options to acquire 78,944 1.73 100 On March 18, 2016, the Board of Directors granted options to acquire 81,714 1.67 100 On March 31, 2016, the Board of Directors granted options to acquire 148,475 1.37 100 March 31, 2026 These three issuances of options issued during March 2016 were part of decreasing the base salary of employees and directors in exchange for salary for options plan, issued out of the 2015 Incentive Plan. For the Three Months 2016 2015 Expected volatility 49 % 49 % Discount rate 1.09 % 1.09 % Expected life (years) 3 3 Dividend yield N/A N/A

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	1. Closing of public offering of common stock and repayment of certain debt obligations On October 5, 2016, the Company closed a public offering of 5,750,000 1.00 1,000,000 5.1 200,000 Amount provided by offering $ 5,100,000 Bridge financing (1,040,000) FNCC indebtedness (868,000) Hard Rock Note payment (606,000) Remaining: cash to Company $ 2,586,000 2. Registration Statement of 700,000 shares of common stock On October 21, 2016, the Company filed a registration statement with the SEC to register the resale of 700,000 3. Issuance of Restricted Units On November 10, 2016, the board of directors issued 600,000 shares of restricted common stock at $0.97 per share to executive management and directors.

SUMMARY OF SIGNIFICANT ACCOUN15

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Nature of Operations [Policy Text Block]	Nature of Operations We are a drilling and completion tool technology company. We design and manufacture new drill bit and horizontal drill string enhancement tools and refurbish PDC (polycrystalline diamond compact) drill bits for the oil, natural gas and mining services industry. Our customers are engaged in domestic and international exploration and production of oil and natural gas. We were incorporated on December 10, 2013 under the name SD Company, Inc. to facilitate (a) the reorganization of the entities that are now our consolidated subsidiaries and (b) the subsequent acquisition of Hard Rock Solutions, LLC, we changed our name from SD Company Inc. to Superior Drilling Products, Inc. on May 22, 2014. The closing of that reorganization occurred in conjunction with our initial public offering which was completed on May 23, 2014. Our headquarters and principal manufacturing operations are located in Vernal, Utah.
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying consolidated condensed financial statements of the Company include the accounts of the Company, and of its wholly-owned subsidiaries (a) Superior Drilling Solutions, LLC (previously known as Superior Drilling Products, LLC), a Utah limited liability company (“SDS”), together with its wholly owned subsidiary, Superior Design and Fabrication, LLC, a Utah limited liability company (“SDF”), (b) Extreme Technologies, LLC, a Utah limited liability company (“ET”), (c) Meier Properties Series, LLC, a Utah limited liability company (“MPS”), (d) Meier Leasing, LLC, a Utah limited liability company (“ML”), and (e) Hard Rock Solutions, LLC, a Utah limited liability company (“HR”). These consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and all significant intercompany accounts have been eliminated in consolidation. As a company with less than $ 1.0
Unaudited Interim Financial Information Policy [Policy Text Block]	Unaudited Interim Financial Information These interim consolidated condensed financial statements for the three and nine months ended September 30, 2016 and 2015, and the related footnote disclosures included herein, are unaudited. However, in the opinion of management, these unaudited interim financial statements have been prepared on the same basis as the audited financial statements, and reflect all adjustments necessary to fairly state the results for such periods. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results of operations expected for the year ended December 31, 2016. These interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the years ended December 31, 2015 and 2014 and the notes thereto, which were included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission (the “SEC”).
Earnings Per Share, Policy [Policy Text Block]	Basic and Diluted Earnings Per Share Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated to give effect to potentially issuable common shares, which include stock warrants. Effective with its IPO in May 2014, the Company had warrants exercisable for 714,286 4.00 four February 2018 On August 5, 2016, the Company issued warrants exercisable for 250,000 1.00 August 2021 During the month of March 2016, the Board of Directors granted options to acquire 309,133
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition The Company operates as a drilling and completion tool technology company that sells, rents and repairs/refurbishes drill string enhancement tools and drill bits for use by customers engaged in the oil and gas and mining industries. Revenue is classified into two groups: (1) Tool Revenue, which consists of revenue from tool sales, tool rental and other related revenue, and (2) Contract Services, which consists of drill bit manufacturing and refurbishment revenue and revenue from the sale of other machined tools. Tool sales, rentals and other related revenue. ® Tool Sales Tool Rental Other Related Revenue oyalty revenue is recognized when our customer invoices their customer for the use of our tools.
Contractual Adjustments and Third Party Settlements, Policy [Policy Text Block]	Contract Services Drill Bit Manufacturing and Refurbishment Other Machined Tools
Income Tax, Policy [Policy Text Block]	Income Taxes The Company recognizes an asset or liability for the deferred tax consequences of all temporary differences between the tax basis of assets or liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years when the reported amounts of the asset or liabilities are recovered or settled and for operating loss carry forwards. These deferred tax assets and liabilities are measured using the enacted tax rates that will be in effect when the differences are expected to reverse and the carry forwards are expected to be realized. As of September 30, 2016, the Company adjusted the current income tax payable of $ 2,000 0
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	The Company follows ASC 718, Compensation- Stock Compensation On March 4, 2016, the Board of Directors granted options to acquire 78,944 1.73 100 March 4, 2026 On March 18, 2016, the Board of Directors granted options to acquire 81,714 1.67 100 March 18, 2026 On March 31, 2016, the Board of Directors granted options to acquire 148,475 1.37 100 March 31, 2026 These three issuances of options issued during March 2016 were part of decreasing the base salary of employees and directors in exchange for salary for options plan, issued out of the 2015 Incentive Plan.
Liquidity [Policy Text Block]	At September 30, 2016, we had working capital of approximately $ 1.5 Public Offering: 1.00 5.1 1 500,000 . Our operational and financial strategies include lowering our operating costs and capital spending to match revenue trends, managing our working capital and managing our debt to enhance liquidity. We will continue to work to grow revenue and review additional cost cutting measures with the plan to be cash flow positive. If we are unable to do this, we may not be able to, among other things, (i) maintain our current general and administrative spending levels; (ii) fund certain obligations as they become due; and (iii) respond to competitive pressures or unanticipated capital requirements. The Company may need to raise additional capital through equity and debt financing to support its business and possible expansions thereof and for its corporate general and administrative expenses. While the Company is considering a full range of financing options, we cannot provide any assurance that financing will be available to us in the future on acceptable terms.
New Accounting Pronouncements, Policy [Policy Text Block]	In April 2015, FASB issued an accounting standards update for “Interest – Imputation of Interest,” which simplifies the presentation of debt issuance costs. This accounting standard update requires that debt issuance cost related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new update is effective for financial statements issued for fiscal years beginning after December 15, 2015 (and interim periods within those fiscal years). The adoption of this new accounting standard update resulted in a reclassification of debt issuance costs from Other assets to Line of Credit, net and Long term debt, net. See Note 5 - Long-Term Debt for disclosure of debt issuance costs. Adoption of this accounting standard update did not impact our statements of operations or cash flows.

INVENTORY (Tables)

INVENTORY (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventory is comprised of the following: September 30, December 31, Raw material $ 949,293 $ 968,254 Work in progress 153,075 117,661 Finished goods 445,415 324,879 $ 1,547,783 $ 1,410,794

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	Property, plant and equipment are comprised of the following: September 30, December 31, Land $ 2,268,039 $ 2,268,039 Buildings 4,847,778 4,847,778 Buildings – Superior Auto Body 2,213,729 2,213,729 Leasehold improvements 717,232 717,232 Machinery and equipment 5,022,630 7,200,530 Machinery under capital lease 2,322,340 2,322,340 Furniture and fixtures 507,557 507,554 Transportation assets 965,281 1,317,397 18,864,586 21,394,599 Accumulated depreciation (6,151,121) (6,739,097) $ 12,713,465 $ 14,655,502

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Intangible assets are comprised of the following: September 30, December 31, Developed technology $ 7,000,000 $ 7,000,000 Customer contracts 6,400,000 6,400,000 Trademarks 1,500,000 1,500,000 14,900,000 14,900,000 Accumulated amortization (5,708,889) (3,873,889) $ 9,191,111 $ 11,026,111

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments [Table Text Block]	Long-term debt is comprised of the following: September 30, December 31, Real estate loans (net of debt issuance costs discount of $3,873) $ 7,346,638 $ 7,590,042 Hard Rock Note (net of $172,607 and $261,493 discount, respectively) 8,327,393 9,738,521 Machinery loans 1,091,189 857,947 Transportation loans 485,923 658,430 17,251,143 18,844,940 Current portion of long-term debt (2,688,921) (2,636,241) Long term portion of long-term debt $ 14,562,222 $ 16,208,699

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2016
Share-based Compensation [Abstract]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	The fair value of stock options granted to employees and directors was estimated at the grant date using the Black-Scholes option pricing model using the following assumptions: For the Three Months 2016 2015 Expected volatility 49 % 49 % Discount rate 1.09 % 1.09 % Expected life (years) 3 3 Dividend yield N/A N/A

SUBSEQUENT EVENTS (Tables)

SUBSEQUENT EVENTS (Tables)	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Schedule Of Repayment Of Debt [Table Text Block]	The Company used the proceeds to pay off the Bridge Financing and FNCC indebtedness, and made a payment on the Hard Rock Note. The balance was used for general corporate purposes, including growth working capital (see Note 1 – Summary of Significant Accounting Policies, Liquidity and Note 5 – Long-term Debt). Amount provided by offering $ 5,100,000 Bridge financing (1,040,000) FNCC indebtedness (868,000) Hard Rock Note payment (606,000) Remaining: cash to Company $ 2,586,000

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($)	Oct. 05, 2016	Aug. 05, 2016	Mar. 04, 2016	Oct. 21, 2016	Mar. 31, 2016	Mar. 18, 2016	May 31, 2014	Sep. 30, 2016	Dec. 31, 2015
Maximum Amount Of Revenue For Emerging Growth Company									$ 1,000,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights								$ 1
Working Capital Deficit								$ 1,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			78,944		148,475	81,714
Share Price			$ 1.73		$ 1.37	$ 1.67
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date			Mar. 4, 2026		Mar. 31, 2026	Mar. 18, 2026
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage			100.00%		100.00%	100.00%
Accrued Income Taxes, Current								$ 0	$ 2,000
IPO [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights							714,286
Class of Warrant or Right, Exercise Price of Warrants or Rights							$ 4
Class of Warrant or Right, Expiration Term							4 years
Class Of Warrant Or Right Expiration Period							February 2,018
Share Price								$ 1
Bridge Loan [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		250,000
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 1
Class of Warrant or Right, Expiration Term		5 years
Class Of Warrant Or Right Expiration Period		August 2,021
Repayments of Debt								$ 1,000,000
Subsequent Event [Member]
Debt Instrument, Periodic Payment				$ 1,000,000
Subsequent Event [Member] | IPO [Member]
Share Price	$ 1
Proceeds from Issuance Initial Public Offering	$ 5,100,000
Subsequent Event [Member] | Bridge Loan [Member] | IPO [Member]
Repayments of Debt	1,000,000
Subsequent Event [Member] | Hard Rock note [Member]
Repayments of Debt	606,000
Subsequent Event [Member] | Hard Rock note [Member] | IPO [Member]
Debt Instrument, Periodic Payment	$ 500,000
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross					309,133

INVENTORY (Details)

INVENTORY (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Inventory [Line Items]
Raw material	$ 949,293	$ 968,254
Work in progress	153,075	117,661
Finished goods	445,415	324,879
Inventory, Net	$ 1,547,783	$ 1,410,794

INVENTORY (Details Textual)

INVENTORY (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Inventory [Line Items]
Increase (Decrease) in Inventories	$ 73,733	$ 238,861
Drilling Tools International [Member]
Inventory [Line Items]
Increase (Decrease) in Inventories	$ 218,965

PROPERTY, PLANT AND EQUIPMENT25

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Land	$ 2,268,039	$ 2,268,039
Buildings	4,847,778	4,847,778
Buildings - Superior Auto Body	2,213,729	2,213,729
Leasehold improvements	717,232	717,232
Machinery and equipment	5,022,630	7,200,530
Machinery under capital lease	2,322,340	2,322,340
Furniture and fixtures	507,557	507,554
Transportation assets	965,281	1,317,397
Property, Plant and Equipment, Gross	18,864,586	21,394,599
Accumulated depreciation	(6,151,121)	(6,739,097)
Property, Plant and Equipment, Net	$ 12,713,465	$ 14,655,502

PROPERTY, PLANT AND EQUIPMENT26

PROPERTY, PLANT AND EQUIPMENT (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Depreciation	$ 320,583	$ 608,881	$ 1,544,215	$ 1,691,028
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross, Period Increase (Decrease)	304,000
Machinery [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross, Period Increase (Decrease)	$ 1,902,081

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross	$ 14,900,000	$ 14,900,000
Accumulated amortization	(5,708,889)	(3,873,889)
Finite-Lived Intangible Assets, Net	9,191,111	11,026,111
Developed Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross	7,000,000	7,000,000
Customer Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross	6,400,000	6,400,000
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross	$ 1,500,000	$ 1,500,000

INTANGIBLE ASSETS (Details Text

INTANGIBLE ASSETS (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 611,667	$ 611,667	$ 1,835,000	$ 1,835,000

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term Debt	$ 17,251,143	$ 18,844,940
Current portion of long-term debt	(2,688,921)	(2,636,241)
Long term portion of long-term debt	14,562,222	16,208,699
Real estate loans [Member]
Debt Instrument [Line Items]
Long-term Debt	7,346,638	7,590,042
Hard Rock Note [Member]
Debt Instrument [Line Items]
Long-term Debt	8,327,393	9,738,521
Machinery loans [Member]
Debt Instrument [Line Items]
Long-term Debt	1,091,189	857,947
Transportation loans [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 485,923	$ 658,430

LONG-TERM DEBT (Details Textual

LONG-TERM DEBT (Details Textual) - USD ($)	Oct. 05, 2016	Aug. 10, 2016	Mar. 08, 2016	Oct. 21, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Aug. 05, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 3,000,000
Line of Credit Facility, Capacity Available for Trade Purchases			2,500,000
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases			$ 500,000
Line of Credit Facility, Percentage Available for Accounts Receivables			85.00%				85.00%
Line of Credit Facility, Interest Rate Description			The note had a variable interest rate of prime plus 1% plus a monthly service fee of 0.48% of the current outstanding balance on the note.
Fixed Charge Coverage Ratio Maintainable Terms			(a) Fixed Charge Coverage Ratio of not less than 0.10 tested monthly from July 30 through August 31, 2016, then 0.35 for September 30 and October 31, 2016, and then 1.00 for November 30, 2016 and each month thereafter; (b) Debt-to-Tangible Net Worth of not greater than 4.35 tested monthly from June 30 through August 31, 2016 and then 4.25 for September 30, 2016 and each month thereafter; and (c) Liquid Ratio of at least 0.325 tested monthly from June 30 through September 30, 2016 and then 0.40 for October 30, 2016 and each month thereafter.
Working Capital Deficit					$ 1,500,000		$ 1,500,000
Derivative Liability, Current					$ 112,024		$ 112,024		$ 112,024	$ 0
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 1		$ 1
Unrealized Gain (Loss) on Derivatives					$ 28,301	$ 0	$ 28,301	$ 0
Warrant [Member]
Debt Instrument [Line Items]
Derivative Liability, Current					112,024		112,024		140,325
Unrealized Gain (Loss) on Derivatives							$ 28,301
Fair Value Assumptions, Expected Volatility Rate							95.00%
Fair Value Inputs, Discount Rate							0.72%
Fair Value Assumptions, Expected Term							5 years
Promissory Note [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Debt Instrument, Face Amount					490,608		$ 490,608		$ 1,000,000
Debt Instrument, Annual Principal Payment					0		0
Class of Warrant or Right, Exercise Price of Warrants or Rights									$ 250,000
Term Loan [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment, Principal							$ 8,333
Debt Instrument, Term							60 months
Line of Credit Facility, Interest Rate Description			The note carried an interest rate of prime plus 5% plus a monthly service fee of 0.30% of the outstanding balance.
Subsequent Event [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment				$ 1,000,000
Number Of Stock Registration For Resale				700,000
Hard Rock note [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount					172,607		$ 172,607			$ 261,493
Hard Rock note [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Repayments of Debt	$ 606,000
Real estate loans [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount					$ 3,873		3,873
Hard Rock [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment		$ 1,500,000
Debt Instrument, Interest Rate, Effective Percentage		5.75%
Debt Instrument, Periodic Payment, Interest		$ 304,000
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures		700,000
Shares Issued, Price Per Share		$ 1.43
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures		$ 1,000,000
Hard Rock [Member] | First Payment [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment		500,000
Hard Rock [Member] | Second Payment [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment		1,000,000
Hard Rock [Member] | Third Payment [Member]
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment		$ 2,000,000
Bridge Loan [Member]
Debt Instrument [Line Items]
Repayments of Debt							$ 1,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights									$ 1

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Textual) - USD ($)

Oct. 05, 2016

Nov. 10, 2015

Oct. 21, 2016

Jan. 31, 2016

Jul. 31, 2014

Sep. 30, 2016

Mar. 31, 2016

Sep. 30, 2016

Mar. 18, 2016

Mar. 04, 2016

Dec. 31, 2015

May 30, 2014

Related Party Transaction [Line Items]

Notes Receivable, Related Parties, Current

$ 8,296,717

$ 8,296,717

$ 8,296,717

Share Price

$ 1.37

$ 1.67

$ 1.73

IPO [Member]

Related Party Transaction [Line Items]

Share Price

$ 1

$ 1

Subsequent Event [Member]

Related Party Transaction [Line Items]

Debt Instrument, Periodic Payment

$ 1,000,000

Subsequent Event [Member] | IPO [Member]

Related Party Transaction [Line Items]

Stock Issued During Period, Shares, New Issues

5,750,000

Share Price

$ 1

Executive Management [Member] | Subsequent Event [Member] | IPO [Member]

Related Party Transaction [Line Items]

Stock Issued During Period, Shares, New Issues

1,000,000

Superior Auto Body [Member]

Related Party Transaction [Line Items]

Rental Income, Nonoperating

$ 49,976

$ 149,928

Debt Instrument, Periodic Payment

$ 5,633

Equity Method Investments

101,400

Proceeds from Divestiture of Businesses

50,700

Noncash or Part Noncash Divestiture, Amount of Consideration Received

$ 50,700

Tronco Energy Corporation [Member]

Related Party Transaction [Line Items]

Notes Receivable, Related Parties, Current

$ 8,300,000

Pledged Shares, Notes Receivable

8,814,860

8,814,860

Notes Receivable Pledged Shares, Price Per Share

$ 0.95

$ 0.95

Notes Receivable Pledged Shares, Market Value

$ 8,400,000

$ 8,400,000

Loans Receivable, Description of Variable Rate Basis

prime rate

Loans Receivable, Basis Spread on Variable Rate

0.25%

Loans Receivable, Variable Interest Rate

3.75%

Debt Instrument, Maturity Date

Dec. 31, 2017

Dec. 31, 2015

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	49.00%	49.00%
Discount rate	1.09%	1.09%
Expected life (years)	3 years	3 years
Dividend yield	0.00%	0.00%

SHARE-BASED COMPENSATION (Det33

SHARE-BASED COMPENSATION (Details Textual) - $ / shares	Mar. 04, 2016	Mar. 31, 2016	Mar. 18, 2016	Mar. 31, 2016	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	78,944	148,475	81,714
Share Price	$ 1.73	$ 1.37	$ 1.67	$ 1.37
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date	Mar. 4, 2026	Mar. 31, 2026	Mar. 18, 2026
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years		10 years	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	100.00%	100.00%	100.00%
2015 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant					1,592,878

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event [Member]	Oct. 05, 2016USD ($)
IPO [Member]
Subsequent Event [Line Items]
Proceeds from Issuance Initial Public Offering	$ 5,100,000
Bridge Loan [Member]
Subsequent Event [Line Items]
Repayments of Debt	(1,040,000)
FNCC [Member]
Subsequent Event [Line Items]
Repayments of Debt	(868,000)
Hard Rock note [Member]
Subsequent Event [Line Items]
Repayments of Debt	(606,000)
Parent Company [Member]
Subsequent Event [Line Items]
Cash	$ 2,586,000

SUBSEQUENT EVENTS (Details Text

SUBSEQUENT EVENTS (Details Textual) - USD ($)	Nov. 10, 2016	Oct. 05, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Oct. 21, 2016	Mar. 31, 2016	Mar. 18, 2016	Mar. 04, 2016
Subsequent Event [Line Items]
Share Price								$ 1.37	$ 1.67	$ 1.73
Operating Expenses			$ 3,224,336	$ 4,609,311	$ 10,853,326	$ 14,258,480
IPO [Member]
Subsequent Event [Line Items]
Share Price			$ 1		$ 1
Subsequent Event [Member]
Subsequent Event [Line Items]
Number Of Stock Registration For Resale							700,000
Subsequent Event [Member] | IPO [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues		5,750,000
Share Price		$ 1
Proceeds from Issuance Initial Public Offering		$ 5,100,000
Operating Expenses		$ 200,000
Subsequent Event [Member] | Executive Management [Member] | IPO [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues		1,000,000
Subsequent Event [Member] | Restricted Stock [Member]
Subsequent Event [Line Items]
Shares Issued, Price Per Share	$ 0.97
Stock Issued During Period, Shares, Restricted Stock Award, Gross	600,000