Superior Drilling Products (SDPI) 10-K 23 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Mar. 15, 2018	Jun. 30, 2017
Document And Entity Information
Entity Registrant Name	Superior Drilling Products, Inc.
Entity Central Index Key	1,600,422
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 0
Entity Common Stock, Shares Outstanding		24,535,139
Trading Symbol	SDPI
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,017

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Current assets
Cash	$ 2,375,179	$ 2,241,902
Accounts receivable, net	2,667,042	1,038,664
Prepaid expenses	111,530	76,175
Inventories	1,196,813	1,167,692
Asset held for sale		2,490,000
Other current assets		13,598
Total current assets	6,350,564	7,028,031
Property, plant and equipment, net	8,809,348	9,068,359
Intangible assets, net	6,132,778	8,579,444
Related party Note receivable	7,367,212	8,296,717
Other noncurrent assets	15,954	15,954
Total assets	28,675,856	32,988,505
Current liabilities
Accounts payable	1,021,469	1,066,514
Accrued expenses	543,758	449,004
Capital lease obligation		217,302
Related party debt obligation		272,215
Current portion of long-term debt, net of discounts	6,101,678	2,905,682
Total current liabilities	7,666,905	4,910,717
Other long-term liability		820,657
Long-term debt, less current portion, net of discounts	6,706,375	13,288,701
Total liabilities	14,373,280	19,020,075
Commitments and contingencies (Note 9)
Shareholders' equity
Common stock - $0.001 par value; 100,000,000 shares authorized; 24,535,334 and 24,120,695 shares outstanding, respectively	24,535	24,120
Additional paid-in-capital	38,907,864	38,295,428
Accumulated deficit	(24,629,823)	(24,351,118)
Total shareholders' equity	14,302,576	13,968,430
Total liabilities and shareholders' equity	$ 28,675,856	$ 32,988,505

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	24,535,334	24,120,695
Common Stock, Shares, Outstanding	24,535,334	24,120,695

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Revenue	$ 15,595,659	$ 7,153,063
Operating cost and expenses
Cost of revenue	5,960,223	4,491,670
Selling, general, and administrative expenses	5,734,315	5,775,760
Depreciation and amortization expense	3,676,598	4,291,249
Impairment of property, plant and equipment - held for sale		840,380
Total operating costs and expenses	15,371,136	15,399,059
Operating income (loss)	224,523	(8,245,996)
Other income (expense)
Interest income	346,926	313,547
Interest expense	(905,990)	(1,613,214)
Other income	43,669	237,203
Gain (loss) on sale of assets	12,167	177,611
Total other expense	(503,228)	(884,853)
Loss before income taxes	(278,705)	(9,130,849)
Income tax benefit		(2,000)
Net loss	$ (278,705)	$ (9,128,849)
Basic loss per common share	$ (0.01)	$ (0.48)
Basic weighted average common shares outstanding	24,268,409	19,155,981
Diluted loss per common share	$ (0.01)	$ (0.48)
Diluted weighted average Common shares outstanding	24,268,409	19,155,981

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2015	$ 17,460	$ 31,379,520	$ (15,222,269)	$ 16,174,711
Balance, shares at Dec. 31, 2015	17,459,605
Stock-based compensation expense	$ 210	783,252		783,462
Stock-based compensation expense, shares	211,090
Warrants issued for bridge financing		112,024		112,024
Stock issued for Hard Rock note	$ 700	999,300		1,000,000
Stock issued for Hard Rock note, shares	700,000
Issuance of common stock, net of fees and expenses	$ 5,750	5,021,332		5,027,082
Issuance of common stock, net of fees and expenses, shares	5,750,000
Net loss			(9,128,849)	(9,128,849)
Balance at Dec. 31, 2016	$ 24,120	38,295,428	(24,351,118)	13,968,430
Balance, shares at Dec. 31, 2016	24,120,695
Stock-based compensation expense	$ 415	612,436		612,851
Stock-based compensation expense, shares	414,639
Warrants issued for bridge financing
Net loss			(278,705)	(278,705)
Balance at Dec. 31, 2017	$ 24,535	$ 38,907,864	$ (24,629,823)	$ 14,302,576
Balance, shares at Dec. 31, 2017	24,535,334

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash Flows from Operating Activities
Net loss	$ (278,705)	$ (9,128,849)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense	3,676,598	4,291,249
Amortization of debt discount	79,424	107,975
Deferred tax benefit		(2,000)
Share based compensation expense	612,851	783,462
Unrealized loss on warrant derivative		112,024
Impairment of property, plant and equipment		1,054,482
Impairment of inventories		569,602
Gain on sale of assets	(12,167)	(177,611)
Changes in operating assets and liabilities:
Accounts receivable	(1,628,378)	822,338
Inventories	(29,121)	(115,444)
Prepaid expenses and other current assets	(21,757)	89,677
Other noncurrent assets		(60,866)
Accounts payable and accrued expenses	13,990	(218,375)
Other long-term liabilities	(53,355)	(59,375)
Net Cash Provided by (Used In) Operating Activities	2,359,380	(1,931,711)
Cash Flows From Investing Activities
Purchases of property, plant and equipment	(936,118)	(352,751)
Proceeds from sale of fixed assets	2,483,921	517,385
Net Cash Provided by Investing Activities	1,547,803	164,634
Cash Flows from Financing Activities
Principal payments on debt	(3,482,311)	(3,254,971)
Principal payments on capital lease obligations	(217,302)	(360,971)
Principal payments on related party debt	(74,293)	(268,835)
Proceeds received from borrowings on debt		1,500,000
Proceeds from line of credit		226,885
Proceeds from sale of subsidiary		50,700
Proceeds from payments on note receivable		22,533
Proceeds received from issuance of common stock, net		5,027,082
Debt issuance costs		(230,446)
Net Cash Provided by (Used in) Financing Activities	(3,773,906)	2,711,977
Net Increase in Cash	133,277	944,900
Cash at Beginning of Period	2,241,902	1,297,002
Cash at End of Period	2,375,179	2,241,902
Supplemental information:
Cash paid for Interest	851,671	1,563,280
Non-cash payment of other long-term liabilities and interest by offsetting related-party note receivable	1,267,711	311,979
Acquisition of equipment by issuance of note payable	16,557
Warrants issued for bridge financing debt		112,024
Long-term debt paid with stock		$ 1,000,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Operations Superior Drilling Products, Inc. (the “Company”, “SDPI”, “we”, “our” or “us”) is a drilling and completion tool technology company providing solutions for the oil and natural gas drilling industry. The Company, designs, engineers, manufactures, sells, and repairs drilling and completion tools. Our subsidiaries include (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) HR. Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of Superior Drilling Products Inc. and all of its wholly-owned subsidiaries. All significant intercompany accounts have been eliminated in consolidation. The Company does not have investments in any unconsolidated subsidiaries. In April 2012, the JOBS Act was enacted. Section 107 of the JOBS Act provides that an emerging growth company can utilize the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for implementing new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to nonissuers. We have elected to delay such adoption of new or revised accounting standards, and as a result, we may not implement new or revised accounting standards on the relevant dates on which adoption of such standards is required for other issuer companies. Subject to certain conditions set forth in the JOBS Act, as an emerging growth company, we intend to rely on certain of these exemptions, including without limitation, providing an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404 and implementing any requirement that may be adopted regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (auditor discussion and analysis). These exemptions will apply for a period of five years following the completion of our IPO, which occurred in May 2014, although if the market value of our common stock that is held by nonaffiliates exceeds $700 million as of any June 30 before that time, we would cease to be an emerging growth company as of the following December 31. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant items subject to estimates and assumptions include the carrying amount and useful lives of property and equipment and intangible assets, impairment assessments, share-based compensation expense, and valuation allowances for accounts receivable, inventories, and deferred tax assets. Revenue Recognition We are a drilling and completion tool technology company and we generate revenue from the refurbishment, manufacturing, repair, and sale of drill string tools. Our manufactured products are produced in a standard manufacturing operation, even when produced to our customer’s specifications. We also earn royalty fees under certain arrangements for the tools we sell. In May 2016, the Company entered into an agreement with DTI to be our exclusive distributor of the Drill-N-Ream tool in the United States and Canada. This agreement began the change of direction of our business from renting tools to selling tools. Tool sales, rentals and other related revenue Tool and Product Sales Tool Rental Other Related Revenue: Contract Services Drill Bit Manufacturing and Refurbishment Cash and cash equivalents Cash and cash equivalents consist of cash on deposit. We maintain cash deposits with financial institutions that may exceed federally insured limits at times. We have chosen credible institutions and believe our risk of loss is negligible. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, receivables, payables, and bank debt. The Company believes that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are generally due within 60 days of the invoice date. No interest is charged on past-due balances. We grant credit to our customers based upon an evaluation of each customer’s financial condition. We periodically monitor the payment history and ongoing creditworthiness of our customers. An allowance for doubtful accounts is established at a level estimated by management to be adequate based upon various factors including historical experience, aging status of customer accounts, payment history and financial condition of our customers. The allowance for doubtful accounts was $18,450 and $9,000 as of December 31, 2017, and 2016, respectively. Inventories Inventories consist of raw materials, work-in-process and finished goods and are stated at the lower of cost, determined using the weighted-average cost method, or net realizable value. Finished goods inventories include raw materials, direct labor and production overhead. The Company regularly reviews inventories on hand and current market conditions to determine if the cost of finished goods inventories exceed current market prices and impairs the cost basis of the inventory accordingly. Property, Plant and Equipment Property, plant and equipment is stated at cost. The cost of ordinary maintenance and repair is charged to operating expense, while replacement of critical components and major improvements are capitalized. Depreciation or amortization of property and equipment, including assets held under capital leases, is calculated using the straight-line method over the asset’s estimated useful life as follows: Buildings and leasehold Improvements 2-39 years Machinery, equipment and rental tools 18 months -10 years Furniture and fixtures 7 years Transportation equipment 5 - 30 years Computer equipment and software 3-5 years Property, plant and equipment is reviewed for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value of an asset or asset group may not be recoverable. Indicative events or circumstances include, but are not limited to, matters such as a significant decline in market value or a significant change in business climate. An impairment loss is recognized when the carrying value of an asset exceeds the estimated undiscounted future cash flows from the use of the asset and its eventual disposition. The amount of impairment loss recognized is the excess of the asset’s carrying value over its fair value. Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost to sell. Upon sale or other disposition of an asset, the Company recognizes a gain or loss on disposal measured as the difference between the net carrying value of the asset and the net proceeds received. Intangible Assets The Company’s intangible assets with finite lives consist of developed technology, customer contracts and relationships, and trade names and trademarks. The cost of intangible assets with finite lives is amortized using the straight-line method over the estimated period of economic benefit, ranging from 3 to 17 years. Asset lives are adjusted whenever there is a change in the estimated period of economic benefit. No residual value has been assigned to these intangible assets. Intangible assets with finite lives are tested for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. These conditions may include a change in the extent or manner in which the asset is being used or a change in future operations. The Company assesses the recoverability of the carrying amount by preparing estimates of future revenue, margins, and cash flows. If the sum of expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, an impairment loss is recognized. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. Fair value of these assets may be determined by a variety of methodologies, including discounted cash flow models. Research and Development We expense research and development costs as they are incurred. For the years ended December 31, 2017 and 2016, these expenses were approximately $746,000 and $1,200,000, respectively, and are included in the selling, general, and administrative expenses in the statement of operations. Earnings (Loss) Per Share Basic earnings (loss) per common share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding, including potentially dilutive common share equivalents, if the effect is dilutive. Potentially dilutive common shares equivalents include stock options and warrants. Approximately 250,000 warrants and 144,000 options to purchase our common stock were excluded from this calculation because they were antidilutive for the year ended December 31, 2017. 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. Deferred tax assets are reviewed periodically for recoverability and a valuation allowance is provided as necessary. Debt Issuance Costs Costs related to debt issuance are capitalized and amortized as interest expense over the term of the related debt using the straight-line method, which approximates the effective interest method. Upon the repayment of debt, the Company accelerates the recognition of an appropriate amount of the costs as interest expense. Debt issuance costs related to the Hard Rock Note are presented as a direct reduction from the carrying amount of the note payable. As of December 31, 2017 and 2016, the debt issuance costs were $77,641 and $153,503, respectively. Share Based Compensation Share based compensation expense for share based payments, related to stock option and restricted stock awards, is recognized based on their grant-date fair values. The Company recognizes compensation expense, net of estimated forfeitures, on a straight-line basis over the requisite service period of the award. Estimated forfeitures are based on historical experience. Concentrations and Credit Risk The Company has two significant customers that represented 97% and 63% of our revenue for the years ended December 31, 2017 and 2016, respectively. These customers had approximately $2,523,000 and $650,000 in accounts receivable at December 31, 2017 and 2016, respectively. Assets and Liabilities Held for Sale The Company classifies disposal groups as held for sale in the period in which all of the following criteria are met: (1) management, having the authority to approve the action, commits to a plan to sell the disposal group; (2) the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups; (3) an active program to locate a buyer or buyers and other actions required to complete the plan to sell the disposal group have been initiated; (4) the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale, within one year, except if events of circumstances beyond the Company’s control extend the period of time required to sell the disposal group beyond one year; (5) the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. See Note 10 – Related Party Transactions. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (the “FASB”) issued an accounting standards update for “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in “Topic 605, Revenue Recognition.” This accounting standard update provides new guidance concerning recognition and measurement of revenue and requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers. This new guidance permits adoption through the use of either a full retrospective approach or a modified retrospective approach for annual reporting periods beginning on or after December 15, 2016, with early adoption not permitted. In August 2015, FASB delayed the effective date one year, and is effective for the Company’s fiscal year beginning January 1, 2019. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosure and will adopt this standard on January 1, 2019. In February 2016, the FASB issued ASU No. 2016-02, “ Leases In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting’’, which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. We adopted this guidance in the first quarter of 2018 and we do not expect the adoption of this standard will have a material impact on our consolidated financial statements. In 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory” which requires an entity to measure in scope inventory at the lower of cost and net realizable value. We adopted this guidance in the first quarter of 2018 and we do not expect the adoption of this standard will have a material impact on our consolidated financial statements.

Liquidity

Liquidity	12 Months Ended
	Dec. 31, 2017
Liquidity
Liquidity	NOTE 2. LIQUIDITY At December 31, 2017, we had a working capital deficit of approximately $1,300,000. The Company’s manufacturing facility is financed by a commercial bank loan with a lump sum principal payment of approximately $4,200,000 due at the maturity date on August 15, 2018 (see Note 8 – Long-Term Debt). The classification of this debt from long-term to short-term resulted in a working capital deficit at December 31, 2017. The Company plans to work with its lender to refinance its commercial bank mortgage loan in the first half of 2018. If we are unable to refinance our commercial bank loan that is collateralized by our property we may disrupt our overall business operations and our ability to generate revenue and 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. We cannot provide any assurance that financing will be available to us in the future on acceptable terms. See Note 8 – Long-Term Debt.

Public Offering

Public Offering	12 Months Ended
	Dec. 31, 2017
Public Offering
Public Offering	NOTE 3. PUBLIC OFFERING On September 30, 2016, we sold 5.75 million shares in a follow-on public offering of common stock for $1.00 per share. The transaction closed on October 5, 2016. Net of underwriting and stock offering expenses of approximately $709,000, the net proceeds to the Company were approximately $5.0 million. The Company used the proceeds to repay debt and used the remaining funds from the offering and cash flows from operations to service on going debt obligations, which include real property leases and equipment loans, as well as for general corporate purposes, including growth working capital.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventories	NOTE 4. INVENTORIES Inventories were comprised of the following: December 31, 2017 December 31, 2016 Raw material $ 1,040,795 $ 952,419 Work in progress 77,702 90,017 Finished goods 78,316 125,256 $ 1,196,813 $ 1,167,692 During 2016, 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 tool in the U.S. and Canada. 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 moved tools with a net book value of $225,710 from property, plant and equipment into inventory in 2016. The Company recorded an impairment loss in the cost of sales of $210,745 during the year ended December 31, 2016 relating to the discontinuation of OrBit, a completion drill bit product line that was fully impaired to a net book value of $0. The Company recorded an impairment loss in the cost of sales of $147,801 during the year ended December 31, 2016 relating to several Strider technologies which required several parts of these tools to be replaced. There were no impairment losses recorded by the Company during the year ended December 31, 2017.

Property, Plant and Equipment

Property, Plant and Equipment	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	NOTE 5. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are comprised of the following: December 31, 2017 December 31, 2016 Land $ 880,416 $ 880,416 Buildings 4,847,778 4,847,778 Leasehold improvements 717,232 717,232 Machinery and equipment 8,216,237 5,060,281 Machinery under capital lease - 2,322,340 Furniture and fixtures 507,557 507,554 Transportation assets 811,378 882,163 15,980,598 15,217,764 Accumulated depreciation (7,171,250 ) (6,149,405 ) $ 8,809,348 $ 9,068,359 During the year ended December 31, 2016, we sold transportation assets, which were no longer necessary to our business, and rental tools for proceeds of $415,817 and gain of $76,211. In 2016, the Company recognized an impairment loss in the cost of sales of $211,056 related to the Open Hole Strider tool that had been capitalized as part of fixed assets and inventory. It was determined that the tool design had limited market potential and the Company decided to re-engineer the tool to be offered to a broader market. Depreciation expense related to property, plant and equipment for the year ended December 31, 2017 and 2016 was $1,229,932 and $1,844,582 respectively.

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	NOTE 6. INTANGIBLE ASSETS Intangible assets are comprised of the following: December 31, 2017 December 31, 2016 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 (8,767,222 ) (6,320,556 ) $ 6,132,778 $ 8,579,444 Amortization expense related to intangible assets for the years ended December 31, 2017 and 2016 was $2,446,666 and $2,446,667, respectively. These intangible assets will be amortized over their expected useful lives using the straight-line method, which is a weighted-average amortization period of 6.3 years. As of December 31, 2017, the Company will recognize the following amortization expense for the respective periods ending December 31 noted below: 2018 2,446,667 2019 1,700,000 2020 1,166,667 2021 583,334 Thereafter 236,110 Total $ 6,132,778 During the years ended December 31, 2017 and 2016, there were no impairments recognized related to other intangible assets.

Related Party Note Receivable

Related Party Note Receivable	12 Months Ended
	Dec. 31, 2017
Receivables [Abstract]
Related Party Note Receivable	NOTE 7. RELATED PARTY NOTE RECEIVABLE 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 million, including principal, interest, and early termination fees. As a result of that purchase, we became Tronco’ s senior secured lender, and as a result are entitled to receive all proceeds from sales of the Tronco-owned collateral, as discussed below. The interest rate on the note is 4.5%. We earned interest of $338,204 and $311,979 in the years ending December 31, 2017 and 2016, respectively. On March 28, 2017, the Company and Tronco finalized an agreement with a third party and pursuant to this agreement, the third party acquired all of the Ohio assets of Tronco for $550,000. As Tronco’s senior secured lender, we agreed to release our lien and security interest on these assets in accordance with the agreement. The Company agreed to a non-cash receipt of the $550,000 from Tronco by reducing our bonus accrual liabilities, which was earned by the Meiers in 2014, but not paid, and was recorded in other long-term liability. As a result of this agreement, we reduced both the other long-term liability and the Tronco related party note receivable during the first quarter of 2017. On August 8, 2017, the Board of Directors agreed to extend the terms of the Tronco loan to interest only payments due December 31, 2017, 2018, 2019, 2020, and 2021, with a balloon payment of all unpaid interest and principal due upon full maturity on December 31, 2022. On December 4, 2017, as part of the annual awards made to employees of the Company, the Board of Directors approved grants of restricted stock units to Troy and Annette Meier with an approximate value of $587,500. The Board and the Meiers decided in lieu of making such awards, the dollar value of such awards would be used to pay the annual interest on the Tronco note of $34,992, and the principal on the Tronco note of $379,507 in 2017. The remainder of approximately $173,000 were remitted for taxes on the Meiers behalf. See Note 12 – Share-Based Compensation. 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”), as collateral for the Meiers guaranties until full repayment of Tronco loan. The pledged shares, which are subject to insider timing requirements and volume limitations under Rule 144 of the Securities Act and required periodic black-out periods, are being held in third-party escrow until full repayment of the Tronco loan. The Company holds 8,267,860 shares and 530,725 restricted stock units as collateral for the Tronco note as of December 31, 2017.

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Long-Term Debt	NOTE 8. LONG-TERM DEBT Long-term debt is comprised of the following: December 31, 2017 December 31, 2016 Real estate loans $ 4,518,424 $ 7,264,036 Hard Rock Note, net of discount 7,422,912 7,846,497 Machinery loans 513,317 684,921 Transportation loans 353,400 398,929 12,808,053 16,194,383 Current portion of long-term debt (6,101,678 ) (2,905,682 ) $ 6,706,375 $ 13,288,701 Real Estate Loans Our manufacturing facility was financed by a commercial bank loan requiring monthly payments of approximately $39,000, including principal and interest at 5.25%. A lump sum principal payment of approximately $4,200,000 is due at the maturity date of this loan on August 15, 2018. In February 2017, the Company sold real estate to Superior Auto Body (“SAB”), a related party, for the net proceeds of $2.5 million. The cash received from the sale was used to pay down the $2.5 million loan balance on the property. As part of the sale, the Company released 541,000 shares of the Meiers common stock from the collateral for the Tronco note (see Note 10 – Related Party Transactions). Hard Rock Note In 2014, the Company purchased all of the interests of Hard Rock. Consideration consisted of $12.5 million paid in cash at closing and a $12.5 million seller’s note (the “Hard Rock Note”). The Hard Rock Note and subsequent amendments are secured by the patents, patents pending, other patent rights, and trademarks transferred to Hard Rock by Hard Rock in the closing of the acquisition. At issuance, the fair value of the Hard Rock Note was determined to be $11,144,000, which was less than the face value due to a below-market interest rate. The resulting discount of $1,356,000 is amortized to interest expense using the effective interest method, totaling approximately $76,000 and $108,000 during 2017 and 2016, respectively. On August 10, 2016, certain of our subsidiaries entered into an amended and restated note with the seller in our acquisition of Hard Rock Solutions, LLC. As amended and restated, the Hard Rock Note accrues interest at 5.75% per annum and matures on January 15, 2020. In 2016, we paid interest of $769,582 and a principal payment of $2,000,000, of which $1,000,000 was paid with 700,000 restricted shares of common stock on August 10, 2016 (having an agreed per share value of $1.43). During the year ending December 31, 2017, we paid interest of $515,452 and made an advanced principal payment of $500,000. Subsequent to year end, we made the accrued interest payments related to the note on January 15, 2018 of $70,890 and made a $500,000 principal payment. The following remaining payments are required under the current terms of the Hard Rock note: in 2018, $500,000 in principal plus accrued interest on each of May 15 and July 15, 2018 and in 2019, $1,000,000 in principal plus accrued interest on each of January 15, March 15, May 15 and July 15, 2019. The remaining balance of principal of $2,000,000 and accrued interest on the Hard Rock Note are due on January 15, 2020. Bridge Financing On August 8, 2016, we entered into a private transaction with a private investor pursuant to which we issued a promissory note in the aggregate principal amounts of $1,000,000 and a warrant to purchase up to an aggregate of 250,000 shares of our common stock, subject to certain adjustments to the number of shares and the exercise price described in the warrants. These warrants were valued at $112,024, based on using the Black Scholes model and were recorded as a liability and treated as derivatives. The variable inputs used in the Black Scholes calculation were; expected volatility of 95%, discount rate of 0.72% and the term of the warrants of 5 years. Once the indebtedness was paid off on October 5, 2016, and the final number of shares were known, the liability was removed and the warrants were included in equity. Transportation Loans Vehicles Our loans for Company vehicles and other transportation are with various financing parties we have engaged with in connection with the acquisition of the vehicles. As of December 31, 2017, the loans bear interest ranging from 0%-8.29% with maturity dates ranging from December 2018 through October 2021, and are collateralized by the vehicles. Our cumulative monthly payment under these loans as of December 31, 2017 was approximately $3,200, including principal and interest. Airplane Loan Our loan for the Company airplane bears interest at 7.35%, requires monthly payments of principal and interest of approximately $3,500, matures in May of 2026 and is collateralized by the airplane. Future annual maturities of total debt are as follows (1) : Year 2018 $ 6,742,484 2019 4,496,556 2020 2,232,023 2021 87,321 2022 63,451 Thereafter 145,041 Total debt $ 13,766,876 (1) Excludes discounts for debt issuance costs.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 9. 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: 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 in the Eighth Judicial District Court, Uintah County, Utah Cause #130800125 (the “Suit”). On May 11, 2017, pursuant to a mediation proceeding, all of the plaintiffs and remaining defendants in the Suit executed a Settlement Agreement whereby each of the parties have released all of their claims against the other parties to the Suit without liability effective as of March 22, 2017. Such release includes the Company’s two subsidiaries that were a party to the Suit, SDS and MPS, as well as Troy and Annette Meier personally and all of their family trusts named as defendants in the Suit. As a result of the execution of the Settlement Agreement, a Stipulated Motion for Dismissal with Prejudice was filed with the Court which includes a form of Order of Dismissal with Prejudice (the “Court Order”). On May 15, 2017, the Court Order was executed by the judge and the Suit was formally dismissed with prejudice.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 10. RELATED PARTY TRANSACTIONS Notes Payable In 2014, the Company issued notes payable to related parties in the amount of $2 million. The notes bear interest at 7.5% and were scheduled to mature on January 2, 2017. The Company did not pay these notes upon maturity as the Company and the related parties informally agreed to offset these notes payable with the related-party note receivable. During the year, the Company made principal payments and interest payments of $80,000 related to the notes payable. Additionally, the Company applied $207,942 in principal and interest due to the Company on the related party note receivable (see Note 6 – Related Party Note Receivable) during the year ended December 31, 2017 and reduced the balance to $0 as of December 31, 2017. Superior Auto Body On January 1, 2016, the Company completed the divestiture of our interest in Superior Auto Body and Paint, LLC, by selling the remaining ownership interests in the business operations to a third party. The Company received $101,400 in proceeds. The Company leased certain of its facilities to Superior Auto Body (“SAB”). We recorded rental income from the related party in the amounts of $199,902 for the years ended December 31, 2016 and 2015. As discussed below, in 2017, we sold the facilities that had been leased to SAB and accordingly, we will no longer receive this rental income. In 2016, the Company recognized an impairment loss of $840,380 related to SAB. This loss was recorded in 2016 and the asset was classified as held for sale. In February 2017, the Company sold real estate to SAB for the net proceeds of $2.5 million. The cash received from the sale was used to pay down the $2.5 million loan balance on the property. As part of the sale, the Company released 547,000 shares of the Meiers common stock from the collateral for the Tronco Note. Prior to the sale, the Company held 8,814,860 common stock shares as collateral for the Tronco Note. After the sale in 2017, the Company holds 8,267,860 shares as collateral for the Tronco Note (see Note 7 – Related Party Note Receivable).

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 11. INCOME TAXES Components of income tax benefit are as follows: Current income taxes: For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Federal $ - $ - State - (2,000 ) Current provision for income taxes (2,000 ) Deferred provision (benefit) for income taxes: Federal - - State - - Deferred provision (benefit) for income taxes - - Provision for income taxes $ $ (2,000 ) The non-current deferred tax assets and liabilities consist of the following: Deferred tax assets: 263A adjustment $ 14,326 $ 21,595 Accrued expenses - 305,024 Stock compensation 48,489 55,624 Stock option 44,922 60,970 Amortization of intangibles 2,796,867 3,791,944 Net operating loss 2,999,467 4,263,351 Others 12,660 11,887 Total non-current deferred tax assets 5,916,731 8,510,395 Deferred tax liabilities: Prepaid expenses (23,301 ) (24,908 ) Depreciation on fixed assets (853,089 ) (1,008,413 ) Total non-current deferred tax liabilities (876,390 ) (1,033,321 ) Net non-current deferred tax assets/liabilities 5,040,341 7,477,074 Less: Valuation Allowance (5,040,341 ) (7,477,074 ) Total deferred tax liabilities $ - $ - Reconciliation of the tax rate to the U.S. federal statutory tax rate which relate to the year ended December 31, 2017 and 2016 is as follows: For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Tax at federal statutory rate $ (80,922 ) $ (3,104,489 ) State income taxes - (1,320 ) Permanent differences 118,253 196,479 Change in valuation allowance (2,436,734) 3,191,794 Other - State rate effect (9,578 ) (272,768 ) Change in status 2,408,980 14,216 Other - (25,912 ) Provision for income taxes $ - $ (2,000 ) On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the 2017 Tax Cuts and Jobs Act (“2017 Tax Reform”). The 2017 Tax Reform significantly revises the future ongoing U.S. corporate income tax by, among other things, lowering U. S. corporate income tax rates and implementing a territorial tax system. We have reasonably estimated the effects of the 2017 Tax Reform and recorded provisional amounts in our financial statements as of December 31, 2017. This amount is primarily comprised of the re-measurement of federal net deferred tax liabilities resulting from the permanent reduction in the U.S. statutory corporate tax rate to 21% from 35%. We also recorded a corresponding decrease in our valuation allowance for the impact of the 2017 Tax Reform of approximately $5.040 million, with minimal to no effect of our current statement of operations. We will continue to monitor additional guidance issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies, so we may make adjustments to the provisional amounts (if any). However, management’s opinion is that future adjustments due to the 2017 Tax Reform should not have a material impact on the company’s provision for income taxes.

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	NOTE 12. SHARE-BASED COMPENSATION In 2014, the Company’ s Board of Directors approved that the Directors stock compensation would be included in the Employee Stock Incentive Plan (“Stock Plan”) that reserves 1,724,128 shares of common stock for issuance. Equity and equity-based compensation plans are intended to make available incentives that will assist us in attracting, retaining, and motivating employees, officers, consultants, and directors by allowing them to acquire an ownership interest in our business, and, as a result, encouraging them to contribute to our success. We may provide these incentives through the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and units, and other cash-based or stock-based awards. As a result, we expect to incur non-cash, stock-based compensation expenses in future periods. The Board of Directors has frozen the 2014 Incentive Plan, such that no future grants of awards will be made and the 2014 Incentive Plan shall only remain in effect with respect to awards under that Plan outstanding as of June 15, 2015 until they expire according to their terms. In 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. In 2017, the Company’s board of directors approved an additional 1,440,000 shares of the Company’s common stock to be added to the 2015 Incentive Plan. 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 2,992,905. As of December 31, 2017, there were 1,264,613 shares outstanding with respect to awards granted under the Company’s 2015 Incentive Plan. Restricted stock units - On December 4, 2017, the Board of Directors granted 267,443 restricted stock units from the Company’s 2015 incentive plan to executive management and directors based on the closing price of the Company’s common stock on the date of the grant. These restricted units will vest over a three - year period. During 2017, the Board of Directors granted 15,135 restricted stock units from the Company’s 2015 incentive plan to a contractor based on the closing price of the Company’s common stock on the date of the grant. These restricted units will vest over a three - year period. On December 4, 2017, the Board of Directors approved grants of restricted stock units to Troy and Annette Meier with an approximate value of $587,500. The Board and the Meiers decided in lieu of making such awards, the dollar value of such awards would be used to pay interest and principal on the Tronco Note (see Note 7-Related Party Note Receivable ). Compensation expense recognized for grants vesting under the 2014 Incentive Plan was approximately $142,000 and $233,000 for the years ending December 31, 2017 and 2016, respectively. Compensation expense recognized for grants of restricted stock vesting under the 2015 Incentive Plan was approximately $456,000 and $406,000 for the years ending December 31, 2017 and 2016, respectively. The Company recognized compensation expense and recorded it as share-based compensation in the consolidated statement of operations. Total unrecognized compensation expense related to unvested restricted stock units expected to be recognized over the remaining weighted vesting period of 2.56 years equaled approximately $534,000 at December 31, 2017. These shares vest over three years. The following table summarizes RSU activity for the years ended December 31, 2017 and 2016: 2017 2016 Number of Restricted Stock Units Weighted - Average Grant Date Fair Value Number of Restricted Stock Units Weighted - Average Grant Date Fair Value Unvested RSU’ s at beginning of period 702,608 $ 1.31 407,493 $ 2.48 Granted 282,578 1.27 600,000 0.97 Forfeited - - (17,342 ) 1.62 Vested (337,991 ) 1.64 (287,543 ) 2.22 Unvested RSU’ s at end of period 647,195 $ 1.12 702,608 $ 1.31 Stock Options - On March 18, 2016, the Board of Directors granted options to acquire 81,714 shares of stock from the Company’ s 2015 Incentive Plan to officers and employees based on the closing price of the Company’ s common stock on the date of the grant, which was $1.67. These options vested 100% on the grant date and have a ten-year term expiring on March 18, 2026. The fair value of the vested stock options was calculated using the Black-Scholes model with a volatility and discount rate over the expected term of each employee. On March 31, 2016, the Board of Directors granted options to acquire 148,475 shares of stock from the Company’ s 2015 Incentive Plan to directors, officers and employees based on the closing price of the Company’ s common stock on the date of the grant, which was $1.37. These options vested 100% on the grant date and have a ten-year term expiring on March 31, 2026. The fair value of the vested stock options was calculated using the Black-Scholes model with a volatility and discount rate over the expected term of each employee. 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. On December 5, 2016, the Board of Directors granted 5,000 stock options from the Company’ s 2015 Incentive Plan to officers and employees based on the closing price of the Company’ s common stock on the date of the grant, which was $1.20. These options vested 33% on the first anniversary of the grant date, 33% on the second anniversary of the grant date and 34% on third anniversary of the grant date. On December 22, 2016, the Board of Directors granted 54,200 stock options from the Company’ s 2015 Incentive Plan to officers and employees based on the closing price of the Company’ s common stock on the date of the grant, which was $1.11. These options vested 33% on the first anniversary of the grant date, 33% on the second anniversary of the grant date and 34% on the third anniversary of the grant date. On December 1, 2017, the Board of Directors granted 67,500 stock options from the Company’s 2015 Incentive plan to officers and employees based on the Company’s common stock on the date of grant, which was $1.30. These options vest 33% on the first anniversary of the grant date, 33% on the second anniversary of the grant date, and 34% on the third anniversary of the grant date. Compensation expense recognized for option grants vesting under the 2015 Incentive Plan was approximately $15,000 and $145,000 for the years ending December 31, 2017 and 2016. The Company recognized compensation expense and recorded it as share-based compensation in the consolidated condensed statement of operations. The following table summarizes stock options outstanding and changes during the years ended December 31, 2017 and 2016: 2017 2016 Number of Stock Options Weighted - Average Exercise Price Number of Stock Options Weighted - Average Exercise Price Stock options outstanding at beginning of period 425,000 $ 1.52 86,500 $ 1.85 Granted 67,500 1.30 368,333 1.47 Exercised - - - - Expired (6,701 ) 1.44 (10,325 ) 1.85 Canceled or forfeited (26,972 ) 1.28 (19,508 ) 1.85 Stock options outstanding at end of period 458,827 1.50 425,000 $ 1.52 Stock options exercised at end of period - $ - - $ - The fair value of stock options granted to employees and directors in 2017 was estimated at the grant date using the Black-Scholes option pricing model using the following assumptions: Expected volatility 59 % Discount rate 1.90 % Expected life (years) 3 Dividend yield N/A Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Expected price volatility is based on the historical volatility of our common stock. Changes in the subjective input assumptions can materially affect the fair value estimate. The expected term of the options granted is derived from the output of the option pricing model and represents the period of time that the options granted are expected to be outstanding. The discount rate for the periods within the contractual term of the option is based on the U.S. Treasury yield curve in effect at the date of grant.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Organization and Nature of Operations	Organization and Nature of Operations Superior Drilling Products, Inc. (the “Company”, “SDPI”, “we”, “our” or “us”) is a drilling and completion tool technology company providing solutions for the oil and natural gas drilling industry. The Company, designs, engineers, manufactures, sells, and repairs drilling and completion tools. Our subsidiaries include (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) HR.
Basis of Presentation	Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of Superior Drilling Products Inc. and all of its wholly-owned subsidiaries. All significant intercompany accounts have been eliminated in consolidation. The Company does not have investments in any unconsolidated subsidiaries. In April 2012, the JOBS Act was enacted. Section 107 of the JOBS Act provides that an emerging growth company can utilize the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for implementing new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to nonissuers. We have elected to delay such adoption of new or revised accounting standards, and as a result, we may not implement new or revised accounting standards on the relevant dates on which adoption of such standards is required for other issuer companies. Subject to certain conditions set forth in the JOBS Act, as an emerging growth company, we intend to rely on certain of these exemptions, including without limitation, providing an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404 and implementing any requirement that may be adopted regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (auditor discussion and analysis). These exemptions will apply for a period of five years following the completion of our IPO, which occurred in May 2014, although if the market value of our common stock that is held by nonaffiliates exceeds $700 million as of any June 30 before that time, we would cease to be an emerging growth company as of the following December 31.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant items subject to estimates and assumptions include the carrying amount and useful lives of property and equipment and intangible assets, impairment assessments, share-based compensation expense, and valuation allowances for accounts receivable, inventories, and deferred tax assets.
Revenue Recognition	Revenue Recognition We are a drilling and completion tool technology company and we generate revenue from the refurbishment, manufacturing, repair, and sale of drill string tools. Our manufactured products are produced in a standard manufacturing operation, even when produced to our customer’s specifications. We also earn royalty fees under certain arrangements for the tools we sell. In May 2016, the Company entered into an agreement with DTI to be our exclusive distributor of the Drill-N-Ream tool in the United States and Canada. This agreement began the change of direction of our business from renting tools to selling tools. Tool sales, rentals and other related revenue Tool and Product Sales Tool Rental Other Related Revenue: Contract Services Drill Bit Manufacturing and Refurbishment
Cash and Cash Equivalents	Cash and cash equivalents Cash and cash equivalents consist of cash on deposit. We maintain cash deposits with financial institutions that may exceed federally insured limits at times. We have chosen credible institutions and believe our risk of loss is negligible.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, receivables, payables, and bank debt. The Company believes that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are generally due within 60 days of the invoice date. No interest is charged on past-due balances. We grant credit to our customers based upon an evaluation of each customer’s financial condition. We periodically monitor the payment history and ongoing creditworthiness of our customers. An allowance for doubtful accounts is established at a level estimated by management to be adequate based upon various factors including historical experience, aging status of customer accounts, payment history and financial condition of our customers. The allowance for doubtful accounts was $18,450 and $9,000 as of December 31, 2017, and 2016, respectively.
Inventories	Inventories Inventories consist of raw materials, work-in-process and finished goods and are stated at the lower of cost, determined using the weighted-average cost method, or net realizable value. Finished goods inventories include raw materials, direct labor and production overhead. The Company regularly reviews inventories on hand and current market conditions to determine if the cost of finished goods inventories exceed current market prices and impairs the cost basis of the inventory accordingly.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment is stated at cost. The cost of ordinary maintenance and repair is charged to operating expense, while replacement of critical components and major improvements are capitalized. Depreciation or amortization of property and equipment, including assets held under capital leases, is calculated using the straight-line method over the asset’s estimated useful life as follows: Buildings and leasehold Improvements 2-39 years Machinery, equipment and rental tools 18 months -10 years Furniture and fixtures 7 years Transportation equipment 5 - 30 years Computer equipment and software 3-5 years Property, plant and equipment is reviewed for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value of an asset or asset group may not be recoverable. Indicative events or circumstances include, but are not limited to, matters such as a significant decline in market value or a significant change in business climate. An impairment loss is recognized when the carrying value of an asset exceeds the estimated undiscounted future cash flows from the use of the asset and its eventual disposition. The amount of impairment loss recognized is the excess of the asset’s carrying value over its fair value. Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost to sell. Upon sale or other disposition of an asset, the Company recognizes a gain or loss on disposal measured as the difference between the net carrying value of the asset and the net proceeds received.
Intangible Assets	Intangible Assets The Company’s intangible assets with finite lives consist of developed technology, customer contracts and relationships, and trade names and trademarks. The cost of intangible assets with finite lives is amortized using the straight-line method over the estimated period of economic benefit, ranging from 3 to 17 years. Asset lives are adjusted whenever there is a change in the estimated period of economic benefit. No residual value has been assigned to these intangible assets. Intangible assets with finite lives are tested for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. These conditions may include a change in the extent or manner in which the asset is being used or a change in future operations. The Company assesses the recoverability of the carrying amount by preparing estimates of future revenue, margins, and cash flows. If the sum of expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, an impairment loss is recognized. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. Fair value of these assets may be determined by a variety of methodologies, including discounted cash flow models.
Research and Development	Research and Development We expense research and development costs as they are incurred. For the years ended December 31, 2017 and 2016, these expenses were approximately $746,000 and $1,200,000, respectively, and are included in the selling, general, and administrative expenses in the statement of operations.
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic earnings (loss) per common share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding, including potentially dilutive common share equivalents, if the effect is dilutive. Potentially dilutive common shares equivalents include stock options and warrants. Approximately 250,000 warrants and 144,000 options to purchase our common stock were excluded from this calculation because they were antidilutive for the year ended December 31, 2017.
Income Taxes	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. Deferred tax assets are reviewed periodically for recoverability and a valuation allowance is provided as necessary.
Debt Issuance Costs	Debt Issuance Costs Costs related to debt issuance are capitalized and amortized as interest expense over the term of the related debt using the straight-line method, which approximates the effective interest method. Upon the repayment of debt, the Company accelerates the recognition of an appropriate amount of the costs as interest expense. Debt issuance costs related to the Hard Rock Note are presented as a direct reduction from the carrying amount of the note payable. As of December 31, 2017 and 2016, the debt issuance costs were $77,641 and $153,503, respectively.
Share Based Compensation	Share Based Compensation Share based compensation expense for share based payments, related to stock option and restricted stock awards, is recognized based on their grant-date fair values. The Company recognizes compensation expense, net of estimated forfeitures, on a straight-line basis over the requisite service period of the award. Estimated forfeitures are based on historical experience.
Concentrations and Credit Risk	Concentrations and Credit Risk The Company has two significant customers that represented 97% and 63% of our revenue for the years ended December 31, 2017 and 2016, respectively. These customers had approximately $2,523,000 and $650,000 in accounts receivable at December 31, 2017 and 2016, respectively.
Assets and Liabilities Held for Sale	Assets and Liabilities Held for Sale The Company classifies disposal groups as held for sale in the period in which all of the following criteria are met: (1) management, having the authority to approve the action, commits to a plan to sell the disposal group; (2) the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups; (3) an active program to locate a buyer or buyers and other actions required to complete the plan to sell the disposal group have been initiated; (4) the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale, within one year, except if events of circumstances beyond the Company’s control extend the period of time required to sell the disposal group beyond one year; (5) the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. See Note 10 – Related Party Transactions.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (the “FASB”) issued an accounting standards update for “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in “Topic 605, Revenue Recognition.” This accounting standard update provides new guidance concerning recognition and measurement of revenue and requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers. This new guidance permits adoption through the use of either a full retrospective approach or a modified retrospective approach for annual reporting periods beginning on or after December 15, 2016, with early adoption not permitted. In August 2015, FASB delayed the effective date one year, and is effective for the Company’s fiscal year beginning January 1, 2019. The Company is currently evaluating the impact the pronouncement will have on the consolidated financial statements and related disclosure and will adopt this standard on January 1, 2019. In February 2016, the FASB issued ASU No. 2016-02, “ Leases In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting’’, which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. We adopted this guidance in the first quarter of 2018 and we do not expect the adoption of this standard will have a material impact on our consolidated financial statements. In 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory” which requires an entity to measure in scope inventory at the lower of cost and net realizable value. We adopted this guidance in the first quarter of 2018 and we do not expect the adoption of this standard will have a material impact on our consolidated financial statements.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Schedule of Property and Equipment Useful Life	Depreciation or amortization of property and equipment, including assets held under capital leases, is calculated using the straight-line method over the asset’s estimated useful life as follows: Buildings and leasehold Improvements 2-39 years Machinery, equipment and rental tools 18 months -10 years Furniture and fixtures 7 years Transportation equipment 5 - 30 years Computer equipment and software 3-5 years

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories were comprised of the following: December 31, 2017 December 31, 2016 Raw material $ 1,040,795 $ 952,419 Work in progress 77,702 90,017 Finished goods 78,316 125,256

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property, plant and equipment are comprised of the following: December 31, 2017 December 31, 2016 Land $ 880,416 $ 880,416 Buildings 4,847,778 4,847,778 Leasehold improvements 717,232 717,232 Machinery and equipment 8,216,237 5,060,281 Machinery under capital lease - 2,322,340 Furniture and fixtures 507,557 507,554 Transportation assets 811,378 882,163 15,980,598 15,217,764 Accumulated depreciation (7,171,250 ) (6,149,405 ) $ 8,809,348 $ 9,068,359

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets are comprised of the following: December 31, 2017 December 31, 2016 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 (8,767,222 ) (6,320,556 ) $ 6,132,778 $ 8,579,444
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	As of December 31, 2017, the Company will recognize the following amortization expense for the respective periods ending December 31 noted below: 2018 2,446,667 2019 1,700,000 2020 1,166,667 2021 583,334 Thereafter 236,110 Total $ 6,132,778

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Schedule of Long-Term Debt Instruments	Long-term debt is comprised of the following: December 31, 2017 December 31, 2016 Real estate loans $ 4,518,424 $ 7,264,036 Hard Rock Note, net of discount 7,422,912 7,846,497 Machinery loans 513,317 684,921 Transportation loans 353,400 398,929 12,808,053 16,194,383 Current portion of long-term debt (6,101,678 ) (2,905,682 ) $ 6,706,375 $ 13,288,701
Schedule of Future Annual Maturities of Long-Term Debt	Future annual maturities of total debt are as follows (1) : Year 2018 $ 6,742,484 2019 4,496,556 2020 2,232,023 2021 87,321 2022 63,451 Thereafter 145,041 Total debt $ 13,766,876

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	Components of income tax benefit are as follows: Current income taxes: For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Federal $ - $ - State - (2,000 ) Current provision for income taxes (2,000 ) Deferred provision (benefit) for income taxes: Federal - - State - - Deferred provision (benefit) for income taxes - - Provision for income taxes $ $ (2,000 )
Schedule of Deferred Tax Assets and Liabilities	The non-current deferred tax assets and liabilities consist of the following: Deferred tax assets: 263A adjustment $ 14,326 $ 21,595 Accrued expenses - 305,024 Stock compensation 48,489 55,624 Stock option 44,922 60,970 Amortization of intangibles 2,796,867 3,791,944 Net operating loss 2,999,467 4,263,351 Others 12,660 11,887 Total non-current deferred tax assets 5,916,731 8,510,395 Deferred tax liabilities: Prepaid expenses (23,301 ) (24,908 ) Depreciation on fixed assets (853,089 ) (1,008,413 ) Total non-current deferred tax liabilities (876,390 ) (1,033,321 ) Net non-current deferred tax assets/liabilities 5,040,341 7,477,074 Less: Valuation Allowance (5,040,341 ) (7,477,074 ) Total deferred tax liabilities $ - $ -
Schedule of Effective Income Tax Rate Reconciliation	Reconciliation of the tax rate to the U.S. federal statutory tax rate which relate to the year ended December 31, 2017 and 2016 is as follows: For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Tax at federal statutory rate $ (80,922 ) $ (3,104,489 ) State income taxes - (1,320 ) Permanent differences 118,253 196,479 Change in valuation allowance (2,436,734) 3,191,794 Other - State rate effect (9,578 ) (272,768 ) Change in status 2,408,980 14,216 Other - (25,912 ) Provision for income taxes $ - $ (2,000 )

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-Based Compensation, Restricted Stock Units Award Activity	The following table summarizes RSU activity for the years ended December 31, 2017 and 2016: 2017 2016 Number of Restricted Stock Units Weighted - Average Grant Date Fair Value Number of Restricted Stock Units Weighted - Average Grant Date Fair Value Unvested RSU’ s at beginning of period 702,608 $ 1.31 407,493 $ 2.48 Granted 282,578 1.27 600,000 0.97 Forfeited - - (17,342 ) 1.62 Vested (337,991 ) 1.64 (287,543 ) 2.22 Unvested RSU’ s at end of period 647,195 $ 1.12 702,608 $ 1.31
Schedule of Share-Based Compensation, Stock Options, Activity	The following table summarizes stock options outstanding and changes during the years ended December 31, 2017 and 2016: 2017 2016 Number of Stock Options Weighted - Average Exercise Price Number of Stock Options Weighted - Average Exercise Price Stock options outstanding at beginning of period 425,000 $ 1.52 86,500 $ 1.85 Granted 67,500 1.30 368,333 1.47 Exercised - - - - Expired (6,701 ) 1.44 (10,325 ) 1.85 Canceled or forfeited (26,972 ) 1.28 (19,508 ) 1.85 Stock options outstanding at end of period 458,827 1.50 425,000 $ 1.52 Stock options exercised at end of period - $ - - $ -
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions	The fair value of stock options granted to employees and directors in 2017 was estimated at the grant date using the Black-Scholes option pricing model using the following assumptions: Expected volatility 59 % Discount rate 1.90 % Expected life (years) 3 Dividend yield N/A

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Allowance for doubtful accounts	$ 18,450	$ 9,000
Research and development expense	$ 746,000	1,200,000
Warrant to purchase of common stock	250,000
Options to purchase of common stock	144,000
Debt issuance costs	$ 77,641	$ 153,503
Two Customer [Member] | Sales Revenue, Net [Member]
Concentration risk, percentage	97.00%	63.00%
Accounts receivable	$ 2,523,000	$ 650,000
Maximum [Member]
Finite-lived intangible asset, useful life	17 years
Maximum [Member] | Nonaffiliates [Member]
Market value of common stock	$ 700,000,000
Minimum [Member]
Finite-lived intangible asset, useful life	3 years

Summary of Significant Accoun28

Summary of Significant Accounting Policies - Schedule of Property and Equipment Useful Life (Details)	12 Months Ended
	Dec. 31, 2017
Buildings and Leasehold Improvements [Member] | Minimum [Member]
Property, plant and equipment, useful life	2 years
Buildings and Leasehold Improvements [Member] | Maximum [Member]
Property, plant and equipment, useful life	39 years
Machinery, Equipment and Rental Tools [Member] | Minimum [Member]
Property, plant and equipment, useful life	18 months
Machinery, Equipment and Rental Tools [Member] | Maximum [Member]
Property, plant and equipment, useful life	10 years
Furniture and Fixtures [Member]
Property, plant and equipment, useful life	7 years
Transportation Equipment [Member] | Minimum [Member]
Property, plant and equipment, useful life	5 years
Transportation Equipment [Member] | Maximum [Member]
Property, plant and equipment, useful life	30 years
Computer Equipment and Software [Member] | Minimum [Member]
Property, plant and equipment, useful life	3 years
Computer Equipment and Software [Member] | Maximum [Member]
Property, plant and equipment, useful life	5 years

Liquidity (Details Narrative)

Liquidity (Details Narrative)	12 Months Ended
	Dec. 31, 2017USD ($)
Liquidity
Working capital deficit	$ 1,300,000
Commercial bank loan with principal amount	$ 4,200,000
Debt due date	August 15, 2018

Public Offering (Details Narrat

Public Offering (Details Narrative)	Sep. 30, 2016USD ($)$ / sharesshares
Public Offering
Public offering common stock shares issued | shares	5,750,000
Public offering common stock per share | $ / shares	$ 1
Underwriting and stock offering expenses	$ 709,000
Proceeds from issuance of public offering	$ 5,000,000

Inventories (Details Narrative)

Inventories (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Inventory gross		$ 225,710
Impairment loss
OrBit [Member]
Inventory gross		0
Impairment loss		210,745
Strider Technologies [Member]
Impairment loss		$ 147,801

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw material	$ 1,040,795	$ 952,419
Work in progress	77,702	90,017
Finished goods	78,316	125,256
Inventory, Net	$ 1,196,813	$ 1,167,692

Property, Plant and Equipment33

Property, Plant and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Proceeds from business operations and rental tools		$ 415,817
Gain on business operations and rental tools		76,211
Impairment of property, plant and equipment – held for sale		840,380
Depreciation expense related to PP&E	$ 1,229,932	1,844,582
Open Hole Strider Technology [Member]
Impairment of property, plant and equipment – held for sale		$ 211,056

Property, Plant and Equipment -

Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Land	$ 880,416	$ 880,416
Buildings	4,847,778	4,847,778
Leasehold improvements	717,232	717,232
Machinery and equipment	8,216,237	5,060,281
Machinery under capital lease		2,322,340
Furniture and fixtures	507,557	507,554
Transportation assets	811,378	882,163
Property, Plant and Equipment, Gross	15,980,598	15,217,764
Accumulated depreciation	(7,171,250)	(6,149,405)
Property, Plant and Equipment, Net	$ 8,809,348	$ 9,068,359

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 2,446,666	$ 2,446,667
Finite lived intangible assets weighted average amortization period	6 years 3 months 19 days
Impairment of intangible assets

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross	$ 14,900,000	$ 14,900,000
Accumulated amortization	(8,767,222)	(6,320,556)
Finite-Lived Intangible Assets, Net	6,132,778	8,579,444
Developed Technology [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 - Schedule 37

Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
2,018	$ 2,446,667
2,019	1,700,000
2,020	1,166,667
2,021	583,334
Thereafter	236,110
Finite-Lived Intangible Assets, Net	$ 6,132,778	$ 8,579,444

Related Party Note Receivable (

Related Party Note Receivable (Details Narrative) - USD ($)	Dec. 04, 2017	Aug. 08, 2017	Mar. 28, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2014	May 30, 2014
Notes Receivable				$ 7,367,212	$ 8,296,717
Debt interest rate						7.50%
Interest income				$ 338,204	$ 311,979
Debt instrument maturity date				Jan. 2, 2017
Debt instrument, face amount				$ 4,200,000
Number of collateral shares				8,267,860
Restricted Stock [Member]
Number of collateral shares				530,725
Tronco Energy Corporation [Member]
Notes Receivable							$ 8,300,000
Debt interest rate				4.50%
Assets acquired			$ 550,000
Non cash receipt of accrual liabilities			$ 550,000
Debt instrument maturity date		Dec. 31, 2022		Dec. 31, 2017
Interest payable				$ 34,992
Debt instrument, face amount				379,507
Troy and Annette Meier [Member]
Debt instrument, remaining amount				$ 173,000
Troy and Annette Meier [Member] | Restricted Stock Units (RSUs) [Member]
Number of units granted	$ 587,500

Long-Term Debt (Details Narrati

Long-Term Debt (Details Narrative) - USD ($)	Aug. 10, 2016	Aug. 08, 2016	Feb. 28, 2017	Dec. 31, 2014	Dec. 31, 2017	Dec. 31, 2016
Debt instrument, interest rate				7.50%
Debt instrument, periodic payment, principal					$ 80,000
Debt instrument, maturity date					Jan. 2, 2017
Amortization of debt discount					$ 79,424	$ 107,975
Debt instrument, face amount					$ 4,200,000
Loan maturity description					August 15, 2018
Transportation Loans [Member]
Debt instrument, periodic payment					$ 3,200
Transportation Loans [Member] | Minimum [Member]
Debt instrument, interest rate					0.00%
Loan maturity description					December 2,018
Transportation Loans [Member] | Maximum [Member]
Debt instrument, interest rate					8.29%
Loan maturity description					October 2,021
Airplane Loan [Member]
Debt instrument, periodic payment					$ 3,500
Debt instrument, interest rate					7.35%
Loan maturity description					May of 2026
Superior Auto Body and Paint [Member]
Proceeds from issuance of debt			$ 2,500,000
Loan payoff			$ 2,500,000
Number of collateral shares released			541,000
Real Estate Loans [Member]
Debt instrument, periodic payment					$ 39,000
Debt instrument, interest rate					5.25%
Debt instrument, periodic payment, principal					$ 4,200,000
Debt instrument, maturity date					Aug. 15, 2018
Hard Rock Note [Member]
Debt instrument, interest rate	5.75%
Debt instrument, maturity date	Jan. 15, 2020
Business combination, consideration transferred, liabilities incurred				$ 12,500,000
Payments to acquire businesses, gross				12,500,000
Debt instrument, fair value disclosure				11,144,000
Amortization of debt discount				$ 1,356,000
Line of credit outstanding					$ 76,000	108,000
Debt instrument, periodic payment, interest					515,452	769,582
Debt instrument, face amount	$ 2,000,000				500,000	$ 2,000,000
Stock issued value, restricted stock	$ 1,000,000
Stock issued shares, restricted stock	700,000
Debt instrument price per share	$ 1.43
Hard Rock Note [Member] | January 15, 2018 [Member]
Debt instrument, periodic payment, interest					70,890
Debt instrument, face amount					$ 500,000
Hard Rock Note [Member] | May 15, 2018 [Member]
Debt instrument, periodic payment, interest	$ 500,000
Hard Rock Note [Member] | July 15, 2018 [Member]
Debt instrument, periodic payment, interest	500,000
Hard Rock Note [Member] | January 15, 2019 [Member]
Debt instrument, periodic payment, interest	1,000,000
Hard Rock Note [Member] | March 15, 2019 [Member]
Debt instrument, periodic payment, interest	1,000,000
Hard Rock Note [Member] | May 15, 2019 [Member]
Debt instrument, periodic payment, interest	1,000,000
Hard Rock Note [Member] | July 15, 2019 [Member]
Debt instrument, periodic payment, interest	$ 1,000,000
Bridge Financing [Member]
Debt instrument, face amount		$ 1,000,000
Warrant to purchase maximum of common stock, shares		250,000
Warrant to purchase maximum of common stock, value		$ 112,024
Fair value assumptions, expected volatility rate					95.00%
Fair value inputs, discount rate					0.72%
Fair value assumptions, expected term					5 years

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-Term Debt Instruments (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Long term debt, Total	$ 12,808,053	$ 16,194,383
Current portion of long-term debt	(6,101,678)	(2,905,682)
Long term portion of long-term debt	6,706,375	13,288,701
Hard Rock Note [Member]
Long term debt, Total	7,422,912	7,846,497
Real Estate Loans [Member]
Long term debt, Total	4,518,424	7,264,036
Machinery Loans [Member]
Long term debt, Total	513,317	684,921
Transportation Loans [Member]
Long term debt, Total	$ 353,400	$ 398,929

Long-Term Debt - Schedule of Fu

Long-Term Debt - Schedule of Future Annual Maturities of Long-Term Debt (Details)	Dec. 31, 2017USD ($)	[1]
Debt Disclosure [Abstract]
2,018	$ 6,742,484
2,019	4,496,556
2,020	2,232,023
2,021	87,321
2,022	63,451
Thereafter	145,041
Total debt	$ 13,766,876
[1]	Excludes discounts for debt issuance costs.

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related party notes payable					$ 2,000,000
Debt instrument, interest rate					7.50%
Debt instrument, maturity date		Jan. 2, 2017
Debt instrument, periodic payment		$ 80,000
Related Party Transaction, Due from (to) Related Party		207,942
Note receivable related party		0
Impairment loss
Number of collateral shares		8,267,860
Common Stock [Member]
Number of collateral shares		8,814,860
Superior Auto Body and Paint [Member]
Value of operations determined		$ 101,400
Rental income			$ 199,902	$ 199,902
Impairment loss			$ 840,380
Proceeds from sale of real estate	$ 2,500,000
Loan payoff	$ 2,500,000
Number of released from collateral	547,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	12 Months Ended
	Dec. 31, 2017USD ($)
Decrease in deferred tax valuation allowances	$ 5,040,000
Minimum [Member]
Statutory corporate tax rate	21.00%
Maximum [Member]
Statutory corporate tax rate	35.00%

Income Taxes - Schedule of Comp

Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Current, Federal
Current, State		(2,000)
Current provision for income taxes		(2,000)
Deferred, Federal
Deferred, State
Deferred provision (benefit) for income taxes		(2,000)
Provision for income taxes		$ (2,000)

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
263A adjustment	$ 14,326	$ 21,595
Accrued expenses		305,024
Stock compensation	48,489	55,624
Stock option	44,922	60,970
Amortization of intangibles	2,796,867	3,791,944
Net operating loss	2,999,467	4,263,351
Others	12,660	11,887
Total non-current deferred tax assets	5,916,731	8,510,395
Prepaid expense	(23,301)	(24,908)
Depreciation on fixed assets	(853,089)	(1,008,413)
Total non-current deferred tax liabilities	(876,390)	(1,033,321)
Net non-current deferred tax assets/liabilities	5,040,341	7,477,074
Less: Valuation Allowance	(5,040,341)	(7,477,074)
Total deferred tax liabilities

Income Taxes - Schedule of Effe

Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Tax at federal statutory rate	$ (80,922)	$ (3,104,489)
State income taxes		(1,320)
Permanent differences	118,253	196,479
Change in valuation allowance	(2,436,734)	3,191,794
Other - State rate effect	(9,578)	(272,768)
Change in status	2,408,980	14,216
Other		(25,912)
Provision for income taxes		$ (2,000)

Share-Based Compensation (Detai

Share-Based Compensation (Details Narrative) - USD ($)

Dec. 04, 2017

Dec. 01, 2017

Dec. 22, 2016

Dec. 05, 2016

Nov. 10, 2016

Mar. 31, 2016

Mar. 18, 2016

Mar. 04, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Common stock, shares outstanding

24,535,334

24,120,695

Compensation expense recognized

$ 612,851

$ 783,462

Restricted Stock Units (RSUs) [Member]

Number of restricted units granted

282,578

600,000

Restricted stock units vesting period

2 years 6 months 21 days

Unrecognized compensation expense

$ 534,000

Troy and Annette Meier [Member] | Restricted Stock Units (RSUs) [Member]

Number of units granted

$ 587,500

2015 Incentive Plan [Member]

Maximum aggregate number of common shares issued

2,992,905

Common stock, shares outstanding

1,264,613

Compensation expense recognized

$ 15,000

$ 145,000

2015 Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member]

Compensation expense recognized

456,000

406,000

2015 Incentive Plan [Member] | Board of Directors [Member]

Number of restricted units granted

600,000

Restricted stock units vesting period

3 years

2015 Incentive Plan [Member] | Officers and Employees [Member]

Number of restricted units granted

5,000

148,475

81,714

78,944

Restricted stock units vesting rights description

These options vested 33% on the first anniversary of the grant date, 33% on the second anniversary of the grant date and 34% on third anniversary of the grant date.

Share based payment award vesting rights, percentage

100.00%

100.00%

100.00%

Share price

$ 1.20

$ 1.37

$ 1.67

$ 1.73

Share based payment award term

10 years

10 years

10 years

Share based payment award expiration date

Mar. 31, 2026

Mar. 18, 2026

Mar. 4, 2026

2015 Incentive Plan [Member] | Employees [Member]

Number of restricted units granted

67,500

54,200

Restricted stock units vesting rights description

These options vest 33% on the first anniversary of the grant date, 33% on the second anniversary of the grant date, and 34% on the third anniversary of the grant date.

These options vested 33% on the first anniversary of the grant date, 33% on the second anniversary of the grant date and 34% on the third anniversary of the grant date.

Share price

$ 1.30

$ 1.11

2014 Incentive Plan [Member]

Compensation expense recognized

$ 142,000

$ 233,000

Board of Directors [Member] | Employee Stock Incentive Plan [Member]

Number of common stock approved

1,724,128

Board of Directors [Member] | 2015 Incentive Plan [Member]

Common stock, shares outstanding

1,440,000

Number of restricted units granted

267,443

15,135

Restricted stock units vesting period

3 years

3 years

Share-Based Compensation - Sche

Share-Based Compensation - Schedule of Share-Based Compensation, Restricted Stock Units Award Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Number of shares, beginning balance	702,608	407,493
Number of shares, Granted	282,578	600,000
Number of shares, Forfeited		(17,342)
Number of shares, Vested	(337,991)	(287,543)
Number of shares, ending balance	647,195	702,608
Weighted - Average Grant Date Fair Value, beginning balance	$ 1.31	$ 2.48
Weighted - Average Grant Date Fair Value, Granted	1.27	0.97
Weighted - Average Grant Date Fair Value, Forfeited		1.62
Weighted - Average Grant Date Fair Value, Vested	1.64	2.22
Weighted - Average Grant Date Fair Value, ending balance	$ 1.12	$ 1.31

Share-Based Compensation - Sc49

Share-Based Compensation - Schedule of Share-Based Compensation, Stock Options, Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of Stock Options outstanding, beginning balance	425,000	86,500
Number of Stock Options, Granted	67,500	368,333
Number of Stock Options, Exercised
Number of Stock Options, Expired	(6,701)	(10,325)
Number of Stock Options, Canceled or forfeited	(26,972)	(19,508)
Number of Stock Options outstanding, ending balance	458,827	425,000
Number of Stock Options, exercised at end of period
Weighted - Average Exercise Price, beginning balance	$ 1.52	$ 1.85
Weighted - Average Exercise Price, Granted	1.30	1.47
Weighted - Average Exercise Price, Exercised
Weighted - Average Exercise Price, Expired	1.44	1.85
Weighted - Average Exercise Price, Canceled or forfeited	1.28	1.85
Weighted - Average Exercise Price, ending balance	1.50	1.52
Weighted - Average Exercise Price, exercised at end of period

Share-Based Compensation - Sc50

Share-Based Compensation - Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions (Details)	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected volatility	59.00%
Discount rate	1.90%
Expected life (years)	3 years
Dividend yield	0.00%