Superior Drilling Products (SDPI) 10-Q/A 19 Aug 19 2019 Q1 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Aug. 19, 2019
Document And Entity Information
Entity Registrant Name	Superior Drilling Products, Inc.
Entity Central Index Key	0001600422
Document Type	10-Q/A
Document Period End Date	Mar. 31, 2019
Amendment Flag	true
Amendment Description	This Amendment No. 1 on Form 10-Q/A (this "Form 10-Q/A") amends and restates certain items noted below in the Quarterly Report on Form 10-Q of Superior Drilling Products, Inc. (the "Company" or "SDPI") for the quarter ended March 31, 2019, as originally filed with the Securities and Exchange Commission on May 9, 2019 (the "Original Filing"). This Form 10-Q/A amends the Original Filing to reflect the correction of an error in the previously reported financial statements related to the Company's related party note receivable. See Note 2 to the Condensed Consolidated Financial Statements included in Item 1 for additional information and a reconciliation of the previously reported amounts to the restated amounts. As now discussed in Note 2 to the consolidated financial statements, the Company has restated its consolidated financial statement at December 31, 2018 and 2017 and for the years then ended in order to correct errors relating to a related party note receivable. These restatements follow the conclusion of discussions with the Staff of the U.S. Securities and Exchange Commission regarding Staff comments relating to the Meier Stock Pledge (as defined herein) and Meier Guaranties (as defined herein), the adequacy of the collateral, and the Company's demonstrated intent to enforce the Meier Guaranties. As a result of these discussions, the Company has fully reserved the related party note receivable effective August 2017. Additionally, the Company determined that the related party note receivable should have been classified as an impaired loan upon the first modification in 2014. In 2018 and 2017, the Company received consideration on the related party note receivable in the form of a non-cash payment given in lieu of making an annual restricted stock unit award to the Meiers. This non-cash consideration received has been recorded as a reduction of the related party note receivable in this Amendment. The Company is also concurrently filing an amended Annual Report on Form 10-K/A for the fiscal year ended December 31, 2018 to restate the previously issued annual financial statements due to the accounting errors described above.
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		25,097,750
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current assets
Cash	$ 4,346,466	$ 4,264,767
Accounts receivable, net	2,937,032	2,273,189
Prepaid expenses	110,869	133,607
Inventories	1,231,753	1,003,623
Total current assets	8,626,120	7,675,186
Property, plant and equipment, net	8,165,336	8,226,009
Intangible assets, net	3,074,444	3,686,111
Other noncurrent assets	51,887	51,887
Total assets	19,917,787	19,639,193
Current liabilities
Accounts payable	1,345,440	721,361
Accrued expenses	904,687	631,860
Current portion of long-term debt, net of discounts	4,357,957	4,578,759
Total current liabilities	6,608,084	5,931,980
Long-term debt, less current portion, net of discounts	5,963,508	6,296,994
Total liabilities	12,571,592	12,228,974
Commitments and contingencies (Note 10)
Shareholders' equity
Common stock - $0.001 par value; 100,000,000 shares authorized; 25,018,098 shares issued and outstanding	25,018	25,018
Additional paid-in-capital	39,622,463	39,440,611
Accumulated deficit	(32,301,286)	(32,055,410)
Total shareholders' equity	7,346,195	7,410,219
Total liabilities and shareholders' equity	$ 19,917,787	$ 19,639,193

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	25,018,098	25,018,098
Common stock, shares outstanding	25,018,098	25,018,098

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue
Total Revenue	$ 5,036,346	$ 4,600,293
Operating costs and expenses
Cost of revenue	2,043,028	1,798,944
Selling, general and administrative expenses	2,069,040	1,697,663
Depreciation and amortization expense	1,011,105	936,027
Total operating costs and expenses	5,123,173	4,432,634
Operating income (loss)	(86,827)	167,659
Other income (expense)
Interest income	18,933	6,141
Interest expense	(177,982)	(191,553)
Total other expense	(159,049)	(185,412)
Net loss	$ (245,876)	$ (17,753)
Basic income (loss) earnings per common share	$ (0.01)	$ 0
Basic weighted average common shares outstanding	25,018,098	24,535,155
Diluted income (loss) per common share	$ (0.01)	$ 0
Diluted weighted average common shares outstanding	25,018,098	24,535,155
Tool Revenue [Member]
Revenue
Total Revenue	$ 3,443,909	$ 3,524,860
Contract Services [Member]
Revenue
Total Revenue	$ 1,592,437	$ 1,075,433

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash Flows From Operating Activities
Net loss	$ (245,876)	$ (17,753)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	1,011,105	936,027
Amortization of debt discount		17,061
Share based compensation expense	181,852	137,017
Impairment of inventories		41,396
Amortization of deferred loan costs	1,603
Changes in operating assets and liabilities:
Accounts receivable	(663,843)	(556,004)
Inventories	(228,130)	(6,079)
Prepaid expenses and other noncurrent assets	(22,738)	31,296
Accounts payable and accrued expenses	896,906	(62,113)
Net Cash From Operating Activities	976,355	520,848
Cash Flows From Investing Activities
Purchases of property, plant and equipment	(338,765)	(94,780)
Net Cash From Investing Activities	(338,765)	(94,780)
Cash Flows From Financing Activities
Principal payments on debt	(1,993,172)	(625,905)
Proceeds received from debt borrowings	800,000
Payments on revolving loan	(301,969)
Proceeds received on revolving loan	1,000,000
Debt issuance costs	(60,750)
Net Cash From Financing Activities	(555,891)	(625,905)
Net increase (decrease) in Cash	81,699	(199,837)
Cash at Beginning of Period	4,264,767	2,375,179
Cash at End of Period	4,346,466	2,175,342
Supplemental information:
Cash paid for Interest	$ 247,865	$ 210,065

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
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 an innovative drilling and completion tool technology company providing cost saving solutions that drive drilling efficiencies for the oil and natural gas drilling and completions industry. Our headquarters and manufacturing operations are located in Vernal, Utah. Our drilling solutions include the patented Drill-N-Ream® well bore conditioning tool (“Drill-N-Ream tool”) and the patented Strider™ Drill String Oscillation System technology (“Strider technology” or “Strider”). In addition, the Company is a manufacturer and refurbisher of PDC (polycrystalline diamond compact) drill bits for a leading oil field services company. We operate a state-of-the-art drill tool fabrication facility, where we manufacture solutions for the drilling industry, as well as customers’ custom products. 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) Hard Rock Solutions, LLC (“HR” or “Hard Rock”). 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). We will remain an emerging growth company until the earliest of (i) the end of the fiscal year in which the market value of our common stock that is held by exceeds $700 million as of June 30, (ii) the end of the fiscal year in which we have total annual gross revenue of $1.07 billion or more during such fiscal year, (iii) the date on which we issue more than $1.0 billion in debt in a three-year period or (iv) January 1, 2020. Unaudited Interim Financial Presentation These interim consolidated condensed financial statements for the three months ended March 31, 2019 and 2018, and the related footnote disclosures included herein, are unaudited. However, in the opinion of management, these unaudited interim financial statements have been prepared on the same basis as the audited financial statements, and reflect all adjustments necessary to fairly state the results for such periods. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results of operations expected for the year ended December 31, 2019. These interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the years ended December 31, 2018 and 2017 and the notes thereto, which were included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (the “SEC”). 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. Significant Customers For the three months ended March 31, 2019, two customers represented 93% of our total revenue during the period. For the three months ended March 31, 2018, two customers represented 97% of our total revenue during the period. Significant Vendors The Company had one vendor that represented 10% of our purchases for the three months ended March 31, 2019 This vendor had approximately $248,000 in accounts payable at March 31, 2019 and purchases in the first quarter of 2019 from this vendor totaled approximately $248,000. There were no vendors that represented more than 10% of our purchases for the first three months of March 31,2018. Recently Issued Accounting Standards Standards Adopted Effective January 1, 2019, the Company adopted the accounting guidance in Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers Standards Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, “ Leases

Restatement of Previously Issue

Restatement of Previously Issued Financial Statements	3 Months Ended
	Mar. 31, 2019
Accounting Changes and Error Corrections [Abstract]
Restatement of Previously Issued Financial Statements	NOTE 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS Subsequent to the issuance of the consolidated financial statements and following discussions with the Staff of the United States Securities and Exchange Commission (the “Staff”) related to the Meier stock pledge and Meier Guaranties, the adequacy of the collateral, and the Company’s demonstrated intent to enforce the Meier Guaranties, all as related to the loan made to Tronco Energy Corporation the (“Tronco Loan”), the Company concluded that it had incorrectly accounted for the Tronco Loan. After a thorough review and interpretation of accounting standards, the Company concluded that it was necessary to revise its financial statements to reflect the write-down of the loan. The Meier Guaranties were determined not to be substantive based on GAAP that states that the substance of a personal guarantee depends on the ability of the guarantor to perform, the practicality of enforcing the guarantee, and the demonstrated intent to enforce the guarantee. Since the Company did not demonstrate intent, by either enforcing the redemption of collateral or the guarantees by the borrowers to repay the loan when the related party note receivable was due and payable on December 31, 2017 and instead modifying the loan by extending the payment term, the Company determined the guarantees are not substantive and therefore should not serve as the basis for concluding the loan is well secured and collateralized. As a result, the Company fully reserved the related party note receivable effective August 2017. The Company continues to hold the 8,267,860 shares of the Company’s common stock as collateral. The Company will record a recovery of the loan upon receiving repayment of the note. Additionally, the Company determined that related party note receivable should have been classified as an impaired loan upon the first modification in 2014. In 2018 and 2017, the Company received consideration on the related party note receivable in the form of a non-cash payment given in lieu of making an annual restricted stock unit award to the Meiers. This non-cash payment has been recorded as a reduction of the principal balance of the loan and not as income in accordance with ASC 310-30-35-3. To correct these errors on this Amendment, the Company has restated both the related party note receivable and the interest income as detailed in the table below. The effect of the restatements on the unaudited financial statements for March 31, 2019 and 2018 are as follows: For the Quarter Ended March 31, 2019 As Reported Restatement Adjustment As Restated Statement of Operations: Revenue $ 5,036,346 $ - $ 5,036,346 Cost of revenue 2,043,028 - 2,043,028 Selling, general and administrative expenses 2,069,040 - 2,069,040 Depreciation and amortization expense 1,011,105 - 1,011,105 Total operating costs and expenses 5,123,173 - 5,123,173 Operating income (loss) (86,827 ) - (86,827 ) Other income (expense) Interest income 123,386 (104,453 ) 18,933 Interest expense (177,982 ) - (177,982 ) Total other expense (54,596 ) (104,453 ) (159,049 ) Net income (loss) (141,423 ) (104,453 ) (245,876 ) Income tax expense - - - Net income (loss) (141,423 ) (104,453 ) (245,876 ) Earnings (loss) per common share - basic $ (0.01 ) $ - $ (0.01 ) Earnings (loss) per common share - diluted $ (0.01 ) $ - $ (0.01 ) Weighted average common shares outstanding - basic 25,018,098 - 25,018,098 Weighted average common shares outstanding - diluted 25,018,098 - 25,018,098 Balance Sheet: Current assets $ 8,730,573 $ (104,453 ) $ 8,626,120 Total assets 27,389,452 (7,471,665 ) 19,917,787 Current liabilities 6,608,084 - 6,608,084 Total liabilities 12,571,592 - 12,571,592 Total shareholders’ equity 14,817,860 (7,471,665 ) 7,346,195 Total liabilities and shareholders’ equity 27,389,452 (7,471,665 ) 19,917,787 For the Quarter Ended March 31, 2018 As Reported Restatement Adjustment As Restated Statement of Operations: Revenue $ 4,600,293 $ - $ 4,600,293 Cost of revenue 1,798,944 - 1,798,944 Selling, general and administrative expenses 1,697,663 - 1,697,663 Depreciation and amortization expense 936,027 - 936,027 Total operating costs and expenses 4,432,634 - 4,432,634 Operating income (loss) 167,659 - 167,659 Other income (expense) Interest income 92,428 (86,287 ) 6,141 Interest expense (191,553 ) - (191,553 ) Total other expense (99,125 ) (86,287 ) (185,412 ) Net income (loss) 68,534 (86,287 ) (17,753 ) Income tax expense - - - Net income (loss) 68,534 (86,287 ) (17,753 ) Earnings (loss) per common share - basic $ 0.00 $ - $ (0.00 ) Earnings (loss) per common share - diluted $ 0.00 $ - $ (0.00 ) Weighted average common shares outstanding - basic 24,535,155 - 24,535,155 Weighted average common shares outstanding - diluted 25,140,646 - 24,535,155 Balance Sheet: Current assets $ 6,728,071 $ (86,287 ) $ 6,641,784 Total assets 28,210,450 (7,453,499 ) 20,756,951 Current liabilities 9,055,574 - 9,055,574 Total liabilities 13,702,323 - 13,702,323 Total shareholders' equity 14,508,127 (7,453,499 ) 7,054,628 Total liabilities and shareholders' equity 28,210,450 (7,453,499 ) 20,756,951

Revenue

Revenue	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue	NOTE 3. REVENUE Accounting Policy We account for revenue in accordance with Topic 606, which we adopted on January 1, 2019, using the full retrospective method. The adoption of Topic 606 did not have a material impact on the timing or amounts of revenue recognized in our unaudited condensed consolidated financial statements and therefore did not have a material impact on our financial position, results of operations, equity or cash flows as of the adoption date for the three months ended March 31, 2019. The Company did not record any adjustments to opening retained earnings as of December 31, 2017 or for any periods previously presented. Furthermore, the impact of the adoption of the new standard is immaterial to our revenue and gross profit on an ongoing basis. Revenue Recognition Our revenue is derived from short term contracts. Revenue is recognized when we satisfy a performance obligation by transferring control of the promised goods or services to our customers at a point in time, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. We also assess our customer’s ability and intention to pay, which is based on a variety of factors including our customer’s historical payment experience and financial condition. Payment terms and conditions vary, although terms generally include a requirement of payment within 30 days. Revenue generally does not include right of return or other significant post-delivery obligations. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. We elected to treat shipping and handling costs as a fulfillment cost instead of as a separate performance obligation. We recognize the cost for shipping and handling when incurred as an expense in cost of sales. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer under Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts with customers contain a single performance obligation to provide agreed-upon products or services. For contracts with multiple performance obligations, we allocate revenue to each performance obligation based on its relative standalone selling price. In accordance with Topic 606, we do not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer. All of our contracts are less than one year in duration. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Disaggregation of Revenue Approximately 96% of our revenue is from the United States and approximately 4% is from the Middle East for the three months ended March 31, 2019. For the three months ended March 31, 2018, 100% of our revenue was from the United States. Tool Revenue Tool and Product Sales Tool Rental Other Related Revenue: Contract Services Drill Bit Manufacturing and Refurbishment Revenue disaggregated by revenue source are as follows: Three months ended March 31, 2019 2018 Tool Revenue: Tool and product sales $ 1,507,160 $ 1,892,000 Tool rental 245,602 99,818 Other related revenue 1,691,147 1,533,042 Total Tool Revenue 3,443,909 3,524,860 Contract Services 1,592,437 1,075,433 Total Revenue $ 5,036,346 $ 4,600,293 Contract Costs We do not incur any material costs of obtaining contracts. Contract Balances Under our sales contracts, we invoice customers after our performance obligations have been satisfied, at which point payment is unconditional. Accordingly, our contracts do not give rise to contract assets or liabilities under ASC 606.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Inventories	NOTE 4. INVENTORIES Inventories are comprised of the following: March 31, 2019 December 31, 2018 Raw material $ 1,038,210 $ 738,330 Work in progress 145,408 217,158 Finished goods 48,135 48,135 $ 1,231,753 $ 1,003,623

Property, Plant and Equipment

Property, Plant and Equipment	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	NOTE 5. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are comprised of the following: March 31, 2019 December 31, 2018 Land $ 880,416 $ 880,416 Buildings 4,847,778 4,847,778 Building improvements 755,039 755,039 Machinery and equipment 9,137,705 8,816,880 Office equipment, fixtures and software 518,806 518,806 Transportation assets 811,378 811,378 16,951,122 16,630,297 Accumulated depreciation (8,785,786 ) (8,404,288 ) $ 8,165,336 $ 8,226,009 Depreciation expense related to property, plant and equipment for the three months ended March 31, 2019 and 2018 was $399,438 and $324,360, respectively. The increase in machinery and equipment was mostly the result of building a tool inventory for the Middle East operations.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	NOTE 6. INTANGIBLE ASSETS Intangible assets are comprised of the following: March 31, 2019 December 31, 2018 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 (11,825,556 ) (11,213,889 ) $ 3,074,444 $ 3,686,111 Amortization expense related to intangible assets was $611,667 for the three months ended March 31, 2019 and 2018. Annually, and more often as necessary, we will perform an evaluation of our intangible assets for indications of impairment. If indications exist, we will perform an evaluation of the fair value of the intangible assets and, if necessary, record an impairment charge. As of March 31, 2019, the Company reviewed the net balance of the intangible assets and determined no impairment was needed.

Related Party Note Receivable

Related Party Note Receivable	3 Months Ended
	Mar. 31, 2019
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. Effective August 2017, the Company fully reserved the related party note receivable of $6,979,043, which reduced the related party note receivable balance to $0. The Company continues to hold the 8,267,860 shares of the Company’s common stock as collateral. The Company will record a recovery of the loan upon receiving repayment of the note or interest in other income. Interest only is due December 31, 2019, 2020 and 2021, with a balloon payment of all unpaid interest and principal due upon maturity on December 31, 2022. The interest rate on the note is 5.75.%.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Long-Term Debt	NOTE 8. LONG-TERM DEBT Long-term debt is comprised of the following: March 31, 2019 December 31, 2018 Real estate loans $ 3,169,227 $ 4,255,152 Hard Rock Note 5,250,000 6,000,000 Credit Agreement 1,438,884 - Machinery loans 187,840 327,879 Transportation loans 275,514 292,722 Less: Current portion (4,357,957 ) (4,578,759 ) Long-term debt, net $ 5,963,508 $ 6,296,994 Real Estate Loans On February 1, 2019, we signed a loan agreement for $3,129,861 refinancing our commercial bank loan which is secured by our Vernal, Utah Campus. We paid $1,000,000 towards the previous loan that was scheduled to mature on February 15, 2019, upon refinancing. The loan requires monthly payments of approximately $43,000, including principal and interest at 7.25%, and is secured by the land and buildings at our Vernal, Utah Campus. A balloon payment of approximately $2,500,000 is due upon maturity on February 15, 2021. Hard Rock Note In 2014, the Company purchased all of the interests of Hard Rock Solutions, LLC (“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 all of the patents, patents pending, other patent rights, and trademarks transferred to Hard Rock. Under the current terms of Hard Rock Note, we are required to pay principal payments of $750,000 (plus accrued interest) on each January 5, April 5, July 5 and October 5 in 2019 and 2020. In January 2019, the Company made a principal payment of $750,000 and an interest payment of $183,411. In April 2019, the Company made a principal payment of $750,000 and an interest payment of $88,639. The remaining principal due is $4,500,000. Credit Agreement In February 2019, the Company entered into a Loan and Security Agreement (the “Credit Agreement”) with Austin Financial Services, Inc. (“AFS”). The Credit Agreement provides a $4.3 million credit facility, which includes a $0.8 million term loan (the “Term Loan”) and a $3.5 million revolver (the “Revolving Loan”). As of March 31, 2019, $698,031 was outstanding on the Revolving Loan. Amounts outstanding under the revolver at any time may not exceed the sum of: (a) up to 85% of accounts receivable or such lesser percentage as AFS in its sole discretion may deem appropriate if it determines that there has been a material adverse effect; less a dilution reserve as determined by AFS in its sole good faith discretion, plus (b) the lesser of (i) up to 50% of inventory or such lesser percentage as AFS in its sole discretion may deem appropriate if it determines that there has been a material adverse effect, or (ii) the inventory sublimit, minus (c) the borrowing base reserve as may be determined from time to time by AFS. The Credit Agreement contains various restrictive covenants that, among other things, limit or restrict the ability of the borrowers to incur additional indebtedness; incur additional liens; make dividends and other restricted payments; make investments; engage in mergers, acquisitions and dispositions; make optional prepayments of other indebtedness; engage in transactions with affiliates; and enter into restrictive agreements. The Credit Agreement does not include any financial covenants. If an event of default occurs, the lenders are entitled to accelerate the advances made thereunder and exercise rights against the collateral. Borrowing under the Revolving Loan is classified as current debt as a result of the required lockbox arrangement and the subjective acceleration clause. At March 31, 2019, approximately $698,000 of the Revolving Loan was outstanding. Also at March 31, 2019, we were in compliance with the covenants in the Credit Agreement. The interest rate for the Term Loan and the Revolving Loan is prime plus 2%. At March 31, 2019, the interest rate was 7.5%. The obligations of the borrowers under the agreement are secured by a security interest in substantially all of the tangible and intangible assets of the borrowers, other than any assets owned by the borrowers that constitute real property (and fixtures affixed to such real property), certain excluded equipment, intellectual property, or aircraft. The Credit Agreement matures on February 20, 2023, subject to early termination pursuant to the terms of the agreement or extension as may be agreed by the parties.

Total Equity

Total Equity	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Total Equity	NOTE 9. TOTAL EQUITY A summary of changes in total equity for the three months ended March 31, 2019 and 2018 is presented below: Common Stock Additional Restated Accumulated Restated Total Shares Par Value Capital Deficit Equity Balance - December 31, 2018 25,018,098 $ 25,018 $ 39,440,611 $ (32,055,410 ) $ 7,410,219 Stock-based compensation expense - - 181,852 - 181,852 Net loss - - - (245,876 ) (245,876 ) Balance - March 31, 2019 25,018,098 $ 25,018 $ 39,622,463 $ (32,301,286 ) $ 7,346,195 Common Stock Additional Paid-in Accumulated Total Shareholders Shares Par Value Capital Deficit Equity Balance - December 31, 2017 24,535,155 $ 24,535 $ 38,907,864 $ (31,997,035 ) $ 6,935,364 Stock-based compensation expense - - 137,017 - 137,017 Net income - - - (17,753) (17,753 ) Balance - March 31, 2018 24,535,155 $ 24,535 $ 39,044,881 $ (32,014,788 ) $ 7,054,628

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 10. COMMITMENTS AND CONTINGENCIES We are subject to litigation that arises from time to time in the ordinary course of our business activities. In February 2019, the Company filed a patent infringement lawsuit in the United States District Court for the Western District of Louisiana Lafayette Division asserting Stabil Drill Specialties, LLC (“Stabil Drill”) infringed on our patent that covers the Company’s well bore conditioning tool, the Drill-N-Ream. Stabil Drill has not yet responded to the lawsuit. As of the date of this quarterly report, the lawsuit is in initial stages. We cannot predict the outcome of this matter, but our legal costs could have a material effect on our financial position or results of operations in future periods. We are not currently involved in any other litigation which management believes could have a material effect on our financial position or results of operations.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	NOTE 11. SUBSEQUENT EVENTS In June 2019, the Company entered into two financing agreement to purchase equipment. The Company made a down payment of $291,578 and recorded a current liability of $272,000 that is due to the financing company. The Company is obligated to pay 1% a month on the outstanding balance. The financing loans will be finalized once the equipment is delivered later in the year. In August 2019, the Company decided not to purchase one piece of equipment and we will refund the down payment to the financing company. We don’t anticipate any penalties from canceling the equipment order or financing agreement. On July 30, 2019, the Board of Directors granted 125,000 restricted stock units to Chris Cashion, Chief Financial Officer, and 78,125 restricted stock units to each of the three independent members of the Board of Directors. These restricted stock units will vest over three years. In addition, 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 $327,238 on the Tronco Note and the remaining $260,262 will be remitted for taxes on the Meiers behalf. In August 2019, the Company accepted an offer to sale its airplane hangar. This asset was held for sale as of June 30, 2019. The Company expects to finalize the sale in the third quarter of 2019 for a $6,000 loss.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
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 an innovative drilling and completion tool technology company providing cost saving solutions that drive drilling efficiencies for the oil and natural gas drilling and completions industry. Our headquarters and manufacturing operations are located in Vernal, Utah. Our drilling solutions include the patented Drill-N-Ream® well bore conditioning tool (“Drill-N-Ream tool”) and the patented Strider™ Drill String Oscillation System technology (“Strider technology” or “Strider”). In addition, the Company is a manufacturer and refurbisher of PDC (polycrystalline diamond compact) drill bits for a leading oil field services company. We operate a state-of-the-art drill tool fabrication facility, where we manufacture solutions for the drilling industry, as well as customers’ custom products. 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) Hard Rock Solutions, LLC (“HR” or “Hard Rock”).
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). We will remain an emerging growth company until the earliest of (i) the end of the fiscal year in which the market value of our common stock that is held by exceeds $700 million as of June 30, (ii) the end of the fiscal year in which we have total annual gross revenue of $1.07 billion or more during such fiscal year, (iii) the date on which we issue more than $1.0 billion in debt in a three-year period or (iv) January 1, 2020.
Unaudited Interim Financial Presentation	Unaudited Interim Financial Presentation These interim consolidated condensed financial statements for the three months ended March 31, 2019 and 2018, and the related footnote disclosures included herein, are unaudited. However, in the opinion of management, these unaudited interim financial statements have been prepared on the same basis as the audited financial statements, and reflect all adjustments necessary to fairly state the results for such periods. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results of operations expected for the year ended December 31, 2019. These interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the years ended December 31, 2018 and 2017 and the notes thereto, which were included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (the “SEC”).
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.
Significant Customers	Significant Customers For the three months ended March 31, 2019, two customers represented 93% of our total revenue during the period. For the three months ended March 31, 2018, two customers represented 97% of our total revenue during the period.
Significant Vendors	Significant Vendors The Company had one vendor that represented 10% of our purchases for the three months ended March 31, 2019 This vendor had approximately $248,000 in accounts payable at March 31, 2019 and purchases in the first quarter of 2019 from this vendor totaled approximately $248,000. There were no vendors that represented more than 10% of our purchases for the first three months of March 31,2018.
Recently Issued Accounting Standards	Recently Issued Accounting Standards Standards Adopted Effective January 1, 2019, the Company adopted the accounting guidance in Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers Standards Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, “ Leases

Restatement of Previously Iss_2

Restatement of Previously Issued Financial Statements (Tables)	3 Months Ended
	Mar. 31, 2019
Accounting Changes and Error Corrections [Abstract]
Schedule of Restatement of Previously Issued Financial Statements	The effect of the restatements on the unaudited financial statements for March 31, 2019 and 2018 are as follows: For the Quarter Ended March 31, 2019 As Reported Restatement Adjustment As Restated Statement of Operations: Revenue $ 5,036,346 $ - $ 5,036,346 Cost of revenue 2,043,028 - 2,043,028 Selling, general and administrative expenses 2,069,040 - 2,069,040 Depreciation and amortization expense 1,011,105 - 1,011,105 Total operating costs and expenses 5,123,173 - 5,123,173 Operating income (loss) (86,827 ) - (86,827 ) Other income (expense) Interest income 123,386 (104,453 ) 18,933 Interest expense (177,982 ) - (177,982 ) Total other expense (54,596 ) (104,453 ) (159,049 ) Net income (loss) (141,423 ) (104,453 ) (245,876 ) Income tax expense - - - Net income (loss) (141,423 ) (104,453 ) (245,876 ) Earnings (loss) per common share - basic $ (0.01 ) $ - $ (0.01 ) Earnings (loss) per common share - diluted $ (0.01 ) $ - $ (0.01 ) Weighted average common shares outstanding - basic 25,018,098 - 25,018,098 Weighted average common shares outstanding - diluted 25,018,098 - 25,018,098 Balance Sheet: Current assets $ 8,730,573 $ (104,453 ) $ 8,626,120 Total assets 27,389,452 (7,471,665 ) 19,917,787 Current liabilities 6,608,084 - 6,608,084 Total liabilities 12,571,592 - 12,571,592 Total shareholders’ equity 14,817,860 (7,471,665 ) 7,346,195 Total liabilities and shareholders’ equity 27,389,452 (7,471,665 ) 19,917,787 For the Quarter Ended March 31, 2018 As Reported Restatement Adjustment As Restated Statement of Operations: Revenue $ 4,600,293 $ - $ 4,600,293 Cost of revenue 1,798,944 - 1,798,944 Selling, general and administrative expenses 1,697,663 - 1,697,663 Depreciation and amortization expense 936,027 - 936,027 Total operating costs and expenses 4,432,634 - 4,432,634 Operating income (loss) 167,659 - 167,659 Other income (expense) Interest income 92,428 (86,287 ) 6,141 Interest expense (191,553 ) - (191,553 ) Total other expense (99,125 ) (86,287 ) (185,412 ) Net income (loss) 68,534 (86,287 ) (17,753 ) Income tax expense - - - Net income (loss) 68,534 (86,287 ) (17,753 ) Earnings (loss) per common share - basic $ 0.00 $ - $ (0.00 ) Earnings (loss) per common share - diluted $ 0.00 $ - $ (0.00 ) Weighted average common shares outstanding - basic 24,535,155 - 24,535,155 Weighted average common shares outstanding - diluted 25,140,646 - 24,535,155 Balance Sheet: Current assets $ 6,728,071 $ (86,287 ) $ 6,641,784 Total assets 28,210,450 (7,453,499 ) 20,756,951 Current liabilities 9,055,574 - 9,055,574 Total liabilities 13,702,323 - 13,702,323 Total shareholders' equity 14,508,127 (7,453,499 ) 7,054,628 Total liabilities and shareholders' equity 28,210,450 (7,453,499 ) 20,756,951

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Schedule of Revenue Disaggregated by Revenue	Revenue disaggregated by revenue source are as follows: Three months ended March 31, 2019 2018 Tool Revenue: Tool and product sales $ 1,507,160 $ 1,892,000 Tool rental 245,602 99,818 Other related revenue 1,691,147 1,533,042 Total Tool Revenue 3,443,909 3,524,860 Contract Services 1,592,437 1,075,433 Total Revenue $ 5,036,346 $ 4,600,293

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories are comprised of the following: March 31, 2019 December 31, 2018 Raw material $ 1,038,210 $ 738,330 Work in progress 145,408 217,158 Finished goods 48,135 48,135 $ 1,231,753 $ 1,003,623

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property, plant and equipment are comprised of the following: March 31, 2019 December 31, 2018 Land $ 880,416 $ 880,416 Buildings 4,847,778 4,847,778 Building improvements 755,039 755,039 Machinery and equipment 9,137,705 8,816,880 Office equipment, fixtures and software 518,806 518,806 Transportation assets 811,378 811,378 16,951,122 16,630,297 Accumulated depreciation (8,785,786 ) (8,404,288 ) $ 8,165,336 $ 8,226,009

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets are comprised of the following: March 31, 2019 December 31, 2018 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 (11,825,556 ) (11,213,889 ) $ 3,074,444 $ 3,686,111

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Long-term debt is comprised of the following: March 31, 2019 December 31, 2018 Real estate loans $ 3,169,227 $ 4,255,152 Hard Rock Note 5,250,000 6,000,000 Credit Agreement 1,438,884 - Machinery loans 187,840 327,879 Transportation loans 275,514 292,722 Less: Current portion (4,357,957 ) (4,578,759 ) Long-term debt, net $ 5,963,508 $ 6,296,994

Total Equity (Tables)

Total Equity (Tables)	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Summary of Changes in Total Equity	A summary of changes in total equity for the three months ended March 31, 2019 and 2018 is presented below: Common Stock Additional Restated Accumulated Restated Total Shares Par Value Capital Deficit Equity Balance - December 31, 2018 25,018,098 $ 25,018 $ 39,440,611 $ (32,055,410 ) $ 7,410,219 Stock-based compensation expense - - 181,852 - 181,852 Net loss - - - (245,876 ) (245,876 ) Balance - March 31, 2019 25,018,098 $ 25,018 $ 39,622,463 $ (32,301,286 ) $ 7,346,195 Common Stock Additional Paid-in Accumulated Total Shareholders Shares Par Value Capital Deficit Equity Balance - December 31, 2017 24,535,155 $ 24,535 $ 38,907,864 $ (31,997,035 ) $ 6,935,364 Stock-based compensation expense - - 137,017 - 137,017 Net income - - - (17,753) (17,753 ) Balance - March 31, 2018 24,535,155 $ 24,535 $ 39,044,881 $ (32,014,788 ) $ 7,054,628

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Jun. 30, 2018
Annual gross revenues	$ 1,070,000,000
Non-convertible debt	$ 1,000,000,000
Debt term	3 years
Debt maturity date	Jan. 1, 2020
Accounts payable	$ 1,345,440		$ 721,361
Two Customers [Member] | Revenue [Member]
Concentration risk percentage	93.00%	97.00%
One Vendor [Member] | Accounts Payable [Member]
Concentration risk percentage	10.00%
Vendor [Member]
Accounts payable	$ 248,000
Purchases of goods	$ 248,000
Vendor [Member] | Accounts Payable [Member]
Concentration risk percentage		10.00%
Maximum [Member] | Non-affiliates [Member]
Market value of common stock				$ 700,000,000

Restatement of Previously Iss_3

Restatement of Previously Issued Financial Statements (Details Narrative)	3 Months Ended
	Mar. 31, 2019shares
Accounting Changes and Error Corrections [Abstract]
Collateral common stock, shares	8,267,860

Restatement of Previously Iss_4

Restatement of Previously Issued Financial Statements - (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Revenue	$ 5,036,346	$ 4,600,293
Cost of revenue	2,043,028	1,798,944
Selling, general and administrative expenses	2,069,040	1,697,663
Depreciation and amortization expense	1,011,105	936,027
Total operating costs and expenses	5,123,173	4,432,634
Operating income (loss)	(86,827)	167,659
Other income (expense)
Interest income	18,933	6,141
Interest expense	(177,982)	(191,553)
Total other expense	(159,049)	(185,412)
Net income (loss)	(245,876)	(17,753)
Income tax expense
Net income (loss)	$ (245,876)	$ (17,753)
Earnings (loss) per common share - basic	$ (0.01)	$ 0
Earnings (loss) per common share - diluted	$ (0.01)	$ 0
Weighted average common shares outstanding - basic	25,018,098	24,535,155
Weighted average common shares outstanding - diluted	25,018,098	24,535,155
Current assets	$ 8,626,120	$ 6,641,784	$ 7,675,186
Total assets	19,917,787	20,756,951	19,639,193
Current liabilities	6,608,084	9,055,574	5,931,980
Total liabilities	12,571,592	13,702,323	12,228,974
Total shareholders' equity	7,346,195	7,054,628	7,410,219
Total liabilities and shareholders' equity	19,917,787	20,756,951	$ 19,639,193
As Reported [Member]
Revenue	5,036,346	4,600,293
Cost of revenue	2,043,028	1,798,944
Selling, general and administrative expenses	2,069,040	1,697,663
Depreciation and amortization expense	1,011,105	936,027
Total operating costs and expenses	5,123,173	4,432,634
Operating income (loss)	(86,827)	167,659
Other income (expense)
Interest income	123,386	92,428
Interest expense	(177,982)	(191,553)
Total other expense	(54,596)	(99,125)
Net income (loss)	(141,423)	68,534
Income tax expense
Net income (loss)	$ (141,423)	$ 68,534
Earnings (loss) per common share - basic	$ (0.01)	$ 0
Earnings (loss) per common share - diluted	$ (0.01)	$ 0
Weighted average common shares outstanding - basic	25,018,098	24,535,155
Weighted average common shares outstanding - diluted	25,018,098	25,140,646
Current assets	$ 8,730,573	$ 6,728,071
Total assets	27,389,452	28,210,450
Current liabilities	6,608,084	9,055,574
Total liabilities	12,571,592	13,702,323
Total shareholders' equity	14,817,860	14,508,127
Total liabilities and shareholders' equity	27,389,452	28,210,450
Restatement Adjustment [Member]
Revenue
Cost of revenue
Selling, general and administrative expenses
Depreciation and amortization expense
Total operating costs and expenses
Operating income (loss)
Other income (expense)
Interest income	(104,453)	(86,287)
Interest expense
Total other expense	(104,453)	(86,287)
Net income (loss)	(104,453)	(86,287)
Income tax expense
Net income (loss)	$ (104,453)	$ (86,287)
Earnings (loss) per common share - basic		$ 0
Earnings (loss) per common share - diluted		$ 0
Weighted average common shares outstanding - basic
Weighted average common shares outstanding - diluted
Current assets	$ (104,453)	$ (86,287)
Total assets	(7,471,665)	(7,453,499)
Current liabilities
Total liabilities
Total shareholders' equity	(7,471,665)	(7,453,499)
Total liabilities and shareholders' equity	$ (7,471,665)	$ (7,453,499)

Revenue (Details Narrative)

Revenue (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cumulative adjustments to opening retained earnings
Description of payment terms	Do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.
Tool Revenue [Member]
Revenue agreement, description	While the duration of the rents vary by job and number of runs, these rents are generally less than one month. The rental agreements are typically based on the price per run or footage drilled and do not have any minimum rental payments or term.
Revenue [Member] | United States [Member]
Concentration risk percentage of revenue		100.00%
Revenue [Member] | Middle East [Member]
Concentration risk percentage of revenue	4.00%

Revenue - Schedule of Revenue

Revenue - Schedule of Revenue Disaggregated by Revenue (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Total Revenue	$ 5,036,346	$ 4,600,293
Tool Rental [Member]
Total Revenue	245,602	99,818
Tools and Product Sales [Member]
Total Revenue	1,507,160	1,892,000
Other Related Revenue [Member]
Total Revenue	1,691,147	1,533,042
Tool Revenue [Member]
Total Revenue	3,443,909	3,524,860
Contract Services [Member]
Total Revenue	$ 1,592,437	$ 1,075,433

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw material	$ 1,038,210	$ 738,330
Work in progress	145,408	217,158
Finished goods	48,135	48,135
Inventories, net	$ 1,231,753	$ 1,003,623

Property, Plant and Equipment_2

Property, Plant and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense related to property, plant and equipment	$ 399,438	$ 324,360

Property, Plant and Equipment -

Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Land	$ 880,416	$ 880,416
Buildings	4,847,778	4,847,778
Building improvements	755,039	755,039
Machinery and equipment	9,137,705	8,816,880
Office equipment, fixtures and software	518,806	518,806
Transportation assets	811,378	811,378
Property, plant and equipment, gross	16,951,122	16,630,297
Accumulated depreciation	(8,785,786)	(8,404,288)
Property, plant and equipment, net	$ 8,165,336	$ 8,226,009

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 611,667	$ 611,667
Impairment of intangible assets

Intangible Assets - Schedule of

Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 14,900,000	$ 14,900,000
Accumulated amortization	(11,825,556)	(11,213,889)
Finite-lived intangible assets, net	3,074,444	3,686,111
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

Related Party Note Receivable (

Related Party Note Receivable (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Aug. 31, 2017	Mar. 31, 2019
Number of collateral shares		8,267,860
Debt maturity date		Jan. 1, 2020
Note Purchase and Sale Agreement [Member] | Tronco Energy Corporation [Member]
Due from related parties	$ 6,979,043
Related party note receivable	$ 0
Number of collateral shares	8,267,860
Maturity date description	Interest only is due December 31, 2019, 2020 and 2021, with a balloon payment of all unpaid interest and principal due upon maturity on December 31, 2022.
Debt maturity date	Dec. 31, 2022
Debt interest rate	5.75%

Long-Term Debt (Details Narrati

Long-Term Debt (Details Narrative) - USD ($)	Feb. 01, 2019	Jan. 31, 2019	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2014	Feb. 28, 2019
Debt instrument			$ 4,500,000
Previous debt payment paid			$ 60,750
Debt instrument maturity date			Jan. 1, 2020
Debt instrument, principal payments		$ 750,000
Debt instrument, interest payment		$ 183,411
Loan and Security Agreement [Member]
Debt instrument maturity date			Feb. 20, 2023
Line of credit interest rate			7.50%
Loan and Security Agreement [Member] | Term Loan [Member] | Prime [Member]
Line of credit interest rate			2.00%
Loan and Security Agreement [Member] | Revolving Loan [Member] | Prime [Member]
Line of credit interest rate			2.00%
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member]
Long term line of credit						$ 4,300,000
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member] | Term Loan [Member]
Long term line of credit						800,000
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member] | Revolving Loan [Member]
Long term line of credit						$ 3,500,000
Loan outstanding amount			$ 698,031
Line of credit facility description			Amounts outstanding under the revolver at any time may not exceed the sum of: (a) up to 85% of accounts or such lesser percentage as AFS in its sole discretion may deem appropriate if it determines that there has been a material adverse effect; less a dilution reserve as determined by AFS in its sole good faith discretion, plus (b) the lesser of (i) up to 50% of inventory or such lesser percentage as AFS in its sole discretion may deem appropriate if it determines that there has been a material adverse effect, or (ii) the inventory sublimit, minus (c) the borrowing base reserve as may be determined from time to time by AFS.
Current borrowing			$ 1,000,000
Accrued interest			18,000
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member] | Revolving Loan One [Member]
Loan outstanding amount			$ 2,712,645
Line of credit facility description			Amounts outstanding on the Revolving Loan as of March 31, 2019, may not exceed $2,712,645, which is based on a calculation applying 85% of accounts receivable and 50% of inventory.
Credit Agreement [Member] | Revolving Loan [Member]
Long term line of credit			$ 698,000
April 2019 [Member]
Debt instrument, principal payments			750,000
Debt instrument, interest payment			88,639
Commercial Bank Loan [Member]
Debt instrument	$ 3,129,861
Previous debt payment paid	1,000,000
Debt instrument, periodic principal payments including interest	$ 43,000
Debt instrument, interest rate	7.25%
Debt instrument, maturity date description	We paid $1,000,000 towards the previous loan that was scheduled to mature on February 15, 2019, upon refinancing.
Debt balloon payment	$ 2,500,000
Debt instrument maturity date	Feb. 15, 2021
Hard Rock Note [Member]
Business combination, consideration transferred, liabilities incurred					$ 12,500,000
Payments to acquire businesses, gross					$ 12,500,000
Hard Rock Note [Member] | January 5, 2019 [Member]
Debt instrument, periodic principal payments including interest			750,000
Hard Rock Note [Member] | January 5, 2020 [Member]
Debt instrument, periodic principal payments including interest			750,000
Hard Rock Note [Member] | April 5, 2019 [Member]
Debt instrument, periodic principal payments including interest			750,000
Hard Rock Note [Member] | April 5, 2020 [Member]
Debt instrument, periodic principal payments including interest			750,000
Hard Rock Note [Member] | July 5, 2019 [Member]
Debt instrument, periodic principal payments including interest			750,000
Hard Rock Note [Member] | July 5, 2020 [Member]
Debt instrument, periodic principal payments including interest			750,000
Hard Rock Note [Member] | October 5, 2019 [Member]
Debt instrument, periodic principal payments including interest			750,000
Hard Rock Note [Member] | October 5, 2020 [Member]
Debt instrument, periodic principal payments including interest			$ 750,000

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-term Debt Instruments (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current portion	$ (4,357,957)	$ (4,578,759)
Long-term debt, net	5,963,508	6,296,994
Real Estate Loans [Member]
Long term debt, Total	3,169,227	4,255,152
Hard Rock Note [Member]
Long term debt, Total	5,250,000	6,000,000
Credit Agreement [Member]
Long term debt, Total	1,438,884
Machinery Loans [Member]
Long term debt, Total	187,840	327,879
Transportation Loans [Member]
Long term debt, Total	$ 275,514	$ 292,722

Total Equity - Summary of Chang

Total Equity - Summary of Changes in Total Equity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Balance	$ 7,410,219
Stock-based compensation expense	181,852	$ 137,017
Net income (loss)	(245,876)	(17,753)
Balance	7,346,195	7,054,628
Common Stock [Member]
Balance	$ 25,018	$ 24,535
Balance, shares	25,018,098	24,535,155
Stock-based compensation expense
Net income (loss)
Balance	$ 25,018	$ 24,535
Balance, shares	25,018,098	24,535,155
Additional Paid-in Capital [Member]
Balance	$ 39,440,611	$ 38,907,864
Stock-based compensation expense	181,852	137,017
Net income (loss)
Balance	39,622,463	39,044,881
Restated Accumulated Deficit [Member]
Balance	(32,055,410)	(31,997,035)
Stock-based compensation expense
Net income (loss)	(245,876)	(17,753)
Balance	(32,301,286)	(32,014,788)
Restated Total Shareholders Equity [Member]
Balance	7,410,219	6,935,364
Stock-based compensation expense	181,852	137,017
Net income (loss)	(245,876)	(17,753)
Balance	$ 7,346,195	$ 7,054,628

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($)	1 Months Ended
	Aug. 31, 2019	Jul. 30, 2019	Jun. 30, 2019
Recorded Current liability			$ 272,000
Remitted for taxes, value		$ 260,262
loss on sale of asset, expected	$ 6,000
Tronco Note [Member]
Payment of note		$ 327,238
Chris Cashion, Chief Financial Officer [Member]
Restricted stock grant during period, shares		125,000
Independent Member One [Member]
Restricted stock grant during period, shares		78,125
Independent Member Two [Member]
Restricted stock grant during period, shares		78,125
Independent Member Three [Member]
Restricted stock grant during period, shares		78,125
Troy and Annette [Member]
Restricted stock grant, during period, value		$ 587,500
Financing Agreement [Member]
Down payment			$ 291,578
Obligated pay, outstanding percentage			1.00%